Group Retirement

Directly impacting your employee’s future.

Want to have a direct impact on your employee’s future? Want to incentivize employee retention? Adding a group retirement savings plan or deferred profit sharing plan is the next step to getting your employees excited about growing their career within your company.

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Why Group Retirement?

Encouraging savings

A group retirement savings plan (GRSP) is a great way to encourage employees to save for retirement. Employees who choose to contribute to the GRSP will have a percentage of their income deducted from each pay cheque and put directly into the plan design that they choose.

Profit sharing plans

Like a GRSP, a deferred profit sharing plan (DPSP) helps your employees save for their retirement through an employer-only contribution. DPSPs are advantageous allow for avoidance of additional payroll expenses and provide employers with the ability to control when and how the money is withdrawn.

Gain a competitive edge

In a competitive employment market, the total compensation package you provide for your employees can encourage employee retention and incite the right talent to join your organization over that of a competitor.

Any questions?

How does a contribution to a GRSP work?

At a high level, a GRSP contribution (either from an employee or an employer) works similarly to an RRSP contribution, as all contributions count towards the total contribution limit outlined in the employee's most recent Notice of Assessment.

Contributions happen through automatic payroll deduction and the employer can choose to match the employee’s contribution via an employer match. Typical amounts for an employer match are 3%.
How does a GRSP differ from a DPSP?

While they both contribute to an employee’s retirement savings, a DPSP is limited to employer contributions only.

Additionally, when an employer contributes to a GRSP account, CRA views the contribution as additional pay. Both the employee and employer have to pay their share towards EI & CPP. In a DPSP, neither the employee nor the employer will have to pay additional payroll expenses for contributions to the account.
Do contributions to a GRSP or DPSP impact RRSP contribution room?

Notably, while the source of contribution is different, both GRSP and DPSP contributions impact the contribution room. Employees can reference their most current Notice of Assessment to learn more about what their contribution limit is.
What does it mean to add a vesting option to your DPSP?

A deferred profit sharing plan provides employers with more control on when the money can be withdrawn and what happens to the contributions if an employee is to leave your organization. This is known as a vesting period. For example, you may wish to opt for a two-year vesting period, which means that an employee would need to be with your organization for two years before being able to access the funds. If they were to leave your company before the two-year time period, the money would be returned to the employer.

This helps to encourage employee retention while simultaneously protecting the employers’ investment.