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Registered Pension Plan and Group Retirement Savings

Common Reasons to Choose a Registered Pension Plan or Group Retirement 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

Defined Contribution Pension Plan

A plan where the employee and/or employer contribute a percentage of employee earnings up to a maximum prescribed by the Income Tax Act (Canada).

  • The value of the employee’s plan account at retirement will vary based upon the employee and employer contribution amounts and the performance of the investments selected
  • The accumulated value will determine the annual income that a plan member can expect in retirement
  • The contributions and earnings are generally locked-in as the plan is designed to specifically provide income in retirement
View Details about Defined Contribution Pension Plan

Best for:

  • Employee retirement income – Employers and employees make contributions that are generally locked in for retirement purposes.
  • Tax advantage and deductibility – Contributions and earnings grow on a tax deferred basis until they are withdrawn in retirement.

Group Retirement Savings Plan (GRSP)

A collection of individual RRSP accounts administered by the employer on behalf of its employees.

  • 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.

  • 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
  • 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
  • Employers 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 payroll, helping them save for their financial goals.

  • The GIA is a non-registered plan
  • Can help employees save for a vacation, buying a house, home renovations and more
  • Contributions can be made by both employees and employers (in which case contributions are considered part of an employee’s salary and are tax-deductible as an expense)
View Details about Group Investment Account (GIA)

Best for:

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

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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