RRSP

Participation in the RRSP (Group Retirement Plan) is mandatory and eligibility for all building service employees is immediate upon hiring. Find in this section all the information and the steps to follow.

How to register?

Before you begin, it is very important to understand that your employer contributes for you. However, to ensure that theses contributions are deposited in your Group RRSP, you must first complete your enrolment form!

If you received a paper form to complete, you only have three sections to fill out. If in doubt, consult the guide below.

Enrolment form:

Beneficiary designation form:

Who will your money go to ?

 You are already enrolled at Industrial Alliance…
We invite you to watch a video clip prepared by Industrial Alliance (IA) informing you about the tools and functions of My Client Space in your IA account

Retirement Savings Plan (RRSP)

(Section 6.100 of the Decree)

The Parity Committee is in charge of managing a Retirement Savings Plan (RRSP) for building service employees. The contribution towards the group RRSP is paid by the employer.

As of October 30th, 2017, the employer’s contribution to the Plan is set at $0.45 per paid hour. There is no rate increase provided by the Decree up to its termination on November 1st, 2024.

As of March 31st, 2021, it is mandatory for the employer, upon hiring employees, to have them complete the registration form for the retirement plan. See article 6.105 of the Decree.

As for the monthly report and levy, the employer’s contribution to the RRSP has to be sent to the Parity Committee every month and is added to the monthly levy.

Paid hours include regular worked hours, overtime hours, holidays (worked or not), sick leave hours (including the yearly excess sick leave hours, if applicable), mobile holidays (for unionized employees), as well as all paid hours, in result of adjustment or a special holiday. A vacation pay is the only payment on which contributions may not be applicable.

Attention! Since November 9th, 2011, the employee may add a volunteer contribution toward the RRSP plan directly on the pay. To make all the necessary arrangements, the employee must give a written authorization to his employer stating the amount he wants to be deducted from the pay.

The employer will send to the Parity Committee this volunteer contribution with the other compulsory contributions for all employees, but he will have to distinguish it separately. Please contact the Parity Committee before sending any volunteer contribution in order to know how to proceed.

The employer is required to list both the current and yearly cumulative for RRSP contributions on the employee’s pay slip as well as in the payroll register. As the case may be, the same apply to the volunteer contribution.

The RRSP contributions received by the Parity Committee are transferred to IA Financial Group, who manages the funds in the RRSP. Prior to that, the employee must complete a registration form.

It is required for the employee to fill this registration form to activate his/her file and to transfer to IA Financial Group the RRSP contributions sent by your employer.

If the form was already completed previously, no further action is required. Otherwise, you have the obligation to have the form completed by your employee and to send it to the Parity Committee. The registration form is available, upon request, at the Parity Committee or on our website.

IMPORTANT: The RRSP contribution is considered an earning for the employee. It must be included in the levy’s calculation as well as in the employee’s vacation pay calculation.

Employee’s volunteer contributions towards his RRSP

The employee may add a volunteer contribution toward the RRSP plan directly on the pay.

Attention! Employees who want to start contributing towards their RRSP plan must have already sent in their registration form and already have an open account at the trustee. Then, it will not be necessary to fill out a new form.

In order to deduct sums of money on an employees’ paycheck, employers need to have the employee’s authorization. The employee must sign such authorization which is kept by the employer in the employee’s folder.

Please click on the following link to download a template of an authorization letter that you can use:

The employer will have to detail the volunteer contributions per employee.

Employers may use one of the following models for the employee’s voluntary contributions:

To complete on the computer before printing:

To print out, fill and send:

The payment sent by the employer for voluntary contributions will need to be made on a separate cheque: the employer who sends us a monthly payment will have to send 2 cheques. One for his monthly report, including the 1% levy and the regular RRSP contributions, and another cheque as the payment of the contributions made on a voluntary basis.

For further information regarding voluntary contributions, please contact us at (514) 384-6640 or toll free at 1 800 461-6640.

FAQ

What is the identification number of the RRSP plan to state on the registration form of IA Financial Group?

The plan identification number to state on the registration form of IA Financial Group is 15383CM001TP

Why register to the plan?

The contributions forwarded to the Parity Committee have to be transferred to the trustee, IA Financial Group, who is managing all the funds in the Retirement Plan.

Prior to that, the employee must have completed a compulsory registration form.

Attention! If you did not complete your registration form, the amounts received by the Parity Committee will remain pending to be transferred. We strongly encourage you to enrol today.

Employees can fill out the on-line form at the following website: ia.ca/enrolnow. The plan identification number is 15383CM001TP. They may also enrol directly by calling IA Financial Group at: 1 800 567-5670.

Once a file is opened, the trustee forwards all the information regarding the group RRSP to the employee along with a list of contacts as well as detailed information regarding the funds in which the money is invested in.

Important: It is important to advise the Parity Committee and IA Financial Group of any change of address.

Who covers the RRSP contribution and how is it calculated?

Based on the plan, all contributions towards the group RRSP of an employee, are made directly by the employer.

The RRSP contribution is calculated according to the number of hours paid to the employee. The current contribution rate since October 30th, 2017 is $0.45 per paid hour.

