Group Retirement Plans

One area of benefits that has a more controlled inflation rate is group retirement savings. This might include a Group RRSP or a Defined Contribution plan. In both cases, the future cost of these benefits are driven by wages which tend to increase incrementally, making it easier to budget for. 

The cost associated with a group savings plan can be determined by the employer. For example, bonuses can be deposited into a Group RRSP plan but the employer controls the amount of the bonus. A matching program can also be put into place whereby the employer agrees to match up to certain percentage of what the employee contributes. 

Group RRSPs can be set up as well on the voluntary basis. This arrangement is beneficial to the employee as the contributions they make to their plan come off their paycheques and are paid in pre-tax dollars.

Other than a matching program, there is very little cost to the employer in implementing a group RRSP or even a Defined Contribution pension.