Does your company provide a savings plan for employees who age-out of pension plan participation?
With many employees wanting or needing to continue working past the “typical” retirement age, some are finding that they reach an age at which they may no longer participate in their company’s RPP (no later than Nov 30 of the year they turn 71, in Ontario).
What, if any, option does your company provide for these employees?
This is an interesting topic. Nowadays, more people continue working past their normal retirement age or even past 71. I think the industry need to create some new products / plans for this group.
Currently we do not offer any savings plan to anyone over 71, however, now that we have more employees age 71 and up, we have been looking into different things such as a matching TFSA plan (within the individuals annual limits), but so far we have not proceeded with anything as of yet. I have been with my organization for 18.5 years and only in the last few years has this been something that we have needed to start thinking about and address.
We have a DPSP where the company makes a contribution once a year for employees. For these older employees, we pay the contribution to them as a bonus (of course, less taxes).
Stacey Wood PCP
