5 steps to setting up a group RRSP

Well-designed, effectively communicated plan most valued by employees

Most new retirement plans set up in Canada are stand-alone group registered retirement savings plans (RRSPs) or a combination of a group RRSP and a deferred profit-sharing plan (DPSP). Group RRSPs and DPSPs are often favoured over formal defined contribution (DC) pension plans because they are subject to less regulation — they are only registered under the Income Tax Act and do not have to be registered under provincial pension standards legislation. There is less upfront cost to establish these plans and it is less costly to operate and keep them compliant with applicable laws once they are up and running.

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