Group RRSPs

A Payroll Deduction Registered Retirement Savings Plan (GRRSP) can be an important component of your total employee benefits package. It’s an ideal, low-cost way to encourage your employees to prepare for eventual retirement.

A Payroll Deduction RRSP is simply a collection of individual RRSPs, where routine administration is centralized and members benefit from convenience and other advantages of regular monthly or bi-weekly payroll deductions.

Group RRSP Advantages:

  • All contributions are tax deductible – reduce taxable income to employee
  • Savings are tax sheltered
  • Maximum amounts that can be contributed set each year by tax law
  • Employer contributions are optional (but recommended)
  • Employer contributions are tax deductible
  • No pension plan compliance
  • Can tie employer contributions/matching to employee’s years of service, profits etc.
  • Can restrict ability for employees to access the employer and/or employee matched contributions while employed
  • Simple to administer: electronic web-based contributions, employer’s role limited to handing out enrolment packages, making/sending payroll deductions and notifying when a member terminates
  • Direct mailing of RRSP receipts and member statements to members’ homes
  • Direct service to members by the provider – eliminates employer administration

Group RRSP – Employee Benefits:

  • Employer match may provide immediate 100% return on investment
  • Systematic payroll deductions provide painless savings
  • Immediate tax relief
  • Lower management fees
  • Variety of options at termination of employment
  • Wide range of investment options call centres (150 languages) and internet 24/7 access to account information and make changes