Product Description:
An SPP encourages the investment in the shares of a company by its employees, using their own contributions in conjunction with, sometimes, their employer's contributions. Generally, there is a limited number of shares that can be purchased - either from treasury or on the open market.
Enrolment in the program may depend on the employee's position in the company and/or length of service. Also, an employee's entitlement to the contributions made by the employer will be determined by the plan's "vesting rules" to prevent these employer-paid shares from being withdrawn immediately.
Product Benefits:
Many employers feel that membership in an SPP serves to involve its employees more in striving to achieve the company's goals and objectives.
Canadian Western Trust ["CWT"]:
In partnership with an independent record-keeper, CWT provides SPP services, as follows
- Preparation and Execution of Trust agreement,
- Processing contributions [usually made by monthly payroll deduction],
- Processing purchases and withdrawals,
- Providing Group RSP and/or individual Self-Directed RSP options,
- Canada Revenue Agency reporting, as applicable,
Fees:
Fees are determined in accordance with the responsibilities outlined in the specific Plan Agreements.