Group RRSP

A group Registered Retirement Savings Plan (RRSP) is an employer-sponsored retirement savings plan, similar to an individual RRSP, but administered by the employer. Contributions are made by pay-roll deduction, on a pre-tax basis, through the Group RRSP administrator. Employee contributions are often matched by the employer (typically to a maximum of 2-5% of earnings). However, contributions by the employer are not mandatory. Contributions by the employer are taxable as income to the employee.

Under current legislation, contributions up to 18% of the employee's previous year's earned income to the maximum contribution limit can be made, if the employee is not a member of a Deferred Profit Sharing Plan (DPSP) or a registered pension plan. If the employee is a member of a DPSP or a pension plan, the total maximum RRSP will be reduced by a pension adjustment.

Investment decisions are made by the employee and the options are much like those available for an individual RRSP and can include:
• Guaranteed Interest Annuities
• Mutual funds
• Segregated funds