32 - Sunday, June 23, 1985 - North Shore News

second thoughts om pension plans

Companies that offer their employees a pension
plan may not be giving them the best deal possi-

ble.

By LISA SMEDMAN

That’s the word from a
North Vancouver investment
advisor who works for
Pemberton Houston
Willoughby Inc., an invest-

carried forward over a
seven-year period. So if any
employee comes into a sud-
den windfall and they
haven't been contributing to
the maximum amount each
year, they'll be able to sink
almost all of that windfall

into an RRSP.

What does this mean to a
person on a pension plan?

First of all, says Marosits,
anyone working for a com-
pany that has a non-con-
tributing pension plan (one
where the company, rather
than the employee, con-
tributes) is automatically
limited to a maximum RRSP
contribution of $2,000 per

year. (Previous to the
budget, there was a $3,500
maximum for these
employees.) It doesn’: mat-
ter how much of a pension
the company will eventually
provide. .

“Even if 2 pension works
out to ‘peanuts’ at the end
of a working man’s life,

See Changes
Page 40

ment company which also
handles Registered Retire-
ment Savings Plans
(RRSPs).  ~
~- Carl Marosits has been in
the ‘‘money business’’ for-26
years. Last month’s federal
budget, which proposes to
drastically increase the max-
imum contribution that can
be made to an RRSP each
year, has given him second
thoughts about company
pension plans.

Prior to the budget, an
individual’s yearly RRSP
contributions were limited to
$5,500 or 20 per cent of their
annual income, whatever
was less. Although .the
budget proposes to chop the
minimum. percentage figure
down to 18 per cent, it”
would also increase con-
tribution limits to $7,500 in
1986, $9,500 in 1987, |
$11,500 in 1988, $13,500 in’ Newt
1989, and $15,000 in 1990. .

A new rule would allow.
any unused portion of the
maximum contribution to be

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