Paid hours include all regular worked hours, all overtime worked hours, all holidays (worked or not), all sick leave days (including the yearly excess sick leave hours, if applicable), all mobile holidays (for unionized employees) as well as all paid hours, in result of an adjustment or a special holiday.

A vacation pay, is the only payment on which contributions may not be applicable – even in cases where the vacation pay is divided into hours, for accounting purposes.

Employees over the age of 71 years and the group RRSP plan

Based on the current tax regulation, employees who reach 71 years of age can no longer receive RRSP contributions. As a result, to compensate for the loss of RRSP contributions, the Decree stipulates that the employee is entitled to an increase of his hourly rate, equal to the RRSP rate that is currently in effect.

The adjustment of the hourly rates for employees having reached 71 years of age must be done at their day of birth or on your following pay period.

IMPORTANT : When applying the new hourly rate and RRSP increases stated by the Decree it is important to remember to adjust the salaries of all employees over the age of 71, as well.

Employers using Aramis web for their monthly reports

To ensure that the RRSP calculation is removed for these employees, you must apply the following steps:

  • Click on the MORE OPTIONS section listed under the employee’s grid;
  • Listed under OTHER AMOUNTS, check off the ADJUSTMENT box;
  • Under the HOURS box, remove the total number of hours reported on the current monthly report;
    • For example: if you have reported a total of 30 hours for the employee, listed under the HOURS, you must report -30 hours.

Employers using other types of monthly reports

You must continue to report these employees, without the RRSP contributions, and by listing their new adjusted rate(s). 

Employees, who reach 71 years of age, who are still working, are entitled to ask the Parity Committee for an RRSP refund.

To submit a refund request, the employees can either contact us or can fill out and return to us the following form:

RRSP refund request form

Download

Instructions for the RRSP refund request form

Download

For additional information, please contact us at 514 384-6640 (or at our toll free number: 1 800 461-6640).

For all questions regarding the funds management in which are placed the RRSP contributions by the fiduciary, you must contact IA Financial Group at 1 800 567-5670 or at pension@ia.ca.

What are the employer's obligations?

All contributions towards the group RRSP of an employee are made directly by the employer.

The employer is required to list both the yearly and current cumulative for RRSP contributions on the employee’s pay slip. On each pay, RRSP contributions will be listed as an earned income, as well as a deduction, since the amount is forwarded into the RRSP plan.

In case of employee’s volunteer contributions, the employer is also required to list on the pay slip the current and yearly cumulative volunteer contributions.

All contributions are forwarded to the Parity Committee on behalf of the employees, on a monthly basis.

Click here to complete the enrolment form.

What are the obligations of the parity committee?

The Parity Committee must inform building service employees about the plan and the registration procedure.

The Parity Committee must collect from the employer the RRSP amounts due on behalf of employees and must transfer the amounts to the trustee of the plan, IA Financial Group. Prior to that, the employee must have completed a compulsory registration form (See: How to register).

These amounts belong to the employees. The Parity Committee will not withhold a percentage of the money. Whether the opening of the file is delayed or whether it is in process, the money belongs to the employees.

When the amounts collected on behalf of employees have not been transferred to the trustee, the Parity Committee must reimburse them if they are no longer working in the building service industry. When the Parity Committee is unable to reimburse such employees, the amounts cannot be held by the Committee. After the end of the required period provided by article 22 o) of the Act Respecting Collective Agreement Decrees, the Committee has the obligation to transfer the amounts to the Ministère du Revenu – Biens non réclamés – where they remain available for employees.

Is it possible to cash the money in the RRSP plan once an employee quits his job?

The purpose of the RRSP account is to help us better plan our retirement. All interest and money that the account yields is tax free.

If an employee is no longer working in the cleaning industry and is not planning to return in that field, then, it may be possible for him to cash in the money before his retirement; however, please note that any withdrawn amount will automatically be taxed. Furthermore, the trustee may apply closing fees.

Our advice is to simply leave the money in the account until retirement.

If the employee has never completed his registration form, than the amounts where not transferred to the trustee: they are still pending at the Parity Committee. If the employee is no longer working in the building service industry, he or she may ask the Parity Committee the reimbursement of the accumulated amounts. The Parity Committee will not withhold a percentage of the money: the money belongs to the employees.

To learn more contact us at 514 384-6640 (toll free number: 1 800 461-6640), or by email at remboursementREER@cpeep.qc.ca

A request form to retrieve RRSP contributions is also available here: Request form

For any question regarding the administration of the RRSP funds by the trustee, you must contact IA Financial Group at 1 800 567-5670 or at pension@ia.ca.

Why do the amounts listed on the trustee’s statement differ from the cumulative on my pay stub at the end of february?

Transfer delays for the group RRSP contributions

Don’t be surprised if your IA contribution statement does not balance with the cumulative total of your contributions on your last February pay slip. Several steps and verification must be carried out before transferring the contributions to IA, which causes delays that can vary from a few weeks to a few months.

For example, the contributions for the month of December are only sent to the CPEEP as of January 15, or even later in the event of non-compliance or delay by the employer. Thus the RRSP contributions made towards the end of the year, through the employer, may not be included in the income tax statement for the first 60 days of the current fiscal year.