Group Registered Retirement Savings Plan (GRRSP)

The Group RRSP is easy to set up and as the employer your contributions to the plan are voluntary.  The tax savings associated with RRSP investing make the Group RRSP a top choice with employees.
 
Tax Deductibility
For your employees, all contributions are tax-deductible.  As with any RRSP, earning on investments are not taxed as long as the investments remain in an RRSP.
 
Ease of Contribution
Employees decide how much they will contribute per pay and they are free to make lump sum payments at any time.
 
Contribute Directly Without Paying Taxes
Without a Group RRSP, most people’s contributions to an RRSP come out of their pay cheque – money that has already been taxed.  With a Group RRSP, you allocate a portion of your employee’s pre-tax pay directly into their RRSPs.  In effect, employees receive their tax “refund” on every pay cheque.
 
Spousal Plans Available
In one partner’s RRSP is significantly larger that the other’s, he or she may be taxed more heavily in retirement, so it is desirable for both partners to have an equal amount.  Spousal plans let employees contribute to their spouse’s RRSP and still get the same tax advantages as if contributing to their own RRSP.
 
Flexibility and Popularity
The decision whether or not to contribute to your employees’ RRSP is completely up to you.  If you do contribute, you may opt to match a percentage of their contributions, either on a regular basis or as part of a bonus program.