faqs

Professional advice and guidance should be sought in getting the right Pension Plan for the business, considering factors such as:

1. The level of pension the Company can provide,
2. The costs of operating the Pension Plan
3. The regulatory environment.

Ongoing review of the Pension Plan by Pension professionals is highly recommended to ensure all stakeholders’ needs are met.

National Insurance benefits, Company sponsored pension plans (including voluntary contributions), personal savings, mutual funds and other financial investments, individual pension plans or annuities, endowments, and insurance products with cash values at retirement can all provide you with retirement income.

Conduct a financial assessment of your potential retirement income to date. Determine your financial retirement goal. Plan a realistic way to bridge the gap. Review the plan regularly. 

No amount is too small for starting your pension and to plan now. It is advisable to start a pension plan as soon as possible. Review your budget to reduce unnecessary spending and work with a Financial Planner or Advisor to develop your retirement plan.

Create a budget with the aim of reducing spending and paying down debt so you direct more of your income into investments. Consider working at a reduced pace post-retirement or utilize your talents and hobbies to supplement your retirement income.

Any individual who is employed by a Company that has an occupational Pension Plan.

A key advantage is that the Company makes contributions towards your pension, effectively doubling the amount invested in your pension. Additionally, the Company typically pays any Pension Plan related expenses. You are therefore able to achieve a better pension than if you contribute on your own.

A Pension Plan is a valuable Employee benefit to persons of all ages. Offering a Pension Plan helps the Company to attract and retain the best Employees. Working for a Company that provides a comprehensive suite of benefits gives Employees a level of security that can improve the morale of the workforce and therefore productivity.

You can join a Pension Plan when you meet the eligibility conditions of the Pension Plan, and complete the required documentation to establish participation, authorize payroll deductions and name your Beneficiary or Beneficiaries

Employee additional voluntary contributions are a common feature of the Pension Plan, subject to any limit imposed by legislation or the Pension Plan Trustees. Additional voluntary contributions are not customarily matched by the Company.

 When you cease employment other than at retirement, one of the options under the Pension Plan is to transfer the benefit to another registered occupational Pension Plan or to an individual pension plan or annuity that locks the benefit in for a retirement pension

The Company reserves the right to amend the Pension Plan at any time in the future.  Generally, your pension benefits under the Pension Plan to the date of change cannot be adversely affected by the amendment.

While the Company may have every intention of continuing the Pension Plan, the Company reserves the right to discontinue the Pension Plan at any time in the future. Generally, your pension benefit to the date of discontinuance, cannot be adversely affected by the discontinuation of the Pension Plan.

Any funds not allocated to the Members at the date of discontinuance will first be used to pay the discontinuation expenses. Remaining funds may be distributed among the existing Members or otherwise utilized according to regulations governing the Pension Plan.

The regulatory authority for Pension Plans has the final say in the way the benefits are disbursed.

In this type of Pension Plan, the pension amount is defined by a formula. The formula is usually defined with reference to an Employee’s salaries and years of Pension Plan Membership or length of employment.

The contribution rate of the Member is fixed, and the Company is responsible for the balance of the costs to ensure the Pension Plan is funded according to sound actuarial guidelines. 

The pension benefit accrued under the Pension Plan at a current date and payable at the normal retirement is calculated using the defined benefit formula.

At normal retirement date, the pension is equal to the benefit accrued to the normal retirement date and payable in the normal form of pension under the Pension Plan.

Pension Plans allow you to select the form of pension that best suits your needs, subject however to the legislation governing Pension Plans. Available forms are provided at retirement and can be fully discussed during any retirement counselling requested.

The actual amount of monthly pension you receive varies depending on the FORM OF PENSION chosen.

Normally a pension is payable for your lifetime, with or without a guaranteed period.  If you have a Spouse (married or common-law) at retirement, the pension may further continue on your death to that surviving Spouse, at a selected percent (e.g. 50%, 60% or 100%) for their lifetime. 

