Investing

RRSP Vs Employer Pensions

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  • Jul 2nd, 2020 12:17 am
[OP]
Sr. Member
Jul 30, 2016
681 posts
294 upvotes

RRSP Vs Employer Pensions

Gurus,

A quick clarification needed on below sentence. I am aware or RRSP matching contributions it this is new to me. Can someone throw a light please.


An employer mentioned below thing to me in an email:

We do 10% employer pension contributions.
8 replies
Deal Addict
User avatar
May 11, 2014
4095 posts
4422 upvotes
Iqaluit, NU
iamagtaguy wrote: Gurus,

A quick clarification needed on below sentence. I am aware or RRSP matching contributions it this is new to me. Can someone throw a light please.


An employer mentioned below thing to me in an email:

We do 10% employer pension contributions.
That could mean three things...

1) They deposit 10% of your salary into your RRSP pension account

2)They match 10%

or

3)They match upto 10% your salary (unlikely due to the 18% limit Of RRSPs)

I am guessing the first, but I would get clarification, especially as it is an email from someone responding , a sentence that could be interpreted in any of the ways, and the implications are big depending what was actually meant.
Last edited by xgbsSS on Jun 28th, 2020 8:19 pm, edited 1 time in total.
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Deal Guru
Jan 27, 2006
14786 posts
7722 upvotes
Vancouver, BC
I would also verify what they mean by 'pension'. Some firms use the word to include defined contribution RRSPs which is not the same or as valuable as a defined benefit pension.
Deal Addict
Jul 10, 2014
2631 posts
929 upvotes
Ottawa, ON
Find out if it's an RRSP, DCPP, or something else altogether but it's usually a good idea if they match your contributions otherwise don't bother.
Deal Addict
Sep 2, 2009
1091 posts
768 upvotes
Ottawa
xgbsSS wrote: That could mean three things...

1) They deposit 10% of your salary into your RRSP pension account

2)They match 10%

or

3)They match upto 10% your salary (unlikely due to the 18% limit Of RRSPs)

I am guessing the first, but I would get clarification, especially as it is an email from someone responding , a sentence that could be interpreted in any of the ways, and the implications are big depending what was actually meant.
Unlikely, but worse: they match 10% of the employee's contributions. (where 50-100% up to an amount is more common)

AKA get clarification.
Deal Addict
User avatar
Aug 10, 2006
1524 posts
805 upvotes
it is also good to clarify with your HR or pay and benefits dept, also if this is part of your employment offer considerations, ask if there is a waiting period or to when/how to benefit from this 10% employer pension contribution - just my 2 cents.
Newbie
Sep 20, 2019
15 posts
23 upvotes
We do 10% employer pension contributions.
[/quote]

Just curious, is this a "secret shopper" position?
[OP]
Sr. Member
Jul 30, 2016
681 posts
294 upvotes
No, an IT role.
rfdCaper wrote: We do 10% employer pension contributions.
Just curious, is this a "secret shopper" position?
[/quote]
Newbie
Sep 20, 2019
15 posts
23 upvotes
iamagtaguy wrote: No, an IT role.



Just curious, is this a "secret shopper" position?
[/quote]

ic, scammers usually screw up in posting their ads. This line looked screwed up, I thought scam. Good luck, hope it works out good for you.

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