Pension Plan

Offered as an alternative to the Group RRSP, the Merit Defined Contribution Pension Plan is a new program offered by the Association. The difference between the two is that unlike the RRSP where an employee can withdraw their employer's contributions at any time, the pension plan is "locked in" by provincial legislation. As a result, the pension funds remain in the plan until the employee reaches retirement age. The Pension Plan is administered by Standard Life.

Key points
Employers can contribute to the Pension Plan without requiring employee contributions OR can set a minimum contribution rate for the workers which the company will then match.

The minimum employer contribution is 3% of the employee's earnings. The maximum combined employee and employer contribution is 18% of income.

The Merit Pension Plan is a cash accumulation type plan where the retirement benefit is based on the pension vehicle selected at retirement and the amount of funds accumulated through contributions and investment returns. Standard Life offers a variety of investment options through leading fund managers including nine portfolios of funds designed for varying levels of risk and years to retirement.

For more information contact Merit Manitoba.