Group registered retirement savings plan (RRSP)
What is a group RRSP?
A group RRSP is a collection of individual RRSPs offered to a group of employees. Administration is centralized and management fees are low. The plan is combined with a LIRA or locked-in RRSP for any locked-in funds transferred in from a previous employer's plan.
Advantages
For employers
- Straightforward, low-cost administration
- No need to calculate and report pension adjustments
- Employees familiar with plan
For employees
- Gains grow tax-free
- Tax-deductible contributions
- Easy to make regular contributions
Contributions
Employer
- Can be made to your employees' RRSP. No minimum contribution amount, and can be changed at any time
- Can be deducted from company's taxable income
- Count as salary, which means they're a taxable benefit for employees
Employee
- Employees can set up regular contributions and make spousal contributions
- All contributions are eligible for Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP)
Details
Administration
- Plan needs to be registered with Canada Revenue Agency
- No regulatory fees
- Subject to payroll taxes
Investments
- Employees responsible for their investment choices
- Investment policy not required