OSPC: Retirement Income Sources

2. Employer Sponsored Plans

Workplace plans or registered pension plans (RPPs) are pension plans provided by employers for their employees. These plans are an important source of retirement income and supplement public pension plans.

NOTE: Pension plans are called by several different names:
  • pension funds,
  • employer pension plans,
  • workplace pension plans,
  • registered pension plans, or
  • private registered pension plans.

RPPs are usually set up voluntarily by the employer. However they may also be set up by a union. The RPP is a contract under which the employer makes contributions directly to the RPP. Upon retirement, the RPP provides employees with a regular income.

RPP contributions may be made by the employer alone or by employees as well. The contract might also include other benefits, such as death and disability benefits. Generally, pension funds are locked-in, meaning that employees cannot withdraw vested benefits as a lump sum. Benefits must be taken as retirement income.

What Laws Apply to Manitoba RPPs?

Group RRSPs

Rather than set up a workplace pension plan, some employers sponsor group RRSPs. This type of plan provides a tax-assisted way for employees to accumulate additional savings for retirement.

A group RRSP is a contract usually set up voluntarily by the employer or union to help workers contribute to individual RRSPs. It has set conditions about:

  • the opening of accounts,
  • eligible employees,
  • contribution amounts,
  • available investments,
  • terms and conditions, and
  • the withdrawal of invested funds. For example, employees may not be permitted to withdraw funds from their group RRSPs while they are still working for the employer.

What Laws Apply to Group and Individual RRSPs?

Group Registered Retirement Savings Plans (Group RRSPs) and Individual Registered Retirement Savings Plans (RRSPs) are not covered by the act.

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