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The PSRT exists as a benefit to you—not to increase the wealth of the shareholders of banks or corporations. PSRT is not looking to profit from Members. Our sole purpose is to provide security and a higher quality of life for workers and their families in retirement.
To help Members better understand how and why we created the Trust, the Trustees have put together a short training. Click here to take the course (use your PSRT username and password to log in).
The PRST Trustees designed a program responsive to the needs of Members. They created the first trusteed, multi-employer group RRSP in Canada.
What makes PSRT different from registered plans you can hold at banks and brokers?
First and foremost, PSRT was created by and for Members. Meaning? The trust exists as a benefit to you as a Member, and not to increase the wealth of the shareholders of banks or corporations. We are not looking to profit from Members, our sole purpose is to provide security and a higher quality of life for workers and their families in retirement.
Pre-Tax Benefits to Members
The Trustees negotiated on your behalf to provide for employer contributions to be remitted directly to the Trust Fund by the employers (because the PSRT is recognized as a multi-employer Group RRSP, the represented unions were able to negotiate clauses in their collective agreements that directed employer contributions to be remitted directly to the Trust Fund).
These contributions are not part of Insurable Earnings and do not appear on the T4 slip issued by the employer. Moreover, the agreement between the Trust Fund and CRA allows the full amount to be contributed up front with no tax withheld at source from these contributions.
Bottom line: Early, often and larger financial contributions mean potentially higher returns and more money available to you in retirement. This benefit is at the heart of the PSRT difference.
The most important financial resource you will have when you retire is your RRSP savings. A Registered Retirement Savings Plan (RRSP) is a government-approved program that allows you to save a part of your income that has not been taxed. You can realize the potential of your long-term investments with sound investment advice from the PSRT.
When it comes to starting your retirement investing, sooner is better. Understanding the effects of compounding interest is simple, even without investment experience. Not only will your contributions pay off exponentially over time, but your contributions are more manageable later on because you have invested intelligently early on in your working life.
Sooner in the year: Your monthly contribution is worth more than if you wait until the last minute to make your contribution. $400 at the beginning of each month, over 25 years, using an assumed 8% interest rate, will accumulate to $365,936 in your RRSP. The same $4,800 invested at the end of each year for the same 25 years is only worth $350,908, which is $15,028 less!
Our investment management fees are lower than the same Brand Name funds you would buy through any other source and lower still than the Segregated Funds sold to individuals by many life insurance companies.
Averaged out through the life of your investments, our lower management fees could account for as much as a 2% difference in your return, giving you enhanced performance for the same funds purchased elsewhere.
PSRT: By Members for Members
| Rate of Interest | Annual Contribution | Duration | Return |
|---|---|---|---|
| 8% | $4000 | 25 Years | $315,816 |
| 10% | $4000 | 25 Years | $425,728 |
The Trustes of the Power Sector Retirement Trust have worked with our research group, our carrier, and our consultant to make your plan one of the best available to any Multi-Employer Group RRSP in the country.
Group Retirement Services Pooled (segregated) funds are unlike any other mutual funds available to individuals, and are only available to the members of a Group RRSP.
