Group Registered Retirement Savings Plans (R.R.S.P.s) are based upon the defined contribution or money purchase concept, where the final retirement benefit is determined by the rate of contribution and investment growth in the accumulation years, and investment returns and/or annuity rates during the retirement years.
If the employer wishes only to facilitate a retirement plan for employees, without actually making contributions, a traditional DC Pension plan is not really an option. If the employer wishes only to facilitate the plan, a Group R.R.S.P. offers numerous advantages over individual plans, in terms of investment management fees and tax savings. Contributions are made through payroll deductions with before tax dollars and employees receive deductions from their taxable income for their contributions.
Contact us to discuss your needs with one of our knowledgeable retirement advisors.
