Silverberg Group - Bringing Your Employee Benefits into Focus

Group Retirement Products

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The vast majority of employers know that supplementing your benefits plan with a retirement program is a great way to provide your employees and their families with long term financial security and peace of mind. Despite this knowledge, many employers are still hesitant about these products; concerned with additional plan costs, higher administration fees and increased risk. Many of these concerns, although warranted in the past, are becoming less of an issue today. Through the introduction and use of employee participation software, literacy programs and defined contribution plans, it has never been easier to implement, maintain and join a retirement program.

Alberta is known for it’s hardworking and dedicated workforce. Employers have done a great job through the use of wellness programs, health spending accounts and traditional benefits, to ensure that their employees are taken care of in the present. There has now been a shift, however, towards the financial concerns of tomorrow. A recent retirement study determined that only 27% of Canadians believe that they will be fully retired by 66, as opposed to 51% in 2008. Some may attribute this to the continuous growth in life expectancy and the savings that this requires, but many Canadians will be forced into a later retirement, simply because they did not save enough money during their most profitable years of employment.

Most of us are familiar with Group RRSP’s and pension plans, but there are other vehicles and options that can be used in conjunction, to acquire long term savings for your employees. Many of these options may also benefit the financial health of your business through potential tax saving opportunities.

Some of the main vehicles and options include:

Group RRSP:

A Group Registered Retirement Savings Plan or RRSP is a collection of individual RRSPs centralized by an employer and registered with the Canadian Revenue Agency (CRA). It allows payroll deductions (pre-tax) for employee contributions.

Who offers a Group RRSP:

Why offer a Group RRSP:


Defined Contribution Pension Plan:

A Defined Contribution Pension Plan or DCPP is  a pension plan, sponsored by an employer and awarded to an employee upon retirement.  It is also registered with the CRA and the contributions to the plan are predetermined. The retirement income received, depends on the amount contributed to the plan, as well as factors such as investment earnings, the age of the retiring member and the pension plan chosen.

Who offers a DCPP:

Why offer a DCPP:


Deferred Profit Sharing Plan:

A Deferred Profit Sharing Plan (DPSP) is a simple and flexible arrangement where an employer distributes a portion of their companies pre-tax profits to provide income at retirement to their employees.

Who offers a DPSP:  

Why offer a DPSP:


Group TFSA

A Group TFSA allows members to accumulate after tax money, without paying tax on income earned within the account. TFSA’s are not deductible for income tax purposes. Group TFSA members can withdraw money at any time with no restrictions on how they choose to spend it.

Who offers a Group TFSA: 

Why offer a Group TFSA: