Workplace savings

Group Retirement and Savings Plans in Canada

A workplace retirement or savings plan can strengthen total rewards and help employees build consistent saving habits through payroll.

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Canadian employers can choose from several group retirement and savings structures. Common options include a group RRSP, an RRSP paired with a deferred profit sharing plan, a group TFSA and a defined contribution pension plan.

The right structure depends on the employer objective, workforce, budget, jurisdiction and administrative capacity. Plan type also affects access to money, contribution room, employer responsibilities and employee communication.

Understanding the benefit

Common workplace savings options

An advisor can help an employer compare structures such as:

Group RRSP

Payroll contributions into individual registered retirement savings accounts, subject to each employee's available contribution room.

RRSP and DPSP

Employee savings paired with a separate employer-funded profit-sharing component, with its own eligibility and plan rules.

TFSA or pension

Flexible after-tax saving through a group TFSA or a registered pension structure with additional governance and locking-in rules.

Plan design

What employers should compare

Define eligibility, waiting periods, matching formula, eligible earnings, employer maximum and treatment of leaves or termination. Compare provider fees, payroll integration, investment options, member education and sponsor responsibilities. Tax and payroll treatment should be verified for the selected structure.

Three questions to ask

1 Is the main goal recruitment, retention, retirement readiness, flexible saving or predictable employer cost?
2 How much will the employer contribute, and how should the matching formula work on every pay?
3 Which provider offers clear fees, useful employee support and manageable administration?

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Build the right plan

Turn benefit options into a workable plan.

A NextGen advisor can help you compare coverage, understand the trade-offs and build a sustainable benefits program for your organization.

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