What is a Group RRSP?
A Group RRSP (sometimes referred to as a Group Retirement Savings Plan, GRRSP or GRSP) is similar to an individual RRSP, except that it’s set up by the employer as a workplace benefit – part of the overall compensation package for employees. You can choose to offer a base contribution (i.e. a dollar amount regardless of whether employees contribute anything) and/or a matching contribution (e.g. if an employee contributes 3% of their salary, you’ll also kick in 3%). Or, you can offer it without either of these contributions but instead as an easier way to automate your own contributions, steadily grow your future savings and enjoy immediate tax benefits. If you’re familiar with workplace retirement savings in the U.S, a Group RRSP is the equivalent of a 401(k) in Canada.