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It is designed to provide up to 15 per cent of a retiree's pre-retirement income as an annual pension, adding about the same amount as the Canada Pension Plan (CPP) for those who have contributed to both plans. Employees and employers would each contribute 1.9 per cent of an employees income up to a maximum of $90,000 of income per year.
Alamy 401(k) plans are a retirement investing staple. But they've drawn criticism from many corners, from an Economic Policy Institute study that showed how 401(k)s have raised the level of ...
Before 1974, a few U.S. employers had been giving their employees the option of receiving cash in lieu of an employer-paid contribution to their tax-qualified retirement plan accounts. The U.S. Congress banned new plans of this type in 1974, pending further study.
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