How is interest earned on an employees contributions and can it be rolled into the Plan?
Interest is earned on all contributions from the date deposited into the Plan. Deposits made prior to when Guaranteed Investment Certificates (GICs) are purchased earn daily interest for that period. Accumulated interest earned prior to the start of a leave period must be paid out annually to participants for tax reporting, therefore cannot be rolled into the Plan. Note this payment will not be issued until 30 days after yearend, although it must be reported as income in the previous year.
