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Defined contribution pension plans

How your defined contribution pension is protected Add to ...

All contributions made to your DC plan account (both yours and your employer’s) go to the plan administrator – typically an insurance company or other financial institution. The plan administrator holds the money in your plan account and invests it according to your instructions.

This money is held “in trust” and cannot be accessed by your employer, even if they are in dire financial need.

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Caution: Although your money is held in trust, the value of your DC plan isn’t guaranteed. The value can change depending on the type of investments you hold.

Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca

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