Group Savings Plans
There’s strength in numbers when it comes to group savings plans! Take advantage of group discounts and remarkable rates with practical and helpful contracts made possible by a Baker & Baker group benefits insurance broker.
A group savings plan can reduce stress with a positive boost to workplace engagement, productivity and, ultimately, emotional and financial health.
A group savings plan is key to promoting financial knowledge and confidence for yourself as an employer and also for your employees. To be part of an organization that provides its people with a retirement savings plan is one of the greatest financial advantages you can enjoy in Canada. These plans come in a variety of shapes and sizes, but they all have one thing in common: they help everyone achieve their retirement savings goals.
When you work with a broker at Baker & Baker Benefits we put together different models, plans and scenarios that reflect the demographics of your group. We also work on your behalf to take your plan to market and get the best rates available. Baker & Baker Benefits is committed to working with you in the long term for ongoing review and optimization of your group savings plan.
Group Registered Retirement Savings Plan (GRRSP)
A savings vehicle offered by an employer to his/her employees as a way to save for their retirement. It is similar to an individual RRSP except offered on a group basis enabling members to pay lower fees. Contributions to the plan can be made by the employee or the employer to attain certain tax advantages. There is also the use of a GRRSP as a payroll savings plan so the employee can benefit from regular long-term savings.
Deferred Profit Sharing Plan (DPSP)
An employer sponsored profit sharing plan that is registered as a trust arrangement with the Canada Revenue Agency (CRA.) Only the employer contributes to the DPSP and employee contributions are not permitted. These plans are designed to reward good company performance, in the form of profit sharing and create a sense of partnership between an employer and his or her employees. This type of plan typically appeals to a younger demographic of employees and it can be a very valuable tool to foster company loyalty and reduce employee turnover.
Registered Pension Plan (RPP)
A pension plan is an arrangement between an employer and its employees, or between a union and its members, to provide pension benefits upon retirement. Pension plans are regulated by federal and/or provincial legislation. Although there are many types of plans, there are three main elements in a pension plan arrangement: the plan sponsor or the employer, the plan itself, and the funding medium or the “Fund”. The employer is often also a member of the pension plan themselves. Baker and Baker Benefits can help you build the optimal plan for your business.
Why should I implement a group savings plan for my employees?
Today, more than ever, businesses are looking at a total wellness package to ensure employee satisfaction and productivity. Financial wellness is a significant part of this picture for any individual. A group savings plan is one of the best tools available to promote financial wellness and increase employee loyalty and longevity. When you work with Baker and Baker Benefits we will help you take advantage of wholesale pricing on investments and increase financial security for your team.
What type of group savings plan is best for my company?
There are several options available for your group savings. Group RRSP’s, deferred profit sharing plans (DPSP) or registered pension plans are all viable options. Your choice will depend on your company size and what structure of plan suits you and the demographics of your employees best. We can help you determine the best option for your company and set you up with the ideal plan.
How much money do I need to contribute to have a group savings plan?
Group savings plans can be set up with as little as $10,000 in annual contributions and that includes personal contributions from the business owner/s.