Registered Pension Plan (RPP)

Defined Benefit Plan

A defined benefit plan provides you with a retirement pension based on the number of years you work for a company, and your earnings. Your pension is guaranteed and you know in advance how much you will receive.

Defined Contribution Plan

A defined contribution plan defines the contributions to be made to the plan. However, it does not guarantee the pension amount you will receive. Your pension depends on how the investments performed. At retirement, the accumulated savings in the plan will determine your pension income.

Group RRSPs

Your employer may put money into an RRSP on your behalf. Such RRSPs are funded through payroll deductions and may be administered by your employer. The rules, including contribution limits that apply to individual RRSPs, also apply to group RRSPs.

Deferred Profit-Sharing Plan (DPSP)

A deferred profit-sharing plan allows employers to build a retirement fund for their employees based on a share of the company's profits. Employees do not contribute to these plans. Profits change from year to year. Therefore, it is difficult to estimate future income from a DPSP.