Two flexible savings options for a more prosperous retirement

HomeQuebec: VRSP Plus Package
(except Quebec)
Investments & Fees

Morneau Shepell offers two flexible retirement options for CFIB members (outside of Quebec) as well as those in Quebec that are federally regulated. Thanks to specially negotiated, low Investment Management Fees (IMFs), your employees can hold onto more of their money and enjoy a more prosperous retirement.

But which solution is right for your business?  To help you answer that question, you need to be clear on your goal.  Is your primary goal to...

You want to attract and retain the best employees and you're ready to make employer contributions.

The RRSP & TFSA with employer contributions to the RRSP might be the way to go

  • Retirement plans where employers commit to matching are more valued by employees and they participate more.
  • Exceptionally low fees for the participants: IMFs start at 0.7%*.
  • Morneau Shepell has leading edge technology and support to make administration as easy as possible.
  • Unfortunately, employer contributions to an RRSP are not exempt from payroll taxes.  It should be noted, that while Registered Pension Plans (RPPs) and Deferred Profit Sharing Plans (DPSPs) also allow for employer contributions that are tax deductible and exempt of payroll taxes, they’re generally more expensive and complicated to setup than an RRSP and are subject to more restrictive rules. As a result, they are not well suited to most small businesses. Pooled Retirement Savings Plans (PRPPs) are really the way to go, and CFIB continues to push all provinces to follow Quebec’s and Nova Scotia's lead and allow PRPPs since they are easier and more affordable for small businesses to offer their employees.

You want to make it easier for your employees to save for their own retirement, but you’re not ready to make employer contributions.

The RRSP & TFSA without employer contributions is a great option.

  • The RRSP and TFSA’s IMFs start at 1.087%*. Such low fees are exceptional for small business and less than half what many individuals pay for “retail” investments.
  • Morneau Shepell has leading edge technology and support to make administration as easy as possible.

Your business is in Nova Scotia, or is federally regulated and you’re wondering about PRPPs.

Here’s some information that might help:

  • A Pooled Registered Pension Plan (PRPP) is a new, flexible and low-cost solution to help employees save for their retirement with minimal administrative burden on employers; making it ideal for small business. And best of all, should you as the employer also choose to contribute by fully or partially matching employee contributions, your contributions are tax deductible and exempt from payroll taxes.
  • Businesses in the territories (YT, NT, NU) as well as those in federally regulated industries, such as telecommunications and interprovincial transport, can choose a PRPP now.
  • Morneau Shepell does not currently offer a federal PRPP, but plans to do so by the end of 2017.
  • RRSPs and TFSAs are not locked-in. In a PRPP for federally regulated workplaces, contributions and their associated investment earnings generally remain locked-in until retirement. Employees that plan to withdraw funds before retirement, to purchase a home for instance, might prefer an RRSP or TFSA.
  • A PRPP is an opt-out plan. There are pros and cons to this. Opt-out plans usually enjoy higher participation rates since you register all your employees except for those who specifically inform you they want to opt out. When offering an opt-out plan however, you must document communications with employees: they’re informed about the plan, its automatic opt-in and other conditions, and you then keep track of those who’ve decided to optout. With an RRSP or a TFSA, after you’ve made them available, it’s up to the employees to enroll.

Wondering if you should make employer contributions?
Members have told CFIB they want to be able to make this decision for themselves, and not be forced by governments to contribute. That’s why CFIB continues to lobby hard for PRPP legislation in all provinces. It is, and must remain your decision!

In making that decision, you should know that when employers commit to matching, all or part of their employees’ contributions, retirement plans are:

  • More valued by employees
  • Have more participants, and
  • On average, encourages employees to invest more.

If you can afford it and it makes sense for your business, you should consider investing in your employees’ retirement.

When you choose to make employer contributions, it’s a better deal for your employees in more ways than one. In addition to the obvious benefit of the funds you contribute, under this program, when employers contribute, participants pay lower IMFs, starting at 0.7%*. This allows your employees to hold on to more of more of their hard-earned retirement savings and enjoy a more prosperous retirement.

Why, under this plan, are the IMFs lower when employers contributes?
In large part because there is more money invested. The result is a win/win scenario:

A win for employers
You invest in your employees’ future, helping you to attract and retain good employees.

A win for employees
Employee themselves contribute more, better preparing them for retirement. The combined result is more investments providing Morneau Shepell with greater efficiencies that they pass along to participants in the form of lower IMFs.

And it should be pointed out, if you as a business owner choose to personally participate, you too benefit from the lower IMFs on your retirement investments.

* Sales taxes are applied to Investment Management Fees (IMFs). IMFs and taxes are deducted from the participants’ accounts monthly.


You can also call 1 855 877-5723