Group RRSP's and Pension Plans

With the stability of future pensions in question, there is a growing interest in Group RRSP's by employers and employees.

As an employer you can start a Group RRSP Plan. This is simply a collection of individual RRSP's where you arrange for employees to make contributions through regular payroll deductions on a pre-tax basis. Your employees can apply to join the program and decide how much they want to contribute. You then deduct that amount from each employee's pay in pre-tax dollars and forward it to your financial organization selected as the investment manager and administrator for your group plan. Each employee's contribution is then deposited into their individual RRSP and invested as they specify.

Group RRSP, contributions are made on a pre-tax basis by payroll deduction, so the amount of tax you, as the employer, are required to deduct at source is calculated after your Group RRSP contribution is deducted. This results in an instant tax saving for employee contributors, instead of them having to wait for a refund after they've filed their tax return.

Group RRSP Plans are very popular with employees because they will see reduction in their taxes instantly at source, thereby giving them that money as extra take-home pay to spend or save as they see fit.

Wondering if your company and its employees could benefit from a Group RRSP Plan? Let's talk