OSPC - FAQS - Overview of Manitoba Pension Laws

Flexible (Flex) Pension Plans

  1. What is a flexible "flex" pension plan?

    A flexible pension plan is a pension plan that allows you to make voluntary defined benefit contributions for the purpose of improving your pension benefits to address your individual needs.

  2. Does my employer have to offer a "flex" pension plan?

    No. Plans may offer a flex pension plan but are not required to do so.

  3. What are flexible or "flex" benefits?

    Flex benefits are optional ancillary (or secondary) benefits that you can buy through your flex plan with added contributions, known as optional ancillary contributions.

  4. What are optional ancillary contributions?

    These are voluntary contributions that you may elect to make to a flex pension plan to purchase flex benefits known as optional ancillary benefits.

  5. How do flex pension plans work?

    A flex pension:

    • must permit you when your employment ends or you retire to use your optional ancillary contributions to purchase optional ancillary benefits
    • is subject the federal Income Tax Act limits on the amount of optional ancillary contributions that can be used to purchase optional ancillary benefits (If you make optional ancillary contributions to the flex plan in excess of this limit, your excess contributions must remain in the flex plan and can not be paid to you.)
    • permits you to make contributions to the flex pension plan to improve benefits without affecting the amount of contributions you can make to your RRSP.

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