Janea Bellay

Through many insurance companies, I can offer you group retirement plan solutions to suit the needs of every organization. Some of the services available are an array of investment options, an interactive website, extremely qualified group retirement staff and various tools designed for our plan members.

Money-Accumulation Plans

Accumulation plans are plans in which the level of retirement income is not known in advance. It will depend on the level of contributions made to the plan and the return on those contributions.

There are 4 main types of money-accumulation plans:

• Group RRSP
• Defined Contribution Pension Plan
• Simplified Pension Plan (SPP)
• Deferred Profit Sharing Plan (DPSP)

Group RRSP

A group RRSP is a collection of centrally administered RRSPs that offer members attractive group rates. The member makes tax-deductible contributions that accumulate in a tax-sheltered fund. The amounts invested in an RRSP are not locked in, which means they can be withdrawn at any time. In addition, members make their own investment decisions. Contributions are deducted directly from member salaries, thereby providing an immediate tax deduction and a higher long-term return, since every contribution is invested the moment it is received.

The advantages of a Group RRSP:

• Members decide for themselves how much to contribute. There is no minimum investment requirement or limit on interfund transfers.
• Lump sum contributions and transfers from other plans, including locked-in funds, are permitted.
• Members can contribute to RRSPs in their spouses’ names.
• Members benefit from a wide variety of Investment Options and fund manager investment strategies.
• Members have access to a complete range of Services to assist them in developing a retirement plan and monitoring its progress.

Defined Contribution Pension Plan (DCPP)

In a DCPP, the employer and employee make contributions that are tax deductible and accumulate on a tax-deferred basis. The administrator of the plan is required to offer a wide variety of investment funds to make the retirement fund grow. In most cases, members provide their own investment instructions for the amounts contributed on their behalf. The funds accumulated in a DCPP cannot be withdrawn before the member retires and must be used to purchase an annuity.

These plans are generally better suited to employers who are concerned with assisting their employees in building an income for retirement.

The advantages of a DCPP:

The insurance company will simplify plan administration by providing:

• Expert advice on plan design and on establishing an investment policy, where applicable;
• All documentation as required by law;
• Information meetings with the plan sponsor and plan members;
• A wide variety of Investment Options and fund manager investment strategies;
• A complete range of Services to assist members in developing a retirement plan and monitoring its progress.