REGISTERED PENSION PLAN (RPP) Policy No. 35169
Managed by Group Retirement Services (GRS),
a division of Canada Life Assurance Company
GRS ACCESS LINE: 1-800-724-3402
Our Registered Pension Plan (RPP) is a separate policy from the Canada Life benefits. Therefore, you must ensure that the appropriate documentation is completed for any pension changes. Please contact your Benefit Representative for the applicable documents. All originals are forwarded directly to the Benefit Administration Office for processing & record maintenance.
Defined Contribution Plan
The Archdiocese of Vancouver, in association with Canada Life, provides a Defined Contribution Plan for our employees. A Defined Contribution Plan (also known as a money purchase plan) is like a Group RRSP. The employer and employee contribute to an account in the employee’s name (based on a percentage of the employee’s income) and the employee is responsible for making investment decisions with respect to their own portion of the contributions, choosing from the investment funds available within the Archdiocese of Vancouver, RPP plan.
While the value or percent of income going into a plan is known; the final benefit is not known. Retirement income from the plan is based on the total value of the accumulated employee/employer contributions and the investment income earned by the time the employee retires. The value of the plan will vary, depending on years of investment, market performance and the selected investments.
When an employee leaves the company or retires, the benefit from the plan is the balance in the employee’s account, providing that funds are fully vested.
Eligibility
If you are a permanent full-time or part-time employee, working a minimum 20-hour workweek, you may join the Registered Pension Plan (RPP) as of your first day of employment. For those individuals who are required to satisfy a probation period, you may join the RPP on the first day after you satisfy your probation period.
If you are a permanent part-time employee working less than 20 hours a week, you may join the RPP on the first day after you complete two years of continuous employment with your employer, provided you have earned 35% of the Year’s Maximum Pensionable Earnings (YMPE) in each of the two consecutive years.
The following eligible Benefit Classes allow for participation in the RPP:
- Benefit Class 1: Permanent Employees
- Benefit Class 2: One Year – Contract
- Benefit Class 4: Priests (Prince George and Kamloops only)
- Benefit Class 100: Pension only
Deciding to Join
Joining the RPP is not a condition of employment. However, you cannot opt-out once you join the pension plan. Please make an informed decision.
As a prospective employee and/or an existing employee wanting to join our RPP, the RCAV provides some tools to assist you with your decision. Within the RCAV Benefit Plan portion of our website, please refer to the following sections for an overview of our pension plan:
Eligibility
The details of your pension plan are subject to your employment contract. Employers from Saskatchewan and Whitehorse are not eligible.
Contribution Levels
Contribution levels are based on the following percentages of gross annual earnings:
- 3% – new or existing employees
- 7% – new or existing employees
- 8% – employees in their 15th year of service
- 9% – employees in their 20th year of service
You would contribute to the plan by payroll deduction of an amount as indicated above.
Contribution Maximum
The total of all employer and employee contributions (including Voluntary RPP contributions) to an RPP are limited to the lesser of the current year’s contribution limit (as set by Revenue Canada) and 18% of the employee’s pensionable earnings for the year.
Example:
- Employee earns $71,407 per calendar year
- Employee contributes to the RPP at 7% which is matched by the Employer
- Therefore, total contributions to the RPP are 14% = $9,996.98 ($71,407 x 14% = $9,996.98)
- Employee is allowed to contribute 18% of their annual gross earnings
- $71,407 x 18% = $12,853.26
- $12,853.26 is the maximum the employee can contribute to the RPP for the tax year 2017
- $2,856.28 ($12,853.26 – $9,996.98 = $2,856.28) is the most that the employee could contribute to their Voluntary RPP to maximize their pensionable contributions.
As illustrated, the employee’s contributions are less than the annual contribution limit set by Revenue Canada. 18% of the employee’s pensionable earnings for the year is the most that the employee may contribute.