» What is a Group RRSP?
» Why should I consider a Group RRSP for my
   employees?
» As an employer, how do I benefit?
» What is the Letter of Agreement?
» Do I need approval from Canada Revenue
   Agency to deduct RRSP contributions from   
   my employees' payroll and reduce the tax   
   withholdings?
» How much work do I have to do to administer this
   group plan?   
» Will I receive a report on how much the Group
   plan hold?

1. What is a Group RRSP?

A Group RRSP is simply a collection of individual RRSPs where employees make contributions through regular payroll deductions on a pre-tax basis.

2. Why should I consider a Group RRSP for my employees?

A Group RRSP offers a flexible way to assist your employees in saving for their retirement without taking on large financial and legal commitments.

3. As an employer, how do I benefit?

In many ways:

• Any contributions made on behalf of your employees are a tax-deductible expense.
• You design the basic plan, i.e. determining when employees will be eligible to participate, how often contributions will be made and whether or not you will match employees' contributions.
• The plan is easy to administer.
• Your company is neither responsible for guaranteeing your employees' retirement income nor restricted by Registered Pension Plan legislation.

4. What is the Letter of Agreement?

It is a document which contains all the core issues of the plan that must be addressed and understood by all parties prior to setting up a group plan.

5. Do I need approval from Canada Revenue Agency to deduct RRSP contributions from my employees' payroll and reduce the Tax withholdings?

No, this approval is no longer required when an employee is contributing to a group RRSP on an ongoing basis.

6. How much work do I have to do to administer this group plan?

There is very little administrative work. Initially, you will have to set up a Contribution Listing which simply lists all participating employees and the amounts of their contributions (and the company's contributions, if applicable). A sample form will be provided by Envision Credit Union.

You will submit this listing to the Envision Credit Union branch where the Credential® Investment Professional who is your contact for the plan works, either directly or by fax. Payment for the contribution can be made by cheque accompanying the listing or you may give the branch your authorization to debit the company account for the total of the contribution.

Employees will notify you if and when they wish to change the amount of their contribution. You must amend the contribution listing accordingly. An employee is permitted to change the amount contributed two times per year -January and July.

You must promptly notify the Credential® Investment Professional when new employees join the plan so that his/her plan can be set up and the proper documentation completed.

7. Will I receive a report on how much the Group plan holds?

Yes. We will forward a copy of the Employer's statement of account to you each month.

*Mutual funds are offered through Credential Assest Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence. ®The Ethical Funds Company is a registered mark owned by Ethical Funds Inc. and is used under licence.

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