GROUPPLANS EMPLOYEE

GROUPPLANS TOOLS

< BACK

GROUPPLANS - EMPLOYEE
 
Defined Contribution Registered Plans (DCRPPs)

As the name suggests, contributions to DCRPPs are defined in the plan agreement. Under this plan, your employer contributes a fixed percentage of your pay (you may also add to that amount with a fixed contribution as outlined in the plan).

The pension derived from a DCRPP depends on a number of factors, such as: the contribution amounts, investment performance and number of years worked. In a DCRPP, the contributions are defined, but the benefits are not.
DCRPPs: Employee Benefits
Easy to understand. DCRPP contributions are defined, therefore you can see what your current pension benefit is whenever you choose.

Additional RRSP contributions. A DCRPP allows you to make contributions to your RRSP up to the maximum allowable limit. Your contributions and the contributions of your employer in the previous year will reduce your RRSP contribution space for the current year.

Creditor protection. Registered Pension Plan contributions cannot be seized by creditors.

Required employer contributions. Your employer is required to make regular contributions to your plan. It is a serious commitment by your employer to your retirement income.