Adult Financial Literacy Guide | Page 12

Pay Roll Deductions Employment Insurance (EI) Employment Insurance is a federal program that provides temporary financial assistance to those that are unemployed or have lost their jobs. There are specific requirements that you have to meet to qualify for EI (see link below). Employment Insurance is funded by employees and employers. Your employer will deduct your portion of EI premiums from your pay. You can find out more about Employment Insurance from Service Canada at http://www.servicecanada.gc.ca/eng/sc/ei/index.shtml Canada Pension Plan (CPP) The Canada Pension Plan is a retirement plan managed by the federal government. It is mandatory for employees and employers in all provinces and territories. The CPP provides basic pension benefits when you retire. The amount you receive when you retire depends on the amount you paid into the plan. In the event of your death, the plan pays benefits to your survivors. To learn more about the CPP, visit the Service Canada website at http://www.servicecanada.gc.ca/eng/services/pensions/cpp/index.shtml Registered Retirement Savings Plan (RRSP) A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, that you use to save for retirement. You may be able to make RRSP contributions through your employer. If so, this deduction will be shown on your pay stub. See page 7 for more info on saving for retirement. Employer-Sponsored Pension Fund Some employers offer a pension to employees when they retire. If you belong to your employer’s pension plan, your pension contribution will show as a deduction on your payslip. If your employer has a pension plan you will be informed when hiring on. Employee Savings Plan Your employer may offer a savings plan. The plan may include investment choices such as mutual funds or stock in the company. If you belong to an employee savings plan, your savings plan contribution will show as a deduction. 12