Group retirement
Group retirement plans, from both sides of the table.
Whether you’re an employer setting one up, or an employee weighing what to do with the one you’re in, here’s how they work and where I can help.
Where do you fit
Two sides of a group plan.
For employers
Set up a plan for your team
Why it’s worth it, the options to choose from, and how little work it actually is once it’s running.
- Why owners put one in
- Group RRSP, DPSP, TFSA and the legal minimums
- Who handles what, mostly not you
For employees
Already in a plan?
Left a job with an old group plan, or unsure how yours fits the rest of your money? Let’s look at it together.
- What happens to it when you leave
- What you can move, and when
- How it fits your bigger financial plan
Start here
What is a group retirement plan?
A group retirement plan is a workplace savings plan an employer sets up for its team, usually a Group RRSP paired with a DPSP. Employees save straight from payroll, the employer can match some or all of it, and everyone gets lower fees and automatic saving that is hard to set up on your own.
Want the longer version? Start with this.
For employers · Why offer one
Four reasons owners put one in.
It can be required
Québec requires a VRSP once you have 10 or more eligible employees, unless an equivalent plan is already in place. A lower five-employee threshold is pending but not yet in force.
Keep your people
Matching contributions to a DPSP vest over up to two years, which holds a team together without a non-compete clause.
Attract the right ones
One of the best recruiting tools there is, ranked alongside salary and ahead of health benefits by most candidates.
Give more, pay less
A DPSP contribution is deductible to the company, with no CPP or EI payable on it. More lands with your staff per dollar spent.
The business case, in numbers
Turnover runs roughly $22,000 per departing employee on average, and 35% of companies with 100+ employees put it above $50,000.
A retirement plan cut the risk of an employee quitting in their first year by 40%.
Canadian employers rank retirement benefits as their #2 retention tool, behind pay and ahead of health benefits, disability coverage, and work-life balance.
More on the business case: is it worth it for a small business, what it costs an employer, and how it helps you keep people.
For employers · Your options
The different solutions, in plain terms.
Group RRSP
The employee’s money. They contribute from gross pay, so the tax saving is immediate and the money is theirs from day one. You can match what they put in, which is usually what gets people to join.
DPSP
Your contribution. A Deferred Profit Sharing Plan is where your match goes: deductible, no CPP or EI, and it vests over two years at most.
Group TFSA
Flexible savings. Tax-free savings for goals closer than retirement. Withdraw anytime, with no tax on the growth.
VRSP or PRPP
The legal minimum. What the law requires in some provinces (Québec’s VRSP; a federal PRPP). No employer match is required, but participation stays low without one.
Not sure how the RRSP and DPSP pieces differ? Group RRSP vs. DPSP lays it out, and here is how CPP and EI apply.
For employers · Who does what
Set up once, then mostly off your desk.
Your advisor
I advise.
- Choice of provider and plan structure
- Selection of investment options
- The match amount and vesting period
- An annual review and fee comparison
Plan provider
They administer.
- Holds the plan and members’ accounts
- Platform, statements and recordkeeping
- Enrolment and member service
- Education and one-on-one meetings
You, the employer
You manage.
- Your matching contributions
- Deductions on your existing payroll
- About five minutes per pay period
- One annual review with me
For employees · Already in a plan
Weighing your options? Zoom out first.
Maybe you’ve left a job and have an old group RRSP or DPSP sitting with a provider you never picked. Maybe you’re still contributing but the plan feels like a black box. Either way, the real question isn’t just “can I move it?” It’s “how does this fit the rest of my money?”
That’s a financial planning question, and it’s where I start. We look at what you have, what you can move and when (vesting and locked-in rules matter), the fees on each side, and how it fits the bigger picture, retirement, tax, and everything else. Sometimes moving it helps. Sometimes it doesn’t. You’ll know either way.
When you leave a job, vesting decides what’s yours to take, worth understanding before you do anything.
Common questions
Group retirement plans, answered.
What is a group retirement plan?
A group retirement plan is a workplace savings plan an employer sets up for its team, most often a Group RRSP paired with a DPSP. Employees contribute straight from payroll, the employer can match, and everyone benefits from lower fees and automatic saving.
What are the benefits of a group retirement plan for employers?
It is one of the top tools for attracting and keeping staff, ranked second only to pay in Canada. A DPSP match is tax-deductible with no CPP or EI payable, and in some provinces a plan becomes legally required once you reach a certain number of employees.
What are the options in a group retirement plan?
The common building blocks are a Group RRSP (the employee’s contributions), a DPSP (where the employer’s match goes), a Group TFSA for flexible savings, and the legal minimums such as Québec’s VRSP or a federal PRPP.
Is a group retirement plan the same as a group pension plan?
Usually not. Most group plans today are defined-contribution, built from contributions you invest, rather than a traditional defined-benefit pension that promises a set monthly income. A Group RRSP with a DPSP is the most common setup in Canada.
What happens to my group retirement plan when I leave my job?
Your own contributions are always yours. The employer’s DPSP contributions become yours once they have vested, which takes up to two years. You can usually transfer the balance into an RRSP you control, often with more investment choice.
Start with a 30-minute conversation.
Whether you’re setting up a plan for your team or figuring out one you’re already in.
Girard Wealth provides advisory services on group retirement savings plans. The plans themselves are established and administered by third-party providers, and options to move, transfer or withdraw depend on your specific plan’s rules and vesting. This page is general information, not tax, legal or investment advice.