The purpose of the retirement plan is to help employees save for their retirement and provide for a portion of the Retirement Income. Contributions made by the employee to the Registered Retirement Plan (RRSP) are tax deductible. Employee and employer contributions grow tax deferred in the plan until withdrawn.
The Summary below outlines the basic details of your retirement plan and the benefits available to you. This summary is not a legal document and should not be construed as legal advice, but has been provided as an aid to the employees. The detailed provisions of the plan outlined in your member booklet and Plan Text shall take precedence in the case of conflicting or inconsistent information.
If you have already enrolled for the plan, click here to access the GRS secure website and log on to your personal account portfolio. You can also reach a representative toll free at 1-800-724-3402.
Enrolment in the plan
Eligibility to join the plan
On the 1st day of the week after completing 1 year of service
How much does the employee contribute?
Employee makes a basic contribution to the RRSP or a non-registered account when the maximum RSP contribution limit has been reached. This is equal to 2%, 3%, 4%, 5% or 6% of earnings.
How much does Kuntz Electroplating contribute?
Kuntz will contribute to the Kuntz Deferred Profit Sharing Plan an amount equal to:
- Employees up to 15 years of service - 50% of employee’s basic contribution
- 15 years but less than 20 years of service - 75% of employee’s basic contribution
- 20 years of service or more - 100% of employee’s basic contribution
Does Kuntz Electroplating make any other contributions?
Kuntz may choose to contribute a lump sum amount to the Pride Profit Sharing Profits if profits warrant after determining after-tax profits for the previous fiscal year. This amount can differ from year to year and is not guaranteed.
Are withdrawals of employee contributions restricted?
Yes, basic contributions are restricted from withdrawal while employed with Kuntz Electroplating Inc. (some exceptions apply which are detailed in the member booklet)
Are additional voluntary contributions allowed?
Yes, and employee is responsible to be aware of the maximum CRA contribution limits as explained below.
Are Voluntary Contributions Restricted from Withdrawal?
Voluntary contributions are not restricted, but keep in mind, the purpose of this plan is to save for retirement. Withdrawals will be subject to income tax at your marginal tax rate or you may transfer to another RRSP tax free.
What are the fees to withdraw per calendar year?
One free withdrawal/transfer out per calendar year. $50.00 fee thereafter paid by the employee to Great West Group Retirement Services.
Contribution Limits for Employee
Contributions to this RRSP or any other Personal RSP or spousal are subject to maximum limits stipulated in the income tax act and are based on the lesser of: 18% of your previous year’s income (less any pension adjustments) and the maximum limit established by CRA each year. This information is provided to you on a “Notice of Assessment” sent by CRA after completing your tax return. You cannot hold Kuntz responsible to know these limits.
Contribution Limits for Employer
Contributions made by Kuntz to the DPSP are also subject to maximum limits established by the income tax act and when these limits are reached, any excess over the DPSP limit will be contributed to your RSP and any overflow if the RSP maximum is reached will be credited to a non registered account on your behalf.
Vesting
Vesting is the period of time after which the employee will own the Employer Contributions. Vesting in the KEI Plan is 2yrs of continuous plan membership.
Investment decision
Employee makes the investment decision for all contributions, both employee and employer and is responsible for the risk on the investments he/she has chosen.
Default instruction
If no investment instructions are provided, contributions will be credited to the Cadence Funds which is a diversified portfolio and managed to reduce equity exposure as employee gets closer to normal retirement age. More detailed information is provided in your enrolment guide.
Normal retirement age
Latest retirement age
December 31st of the calendar year of your 69th birthday or at such a time as required under the applicable legislation.
Retirement benefit
Kuntz cannot guarantee the income you receive during your retirement. Your retirement income will be based on the accumulated value of your contributions, the employer contributions and any investment income earned over the life of your individual plan. It will also depend on the retirement income option you choose at that time.
Death benefit before retirement
A benefit based on the accumulated value of your individual plan consisting of your contributions and employer contributions shall be payable to a designated beneficiary or your estate if a beneficiary is not designated.
Investment Changes
You can make investment changes to your plan at any time via the GRS secure website at www.grsaccess.com or by calling their call centre toll free at 1-800-724-3402 or by completing a paper based change form.
Statements
Mailed quarterly to your home or you can print them at any time from the GRS website mentioned above.
Investment Management Fees
Refer to the listing of funds and corresponding fees in your Member’s Guide or by accessing the GRS website.
Applicable guaranteed investment rate
Established rate is enhanced by .320 on the available terms for your plan which are 1-year, 3-year and 5-year. The GRS website provides you with the current rates with the bonus included.
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