Group Retirement Plans
In a group retirement savings plan (RRSP) an employer offers the option to employees to contribute and be a part of the plan - there is no mandatory enrolment.
The employee decides the size of the contribution (whether is be a regular fixed amount or a percentage of monthly income) and the employer (through payroll) deducts the amount accordingly. The contribution is then deposited into the employees individual investment account.
The main difference of a Group RRSP v. an individual RRSP is that the contributor realizes the tax savings immediately, instead of having to wait till the end of the tax year. A Group RRSP reduces taxes at source and provides the difference as extra take-home pay to be spent or saved as the employee pleases.