At RPP Benefits we are here to help you navigate through the complexities of selecting the right group benefits plan, components and options. What are you needs, what kind or corporate environment are you seeking to create, enhance, or preserve? Are your staff predominantly young and single, starting families, or slightly older and concerned with retirement benefits? Have you given thought to issues like the ease of administering the plan and its ease of accessibility?
A pension plan is a compelling benefit that enhances the partnership between employers and employees. For the employer, having a plan can make it easier to attract and keep competent employees. For the employees, it is a form of deferred pay appreciated by employees. Without a pension plan, many employees will have little or no financial security after retirement. RPP can help you gain a deeper insight into utilizing either type of pension plan as another business tool.
RPP Benefits Inc. has 25 plus years of experience providing innovative benefits solutions for a broad range of companies. Coupled with the industry’s most up to date best practices and our unique Benefits Blue PrintTM process, we help you effectively navigate legislative requirements and go about setting up a tailored pension plan. We will work with you and provide the assistance you need to succeed.
The information provided here is very general and should be viewed as one of many tools to help you decide on the right plan. Pension legislation differs by province, and for some employers, Provincial legislation will be overridden by Federal legislation. RPP Benefits can provide you and your HR team assistance from a professional familiar with Pension legislation. We can help you navigate the subtle differences and nuances that different regional legislations impart on the day to day administration of your company’s group benefits plan.
RPP benefits Inc. will work with you and provide the assistance you need to succeed.Taking advantage of our professional expertise and services from the planning, through plan design, and on to long-term administration adds a level of knowledge and experience that most companies just can’t afford to have in-house.
Both RRSPs and Registered Pension plans offer tax advantages:
Contributions made to a pension plan or RRSP are tax deductible.
Employer contributions do not result in additional payroll taxes since they are not included in the calculation to determine contributions to other programs, such as employment insurance or CPP/QPP.
Employee contributions can trigger an immediate tax deduction at source each pay period.
Investment income generated by the invested contributions are tax exempt inside the plan.
The benefits accumulated in a plan cannot generally be seized by creditors.
With either plan, the implementation should only occur when your business enjoys a strong and stable cash flow, as this is a serious long-term commitment.
For smaller employers, a well-structured Group RRSP may be a more suitable and flexible solution. A Group RRSP is by far the first choice for many small business owners, as it is not subject to pension legislation, and is easier to modify, suspend or wind down should unforeseen cash flow problems occur.
If you, as a business owner, wish to ensure the plan contributions are used for the sole purpose of funding a pension, then you must set up a Group Pension Plan. A Registered Pension Plan offers the strongest guarantee that the funds will be used only for retirement.