Some employers support their employees’ retirement savings by matching the employee’s RRSP contributions to an RRSP of their choice or to a company-sponsored group registered savings plan. Usually this benefit is voluntary and companies usually match a portion of their employees’ savings. For example, if an employee contributes $1.00, the employer will match by $0.50 up to a certain percentage or dollar amount of the employee’s salary.
An employer-sponsored RRSP is a helpful benefit and one that employees should use to their advantage. It helps to encourage the savings habit, often contributions can be made by payroll so that tax may be reduced at source, and employers can establish group RRSP plans for their employees at preferential rates and terms.
If you don’t know if your company offers this, check with the HR Department for information about the plan and for the enrollment forms.
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