Group Retirement & Savings Plans
Registered Retirement Savings Plans are intended to encourage your employees to save for retirement by allowing them to defer paying income tax on retirement savings until the money is withdrawn. To assist with your understanding of the various employee retirement plan alternatives available to employers and employees, we are pleased to provide the following information and plan options. We welcome future discussion with you and your employees to assist in providing you with a plan design that suits your needs.
- Registered Retirement Savings Plans can help employers recruit and retain the best employees and stay competitive in their industry. It is a relatively inexpensive benefit to offer to employees and can be added to a comprehensive employee benefits package.
- Members’ contributions can be deducted from their taxable income, reducing their income tax payable. Income earned within an RRSP (including interest, dividends and capital gains) is not taxed until the money is withdrawn.
- Generally, RRSP savings can be used to purchase a home though the Home Buyers’ Plan (HBP) or to attain post-secondary education through the Lifelong Learning Plan (LLP).
- A Group RRSP is not subject to pension standards legislation; however the plan must be registered with Canada Revenue Agency. For more information visit www.cra-arc.gc.ca.