Group Registered Retirement Savings Plans (RRSP) are an employer-sponsored defined contribution registered capital accumulation plans. In other words, Group RRSPs are a collection of individual RRSPs which are administered as a group. In this way, you can take advantage of better group purchasing power.
Group RRSPs are gaining popularity as a way to provide a retirement benefit to employees. Unlike traditional pension plans, Group RRSPs are not subject to pension standards legislation. This gives us much greater flexibility for both the employee and the employer. Be aware that both the employer and the advisor will have to adhere to the Capital Accumulation Plan (CAP) Guidelines because of the fiduciary relationship with the employee.
Our approach is highly consultative and it will be tailored to your company. We’ll consider your benchmarks and total compensation objectives when designing each program option. We’ll take these key performance indicators into account when we create the accompanying communication strategies as well.
Deferred Profit Sharing
Deferred Profit Sharing Plans (DPSP) are one type of registered capital accumulation plan. With these plans, employers can contribute to a retirement plan in relation to the profits that the company makes each year. Like the Group RRSPs, Deferred Profit Sharing Plans are also not subject to pensions standards legislation. As a result we have greater flexibility in calculating the profit used for employer contributions.
DPSPs offer some unique features including a vesting period that may be in line with the objectives of some companies. They do not however, allow for an employee contribution. This characteristic often makes DPSPs an effective companion to Group RRSPs. Again, using a consulting approach will allow us to help you adhere to CAP Guidelines and ensure plans options and communication strategies are in line with each company’s objectives.