| Registered Pension plan is a form of a trust that | | | | is to provide pension for life, it is to be a definite |
| provides pension benefits for an employee of a | | | | arrangement established as a continuing policy.b) |
| company upon retirement. RPPs are registered | | | | The pension plan is consider for employees |
| with the government. The employee and | | | | retirement benefits only. It cant not have loan |
| employer, or just the employer make | | | | privileges, nor be treated as a savings vehicle.c) |
| contributions to this retirement plan until the | | | | The employer must make contributions each year |
| employee leaves the company or retires. | | | | for future service benefits representing each |
| Contributions to an RPP are tax deductible for | | | | year's current obligations. The required amount |
| both the employee and the employer. | | | | may vary, but for tax purposes each year |
| Contributions to the plan and gains on underlying | | | | requires employer contribution.d) Employer |
| assets are tax deferred, so the funds are taxed | | | | contributions are irrevocable, with only surplus |
| when they are withdrawn from the plan. In this | | | | employer contributions being returned in the event |
| article, we will discuss why necessary for pension | | | | of a pension wind up. Any contributions released |
| plan to be registered. | | | | by the termination of an employee prior to |
| In fact, all pension plans are required to register | | | | vesting of 2 years may be used as an employer |
| with federal government for tax deferral. That | | | | contribution credit.e) The plan must provide a |
| means employer and employee contributions as | | | | definite formula for pension benefits for returned |
| well as revenues generated by the contributions | | | | employees.f) Prior service benefits may be |
| are tax deferred until received at pension, at | | | | provided under the plan.g) The pension plan must |
| which time they are fully taxable. | | | | be provided by the employer for the benefit of |
| Here are the rules for registration:a) Terms of the | | | | employees who have provided service to the |
| pension plan must be set out in writing and be | | | | company. |
| communicated to all concerned. Since its purpose | | | | I hope this information will help. |