Plan Features

Summarizing the most important and relevant details of Your Pension Plan. Click on your Division below to learn more!

Tax Considerations print

The contributions Overwaitea Foods/Save-On-Foods makes to the Plan on your behalf are not a taxable benefit to you. Annually, Overwaitea Foods/Save-On-Foods will report the contributions you make to the Plan as Registered Pension Plan contributions; this will reduce your taxable income.  Additionally, Overwaitea Foods/Save-On-Foods will report both your contributions to the Plan and the contributions that Overwaitea Foods/Save-On-Foods makes to the Plan on your behalf as your Pension Adjustment (PA). Your PA determines the maximum amount you can contribute to your RRSP in the following year.

Each year, the Canada Revenue Agency advises you how much you are permitted to contribute in total to your RRSP and to the UFCW Union Pension Plan. For instance, your eligible combined contribution room for 2006 (i.e., your RRSP contributions and your employee contributions to the Plan) is equal to 18% of your earned income in 2005 (to a maximum of $18,000) less your PA amount.

Your retirement pension benefit is taxable income. After allowing for any exemptions available to you under the Income Tax Act, your retirement pension is subject to income tax.