Group RRSP
Group RRSPs are an attractive and easy way to help your employees save for their retirement. These plans can be offered to your employees with very little administration from you and/or your staff. RRSPs are collected electronically by payroll deductions and are done so in a systematic and on a pre-tax basis. Employees elect investment choices ranging from Mutual Funds to GICs.
There is no obligation for the owner to contribute to their employee’s plans which make this option attractive for a smaller business that does not have the cash flow to support a regular pension plan.
Investment decisions are made by the employee and the options are similar to those available for an individual RRSP and can include Mutual Funds or GICs. Management fees related to Mutual Funds are typically lower in such a program compared to individual accounts. This allows for greater investment growth over the long run.