What is a Group RRSP?
A Group RRSP (Registered Retirement Savings Plan) is an employer-facilitated plan that holds individual RRSPs at a financial institution. Contributions come from payroll deductions and optional employer matching. Unlike a pension plan, each employee owns their own RRSP account, so their savings stay with them if they leave their employer.
How employer matching works
The most common formula is a dollar-for-dollar match up to a percentage of salary. For example, the employer matches 100% of the first 3% of salary the employee contributes. Other structures include tiered matching (higher match rates for longer tenure) and stretch matching (smaller match rate over a wider contribution range, to encourage employees to contribute more).
Key advantages of a Group RRSP
Group RRSPs reduce HR administrative burden versus pension plans: the provider, often called the recordkeeper, handles most of the ongoing administration. Employer contributions are a tax-deductible business expense, but they are treated as employment income for the employee, so they're subject to CPP and EI premiums. For employees, contributions reduce taxable income in the year they're made and grow tax-sheltered until withdrawal. Many employers direct their match to a DPSP instead, which removes CPP and EI premiums on those contributions and allows vesting of up to two years.
2026 contribution limits
The 2026 RRSP contribution limit is 18% of the prior year's earned income, to a maximum of $33,810. This limit is shared across all RRSP accounts, individual and group combined. Employees who also receive contributions to a DPSP, DCPP or MEPP have a pension adjustment that reduces their RRSP room the following year.
How to choose a Group RRSP provider
The three criteria HR administrators most consistently cite are: price (all-in fees, not just the advertised management fee), ease of administration (self-enrollment, payroll integration, dashboard quality), and employee experience (investment choice, onboarding, support). Always compare the all-in cost, not the quoted management fee, which can leave out fund operating expenses, HST, platform fees and advisor compensation.
Running a Group RRSP on LINK
LINK is the recordkeeper and administrator for Group RRSPs on its platform, with portfolios built on low-cost ETFs and managed by LINK's registered portfolio management subsidiary. LINK supports Group RRSP, TFSA, DPSP, DC pension, and NRSP plan types, and plans start at 30 employees.
What LINK handles in a Group RRSP →