Common Reasons to Choose a Group Savings Plan

  • Attract and retain top talent by providing valuable benefits that matter to employees
  • Offer your employees a simple way to save for the future
  • Save time and resources with an easy-to-implement program

Group Retirement Savings Plan (GRSP)

A collection of individual RRSP accounts administered by a company (the plan “Sponsor”) on behalf of its employees (Members).

  • Employees contribute directly from their payroll using pre-tax dollars
  • Helps employees prepare for a financially secure retirement
  • Employees can select their own investment options
View Details about Group Retirement Savings Plan (GRSP)

Best for:

  • Maximum flexibility for the employee – unlimited investment options, employee contributions allowed, can be directed to a spousal plan
  • Tax deductible – contributions are considered part of an employee’s salary and are tax-deductible as an expense

Deferred Profit Sharing Plan (DPSP)

A registered plan that allows companies to share their profits with employees. DPSPs provide tax incentives and allow for vesting periods on employer contributions but do not allow employees to contribute to the plan.

  • Combined with a Group Retirement Savings Plan, a DPSP can be a cost-effective alternative to a Defined Contribution Pension Plan
  • The DPSP can be a great way to share your company’s success and growth by passing on a portion of your profits to your employees
  • Employees can select their own investment options within the plan
View Details about Deferred Profit Sharing Plan (DPSP)

Best for:

  • Tax incentives – contributions are tax deductible and exempt from federal and provincial payroll taxes
  • Cost-effective alternative to a Defined Contribution Pension Plan
  • Retaining top talent because it is tied to company profits and has a vesting period

Group Tax-Free Savings Account Plan (GTFSA)

A collection of individual Tax- Free Savings accounts that shelters your employees’ investment earnings and withdrawals from tax while allowing them to reach a variety of short and long-term goals.

  • Employees can make contributions that accumulate and grow tax-free over time
  • Offers employees a way to save through automatic payroll deductions
View Details about Group Tax-Free Savings Plan (GTFSA)

Best for:

  • Tax deductible – contributions are considered part of an employee’s salary and are tax-deductible as an expense
  • Companies looking to give employees options so that they can choose the savings vehicle that best meets their needs
  • Can enhance your overall group savings program

Group Investment Account (GIA)

A collection of individual investment accounts that employees can contribute to directly from their payroll, helping them save for their financial goals.

  • The GIA is a non-registered plan
  • Can help members save for a vacation, buying a house, home renovations and more
  • Contributions can be made by both employees and/or employers
View Details about Group Investment Account (GIA)

Best for:

  • Companies that want to complement/provide more financial benefits on top of a GRSP/DPSP
  • Help employees to save for short term goals

Pooled Registered Pension Plan (PRPP)

A Pooled Registered Pension Plan (PRPP) is a new retirement workplace savings option recently introduced by the Government of Canada.

The Royal Trust Company is in the process of applying to the Office of the Superintendent of Financial Institutions (OSFI) to become an administrator of a Federal PRPP.

  • Provide your employees with access to a simple retirement savings vehicle without the need for in-house expertise
  • No cost and easy-to-administer. Employers are only required to select a plan provider, enroll their employees and remit contributions.
View Details about Pooled Registered Pension Plan (PRPP)

Best for:

  • Small businesses or self-employed individuals who want a basic workplace savings plan
  • No cost and easy to manage plan
  • Businesses who want to provide a retirement savings plan but don’t have in house expertise

Voluntary Retirement Savings Plan (VRSP)

Voluntary Retirement Savings Plan (VRSP) is Quebec’s version of the Pooled Retirement Pension Plan (PRPP).

All aspects of the RBC PRPP are subject to change pending regulator approval of the plan.

View Details about Voluntary Retirement Savings Plan (VRSP)

Best for:

  • Businesses in Quebec
  • Businesses looking for a simple, low cost plan
  • Businesses wanting to offer payroll deduction for contributions

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