About the Program
Low investment fees of 1% for all employees (no other costs). The total plan cost to employees is one half or less than the cost an individual employee would typically be required to pay in fees to participate in a registered retirement plan or group RRSP.
Different ways for employees to save
- Dealer and Employee Contributions – the Plan is very flexible
- Dealer Principals decide contribution rates which are right for their dealerships
- Employees decide whether they want to participate, how much extra they may want to contribute, and where to invest their employer and employee contributions
- The Pension Plan is a registered defined contribution pension plan and meets the regulatory requirements for pension plans across Canada
- Other retirement and savings product are available to Dealers and employees once the Dealer participates in the Pension Plan
| Features | DCPP |
|---|---|
| Allows employees to have instant ownership rights to their contributions | ✔ |
| Employer can adjust company contribution when an employee adjusts theirs | ✔ |
| Employees can lock in your funds until time of retirement | ✔ |
| Employees can make contributions to employees’ plans | ✔ |
| Give your employees a way to save specifically for retirement | ✔ |
- Employee may contribute through regular payroll deductions
- Lump sum contributions permitted directly through Desjardins
- Transfers-in from other savings plans permitted
- Spousal RRSPs permitted
- Funds can be used for Home-Buyers or Lifelong Learning Plans
| Features | RRSP | TFSA |
|---|---|---|
| Allows employees to have instant ownership rights to their contributions | ✔ | ✔ |
| Employees can make contributions to employees’ plans | ✔ | ✔ |
| Give your employees a way to save specifically for retirement |
- Broad array of investments suited to both hands-on and hands-off employee investors with superior, cost effective performance
- Can be used to convert both pension plan and RRSP savings to retirement income
- Transfers-in from other savings plans permitted
- Same investment options as pension plan and RRSP
- Same low fees as pension plan and RRSP
- Desjardins representatives can assist
- By aggregating resources and effort across Ford dealers and their affiliates, employees can benefit from lower costs, better plan features and superior services compared to what they can likely achieve on their own.
| Payout Plans | LIF | RRIF |
|---|---|---|
| Investment income isn’t taxed until withdrawn More flexible than an annuity, which requires regular, fixed withdrawal amounts |  | |
| Investment income isn’t taxed until withdrawn | | |
| Money grows tax-free until withdrawn | | |
| When holder dies, money goes to beneficiary | | |
| No maximum withdrawal limit, but Canada Revenue Agency sets a minimum | | |
| Guaranteed lifetime income | |