Group Retirement & Savings Plans

Group Retirement & Savings Plans

We offer your organization the support of Canada's largest network of group investment and retirement specialists, who deliver unparalleled service in group retirement and savings plans. Canadian Defined Benefit Contribution plans and Group RRSPs have continued to play a growing role in Canada's retirement landscape. We can help employers streamline and improve their retirement benefits for employees.


Retirement Savings Trends

Statistics Canada recently released some interesting information on retirement savings trends in our country. For families in which the major income recipient was aged 55 to 64, 8 in 10 held either RRSPs or employer pension plans (EPPs). It is noteworthy that at each age level, median pension holdings were substantially higher, at $244,800, than those who only hold RRSPs. This tells us that a company that has a pension plan or assists employees to achieve their retirement goal, will be seen as an employer of choice, particularly among high-quality seasoned and experienced employees.


There's no reason to feel overwhelmed by the complexity or options available to your company – ENCOMPASS Consultants can work with you to develop the Group Retirement & Savings Plan best suited to your organization's needs.


Group Registered Retirement Savings Plans

This term is used to describe a grouping of individual RRSP’s administered by the employer for contribution paying purposes. All assets in the RRSP are fully owned and controlled by the employee as vesting is 100% immediately. Benefits are fully taxable when received from the RRSP. Investment income earning in the RRSP are tax-exempt until received in the form of a benefit. Contributions are tax deductible to the employee.


The plan may be set up on a Loaded (employer pays all administration expenses) or a No-Load basis (no direct expenses to be paid as interest rates are reduced to offset provider’s expenses). Expenses for a Loaded Plan are similar to Money Purchase pension programs (except the Provincial registration fee is not charged) and are tax-deductible for the employer. Employees can claim the employer and employee contributions as tax deductions. The employer’s contribution is simply added to the employee’s wage or salary and then paid into the RRSP via payroll deduction. In this way, it is a business expense deduction and the employee gains additional tax exempt funds. It does result in higher payroll taxes, however.


Employers will typically work with their advisor and plan provider to determine a list of available funds for the employees to choose from. The list gives a reasonable number and range of different types of investments for employees to choose where their investments may be deposited.


To get started on your group RRSP or to investigate other savings plan options for your employees, contact a pension specialist right now.



Source: Statistics Canada