Montreal, November 4, 2008
– The Standard Life Assurance Company of Canada today announced that it will offer group savings and retirement plan sponsors the opportunity to include the new tax-free savings accounts (TFSAs) as part of their programs, starting January 1, 2009. TFSAs were announced in the 2008 federal budget as the single most important personal savings vehicle since the introduction of registered retirement savings plans (RRSPs) in 1957.
TFSAs allow the accumulation of up to $5,000 per year of after-tax money that can be used whenever and for whatever purpose the investor chooses without paying tax on the income earned. They can be used to complement other retirement savings vehicles such as RRSPs or, in place of non-registered plans, for shorter-term goals.
“We’re happy to offer employers ways to enhance their group plans. TFSAs can help their employees save money for unforeseen costs such as healthcare expenses during retirement, or as an alternative to grow money tax-free if they have already reached their annual RRSP contribution limits. TFSAs are also attractive to those members who have not maxed out their RRSPs but expect a higher tax rate down the road,” says Anna Del Balso, director of strategy and research and product development of Standard Life’s Group Savings and Retirement Division.
Standard Life will offer sponsors the opportunity to include TFSAs as part of their group savings and retirement programs, and to choose from any of the funds included in their plans to ensure that members continue investing in funds that meet the objective of their group plan.
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