A Defined Benefit Registered Pension Plan (DB-RPP) is an arrangement to provide specific benefits at retirement, based on years of service and earnings.
>> Sponsors select the pension level and decide whether employee contributions are required or not.
>> Contributions and plan administration expenses payable and paid by the sponsor are tax deductible.
>> Employer contributions are not subject to payroll taxes.
>> Flexible retirement program ĘC better suited to provide early retirement benefits and other ancillary benefits.
>> Members receive a formal promise of a specific pension at retirement.
>> Retirement income determined by an established formula based on years of service and income.
>> By naming a beneficiary, any death benefit is paid directly to the beneficiary with no need for probate.
>> Creditor-proof ĘC to the extent provided for under applicable legislation, pension plan contributions and benefits cannot be seized by creditors.