Group retirement and savings
Help secure your employees’ financial future
A group retirement and savings plan can be tailored to the needs of your business and your employees’ financial goals.
The advantages of a Canada Life group retirement and savings plan
Offering a group retirement and savings plan can be an affordable and effective way to attract, motivate and keep employees, while helping them save for their retirement. But it’s not just about your employees. There are real benefits to your company when you offer a plan.
Help reduce costs
Potentially less employee turnover means less hiring and training.
Customized solutions
Work within your budget to create solutions that work for you and your employees.
Retain employees
A plan helps you keep valuable employees by meeting their needs throughout their life.
What is a group retirement and savings plan?
A group retirement plan is set up by an employer for employees as a workplace benefit. Employers offer the plan because their contributions are tax-deductible, and the plan acts as an employee incentive.
Employee contributions are invested in preselected investments offered under the plan and when they are, employers often match a percentage of the contributions. For employees, it’s an easy way to save for retirement or other goals.
Why offer a group retirement and savings plan?
Benefits for your employees
Lower fees
Keep more money in your employees’ pockets since group fees are generally lower than retail.
Convenience
It’s easier for them to manage and monitor an investment fund than choosing individual stocks and bonds on their own.
Help build lifelong habits
You can help your employees build good financial, health and wellness habits – a plan they can continue to use for life.
Benefits for your business
Tax benefits
With some products you can deduct administrative fees as a business expense.
Reduce payroll expenses
Contributions to a deferred profit sharing plan can, in some cases, reduce your payroll expenses.
Simplified plan governance
While there are certain responsibilities that come with offering a group retirement and savings plan, we simplify the process to help make sure your plan is compliant.
What’s the right plan for your company?
Let’s take a look at the different plans you can offer. We can build a solution that works for you from an extensive investment fund lineup.
Saving for any situation
Registered retirement savings plan (RRSP)
Canada’s staple retirement product provides employees the benefit of pre-tax payroll contributions, shelters their investment earnings and contributions until they withdraw – all with simplified administration for you.
Tax-free savings account (TFSA)
Provide employees a lot more flexibility to use their money for short and long-term goals with no tax on their investment earnings or withdrawals.
Non-registered savings plan (NRSP)
Provide employees more flexibility when they retire or if they are no longer employed by your company with a plan where amounts aren’t restricted by contribution limits. Unlike an RRSP or TFSA, investment earnings are taxable.
Pensions
Registered pension plan (RPP)
A retirement plan for employees set up by an employer. Within certain limits, it provides tax advantages because contributions are tax-deductible and investment income isn’t taxed until it’s paid out of the plan. Employers are required to contribute a minimum amount to an RPP.
Simplified pension plan (SPP)
Available only in Manitoba and Quebec, it offers flexible contribution levels and ad-hoc contributions. You also don’t have to worry about most of the administrative obligations and responsibilities because Canada Life will be the plan administrator.
Stock and profit-sharing plans
Employee profit-sharing plan (EPSP)
A plan where amounts are paid by the employer into an account that allows employees to share in company profits. Employer contributions are deductible as an expense without limit. Tax treatment of EPSP contributions is the same as if the employer paid the employee an increased salary. Employees can also contribute to an EPSP.
Employee stock purchase plan
Employers who offer this plan typically give eligible employees the opportunity to purchase shares of the company at the market price. The employer can make contributions on behalf of their employees. Employees purchase the shares using after-tax income.
Deferred profit-sharing plan (DPSP)
Share profits with your employees depending on how well the company does. Contributions are tax-deductible to the employer within certain limits, as defined by the Income Tax Act.
Student debt savings program (SDSP)
Employees receive a matching contribution, up to a maximum, to their retirement savings account within their employer’s group RRSP for every payment they make to their Canadian or provincial government student loan.
Freedom Financial™ Registered education savings plan (RESP)
A registered education savings plan allows employees to set aside money for a child who can use the funds to pursue a post-secondary education. The contributions in the plan grow tax-free until withdrawn to pay for eligible post-secondary education.
The Freedom Financial™ NextStep™ plan
When members leave their group retirement and savings plan they face important decisions about what to do next with their savings. The Freedom Financial ™ NextStep™ plan is the quickest and easiest way for employees to leave your plan, while still allowing them to continue using the savings plan and habits they’ve built with your company.
Voluntary retirement savings plan (VRSP)
Available and mandatory in some cases for employees working for small- to medium-sized businesses in Quebec that don’t currently offer a RRSP, TFSA or pension plan through payroll deductions. You don’t have to worry about most of the administrative obligations and responsibilities because Canada Life will be the plan administrator.
Outsourced Chief Investment Officer Plus (OCIO+)
Looking to outsource your defined benefit pension plan management responsibilities?
Delegate the day-to-day actuarial and pension administration and investment decision-making of your defined benefit pension plan to a team of experienced specialists with our Outsourced Chief Investment Officer Plus solution (OCIO+).
Email us to learn more about OCIO+