If your Spouse is automatically entitled to receive a pension on your death, the Spouse may waive their right to the pension by providing the Trustees with a written waiver executed in a prescribed manner and form.

Contribution rates are Pension Plan specific as they are set by the Company, normally with regard to a target benefit at normal retirement date and/or affordability.

Contribution rates are Pension Plan specific as they are set by the Company, normally with regard to a target benefit at normal retirement date and/or affordability. However, the Company compulsory contribution rate must at least equal that of the Employee compulsory contribution rate.

The Company is also responsible for such amounts needed to cover the costs associated with the operation of the Pension Plan, or such other amounts as are recommended by the Pension Plan’s actuary.

Most Pension Plans make no provision for you to assign, mortgage or otherwise dispose of your interest in the benefits of the Pension Plan.  To the extent provided by law, your benefits are not subject to the claims of your creditors.

Your surviving Spouse, Beneficiary or Estate, as applicable, will receive the balance of any pension payments that are still due.  The “balance due” will depend on the FORM OF PENSION you chose at retirement.

At least the benefit provided by your own contributions with investment earnings will be paid in a lump sum to your named Beneficiary or Estate.  Depending on Pension Plan stipulations and the regulations governing it, there may be an additional lump sum arising from the benefit towards which the Company contributed.

Generally, if you are unable to perform most or all of your employment tasks, other than temporary, as a result of a physical or mental condition, as certified by a licensed medical practitioner appointed by the Company, you may elect to retire on the first day of any month before the normal retirement date and be paid an early retirement pension.

Early, normal and late retirement dates under the Pension Plan are specified by the Company.  Normal and late retirement dates are usually set in accordance with the Company’s employment practice.  Early retirement dates are customarily 10 years prior to the normal retirement date.

You are always entitled to the benefit provided by the contributions you make with investment earnings.  The Pension Plan and legislation will determine if the benefit must be paid as a pension at retirement or may be paid as a lump sum.

There is a vesting schedule that determines when you become entitled to the benefit toward which the Company contributes. The Pension Plan and legislation will determine if the benefit must be paid as a pension at retirement or may be paid as a lump sum.

There is no minimum number of persons required to start a Pension Plan. However, the number must make it economical to operate the Pension Plan. We can provide a proposal specific to your Company to show the approximate costs of operating the Pension Plan.

A minimum consideration as a general rule of thumb is 10.

Normally, you cease to be a Member of a Pension Plan on retirement, death, disability or otherwise leaving the service of the Company. 

Early, normal and late retirement dates under the Pension Plan are specified by the Company.  Normal and late retirement dates are usually set in accordance with the Company’s employment practice.  Early retirement dates are customarily 10 years prior to the normal retirement date.

Most Pension Plans have a Board of Trustees who have a legal and fiduciary responsibility for the Pension Plan. They are tasked with ensuring that the Pension Plan rules, and regulatory requirements are adhered to.  While they often outsource the administrative duties, the Trustees remain responsible for the Pension Plan.

This depends on the legislation governing the Pension Plan. 

In some instances, if you are married, your Spouse is entitled to receive any benefit payable on your death. Your Spouse may elect not to be named Beneficiary by providing the Trustees with a written waiver executed in a specific manner and form.

If the Spouse is not the automatic recipient of the death benefit, you may choose anyone to receive the benefits payable on your death.  You may change your Beneficiary by completing and submitting the required form(s).

Should an event such as marriage, birth or death, affect your choice of Beneficiary, the change of Beneficiary should be made as soon as possible.  This will avoid many of the problems which could arise should you die before making the intended change.

Additional voluntary contributions are designed to increase your pension benefit at retirement. you may commence, increase, decrease or cease to make additional voluntary contributions in accordance with any schedule set out under the Pension Plan.

Within four (4) months following each Plan anniversary, you will receive a statement, which will show the value of any individual contribution accounts with investment earnings held to one’s credit. Additionally, for a defined benefit Pension Plan, the statement will include the pension benefit accrued to the date of the statement and projected to normal retirement date.