Save. Plan. Retire.

What Is a Group Retirement Plan?

Group retirement plans offer you and your employer an effective way to save for retirement together. Contributions made to a group plan are pooled together and invested in an account administered by the plan administrator; matching contributions may even increase how much is saved towards meeting retirement goals.

Group retirement plans do not impose taxes on contributions, with any unused contribution space rolling over year to year. When withdrawing money at retirement from your group plan, withdrawal options include lump sum or income stream withdrawals. Once the minimum withdrawal requirement has been satisfied, any remaining balance can be transferred into an RRIF/LIF where many of its advantages will continue to apply.

As well as your employer contributions, you may also make non-contributory contributions (or “non-contributory RRSP contributions”) directly. These payments may be taxed when they reach you; but don’t worry — your contributions won’t disappear into thin air!

When selecting investments for your group RRSP, it is essential that you evaluate the track record and reputation of the institution that manages funds. Aim for one with an outstanding history of stability, reliability and service as this will give you peace of mind that your funds are safe from unintended mishandling. Choosing one with great customer reviews also offers additional reassurance.

The COVID-19 pandemic has shaken up the job market. Turnover rates are increasing and companies are prioritizing recruitment, reward, and retention strategies in their recruitment plans. A robust group retirement savings plan can play an essential role in attracting and retaining top talent.

DBA provides comprehensive services that enable organizations to design and implement group pension plans or registered retirement savings plans (RRSPs) that are mutually beneficial and cost-effective for them. Our clients entrust us to help their employees invest for a secure future.

No matter the size or nature of your business, we have services designed to fit. From employee communication and education through to support services aimed at creating a culture of financial wellbeing.

As an employer, cash incentives cannot be offered as incentives to encourage employee participation in your group retirement plan. There are other methods you can employ, however. You could offer non-cash incentives or include an automatic enrollment feature in payroll so employees make regular contributions without prompting from you. Furthermore, an introductory information session would help educate employees on the benefits of the plan as well as its various options available to them.