Workplace pension plans

Workplace pension plans and personal savings round out the income provided by public plans. For most Quebeckers, they are necessary to maintain their standard of living in retirement.

If you are a member of a workplace pension plan, be sure to learn all about it. You will need that information to start planning for retirement.

Workplace plans include:

  • supplemental pension plans (SPPs)
  • voluntary retirement savings plans (VRSPs)
  • group registered retirement savings plans (group RRSPs)
  • group tax-free savings accounts (group TFSAs)
  • deferred profit-sharing plans (DPSPs)
  • public-sector pension plans (PSPPs).

Which one applies to you?

Supplemental pension plans

Supplemental pension plans go by many names: pension fund, pension plan, registered pension plan, employer plan, etc.

A supplemental pension plan is a plan to which an employer contributes in order to provide member employees with a retirement income. Employees can contribute to the plan if its provisions so allow.

The main types of supplemental pension plans are as follows:

  • Defined contribution plan: With a defined contribution plan, the amount of contributions that must be paid into the pension fund are determined in advance. The amount of your retirement income will depend, in part, on the total sums accumulated in your account. A simplified pension plan (SIPP) is a defined contribution plan.
  • Defined benefit plan: With a defined benefit plan, the amount of the pension you will be paid in retirement is set in advance. It is usually a percentage of your salary multiplied by your years of service.

Voluntary retirement savings plans

The Voluntary retirement savings plans (VRSPs) are group savings plans offered by employers and administered by authorized administrators. VRSPs are mainly for employees who do not have access to an employer-sponsored group retirement savings plan. Employees must be 18 or over and have at least one year of uninterrupted service, as defined in the Act respecting labour standards.

Self-employed workers and any other interested parties can also take advantage of VRSPs by contacting an authorized administrator.

Group registered retirement savings plans

Group registered retirement savings plans (group RRSPs) is like a collection of individual RRSPs to which contributions are generally made through payroll deductions. Its purpose is to facilitate contributions to individual RRSPs.

For more information about group RRSPs, contact the Canada Revenue Agency This link will open in a new window..

Group tax-free savings accounts

Contributions paid into a Group tax-free savings accounts (group TFSAs) are not tax deductible. However, investment income and withdrawals are tax-free.

Anyone age 18 or over can contribute to a TFSA. There is no maximum age limit or minimum income requirement. Withdrawals can be made at any time.

For more information about group TFSAs, contact the Canada Revenue Agency This link will open in a new window..

Deferred profit-sharing plan

A deferred profit-sharing plan (DPSP) is plan by which employers can share a portion of the company's profits with employees.

Consult your statement of benefits under your plan. It is an essential tool for planning your retirement.

Public-sector pension plans

There are many different types of Public-sector pension plans (PSPPs), the most common of which is the Government and Public Employees Retirement Plan (RREGOP). PSPPs are group defined benefit retirement savings plans for employees in the Québec public and parapublic sectors (public service, education, health and social services sector). These pension plans are administered by Retraite Québec.

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