Clearpoint Retirement Solutions is a division of Clearpoint Benefit Solutions and is one of Canada’s leading resources for designing, implementing and managing Group RRSP plans for employers
Contributions from payroll
Contributions are taken from the employee’s pre-tax pay through payroll deductions, reducing their tax burden immediately. Contributions are then deposited into their RRSP as specified.
Although contributions by the employer are not mandatory, the best Group RRSP plans also incorporate matching contributions from the employer. Contributions by the employer are taxable as income to the employee.
Employees are subject to the Contribution rules under the Income Tax Act. Under current legislation, the maximum contributions to the RRSP (includes both employee and employer contributions) is 18% of the employee’s previous year’s earned income to the maximum contribution limit can be made.
For more detailed RRSP rules – How much can I contribute to a RRSP?
Under Group RRSP plans there are a myriad of investment options offered under the plan including daily interest, GICs, mutual funds, segregated funds, and target date options.
Investment decisions for Group RRSPs are typically made by the employee so the employer and the plan provider are responsible for providing education and tools to help members make these investment decisions.
Advantages of a group RRSP
- Payroll Deductions method of employee contributions
- Immediate tax relief to employee
- No front end or back end fees
- Lower investment management fees
- Extreme flexibility of plan design
- Income splitting is available through spousal contributions
Using a Broker
Using a benefits broker has advantages. Clearpoint Retirement Solutions is based in Edmonton and specializes in designing, implementing and managing Group RRSP plans for employers. We are not generalists who try to be all things to all people. We stay up to date with the changing landscape of Group RRSP rules.
As independent brokers we are not aligned or affiliated with any financial institutions. Instead we shop the market for the best Group RRSP products for our clients. We can either work on a fee only basis as a cost to the employer or we can also derive our compensation through commissions. Either way, we will disclose compensation to maximize objectivity.
We also work hard with the employer to continue to manage the plan effectively. This includes employer reports, staying compliant with regulatory requirements and providing employee financial education.
The bottom line is we understand the needs of the employers and help design plans that are attractive to employees to aid in rewarding, retaining and attracting great employees.
Clearpoint Benefit Solutions has clients in Edmonton, Calgary, Fort McMurray, Lac La Biche, Lloydminster, Whitehorse, Yellowknife and other regions in Alberta, Yukon and Northwest Territories.
Contact Clearpoint Benefit Solutions to design, implement or review your Group RRSP plan.
Is Your Group Retirement Plan Ordinary?
When was the last time your group retirement program reviewed?
When was the last time someone provided some financial education for your employees?
When was the last time your broker shopped your plan around to make sure the pricing is competitive?
We can make your group retirement plan exceptional