Group Retirement **

Help Your Employees Retire With Peace of Mind

A group retirement plan allows you to assist your employees in building a bright future once they retire. In most cases, both you and your employees contribute to the plan. You are known as the "plan sponsor" while your employees are the "plan members".

There are several different types of group retirement plans. In a Defined Contribution Plan, you set the allowable contribution amounts of your employees. Thus, the pension amount of your employees is unknown and may vary. This is essentially the opposite of a Defined Benefit Plan, where the pension amount is set, while the contributions of your employees is open. This final benefit amount is determined based on the employee's age, salary and tenure. A Deferred Profit Sharing Plan is similar to a Defined Contribution Plan except that your contributions depend on the company's profits. As such, this is a flexible plan that carries less risk for you, the employer.

By far the most common type of retirement plan is the Group RRSP. It works exactly like an individual RRSP, with contributions from your employee deducted from their salaries. Depending on how it is set up, this type of plan can be of lowest cost to you, the plan sponsor. Employers generally contribute to the RRSP (though not necessarily). For example, a dollar-for-dollar option matches your contribution to that of your employee.

FTIC can help you determine the ideal group retirement plan for your company. We'll analyze all the necessary factors and crunch the numbers so you don't have to, giving you the freedom to run your business. Contact us today.

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