A Defined Benefit Registered Pension Plan is an agreement to provide specific benefits at retirement, based on years of service and earnings.
- Sponsors select the pension level and decide whether employee contributions are required or not
- Contributions and plan administration expenses are tax deductible
- Flexible retirement program - better suited to provide early retirement benefits and other ancillary benefits
- Members receive a formal promise of a specific pension at retirement
- Guaranteed retirement income
- Creditor-proof - to the extent provided for under applicable legislation, pension plan contributions cannot be seized by creditors