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 | For employees |
|---|
- Straightforward, low-cost administration
- No need to calculate and report pension adjustments
- Employees familiar with plan
| - Gains grow tax-free
- Tax-deductible contributions
- Easy to make regular contributions
|
Contributions
| Employer | Employee |
|---|
- 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
| - 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 | Investments |
|---|
- Plan needs to be registered with Canada Revenue Agency
- No regulatory fees
- Subject to payroll taxes
| - Employees responsible for their investment choices
- Investment policy not required
|
Note
This text is for information purposes only. Refer to the policy for all conditions, exclusions and restrictions.