Employers of all sizes across the province offering Saskatchewan Pension Plan (SPP) say their employees view the program as a valuable part of their total compensation.
SPP is open to all Canadians aged 18 to 71, and investors can put in up to $2500 per year. The plan is professionally managed and offers low annual fees of about 1 per cent. Established in 1986, the plan was a model for the Canadian government's pooled registered pension plan (PRPP).
Customs brokerage Percy H. Davis Limited has participated in SPP for 17 years. The company has 34 employees on the brokerage side and 11 in its duty free shops, with offices in Saskatoon, Regina, North Portal, and Redwing, Saskatchewan.
Accounting manager Shirley Giesen says her company is committed to SPP because it helps them hire and keep the skilled employees they need. "We don't want turnover because it takes up to two years to train a new employee," she says.
Contributions are made by payroll deduction, with the company matching a portion of the contributions. "All I have to do is fill out the sheet SPP gives me every two weeks and send in a cheque," Geisen says.
SPP also fit the bill when Weyburn law firm Nimegeers Schuck Wormsbecker Bobbit was looking for an affordable retirement savings option 10 years ago. "We liked that it offers good returns, that it's portable, and that there are no fixed costs," says office manager Bonnie Olvera.
Twenty-two staff members including paralegals and lawyers contribute to SPP via payroll deduction, with the firm making part of the contribution. "Everyone was very happy when the maximum annual contributions increased from $600 to $2500.
SPP is the 28th largest defined contribution plan in the country and is open to all Canadians between the ages of 18 and 71. Average investment returns over 26 years in the balanced fund have been nearly 8 per cent, with annual expenses averaging 1 per cent over the same period.
The RRSP contribution deadline for 2012 is March 1, 2013. For more information, visit sppworks.ca.
