Benefit Pension Plans

Puhl Employee Benefits offers advice on Benefit Pension Plans for employees in Calgary, Canada 

Benefit Pension Plans are employee retirement plans that are sponsored by the employer. The employee benefits are calculated based on factors such as their salary over the years of service and duration of their employment.

The company they work for is responsible for handling the portfolio management and investment risk for these pension plans. The employees are restricted from withdrawing funds from the plan as long as they work for the company as long as they remain in service.

Advantages of Benefit Pension Plans

A benefit pension plan complements the public plans and provides a retirement income that is over and above what you will get from the public plans.

These pension plans are a part of the benefits provided by an employer to their employees. It gives the employee the financial security they need post-retirement.

The employer stands to benefit as well as these plans are a type of deferred payment to be made to the employees, which is good for their cash flow. Also, offering these plans allows the employer to attract the best and the most competent employees.

Here’s a look at the Key Features of the Benefits Pension Plans 

#1: Offers the financial security you need for your retirement.

#2: Any contributions made to this plan by the employer are tax deductible.

#3: The contributions made by employers will not lead to any additional payroll taxes. Such contributions are not factored into the computation of the contributions made out to other programs such as the Fonds des services de santé, employment insurance and so on.

#4: Any contribution made by the employer is vested to the employee that holds the plan as soon as their membership is registered.

#5: All investment incomes that are generated on the contributions made to the plan are tax exempt.

#6: In case the employee was to pass away during the term of the plan, their spouse would receive the pension or the benefits from the plan. If the employee does not have a spouse, the benefits are paid out to their heirs or to a designated beneficiary.

#7: Any benefits accumulated in this plan are sacrosanct – they cannot be seized. There are however a few exceptions to this rule. The benefits can be seized to pay for child support or alimony in case of a divorce.

#8: The employer has no right to the funds accumulated in these plans. They cannot seize the benefits even if their business was to go bankrupt. This benefit pension plan belongs to the employee and not to the employer.

Your Next Step

Puhl Employee Benefits offers high-quality financial advice on employee benefits and insurance in Calgary. We have a team of certified, experienced advisors working for us and have partnered with every major insurance and fund company in Canada. We’re fully committed to offering you all the help and advice you need on Benefit Pension Plans.

If you have any questions or concerns, all you need to do is to pick up the phone and call us on this Toll Free number: 1(888) 508-0077 or fill up this contact form. Our representatives will get back to you as soon as possible. You could also walk into our office at 209, 2577 Bridlecrest Way SW, Calgary, Alberta.