MONTREAL, Nov. 4 2008 – The Standard Life Assurance Company of Canada today announced that it will offer group savings and retirement plan sponsors the opportunity to include the new tax-free savings accounts (TFSAs) as part of their programs, starting January 1, 2009. TFSAs were announced in the 2008 federal budget as the single most important personal savings vehicle since the introduction of registered retirement savings plans (RRSPs) in 1957.
TFSAs allow the accumulation of up to $5,000 per year of after-tax money that can be used whenever and for whatever purpose the investor chooses without paying tax on the income earned. They can be used to complement other retirement savings vehicles such as RRSPs or, in place of non-registered plans, for shorter-term goals.
“We’re happy to offer employers ways to enhance their group plans. TFSAs can help their employees save money for unforeseen costs such as healthcare expenses during retirement, or as an alternative to grow money tax-free if they have already reached their annual RRSP contribution limits. TFSAs are also attractive to those members who have not maxed out their RRSPs but expect a higher tax rate down the road,” said Anna Del Balso, Director of Strategy and Research and Product Development of Standard Life’s Group Savings and Retirement Division.
Standard Life will offer sponsors the opportunity to include TFSAs as part of their group savings and retirement programs, and to choose from any of the funds included in their plans to ensure that members continue investing in funds that meet the objective of their group plan.
About Standard Life
In 2008, Standard Life, the first life insurance company to transact business in Canada, marks its 175th year of operations. With 10,000 employees globally, Standard Life plc is a major international financial services group headquartered in Scotland. It provides asset-managing services for retirement, investment and protection to some 7 million customers globally and has C$330 billion in assets under administration, as at June 30, 2008. It has offices in the United Kingdom, Canada, Ireland, Germany, Austria, India and China, including Hong Kong.
The Standard Life Assurance Company of Canada is Standard Life plc’s largest operation outside the U.K., with 2,000 employees based in Montreal and across Canada, serving more than 1.3 million Canadians, including group insurance and pension plan participants. (www.standardlife.ca)
Standard Life plc has approximately 1.5 million shareholders worldwide, including approximately 14,000 institutional and individual shareholders in Canada. It has been trading on the London Stock Exchange since The Standard Life Assurance Company demutualized in 2006. Standard Life plc is listed on the FTSE 100, Europe’s largest index, and on the FTSE4Good Index, which identifies companies adhering to globally recognized corporate responsibility standards. (www.standardlife.com)
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