Common use of Employee Savings Plan Clause in Contracts

Employee Savings Plan. This is an optional benefit plan which the employee may join upon employment or upon the first of any subsequent month. The employee contributes 4% of basic earnings (through 24 payroll deductions). Contributions may be directed to a Non-registered and/or Registered (RRSP) Account. Within each account, employees may choose to invest in a Savings, Equity and/or Income fund, and Guaranteed Income Certificates (GIC). Twice per calendar year, the employee can withdraw funds (which includes transfers to outside RRSP accounts), and change tax and/or investment options. If these transactions occur more than twice per calendar year, then an automatic six month suspension is applied. An employee may elect to contribute, through payroll deduction, up to an additional 10% of basic earnings. Such contributions would be administered as part of the original 4% in terms of investment income and allowable transactions.