Winch Group Client Login

Ontario Drug Benefit (ODB)

If you belong to one of the following groups of Ontario residents and you have valid Ontario Health Insurance (OHIP), you are eligible for drug coverage under the ODB Program

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Coordination of Benefits

Coordination of Benefits (COB) is one of the most effective methods for families to maximize their benefits coverage.

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Retiring Allowance

A retiring allowance is an amount received on or after leaving employment in recognition of long service.

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Group Retirement Plans

The Winch Group Inc. provides a performance evaluation of your current Pension Plan. Click here to learn more about our PENSION FOCUS™. for Group Retirement Programs. (link to page)

Have you considered a Group Retirement Program for your company?

A well designed Group Retirement Program will:

• Attract and retain key employees
• Reward long-standing employees
• Contribute to your employees’ retirement
• Provide immediate tax savings to your employees

We will assist with implementation issues of your new Group Retirement Program, such as outlining:

• Proper plan design
• Plan fees
• Member fees
• Investment options and performance
• Investment managers
• Technology
• Member communication
• Financial strength of the insurance company
• Your fiduciary responsibilities

The Winch Group Inc. offers a wide range of group investment products, including

Group RRSP

A group RRSP is the most common pension plan option for small businesses. Contributions are made each month by way of payroll deductions and the investment company supplies annual tax reporting.

Group RRSPs can be set up in two ways:

1. Only the employee contributes
2. The employee contributes and the employer matches a portion. For example, the company matches the employee’s portion up to a maximum of 5% of the employee’s annual salary.
   Advantages:
   • Simplicity of administration
   • Ease of saving
   • Low minimum requirements
   • Immediate tax refund upon contributions

Deferred Profit Sharing Plan (DPSP)

A DPSP is designed to motivate employees by allowing them to share in the company’s success and prepare for their own retirement. This is a pension plan through which an employer shares a portion of the company’s profits with some or all of its employees. It is also very flexible and does not involve a permanent commitment on the part of the employer. For example, the employer contributes only when the company has been profitable in that fiscal year. If not, the employer may choose to only contribute the minimum.

Only employers can contribute to a DPSP, which is the reason we recommend combining a DPSP with a Group RRSP to encourage employees to contribute as well.

Advantages:

• All contributions are derived from pre-tax profits and are fully deductible
• Contributions are not a taxable benefit to the employee and unlike a group RRSP, they are not subject to payroll taxes
• Contributions are fully vested after 2 years of membership. If a member leaves the company before this period, corporate contributions are credited back to the employer

Registered Defined Contribution Plan (RPP)

A defined contribution plan is a contract whereby the employees and employer, or only the employer, agree to make regular contributions to a retirement plan. Only the amount of the contributions are predetermined, the amount of the pension is not known until the member retires. In an RPP the member bears all the financial risk, which means they are subject to the prevailing economic conditions during their career.

Advantages:

• Contributions and administrative costs are tax deductible
• All vested employee and employer contributions become locked-in after two years of membership in accordance with the applicable pension legislation
• Locked-in funds can only be used to provide retirement income to the plan member
• The employer can terminate the plan at any time

Registered Defined Benefit Plan

Unlike defined contributions of the RPP, where the amount of the pension in known only at the time of retirement, the amount of the pension in a defined benefit plan is established up-front. Therefore, the employer assumes all of the financial risk to reach the established benefit amount. There are 2 types of benefit formulas:

1. Final Average Earnings Formula – The annual pension benefit is determined based on a percentage of the average earnings for the last 3 to 5 years multiplied by the number of years of membership in the plan at the retirement date.
2. Career Average Earnings – The annual pension benefit usually corresponds to a percentage of the earnings of each year of membership
   Advantages:
   • The employer determines the plan features and provisions
   • Contributions and administrative costs are tax deductible
   • All vested employee and employer contributions become locked-in after two years of membership in accordance with the applicable pension legislation

Individual Pension Plan (IPP)

An IPP is a defined benefit plan designed specifically for owners and senior managers to allow them to maximize their retirement income.

Advantages:

• It is possible to accumulate more and tax defer more income than a personal RRSP
• Assets within the IPP are creditor proof
• Contributions may be made for past service prior to the creation of the plan
• Contributions and administrative costs are tax deductible
• Transferring money into an IPP reduces shareholders’ equity, a strategy which may be very useful if the company has to be sold