CWB Canadian Western Financial

Group registered retirement savings plan

    Helping your company and your employees get ahead

  • Having a solid Group RRSP helps your employees plan for their futures, and gives your company a competitive edge in the recruitment of new employees.
  • A Group RRSP is a key component of your company’s total compensation package. It helps you retain and engage your employees, and provides them with a reliable investment strategy.

A Group RRSP is a group registered retirement savings plan that is set up and administered by a business for its employees. It consists of a collection of RRSPs held individually by employees, giving them the opportunity to invest in a tax-deferred financial solution for their retirement.

Does Canadian Western Bank offer a group RRSP?

Yes. CWB Group offers a Group RSP program. CWB Wealth Management (specifically the Wealth Management Specialist) is the branches first point of contact when a client need has been uncovered. The Wealth Management Specialists support the branches in their client discovery, provides oversight and guidance on the plan presentations and where needed, act as a liaison between CWF and CWT. CWT administers the account, while CWF purchases the mutual funds within the plan.

What is the minimum number of employees required to enrol in the group RRSP program?
The minimum number of employee signups required to implement the GRSP plan is 10. There is no maximum limit to the number of employees that can participate in the plan.
Are there any specific requirements that have to be met for the company to be able to participate?
The Sponsor (employer) must provide a matching component for those employees that are participating in the GRSP program. The amount and frequency of the matching component are up to the Sponsor. There is no minimum or maximum value that the matching component must reach.
Can employees make contributions into the group RRSP plan in addition to what they are having automatically taken off their pay?

Yes. Employees are able to contribute additional funds to their plans in two ways;

  1. Increasing the amount being debited from their pay to be contributed to their GRSP plan. The employee would advise their RSP administrator of the additional amount they would like to add such that this new amount could be combined with what was already being taken off as part of the GRSP plan. Employees are responsible for monitoring their own individual RRSP contribution limits.
  2. Lump sum contribution. The employee could do this by providing a cheque and letter of direction to their RSP administrator to submit to CWT on their behalf, or as in number option 1, have the amount debited from their pay as a one off instance.
What are the mutual fund options available for my employees?

CWB OnyxTM Managed Solutions (“O” series) or a cash investment.

What fees are associated with the group RRSP program?

Each employee will be charged one all-inclusive fee for their investment selection. To note, the employer (Sponsor) may choose to pay for the fees; however, the fees are unable to be split between the employer and employee.

Can an employee transfer their RRSP plan from another financial institution or mutual fund dealer into this group RRSP plan?

Participating employees are able to transfer their RSP plans from other financial institutions into their GRSP plan with CWT. All transfers must be done in CASH; transfers in‐kind are not permitted. Transfer fees charged by the relinquishing institution will NOT be reimbursed by CWF or CWT.

In the event that a participating employee would like to transfer a plan in‐kind to CWF, a separate individual RRSP plan will be opened with a CWF Mutual Fund Advisor.

What happens when an employee wants to withdraw from the plan?

Redemption's are subject to the rules of the plan as defined by the plan sponsor. All redemption requests must flow through the plan administrator.

How do the employees sign up for the group RRSP program?

There are two available options:

  1. The CWF representative will schedule a signup day with the plan sponsor at the business location to provide employee packages to each employee, and sit down with each employee to assist them with filling out the paperwork correctly and completely.
  2. The CWF representative will provide the employee packages to the sponsor’s RRSP administrator and review the forms with them so they understand how they should be filled out. The RRSP administrator can then assist the employees with completing the required paperwork.

What is CWT’s involvement with the group RRSP plan?

CWT is the administrator of the GRSP plan and can be contacted to assist with the initial setup for the plan Sponsor, providing answers to specific administrative questions.

Once the GRSP has been set up and the employees have been signed up, a CWT representative will contact the plan Sponsor’s RRSP administrator to go over the options for how to get the deposits to CWT for processing into each employee plan. Any additional inquiries from the plan Sponsor can be directed to their CWT representative.

How do we get the money for the employee accounts to CWT?

The RRSP administrator will be able to specify the amounts to go to each employee as a contribution to their plan by using a spreadsheet that will be provided to them by CWT. The spreadsheet will be needed for each deposit time frame. There are two options for getting the money to CWT:

  1. Direct deposit – The sponsor provides a letter of direction to CWT, with a void cheque attached, giving authorization for CWT to directly debit the sponsor’s bank account for the amount of the contributions to be made.
  2. Cheque deposit – The sponsor’s RRSP administrator goes into the CWB branch location of their choice and drops off a cheque for the total amount of the contributions to be made.

What happens if an employee is no longer employed with the sponsor?

When an employee leaves the Sponsor Company, it is the responsibility of the RRSP administrator to advise CWT of this. The employee then has two options:

  1. Sell the mutual fund(s) held within the plan and transfer the plan to CWF, CWB or to another FI in cash.
  2. Sell the mutual fund(s) held within the plan and withdraw the cash, closing the CWT plan.(Employee should be advised of potential tax implications.)