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Bâtirente pension plans
Group Membership
These plans are established by unions, and employer and employee contributions are determined through collective agreements.
- The goal of these group retirement plans is to accumulate capital in each member’s account so as to provide them with retirement benefits.
- Retirement income levels depend on the importance of accumulated capital. Accrued capital is determined by employee and employer contributions, withdrawals made during working years (when allowed), and financial returns obtained.
- Employee and employer contributions are usually not subject to payroll taxes and accruing investment returns are tax-sheltered.
- The conditions associated with these plans, such as employee and employer contribution levels, are established through collective agreements.
- Each plan member chooses which investment vehicle or vehicles they wish to allocate their contributions or accrued savings to.
Simplified Retirement Plan (SRP)
Employer Contribution:
Minimum contribution of 1 percent of salary
Locked-in until retirement
Compared to group RRSP, allows employer contribution to be increased by more or less 15 percent without incurring extra cost
Immediate vesting of employer contributions
Employee Contribution:
No minimum contribution
Mandatory contributions fully, partially or non locked-in, according to agreement between parties
Voluntary contributions not locked-in
Non locked-in contributions eligible for Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP)
Upon Retirement:
Retirement possible from age 55
Transfer of locked-in portion of accrued capital to LIF and/or life annuity
Eligibility:
All eligible members of CSN labour unions whose collective agreements cover the retirement plan
Simplified Pension Plan (SIPP)
Similar to SRPs with a few variations
Reserved to enterprises under federal jurisdiction
Eligibility:
All eligible members of CSN labour unions whose collective agreements cover the retirement plan
Group RRSP
Employer Contribution:
Employer contribution as a negotiated pay supplement
Contributions subject to fringe benefits: QPP, CSST, RQAP, FSSQ, UIC, etc. (surcharge of ± 15 percent)
Immediate vesting of employer contributions
Employee Contribution:
Mandatory contributions and voluntary contributions
Contributions subject to QPP, CSST, RQAP and UIC (surcharge of ± 7 percent)
Locking-in of mandatory contributions if group decides to do so
Non locking-in of voluntary contributions and of sums transferred from other RRSPs
Non locked-in contributions eligible for Home Buyers’ Plan (HBP) and Lifelong Learning Plan (LLP)
Upon Retirement:
Transfer of accrued capital to RRIF and/or life annuity
Eligibility:
All eligible members of CSN labour unions whose collective agreements establish the plan as their retirement plan
Deferred Profit-Sharing Plan (DPSP)
Employer Contribution:
No minimum
Paid out of enterprise profits
Non locked-in
Employer avoids paying fringe benefits on contributions made to the plan
Employee Contribution:
No employee contribution possible; must be combined with a group RRSP to accept employee contributions
Vesting of employer contributions: maximum delay of 2 years membership in plan
Upon Retirement:
Transfer of accrued capital to RIFF and/or life annuity
Eligibility:
All eligible members of CSN labour unions whose collective agreements establish the plan as their retirement plan
Co-op RRSP
Receives preferred shares eligible to the Co-operative Investment Plan (CIP) issued by worker co-operatives or worker shareholder co-operatives
Provides for transfer of preferred shares to retirement savings and for tax deductions
Share liquidity depends on redemption rules established by co-operatives
Upon Retirement:
Transfer of redeemed shares to group RRSP while transfer of accrued capital to RRIF and/or life annuity possible
Eligibility:
All eligible members of CSN labour unions representing the members of worker co-operatives or of worker shareholder co-operatives whose collective agreements cover such a retirement plan
All members of worker co-operatives or of worker shareholder co-operatives having signed agreements with Bâtirente
Individual Membership
These plans are established by labour unions wishing to encourage their members to accrue savings. All CSN members, as well as their spouses, are entitled to join these plans, even if no plan was established by their local labour unions. No employer contribution is made to these plans and enrolment is voluntary.
Auxiliary Capital Accumulation Plan
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These retirement plans are called “auxiliary” since they complete capital accumulation plans receiving employee and employer contributions. These plans allow capital to accrue in participants’ individual accounts.
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Their purpose is to provide retirement income or to help savings grow, while remaining fully accessible.
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Depending on the tax system, some plans provide for contributions not to be subject to payroll taxes and, in most cases, investment income is tax sheltered.
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Each plan member decides which investment vehicle or vehicles their contributions or their accrued savings are allocated to.
Group RRSP
Receives voluntary contributions
Contributions are tax deductible within established fiscal limits
Investment income is tax sheltered
Eligible for HBP and LLP
Upon Retirement:
Transfer of accrued capital to RRIF and/or life annuity
Eligibility:
All members of CSN labour unions and their spouses
Locked-in Retirement Account (LIRA)
Receives locked-in sums transferred from supplemental pension plans
Investment income is tax sheltered
Upon Retirement:
Transfer of accrued capital to LIF and/or life annuity
Eligibility:
All members of CSN labour unions and their spouses
Locked-in RRSP
Receives sums from supplemental pension plans under federal jurisdiction or under the jurisdiction of other provinces
Investment income is tax sheltered
Upon Retirement:
Transfer of accrued capital to RRIF, LIF and/or life annuity
Eligibility:
All members of CSN labour unions and their spouses
Tax-Free Saving Account (TFSA)
Receives voluntary contributions
Maximum yearly contributions of $5,000
Unused contributions may be carried forward from year to year
Investment income is tax sheltered
Contributions are not tax deductible and withdrawals are not taxable
Accrued savings may be used for short-term projects or as supplement to registered retirement savings
Recommended for individuals who have no RRSP contribution room left
Eligibility:
All members of CSN labour unions and their spouses
Non-Registered Savings Plan (NRSP)
Receives voluntary contributions
Contributions are not tax deductible and investment income is taxable
Recommended for individuals who have no RRSP and TFSA contribution room left
Eligibility:
All members of CSN labour unions and their spouses
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These plans provide for retirement income to be drawn from savings accrued in capital accumulation plans or auxiliary accumulation plans that allow it
Registered Retirement Income Fund (RRIF)
Prescribed for savings accrued in RRSPs or in DPSPs, or for non locked-in savings accrued in SRPs or SIPPs
Allows registered investments to grow in a tax shelter while receiving needed retirement income levels
Withdrawals must be made according to minimum annual amounts established by the Canada Revenue Agency
Benefits are taxable
Eligibility:
All members of CSN labour unions and their spouses
Life Income Fund (LIF)
Prescribed for savings accrued in SRPs, SIPPs or LIRAs, or any other supplemental pension plans
Allows registered investments to grow in a tax shelter while receiving needed retirement income levels
Benefits must meet yearly minimum and maximum amounts determined by the Canada Revenue Agency and the Régie des Rentes du Québec (or its federal or provincial equivalent)
Benefits are taxable
Eligibility:
All members of CSN labour unions and their spouses