Another option for retirement savings

Government offering provides protection from employee investment losses
By Peter Merrick
|Canadian HR Reporter|Last Updated: 05/06/2002

Are you familiar with the Canada Customs and Revenue Agency’s Tax Wavier Form? This form can provide immediate tax relief to employees who want to invest early or systematically into RRSPs.

In essence this form requests the federal government to authorize a payroll administrator at a company to reduce taxes that are usually deducted from a employee’s pay cheque at source and puts it right back into their pockets or into their RRSPs.

The use of this form by employees will become more popular, and even encouraged by employers, as securities and pension regulators across Canada start to examine the fiduciary responsibilities of employers to provide protection to employees against loses in company sponsored Group RRSPs, defined contribution plans, deferred profit sharing plans, employer profit sharing plans and other non-retirement savings plans — an issue receiving more attention in the wake of the Enron Corporation fiasco.