Group Compensation, Pension Plans and Group RRSPs
Schuster Boyd McDonald designs and manages some of Northern Ontario's largest Pension and Group RRSP plans. We are committed to educating our clients and providing exhaustive retirement and estate planning solutions.
Executive compensation is an agency contract between the organization and its employee that attempts to align the interests of the organization and employee by basing the employee's compensation (bonus, salary, benefits, memberships, etc.) on one or more measures of the manager's effort in operating the organization.
Group Registered Retirement Savings Plans (Group RRSPs)
We can implement an employer-sponsored savings program, approved by the Canada Customs & Revenue Agency that permits tax deferred savings for retirement purposes. Contributions to a RRSP are tax deductible, and earnings on contributions are sheltered from taxes until they are withdrawn. Employers may wish to enhance the value they provide to employees by offering a Group RRSP in addition to, or in the place of a Group Pension Plan.
Defined Contribution Registered Pension Plans (RPPs)
We can design a private pension plan, usually established by an employer on behalf of its employees to provide for their retirement years. With a defined contribution plan, the amount of the employer and employee contributions is fixed while the savings are accumulating. The actual value of the pension is not known until retirement. Studies have shown that employees typically view a pension plan as a valuable component of their overall compensation.
Non-registered Savings Plans (NRSPs)
We can design a savings plan that an employer may establish where employee and/or employer contributions are made on an after-tax basis. This type of plan may be attractive to employers who want to offer another savings vehicle to members who have reached their limit for registered investments.
Tax Free Savings Accounts (TFSAs)
With the advent of TFSAs, we can now establish group plans where employee and / or employer contributions are made on an after-tax basis, but the growth or interest on the account does not attract taxes.