Group Pension Services in Canada

As a provider of group pensions services in Canada, our group pension plans (also known as Group Pension Schemes) are workplace pensions run by an employer for the employees of a business. At Nour Private Wealth (NPW), we offer convenient retirement savings options to companies in Canada with full-time employees. In addition, business owners will have access to various flexible retirement savings solutions.

What Is a Group Pension Scheme?

A group pension scheme is a retirement plan that requires both employees and employers to make contributions to a pool of funds set aside for each employee’s future benefit. Employers and employees usually make matching contributions each month, with the employer providing their portion as part of the remuneration package and the employee making theirs as a deduction from their paycheck. Although a group pension scheme is a company benefit offered to all employees (or all of those who opt in, at least), each employee essentially has their own private plan with the provider once they agree to join the scheme, interacting directly with the pension administrator as an individual client. Group pension schemes are beneficial for both employees and employers. For employees, the advantage is obvious: short-term contributions for long-term savings and money set aside for a comfortable retirement. However, these schemes are wise investments for companies too. They provide a way to attract and retain staff, help to reduce an employer’s tax burden and boost and incentivize productivity.

Why Should You Have a Group Pension Scheme?

A group pension scheme is a desirable benefit for staff and prospective employees, but it is highly beneficial for the companies who offer them as well. There are three key reasons why business owners should operate group pension plans.

1. Attract and Retain The Best Talent

Job seekers look for employers that can provide the best combination of remuneration and benefits. If you, as an employer, offer the best salary and benefits, you are sure to attract the best available talent. You can also offer these rewards incrementally. Perhaps you would prefer to make the pension available only after an employee has been at the company for a certain period of time, or has risen to a certain position. You could offer to increase company contributions to an individual’s pension plan after a certain length of service. In this way, benefits such as group pension schemes can offer a way to attract employees to you, and can provide an incentive for loyalty, long service, and excellent work.

2. Easy Implementation

It might take a lot of time and careful consideration to choose a group pension scheme that best suits your company, but once you have made the decision, the plans are easy to implement and manage. There is little or no administrative cost for the company itself. When employees opt-in, they simply need to fill in the necessary forms and then can usually communicate directly with the scheme providers and administrators when they have questions.

3. Tax Savings

Offering pay increases is probably the best way to retain good employees and reward them for work well done. It is a great morale booster and a way to enhance productivity. However, every increase in a company’s total salary bill leads to an increase in the payroll-related taxes the employer will be expected to pay. This can be offset with a group pension scheme.

Having a group pension plan in place helps your employees save money for their retirement, and it also offers employers a powerful tool to attract and retain great staff and enjoy some tax savings. On both sides, the benefits of the schemes can be realized with minimal effort. All the employee has to do is opt-in, surrendering a portion of their paycheck each month. Employers only need to choose the right plan and then entrust it to the pension plan provider to administer and manage.

What Do Employees Get From Group Pension Schemes?

If your employees wonder what long-term and short-term benefits they enjoy when they give up a portion of their paycheck to a group pension scheme, you can offer them the following compelling answers.

1. An Easy Way To Save For Retirement

Most people worry about whether or not they are setting aside enough money to enjoy their retirement. Group pension plans remove this worry. With a reasonable contribution each month, matched by the employer, they can build up a sizable nest egg with which to fund their lives once they stop working. There is no need to ponder the many choices with regard to investment and personal pension schemes. They simply opt in, pay their contributions, and then reap the benefits further down the line.

2. Reduced Taxes

Employee contributions to an employer-sponsored group pension plan are on a tax-deferred basis. This means that each employee’s taxable income is reduced by the amount they contribute to the plan. They will pay tax on this money later – when they withdraw it after retirement – but by then, being retirees, they will be in a lower tax bracket, paying less on each dollar they choose to contribute.

Tax is not only deferred on the contributions made but on the interest and investment gains as well. This means that, no matter how much the employee’s money grows while it is invested in the plan, they will not have to pay any taxes on that growth, regardless of its value, until they begin making withdrawals from the scheme.

Take a look at our policy options below to see which one best suits your needs: