Desjardins Financial Security - Group Retirement Plans

Main Features

A group RRSP is a collection of centrally administered single RRSPs into which members make tax-deductible contributions that accumulate in a tax shelter.
The amounts invested in an RRSP are not locked in, which means that they can be withdrawn at any time, except if withdrawals are limited under the contract.
Members decide how much to contribute and make their own investment decisions.
Contributions are deducted directly from members' salaries, thereby providing an immediate tax deduction and a higher long-term return, since every contribution is invested the moment it is received.
Members can contribute to RRSPs on behalf of their spouses.
Members generally benefit from attractive group rates (e.g., lower plan administration fees).

Main Features

In a DCPP, the employer and employee make contributions that are tax deductible and accumulate on a tax-deferred basis.
The plan administrator (in Quebec the administrator is a pension committee) 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The funds accumulated in a DCPP cannot be withdrawn before the member retires and must be used to purchase an annuity or a life Income Funds (LIF).
These plans are generally better suited to employers who are concerned with assisting their employees in building an income for retirement.

Main Features

A Simplified Pension Plan is a special type of Defined Contribution Pension Plan (DCPP) into which both the employer (plan sponsor) and employee contribute.
Employees provide their own investment instructions and have the option of making additional contributions.
Desjardins Financial Security administers the plan to lighten the plan sponsor's workload.
None of the contributions (employer, employee or voluntary) can be withdrawn before retirement.
This way, employers are assured that all amounts saved will be used to produce a retirement income for their employees.

*Product available only in Quebec and Manitoba

Main Features

A Deferred Profit Sharing Plan is a savings plan in which the employer distributes a portion of the company's profits to some or all company employees.
Employees cannot contribute to the plan but they can combine it with other employer-sponsored plans eligible for salary contributions.
Employer contributions are not locked in until retirement, which means that employees can withdraw all or a portion of their contributions after two years' membership in the plan, or sooner if permitted by the employer.
Employees usually make their own investment decisions for the amounts deposited on their behalf.
Deposits and fees are tax deductible as operating costs and, like an RRSP, deposits and investment income are tax sheltered.
This is a very flexible plan for the employer, since it does not involve a permanent financial commitment and the employer does not have to contribute in years in which the business suffers a loss.
The advantage of a DPSP is that it provides an incentive for employees to work towards the goals and success of the company. It is directly linked to a company's profit, and money is put towards employee pensions.

Main Features

In a defined benefit plan, the level of income at retirement is determined in advance using a formula that is usually based on years of service and earnings of the employee.
Generally, members contribute a percentage of their earnings. The employer makes up the difference.
An actuarial valuation is used to establish the contributions needed to guarantee all plan obligations, such as paying the annuities promised to the members when they retire.

Main Features

An IPP is a defined benefit plan for one person. In a defined benefit plan, it is the benefit amount payable at retirement that is determined in advance and not the level of allowable contributions as in the case of an RRSP.
While each case must be looked at individually, an IPP generally allows you to make greater tax-deductible contributions than an RRSP.
This type of plan is particularly suitable for older individuals with high incomes, usually senior managers and shareholders.
Individuals with a number of years of past service with the same employer are particularly suited to an IPP, since the plan can be set up to recognize these years of service.

Main Features

Desjardins Financial Security offers an "investment only" management product for registered pension assets administered by third parties.
It offers corporate clients the investment diversity only available through a multi-manager approach.
Desjardins Financial Security offers an extensive array of high quality investment options for registered plans, all in one contract.