Pension plans are drafted to meet Revenue Canada requirements so that the benefits received after retirement are not subject to income tax and the contributions by the employer are not a taxable benefit to the employee.

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Pension plans are designed to meet Revenue Canada (now known as the Canada Revenue Agency) requirements so that contributions by the employer are not a taxable benefit to the employee at the time of contribution. However, the benefits received after retirement are subject to income tax.

Pension Plans Are Drafted to Meet Revenue Canada Requirements So