By: cannon_fodder
Reverend, You provided some great information and good points. However, I don’t see that a DCP is related to a DBP in terms of risk to the plan holder. From what I understand, when a company allows you...
View ArticleBy: Debt Consolidation Section
From my understanding, many workers benefit more from a defined contribution plan, over a benefit plan. Would you agree?
View ArticleBy: Sampson
I’m actually quite interested in whether readers believe one might out perform the other. My wife’s company offers both – and employees select which to enroll into. They have one opportunity while at...
View ArticleBy: GTP
I think that if you don’t stay with the company long enough, the DCP is superior, since you get all of that money. However, where I work, both DC and DB plans were offered when a number of people...
View ArticleBy: bank deals
Can the pension fund contribution of 8.33 withdrawled if service is done for less than 6 months ?
View ArticleBy: The Reverend
To simplify the debate, a vast majority of employers have stopped offering DB plans. Translation: DB plans are more expensive/risky for them (read better for you).
View ArticleBy: The Reverend
cannon_fodder you are correct about solvency company and impact on DC vs DB plan. there’s no impact on DC other than maybe future contributions. for DB there is some risk you won’t get all of your...
View ArticleBy: Sampson
reverend, The bias towards those retiring is precisely one of the main reasons I’m hesitant to believe in DB plans – contribution rates have been leaping ahead for younger workers in order to fund the...
View ArticleBy: GTP
Sampson – Seems to be the way the new plans are going, and I like the idea. The DB plan stops when you die but the DC funds will continue to grow until you need them (assuming the DB plan is enough for...
View ArticleBy: Dividend Growth Investor
In the 21st century america more and more companies are switching to defined contributions plans. The only way that investors could guarantee themselves a steady paycheck in retirement is save and...
View ArticleBy: Houska
There’s discussion of whether DB or DC is more risky for the retiree. The answer is that it depends since there are two types of risk. One is the risk of uncertain investment performance (let’s call it...
View ArticleBy: cannon_fodder
If I understand correctly, many public sector DBP’s coordinate with the CPP so that you can’t “double dip”, i.e. receive the CPP without a commensurate reduction in your DBP payments. Is that correct?
View ArticleBy: Ed Rempel
Hi Cannon & FT, Yes, most public sector DBP’s are integrated with the CPP. The actual pension is benefit you calculate from the formula less an estimate for CPP. For example, if your formula is...
View ArticleBy: cannon_fodder
Ed, So, do you have to annually submit any documentation to the ‘trustee’ administering your DBP detailing how much CPP you received? Or do they simply ask for a statement of contributions to...
View ArticleBy: Ed Rempel
Hi Cannon, No. The pension administrators have a “CPP offset formula” that they use to estimate your CPP during the time you were in that pension plan. Most pensions offer you a choice when you retire...
View ArticleBy: whiskey tango
i have a nice DCP with matching at work. but my investment choices are limited and in my opinion very expensive due to management fees. Is it possible occasionally transfer money out of an RPP into a...
View ArticleBy: Johnny Cash
What does the rule of age 55 and 10 years of continuous pensionable service (DB) mean in Ontario?
View ArticleBy: Pension Tension
I have just started at a new company that offers both DC and DB pensions. I am 40 years old. I need to make a decision as to which plan to enter. If I don’t anticipate that I will be at the company for...
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