What does Defined Contribution (DC) pension mean?
During your career, you and Canada Post make contributions to your DC retirement account based on a percentage of your pay. These contributions can grow with investment returns. When you retire, your DC retirement account balance, made up of your contributions, Canada Post’s contributions and the investment returns earned, will provide you with a source of savings to use towards your retirement income.
Why participate in a DC pension plan?
Saving and planning for your retirement is important at any age. Your retirement income will come from three sources: your employer pension, government-sponsored pension programs and personal savings. The DC pension is an employer pension and can help you reach your retirement goals.
Who can participate?
|Employees in a...||who became eligible to the Plan on or after...|
|MGT/XMT position||January 1, 2010|
|PSAC/UPCE position||June 1, 2014|
|APOC position||March 1, 2015|
|CPAA position||September 1, 2016|
|Employees who move to a position that had the DC component in place on their original Plan eligibility date. Contact AccessHR to find out how this applies.|
Who manages the DC pension?
Canada Post is the sponsor and administrator of the Canada Post Corporation Registered Pension Plan (the Plan). The DC pension is a component of the Plan.
Sun Life Financial manages the DC component on behalf of Canada Post. Go to the Sun Life member website mysunlife.ca to find useful information and tools for your retirement plan.
What are the benefits of my DC pension?
The features of your DC pension include:
- Canada Post base contributions
- Optional employee contributions – contributions are flexible
- Canada Post matching contributions – based on optional employee contribution amount
- Payroll deductions – to make saving easy and convenient
- Instant tax savings – payroll deductions are invested on a before-tax basis and are tax-sheltered
- Low management fees – lower fees than those offered to individuals by financial institutions.