Quebec was the first province to mandate certain employers that currently do not offer employees a group retirement plan, to establish one between January 2013 and December 2014, most other provinces are expected to follow suit.
- Automatic payroll deductions.
- Lower management fees, since the plan pools investment funds from multiple employers and self-employed individuals.
- The ability for employees to increase or decrease their contribution rate at any time.
- Tax advantages. Both employee and employer contributions are generally tax deductible and are subject to the employee’s individual RRSP contribution limit for the year.
- Portability. Employees can keep contributing to their plan, even if they change employers