Proposed New Plan for VESP - The Facts

Tuesday, September 10, 2019

It has been brought to our attention that there is misinformation being circulated at some worksites regarding the proposed new plan for VESP. It is important that all members know the facts regarding the proposed changes. 
 



  1. The withdrawal fee is higher with the proposed new plan but withdrawals are unlimited and no minimum balance is required.

  2. The overall management fees within the proposed plan are expected to be lower than current VESP since some service providers would not be needed in the proposed plan.

  3. The investment returns within the proposed plan are expected to be higher than current VESP as a result of a tax free savings account option (TFSA) and expected lower fees for the same types of funds currently available in VESP.

  4. The average member in the proposed plan is expected to have more money over the long term as a result of the tax free savings option and expected lower fees for the same types of funds currently available in VESP.

The current plan is a non-registered plan, which means that all investment earnings are taxable.


The proposed plan allows for contributions to a tax free savings account (TFSA) which on its own represents a significant financial advantage over the current plan.


In addition, members have the flexibility to contribute to an RRSP or to a non-registered plan (the same as with current VESP) if they prefer, or if they have maximized their TFSA contributions for the year.


Please see the voting package for additional details. If you have any questions about the proposed changes to VESP, please email them to VESP@georgeandbell.com.