DC Pension Plan

What is a DC Pension Plan?

A DC pension plan offers structured, long-term savings with employer and employee contributions. Funds are invested in individual accounts, and the final retirement income depends on the total contributions and investment performance.

These plans provide a more formal retirement structure and are often used by growing companies looking to offer a competitive benefits package with clear savings targets. DC pensions demonstrate a serious commitment to employee retirement security.

Formal Retirement Structure

Comprehensive pension framework with clear goals

Clear Savings Targets

Defined contribution levels and retirement objectives

Competitive Benefits Package

Attract and retain top talent with pension benefits

Individual Accounts

Personal Ownership

Each employee has their own account

Full Transparency

Clear visibility of account balance and growth

Investment Control

Employees choose investment options

Shared Contributions

Employee Contributions

Mandatory or voluntary employee participation

Employer Matching

Structured employer contribution formula

Defined Formula

Clear contribution structure and limits

Professional Management

Regulatory Compliance

Meets all pension legislation requirements

Investment Oversight

Professional investment management and options

Regular Reporting

Comprehensive plan reporting and statements

DC Pension vs Group RRSP

Understanding the key differences

Formal pension structure with regulatory oversight
Locked-in until retirement (with some exceptions)
Structured contribution requirements
Professional investment management
Enhanced creditor protection

Group RRSP

Flexible savings plan with easy administration
Fully portable between employers
Voluntary contribution levels
Employee investment control
Access to funds for home purchase or education

Plan Design

Define contribution structure, vesting, and investment options

Regulatory Setup

Establish plan documentation and regulatory compliance

Administration

Set up recordkeeping and investment platform

Employee Enrollment

Educate and enroll employees in the plan

Ongoing Support

Regular compliance monitoring and plan reviews

Employer Benefits

Talent Attraction

Attract top talent with a formal pension plan

Predictable Costs

Fixed contribution rates provide budget certainty

Tax Advantages

Employer contributions are tax-deductible

Employee Benefits

Retirement Security

Formal pension structure provides retirement confidence

Creditor Protection

Enhanced protection of retirement savings

Investment Growth

Professional investment options for long-term growth

Ready for a Formal Pension Plan?

Let's design a DC pension plan that provides structured retirement savings for your team.

Explore DC Pension Call: 1-888-676-4689

DC Pension PlanStructured Retirement with Clear Savings Targets