We are pleased to share that Plane in Canada (CANSR7 Pilot Inc.) will offer customers the opportunity to set up a group registered retirement savings plan (RRSP) for employees. Our group RRSP is administered by Canada Life.

Offering a group RRSP will allow employees to contribute to an RRSP via payroll deduction, and for employers to contribute on each employee’s behalf. Group RRSPs are a valuable benefit that helps you attract and retain employees.

To further assist you in the decision-making process, you can choose from four plan design options to offer your employees.

Option 1: Voluntary only RRSP

Option 2: Employer match of 100% of the first 3% members contribute

Option 3: Employer match of 100% of the first 4% members contribute

Option 4: Employer match of 100% of the first 5% members contribute

More details on a group RRSP can be found on the Canada Life website here.

If you have any questions or are interested in setting up a program, please email

support@plane.com.

Can we offer a different employer matching?

Yes, you can match a different amount. Most employer-matching plans fall within the 3-5% range, and we offer these options as a guideline. Contributions are calculated from base salary.

Is participation mandatory?

No, if you can’t decide whether to offer RRSP, you can consider joining later.

What is the cost?

There is no cost for voluntary only; the only cost to you would be the employer match. All other costs are included in the investment management fees on the investment lineup and are charged to members’ accounts.

Is there a contribution cap on employee contributions or matching contributions?

Yes, employer contribution does count toward the annual limit. It is 18% of the employees’ earned income in the previous year or the annual RRSP limit. More information about the Annual RRSP limit can be found here.

How long does it take?

If it’s your first employee in Canada and you decide to offer an RRSP, it takes 6 to 8 weeks to set up the plan. Once the plan is live, the employee can start contributing through payroll.

Can we change the employer contribution later?

Yes, you can decide to change the employer contribution later. However, please note that you can only increase the employer contribution, not decrease it. If you are interested in changing the contribution, please reach out to support@plane.com.

Is the contribution exempt from tax?

Deductible RRSP contributions can be used to reduce employees’ tax. Contributions you make to your employee's RRSP are considered a taxable benefit to the employee and must be reported on the T4 slip.

We’re here to help! You can find more of our guides here, or reach out to us at support@plane.com or use Plane's in-app chat.