Protecting Your Income

As part of your total rewards package, Eddie Bauer offers several benefits to help you protect your income.  Read more about your options below…

Retirement Savings Plan

As an integral part of your total rewards package, your Eddie Bauer Retirement Savings Program includes two plans:

  • A Registered Retirement Savings Plan (RRSP) for your contributions
  • A Deferred Profit Sharing Plan (DPSP) for company contributions.

They work together to help you build financial wellness.

Joining the Program

You can elect to participate in the RRSP 30 days after becoming benefits-eligible. All you need to do is complete and submit the appropriate paperwork — including your preferred contribution level and investment options. In addition to an RRSP account, a separate DPSP account will be opened in your name when you enroll.

Plan Contributions

You may contribute from 1% to 18% of your eligible bi-weekly earnings (excluding bonus and incentive income) to your RRSP account. These contributions are made in 1% increments through payroll deduction and are fully tax-deductible up to government limits.

The company will provide a matching DPSP contribution equal to:

  • 100% of the first 3% of eligible earnings you contribute to your RRSP, plus
  • 50% of the next 2% of eligible earnings you contribute to the plan.

That’s a total company contribution of up to 4% of your eligible earnings each year.

The Tax Advantage

The Canada Revenue Agency (CRA) limits your RRSP contributions to a maximum of 18% of your annual income in the previous year, to a dollar limit of $26,500 for 2019. This dollar limit is scheduled to rise in step with the average industrial wage in future years.

It is important to note that, under current tax rules, your personal RRSP contribution room in any given year will be reduced by the pension adjustment (PA) reported on your annual T4 tax slip. For purposes of this plan, your PA equals the total contribution made by Eddie Bauer to your personal DPSP account in the previous year.

Let’s assume, for example, that you earn $10,000 a year. Based on the government limits outlined above, you can make a tax-sheltered RRSP contribution equal to $1,800 (18% of your previous year’s earned income), less your annual PA. Assuming the company contributed $400 (4% of earnings) to your DPSP account last year, you are left with $1,400 in available RRSP contribution room ($1,800 less $400).

Investment Funds

The program gives you considerable control over the management of your RRSP and DPSP accounts. You can invest your accounts in a wide range of investment options through our plan administrator, Manulife. Manulife also offers a wide variety of tools and information services to help you make informed investment decisions.

You can update your contribution and investment strategy — or transfer money between the various investment options — by:

You will need to provide a personal user ID and password to access the site. This important and confidential information will be mailed to you by Manulife after you’ve enrolled; it is also available by calling Manulife.

Vesting — 100% from Day 1!

Vesting simply refers to your legal ownership of your plan accounts. Your Group RRSP and DPSP accounts are fully vested from day one. The full value of your RRSP and DPSP account — including your contributions, company contributions, and related investment earnings — are yours to take with you if you leave the company or retire.

Savings at Different Starting Ages

This graph shows how much money you’d have by age 65 if you saved $250 a month (and earned 6% interest). You’re saving the same amount each year ($3,000), but you can see very different results depending on what age you start.

Additional Personal Contributions

You may transfer any other RRSP savings you might have into your Eddie Bauer RRSP at any time — which will allow you to take full advantage of the preferred investment and administration fees. Any “locked-in RRSP savings” that you transfer into the Eddie Bauer RRSP will remain locked-in under current pension rules.

A Spousal Account

The Eddie Bauer RRSP also allows you to direct all or part of your RRSP contribution to a separate spousal RRSP account — and to deduct the amount from your own taxable income. The contributions you make to a spousal RRSP do not affect how much your spouse can contribute to their own RRSP outside the Eddie Bauer Plan. Note: Contributions to a spousal RRSP account are not eligible for the company match.

Withdrawals

You may withdraw money from your RRSP account under the government-approved Homeownership and Lifelong Learning programs. You are also permitted to make a one-time withdrawal from your RRSP account for something other than homeownership or continuing education — without penalty — while you are actively employed at Eddie Bauer.

If you make a second withdrawal from your regular contributions, your eligibility for company matching contributions will be suspended for 12 full months. (This penalty does not apply to the withdrawal of any money you transferred into your RRSP account on a lump-sum basis or voluntary contributions made in excess of 5% of earnings.)

Please note that cash withdrawals from your RRSP are taxable as income in the year the withdrawal is made. This tax will be withheld automatically from your withdrawal.

Your Distribution Options

When you leave the company or retire, you will receive information about your options for your vested RRSP and DPSP accounts. You may elect to take this money in cash (excluding any locked-in money, which may be distributed through one of the alternatives described below), less withholding tax.

Alternatively, you can continue to defer taxes on this money by transferring it directly to:

  • A Registered Retirement Income Fund (RRIF)
  • An insurance company to purchase an annuity that provides a regular income stream.

We recommend that you confer with your personal financial advisor before withdrawing or transferring funds.

Leaves of Absence

If you are temporarily laid off from work, are granted a leave of absence, or are unable to work due to a disability, all Retirement Savings Plan contributions will cease during the leave period.

Depending on your province of residence, you may be permitted to make plan contributions (and receive matching company contributions) during:

  • A maternity or parental leave of absence
  • An absence from work resulting from a work-related injury for which you receive worker’s compensation benefits.

Contact the Benefits Team if you have questions about your options during such a leave.

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