Group RRSP’s provide employees a savings option. Employers can help employees save for their retirement, implementing a group RRSP plan. A Group Registered Retirement Savings Plans (RRSP) is an employer-sponsored savings plan, that helps set up employees for retirement. Contributions are often made through payroll deductions, and set up on a pre-tax basis.
How Group RRSP Plans Work
- The plan contributions are automatic and deducted from your pay. The employer can match or add to your RRSP contributions.
- The employer usually pays the costs of opening the RRSP plan and the employee pays any investment costs.
- The range of investment options is usually limited.
- The rules for when and how much money can be taken out vary depending on your employer.