Implementing a Group RRSP or Pension Plan is an excellent way to enrich your current benefits offering, allowing you to attract and retain key people. There is a wide array of options available to you within the retirement savings market.
Voluntary plans allow those employees who are interested to participate in the program with convenient features such as payroll deduction. Alternatively, a contributory plan could be established where the company is providing a matching element.
A well-designed Group RRSP or Pension Plan can act as an excellent employee retention tool and can give your company a competitive advantage when it comes to attracting new talented staff.
You may also choose from the flexibility of a Group RRSP or a more defined option using traditional Pension products. Registered Pension Products (RPP’s) may include a Deferred Profit Sharing Plan (DPSP), a Defined Benefit Plan (DBP) or a Defined Contribution Plan (DCP).
Advantages of a Group RRSP Saving Plan
- As the employer, you can match the contribution levels of your employees as you wish
- There is typically no minimum amount required by your employees to join the group savings plan. Members can decide on a level that works for their future retirement goals and current budget.
- Members can make contributions in the name of a spouse if they chose
- There are many options for employers and the plans they provide. Plans can easily be customized to meet individual company needs.
- Members can determine the level of involvement they want in the management of their savings plan.
The various options available are treated differently by Revenue Canada. Speak with an advisor today to help you understand your options and select a program that suits your needs and the needs of your employees.
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Group RRSP VS. Individual RRSP