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Federal Budget 2003: What Will It Mean For Employers And Other Benefit Plan Sponsors?
Prime Minister Chrétien's legacy budget contains many provisions of interest to employers and other benefit plan sponsors, including: significant transfer payments to the provinces to help health care reforms; increases to the annual RRSP contribution limits and maximum annual RPP accruals; a new six week compassionate leave funded through the EI Plan; and reduced EI premiums. Find out how these proposals will impact your human resources programs, and what steps you can take to prepare both your organization and your employees. Budget Brainstorming: How Would Increased RRSP Limits Impact Pension Plans?
The 2003 Federal Budget could see RRSP limits raised as high as $21,000. If this occurs, the maximum annual defined benefit pension (DB) limits per year of service would likely also increase, $1,722 to $2,333. While these increases are long overdue, pension plan sponsors must understand the financial impact that an increase in the maximum DB pension limits could have on their plans.
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