Retirement regime
Important questions regarding the Group Retirement Plan (RRSP)
The RRSP plan: in force as of June 1st, 2009
Since June 1st, 2009, a Group Retirement Plan is in effect for all employees working in the cleaning industry.
WHO COVERS THE RRSP CONTRIBUTIONS?
Based on the plan, all contributions towards the group RRSP of an employee, are made directly by the employer.
HOW IS THE CONTRIBUTION CALCULATED?
The RRSP contribution is calculated according to the number of hours paid to the employee. Listed below are the contribution rates since the beginning of the plan:
- As of June 1st 2009: $0.05 per paid hour
- As of June 1st 2010: $0.10 per paid hour
- As of November 9th, 2011: $0.15 per paid hour
- As of November 9th, 2012: $0.20 per paid hour
- As of November 9th, 2013: $0.25 per paid hour
- As of November 9th, 2014: $0.30 per paid hour
- As of November 9th, 2015: $0.35 per paid hour
- As of November 9th, 2016: $0.40 per paid hour
- As of November 9th, 2017: $0.45 per paid hour
WHAT IS DEFINED AS A PAID HOUR?
Paid hours include all regular worked hours, all overtime worked hours, all holidays (worked or not), all sick leave days (including the yearly excess sick leave hours, if applicable), all mobile holidays (for unionized employees) as well as all paid hours, in result of an adjustment or a special holiday. A vacation pay, is the only payment on which contributions may not be applicable - even in cases where the vacation pay is divided into hours, for accounting purposes.
CAN THE EMPLOYEE MAKE CONTRIBUTIONS TOWARDS HIS RRSP?
The employee may add a volunteer contribution toward the RRSP plan directly on the pay. To make all the necessary arrangements, the employee must give a written authorization to his employer stating the amount he wants to be deducted from the pay. The employer will send this volunteer contribution with the other compulsory contributions for all employees, but he will have to distinguish it separately.
HOW WILL THE EMPLOYEE KNOW IF HIS EMPLOYER IS MAKING RRSP CONTRIBUTIONS ON HIS BEHALF?
The employer is required to list both the yearly and current cumulative for RRSP contributions on the employee's pay slip. On each pay, RRSP contributions will be listed as an earned income, as well as a deduction, since the amount is forwarded into the RRSP plan.
The employer must also list the yearly and current volunteer contributions, as the case may be.
WHERE DOES THE EMPLOYER SEND THE RRSP CONTRIBUTIONS PAID ON THE EMPLOYEE'S BEHALF?
All contributions are forwarded to the Parity Committee on behalf of the employees, on a monthly basis.
WHAT WILL HAPPEN TO ALL CONTRIBUTIONS SENT TO THE COMMITTEE BY THE EMPLOYER?
The contributions forwarded to the Parity Committee have to be transferred to the SSQ Financial Group (SSQ), which is a well-known institution that comes highly-recommended and who is managing all the funds in the Registered Retirement Savings Plan. To get further information about the Group, simply visit their website at www.ssq.ca.
The employee's file is activated at SSQ Financial Group after the Committee Parity has accumulated the minimum amount of $25 that justifies the activation of the RRSP account. Prior to that, the employee must have completed a compulsory registration form.
The Parity Committee is in charge of sending the registration forms to employees. When an employee returns the form to the Parity Committee, it is forwarded to SSQ Financial Group. Thus, when the employee has accumulated the amount of 25$ required to open his file, the money can be transferred to SSQ.
If you are a building service employee and you have never completed the registration form, you can do it by clicking on the following link:
RRSP Registration form
You may print the form and complete the following information:
Section 2 (Information about the member): last name, first name, Social insurance no, address, date of birth, etc.
Section 6 (Authorization) : signature and date.
Section 4 (Beneficiary) is not compulsory, but in the event of death, a member can assign a beneficiary.
Once it is completed, please return the form to the Parity Committee at the address indicated on the form.
WILL THE PARITY COMMITTEE WITHHOLD PART OF THE MONEY FOR ADMINISTRATIVE OR OTHER FEES?
No, these amounts belong to the employees. The Parity Committee will not withhold a percentage of the money. Whether the opening of the file is delayed or whether it is in process, the money belongs to the employees.
WHAT WILL THE SSQ DO WITH THE CONTRIBUTIONS SENT TO THEM BY THE PARITY COMMITTEE?
Once a file is opened, SSQ forwards all the information regarding the group RRSP to the employee along with a list of contacts as well as detailed information regarding the funds in which the money is invested in.
Important: Once the employee receives the form required to open his file, he must make sure to fill and return the form to the Parity Committee. He must indicate his birth date and any other requested information. It is very important to make sure the address is correct. If the address is not correct, it is important to advise the Parity Committee and the SSQ.
Once the Parity Committee has received the registration form, if the employee has accumulated the minimum 25$ contributions required by SSQ, than the account is activated and the money transferred to SSQ Financial Group.
IS IT POSSIBLE TO CASH THE MONEY IN THE RRSP PLAN ONCE AN EMPLOYEE QUITS HIS JOB?
The purpose of the RRSP account is to help us better plan our retirement. All interest and money that the account yields is tax
free. If an employee is no longer working in the cleaning industry and is not planning to return in that field, then, it may be possible for him to cash in the money before his retirement; however, please note, that any withdrawn amount, will automatically be
taxed. Our advice is to simply leave the money in the account until retirement.
For further information, contact us at (514) 384-6640 or toll free at 1 800 461-6640.
For any question regarding the funds in which the RRSP contributions are invested or the management of your RRSP account, contact SSQ Groupe financier: www.ssq.ca or 1 800 320-4887.
