How the Pension & Savings Program works
The Pension & Savings Program supports your financial wellness and savings goals — whether you’re focused on increasing your retirement income or saving for the shorter-term.
For a quick program overview, watch this video!
The program includes these key components:
Core component (all eligible employees participate):
Pays an annual pension for as long as you live — 0.50% of your final average earnings (FAE) multiplied by your credited service earned. All contributions fully funded by Johnson & Johnson on your behalf; you do not make any contributions.
Optional components:
Optional DB
Pays an annual pension for as long as you live, on top of the core DB component — 0.70% of your final average earnings (FAE) multiplied by your credited service earned. Contributions are pre-tax (meaning you only pay tax when you start receiving a monthly pension).
Defined Contribution (DC)
When you retire, you will receive an account balance that you can use to boost your retirement income. The account balance is based on contributions and investment earnings. You choose how much to withdraw each year (within set minimum/maximum limits). Contributions are pre-tax (you only pay tax when you withdraw the money).
Registered Retirement Savings Plan (RRSP)
You will receive an account balance that you can use to boost your retirement income. The account balance is based on contributions and investment earnings. You can also use the RRSP for the Homebuyers’ Plan 
and the Lifelong Learning Plan before you retire. Contributions are pre-tax (you only pay tax when you withdraw the money).
Optional Ancillary Contributions (OAC)
You can use your OAC account to purchase additional DB benefits (i.e., to increase your monthly pension or improve benefits to your spouse/beneficiary), up to the CRA maximum . The unused balance of your OAC account will be paid in cash (less tax deductions). Contributions to your OAC account are pre-tax and they don’t reduce your RRSP contribution room.
Tax-Free Savings Account (TFSA)
You will receive an account balance that is based on contributions and investment earnings. Contributions are after-tax, but your investments can grow tax-free. You can withdraw money from your TFSA whenever you need it.
Non-registered
Contributions are after-tax, and there’s no limit to how much you can contribute. However, you will need to pay tax on any investment earnings (capital gains and dividends). You can withdraw money from your Non-registered account whenever you need it.
