Key Points
Monies are deposited into an employee's account. Retirement benefits are a total of the monies deposited and dividend and/or interest accumulated.
Deductions from pay cheques are made by the contractors. In addition, employees have the option to "top up" their accounts.
Transfers are permitted from other RSP or pension acounts that the individual may already have.
Each employee is responsible for his/her own investment decisions. Options for investment of RSP monies include a money market fund, stock market fund, bond fund, and balanced fund, as well as Guaranteed Investment Certificates (GIC) at varying terms. GIC deposits are protected by Canada Deposit Insurance.
The plan is fully portable. Thus, if an employee works for more than one company in a year, deposits can be made to a single account as long as all employers are members of the Merit Contractors Association.
Sessions are held from time to time to explain investment options and retirement planning to employees and their spouses. Reports will be sent to employees and employers on a regular basis concerning performances of the fund, economic information, etc.
Indivual employee participants have immediate vesting rights. Employees wishing to cash out all or portions of their account may simply notify Royal Trust.
