Goal To provide deferred compensation and/or retirement savings
Eligibility An employer can offer the GRSP to all employees or only a specific group of employees.
Contributions Both plan members and employer can contribute to a GRSP. Plan provisions can specify required & voluntary contribution amounts. Contributions can continue to the member’s age 71.
Withdrawals Plan provisions may allow withdrawals. Withdrawals are taxed as regular income.
Locking-In Contributions are not locked-in.
Vesting Contributions are vested to the employee immediately.
Spousal Spousal contributions are permitted.
Payroll taxes Employer contributions increase employees’ gross earnings and may increase payroll taxes (dependent on salary level). Employees claim a tax deduction for employer contributions.
Filings No government filings are required.
Retirement Accumulated savings do not need to provide lifetime retirement income. A member can transfer the funds to a registered retirement income fund (RRIF), purchase an annuity, receive the funds in cash, which is fully taxable.
Beneficiary There is no restriction on beneficiary designation.