Comparison of Group Plans

COMPARISON OF GROUP PLANS
CRITERIA FOR COMPARISON	DEFINED CONTRIBUTION PENSION PLAN	GROUP RRSP	DEFERRED PROFIT SHARING PLAN
TAXATION	Employer and employee contributions are deductible and earnings are tax sheltered. Benefits are taxable upon distribution.	Employee contributions are deductible and earnings are tax-sheltered. Employer contributions can be made either directly and included as taxable benefit in income, the employee has offsetting deductions, or indirectly by increasing employee's salary and deducting corresponding contributions on a pre-tax basis from gross earnings. Benefits are taxable upon distribution.	Employer contributions are deductible and accrued earnings are tax-sheltered. Benefits are taxable to the employee as they are distributed.
TAXATION	Pension Adjustment (PA) calculations are required. Pas are the sum of employer and employee contributions to the plan in the year.	Up to $2,000 excess contributions permitted before 1% penalty tax is levied, and no pensions adjustment calculation is required.	Pension Adjustment calculations are required which is the amount of employer contributions to the plan plus any forfeitures allocated to employee.
REGISTRATION REQUIREMENTS	Plan must be registered with Revenue Canada, Taxation and the applicable pension authority.	Plan is registered with Revenue Canada, Taxation only.	Plan must be registered with Revenue Canada, Taxation.
	The Pension Commission also has the right to revoke registration if the plan does not comply with pension legislation	Contributions are allocated to employees and vest immediately.	Revenue Canada, Taxation, may revoke registration if employer contributes in excess of allowable limits or does not comply with Revenue Canada legislation.
	Revenue Canada, Taxation, may revoke registration if employer contributes in excess of allowable limits.
ELIGIBILITY FOR PLAN MEMBERSHIP	Full-time employees must be eligible after 2 years of service.	No restrictions.	Not eligible to participate if (I) related to employer; (ii) is a specified shareholder of employer; (iii) or is related to specified shareholder of employer or related company.
ELIGIBILITY FOR PLAN MEMBERSHIP	Part-time employees must be eligible after 2 years of service in which certain earning levels are achieved or a minimum number of hours are worked.	No restrictions.
VESTING / LOCKED-IN	Vesting and locking-in of benefits usually occurs after 2 years of plan membership. (varies from province to province.)	Contributions are vested immediately.	Employer contributions must vest after 2 years of plan membership.
VESTING / LOCKED-IN	Commuted value of accrued benefit may be transferred to another vehicle on a locked-in basis	Contributions can normally be withdrawn at any time, but the plan may be designed to provide for restrictions during employment.	The plan can either permit employees to withdraw all or a portion of their vested benefit while continuing in employment, or employees can be prohibited from making a withdrawal until termination of employment or retirement.
PAYMENT OPTIONS AVAILABLE	Purchase of Life Annuity.	Cash Refund	Cash refund in lump-sum form or payable by installment over a period of 10 years.
	Transfer to locked-in RRSP/LIRA	Purchase of Life or Term Annuity.	Purchase of Life or Term Annuity.
	Transfer to another RPP if permitted by the receiving plan.	Transfer to an individual RRSP.	Transfer to RRSP, DPSP or Registered Pension Plan.
	Cash refund in or transfer to non-locked-in RRSP in limited circumstances.	RRIF.	RRIF.
	Life Income Fund	Transfer to a Registered Pension Plan.
	Locked-in Retirement Income Fund	Transfer to a Registered Pension Plan.