• Main Features of Group RRSPs
• Group RRSP Advantages
• Group RRSP Disadvantages
• Group RRSP Employer Benefits
• Group RRSP Employee Benefits
• Why Should an Employer Consider Implementing a Group RRSP Program?
  

GROUP RRSP EMPLOYER BENEFITS

1. FREE EMPLOYEE BENEFIT: no set up fee, no trustee fee, and no termination fee
   
   
2. COMPLEMENT TO EXISTING PLANS: if company already has a registered pension plan, a Group RRSP is an attractive way to offer employees additional benefit so they can maximize their retirement contribution limits
   
   
3. OPTIONAL EMPLOYER CONTRIBUTIONS: employer may choose to build on the plan by adding to their employee's contributions, they can make it a regular program or use it as a vehicle for bonuses
   
   
4. POSITIVE STEP IN EMPLOYEE RELATIONS: a group RRSP contributes to the kind of working environment that helps both attract and retain employees.
   
   
5. LIMITED LIABILITY: employers are not responsible for guaranteeing a specific amount of income when employees retire
   
   
6. CUSTOMIZED PLANNING: employers can control all the fundamental aspects of the plan design, including the timing of contributions, the eligibility requirements, investment options available to employees, and there is no minimum number of employees required
   
   
7. EASE OF ADMINISTRATION: Group RRSPs are easy to administer since there are no complex government filings required and no ongoing administrative responsibilities for retired or ex-employees
   
   
8. EASE OF COMMUNICATION: a Group RRSP is easy to explain to employees and it is easy to manage and understand
   

This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended. Future tax changes and market conditions may affect this information.

back to top