Workers' contributions are based on their wages. Benefits equal 25 percent of a workers' average earnings. Gay and lesbian couples are denied the right to split pension credits or receive survivor's benefits. New Canadians who do not meet the residence requirements for the OAS cannot collect the GIS even though they may pass the income test. These plans vary widely.
Benefits also vary.
In a defined-benefit plan, retirees usually receive an amount based on their salary and years with the company. In a flat-benefit plan, retirees receive a specified rate, which is multiplied by the years of service with the company. For example, a flat-benefit plan covers CAW members working for Chrysler, GM and Ford. The CAW has negotiated some good pension plans, but not all bargaining units or unions have the strength to bargain good plans. The federal government recently increased the amount people can invest in RRSPs.