How to choose a Group RRSP provider in Canada: The right questions to ask

Offering a GRRSP (Group Registered Retirement Savings Plan) is a crucial way you can attract and retain top talent, but before you can offer this benefit to your employees, you have to know how to select a provider. Taking the extra time to identify the RRSP company that can make the process simple for your team — and painless for you — makes all the difference. We’re here to help.

Types of Group RRSP providers in Canada

When looking for potential Group RRSP providers, you’ll want to have an idea of what kinds of companies offer these plans. You can then dig in to see how their plans are structured, how much support they offer, and what your experience might be like if you were to work with them—i.e, whether you’ll be getting Champagne or the lemonade treatment. 

Five main types of RRSP companies can administer group retirement plans for your organization. How they manage your program and what sort of extra benefits you can expect from them will vary greatly. These providers are:

You’ll find the first four types of providers on the list offer more traditional plans and support structures, while online financial services providers represent a more modern solution, combining modern technology with human expertise and accessible support.

Before vetting providers, we’d recommend sitting down with a cup of coffee and thinking about why you want to offer a GRRSP to your staff. You may want to support your existing employees with retirement planning or help them achieve overall financial wellness. Or, you might like to offer a desirable benefits package to stand out from competitors when hiring and recruiting. It’s likely all of the above, but getting your goals and values sorted early will help you make the best decision.

11 key considerations when shopping for a GRRSP provider

The provider you choose will become a significant partner in how you offer benefits to your employees, both current and future. How they administer their plans and support you and your team will affect both your experience and your employee satisfaction level.

While there are benefits brokers and advisors you could rely on to help make your decision, it’s also good to do your own research. You’ll want to have enough insight to make sure you know what questions to ask and how to evaluate your options. After all, you know your team and culture best, so don’t be afraid to really analyze options and be critical of offerings.

Once you have a few proposals from group plan providers, run through a comparison exercise to see how they stack up against one another. Here are some critical questions to help you pick the right provider for your organization.

1. Is the enrollment process straightforward for employees? 

Your GRRSP is a vital part of your benefit plan and an appealing element for current and future employees. A successful employee savings plan needs to put the experience of the user at the forefront. Many group savings plans are underused simply because employees find it too overwhelming to get started and never enroll at all.

Ask potential providers how they ensure seamless onboarding. Let them walk you through obstacles that could reduce enrollment or cause frustration, such as account minimums, long vesting periods before employees can access their funds, and a confusing or outdated platform. 

Also: Ensure the platform is accessible by any device, like smartphones, as this is likely how many of your employees currently bank and manage their finances. 

2. Are there hidden fees?

Fees can eat up a lot of your staff’s savings, especially over the long term. If you intend for a GRRSP to help your employees build a more solid financial foundation, make sure the plan you choose won’t derail this goal. Look for a provider who can offer you a plan with fees less than 1%. The lower the fees, the more of every contribution your employees get to keep.

Keeping fees low can make a significant difference to your employees’ retirement, ensuring the time and effort you invest in managing your GRRSP is well spent.

3. Is there access to dedicated support? 

Having a good experience with a GRRSP can very much depend on the support offered by the provider. Look for one offering a dedicated support team, ready to help you any time an issue crops up, so you aren’t frustrated by long wait times or sending support tickets into the ether. 

4. What other financial products and services do they offer?

Find out if the provider you’re vetting also offers other financial products. Do they help with taxes, savings accounts, investment trading, or registered education savings plans (RESPs)? Financial planning can feel like a puzzle for those just starting to figure it out. Help your employees out by making sure they have easy access to the pieces that will make them successful.

5. Do employees have access to a trusted advisor?

It’s helpful for employees to have access to a financial advisor to inquire ​ about investment options and retirement planning — and to help them feel more confident about their financial situation as a whole. Many will be happy to simply follow the plan; others may have questions about how the GRRSP fits into their other financial plans.

6. ​ Is the fund selection process simple enough?

Many traditional Group RRSP providers in Canada offer a fund selection sheet with a long list of funds. There are endless options to choose from, usually with names and codes that can be confusing to those who don’t work in financial services. 

Other GRRSP providers offer a questionnaire that provides recommendations, or a more curated selection that makes it easy for your employees to choose funds that are a good fit. Consider your options here carefully, since the fund selection process is one key to your program’s success.

Focus on sparking interest and boosting enrollment numbers by keeping things simple for your employees. If they can’t understand what’s on offer, they’re unlikely to commit to your plan. 

7. ​ What does the setup or transfer process look like?

Consider what the experience will be like for you to change to a new provider or begin your first GRRSP once you choose a company. 

Find out what’s involved in the process of transferring if you’re currently using another provider and how involved you’ll have to be to coordinate those efforts. Ask questions about onboarding and support, as well as whether the provider you’re considering can integrate with your payroll system.

Dig into how long it will take to get through each step they outline, who you’ll be dealing with at each stage. These questions will help you get a sense of how responsive they’ll be and just what you’re in for if you decide to move forward. 

8. Will you have access to additional financial literacy content?

There can be a significant learning curve when you first present GRRSP information at onboarding or when your company adopts a new plan. As an employer, your focus should be on choosing a provider who can offer a robust educational experience to weave into your other employee benefits resources.

How you introduce a GRRSP to new and future hires will affect enrollment numbers, and it’s best the provider offers support for your whole team. Look for a provider that offers ongoing education to help employees see the value in enrolling and staying in the plan. 

On-demand sessions that help employees get information relevant to their personal situation are particularly helpful. Online access to information is important, as is including some live sessions where staff can ask questions of advisors or portfolio managers. With these simple and accessible resources, you can ensure your GRRSP is adopted and enjoyed by as many employees as possible without an extra burden on you or your HR team to answer investing questions.

9. Are options inclusive and equitable for all?

Companies working towards more consistent diversity and inclusion will want to consider how their GRRSP selection aligns with strategy. Can all your employees make use of the plan? Are there options that allow staff to choose socially responsible investing or halal options for those who may want to invest with these principles in mind?

Your GRRSP should be accessible to your entire team and future hires, just like any of your other benefits. 

10. Is the plan flexible enough for all savings goals? 

When considering an employee savings plan, think about the needs of your employees and what they’ll want to get out of this benefit. It’s likely that – just like with every other benefit – individual priorities and needs will be different for everyone. Some employees may need or want to use the funds for something else before retirement, like a home purchase or a return to school. Others may be focused solely on retirement.

If you choose a provider that takes those other possibilities into consideration and offers portfolios or funds that can adapt to a range of financial goals, then your employees will be able to customize their GRRSP according to their needs – and make ongoing changes as those needs evolve. Alternatively, you can choose a provider that is focused solely on providing retirement funds. Take some time and consider your company’s overall objective in creating this benefit and the demographics of your workforce. The provider you choose may change depending on what you want employees to get out of this benefit or who your main audience is.

11. Can your future provider show their past successes? 

Ask any provider you’re considering to walk you through the past performance of their funds. It’s an important step, but be aware it can be difficult to compare performance across providers for a few reasons:

With this in mind, look for transparency and for providers who are willing to share past performance numbers, details on their fees, and the breakdown of the returns they’re showing you.

Adding a Group RRSP to your employee benefits package can help you stay competitive, reward your existing team and help build a workplace culture of support that extends your company values. It’s a worthwhile investment in helping your employees work toward financial security — and instilling a sense of pride in your organization. That’s a feeling we all could use more of.