One of the most common group financial plans is the Group RRSP. A group RRSP is very similar to an individual RRSP except that is administered on a group basis by the employer.
Having a quality group plan provides several benefits, it can help you:
- attract and retain qualified employees
- increase productivity
- increase morale, work satisfaction and loyalty
Weyburn Credit Union specializes in group plans, we offer:
- Investment Expertise: Not only are our Investment Specialists some of the most professional and well-trained in the industry, but they are your friends and neighbors so they care about you, your dreams, and your community.
- Advice: We ensure that all members receive suitable guidance when investing their savings.
- Communication: We're available to answer questions about members’ personal investments, account statements and any financial matter that concerns them.
- Education: We are a valuable resource when it comes to educating plan sponsors on the various group plan options available and the benefits associated with each.
How the plan works Expand/Collapse
Employees make contributions to the group RRSP directly from their paycheque and the tax savings from the RRSP contribution can be applied to each paycheque immediately instead of at the end of the year.
Employees can define how much they want to contribute to the group plan either as a fixed dollar amount (ie $100 per paycheque) or as a percentage of income.
Employers have the option of matching employee contributions in some manner and although matching does make for a better plan, it is not required.
The contribution and tax rules for group RRSPs are guided under the income tax act. The most anyone can contribute to a RRSP is 18% of his or her previous years income. This includes both contributions to Group RRSP, individual RRSPs and even pensions.