The problem with pensions for smaller employers
A DC pension plan has real advantages over a Group RRSP: employer contributions aren't subject to CPP and EI premiums, savings are locked in for retirement, and a pension signals long-term commitment to employees. But sponsoring one means registering a plan, running a pension committee, maintaining governance and investment policies, filing annual returns, and carrying administrator obligations. For an employer with 40 or 150 employees, that overhead usually isn't practical, so most sub-250 employers never offer one.
How a multi-employer DC plan works
In a multi-employer pension plan (MEPP), many unrelated employers participate in a single registered pension plan. The plan is registered once, has one plan text, one governance structure, and one set of regulatory filings. Each participating employer signs on to the plan and contributes for its own employees, while the plan sponsor handles the obligations that would otherwise fall on each employer individually. In Canada, the term MEPP is often associated with union-negotiated defined benefit plans. The LINK MEPP is different: it's a defined contribution plan open to employers of any size, with no collective bargaining required.
What LINK takes on
LINK is the sponsor of the LINK Multi-Employer Pension Plan. That means LINK handles the pension committee proceedings, plan governance, investment oversight, and regulatory filings directly. Members get the same LINK experience as every other plan: digital onboarding, a suitable portfolio based on their risk profile, and access to real support.
What participating employers do
Your role is much closer to running a Group RRSP than a pension. You choose your contribution formula, deduct and remit contributions through payroll (automatically, if your payroll provider integrates with LINK), keep employee data up to date, and share plan information with new hires. You don't need to form a pension committee or file with a pension regulator.
Who the LINK MEPP is for
The LINK MEPP suits employers who want to offer a true pension without the sponsor workload: growing companies competing for talent against larger employers with pension plans, businesses in industries where pensions are expected, and employers who want the payroll tax efficiency of a pension over a Group RRSP. Very few providers make a DC pension available to employers under 250 employees, which is why the LINK MEPP is one of the clearest ways a smaller company can stand out.
Is it the right fit?
Because contributions are locked in, a pension is best suited to employers who want the benefit to be used for retirement. If your workforce values flexibility, a Group RRSP paired with a DPSP may be a better fit, and some employers offer both. A LINK plan specialist can help you compare the options for your workforce.