OHHA Report On RRSPs

Published: March 23, 2017 11:20 am EDT

The Ontario Harness Horse Association administers a registered retirement savings plan, which now has over 1,300 individuals participating and saw annual contributions made by 851 individuals in 2016.

Of those contributing, 738 were eligible for the industry contribution, which turned out to be $1,200, based on the revenue available and the number of individuals that met the qualifying criteria.

The funding for the annual industry contribution is derived from the Pari-Mutuel Tax Reduction Funds and based on a percentage of the annual wager. Horsepeople receive .4% of every dollar wagered and it is divided 60% to the Horsemen’s Benevolent and Protective Association (HBPA) for the Thoroughbred participants and 40% to the Ontario Harness Horse Association (OHHA) for the Standardbred participants.

Of the money directed to the Standardbred horsepeople, 60% is allocated to fund the RRSP. To determine the annual industry contribution, the committee determines the amount of money available and divides it amongst the number of participants that meet the eligibility requirements. In order to qualify for the industry matchup, an individual must have 12 starts as an owner, trainer or driver, be a full-time groom or the breeder of a horse or horses that collectively had 12 starts in the previous year in Ontario.

The RRSP Committee meets four times per year to review and monitor the plan. “We are happy with the investment returns realized on the OHHA committee's selected investment mix of the RRSP” stated committee chair Geoff Maltby. “The OHHA committee's selected investment mix had a net return of 6% over the last year and 7.4% for the last five years. In conjunction with the low investment management fees of 1.025% for the Manulife Balanced Fund, the plan has performed exceptionally well for the participants that have chosen to leave their money in the selected investments.” Of course individuals may make their own investment choices and many individuals have chosen to adjust their holdings in their individual portfolios.

Participants may monitor their individual accounts by logging in to the Manulife site at www.manulife.ca. T4s for the 2016 contributions have been mailed out for income tax purposes. 2016 RRSP receipts have been sent by Manulife and are available online. First 60 days RRSP receipts for any contributions made between January 1, 2017 and March 1, 2017 were mailed March 22 and will also be available online.

If you are not currently enrolled in the plan and wish to enroll, you may contact the OHHA office at 905-854-6442 for further information.

(OHHA)

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