Group Retirement Savings
Mechanical Contractors Association of Saskatchewan Group Retirement Savings Plan
What's In It For You?
Instant Tax Savings
Those participating in an employer GRSP (Group Retirement Savings Plan) can have their contributions reduce their taxable income each month before the tax deductions are taken off their paycheque. This means that employees will receive their tax savings each month instead of at the end of the year.
Lower Investment Management Fees
Every financial institution charges Management Expense Ratio (MER) fees from mutual fund investments before the rate of return is calculated each month. Group RSP plans typically have lower institutional MER fees than retail individual MER fees. Wiegers Financial & Benefits negotiates with investment companies to secure the best possible fees for each employer’s program.
Reduce Payroll Costs
If a company is considering or already matches employee retirement savings, a deferred profit sharing program (DPSP) may be a better option. A DPSP deposits money into an account separate from the employee's contributions. The employee cannot access the funds unless he or she changes employers, retires or is terminated. If the employee leaves before a mandatory two year vesting period, the company’s contributions are returned to the employer. Also, the company’s contributions are not considered insurable earnings so they do not attract employer CPP or EI expenses.