5160 Explorer Dr, Suite 11, Mississauga ON L4W 4T7

(289) 724-0013

Retirement Plans

Retirement Plans

Defined Benefit Pension Plans (DB)

Type of pension plan in which promises a monthly income on retirement that is based on the employee’s earnings history, service and age.

Individual Pension Plan (IPP)

A Defined Benefit Pension Plan which has 3 or less members.  Usually set up for executives, professionals and business owners

Supplementary Executive Retirement Plans (SERP)

A non-registered retirement plan setup for key executives / employees, owners, professionals.  SERPs provide benefits in excess benefits that are capped in a registered pension plan due to legsilation, i.e. Income Tax Act (Canada). SERPs are setup to ensure that key employees to remove the impact of the legislative cap on retirement income and/or to maintain the key employees current standards of living in retirement.

Capital Accumulation Plans (CAP)

A registered (tax deferred) plan that allows members to make tax-deductible contributions to a tax-deferred account in which at least two investment options offered within the plan.   The account balance grows with investment income and future contributions.  The employees retirement benefit is the account balance at retirement.

Other Retirement Plans

Post-Retirement Non-Pension Benefits Plan (PRBP)

Benefits, other than pension benefits, paid to former employees during their retirement years. Most post-retirement benefits include life insurance and extended health (hospital, prescription drugs, dental, paramedicals, vision, out of country travel).

Although the plan can be fully employer-paid, cost-sharing is achieved through co-insurance, deductibles and member annual premiums.

Post-Employment Benefit Plans (PEBP)

Benefits that are available / paid to former employees after termination but on or before retirement, i.e. sick leave benefit plans that accrue / bank sick days that can be paid out at termination or retirement.