Desjardins group RRSP: a guide for businesses

Desjardins is one of the most prominent financial institutions in Canada. While it boasts a strong presence in Québec and Ontario, the firm’s reach spans across the country and globally.  

Desjardins offers a range of products and services, including insurance, banking, and wealth management. Its clients can also access different types of retirement savings plans (RSPs) to help them secure their financial future.  

Among the company’s RSP offerings are group retirement savings plans (RRSPs). Depending on your business’ needs, a group RRSP from Desjardins may be a good way to help your employees save for retirement.  

In this guide, Wealth Professional will give you an overview of how Desjardins group RRSP works. We’ll look into the features and benefits to see what sets it apart from competitors. We’ll also discuss the various investment options to give you an idea on how employees can boost their retirement funds. 

If you’re considering Desjardins as a retirement savings plans provider, this article can help you make an informed decision. Keep reading to learn more about how the firm’s RRSP can benefit your business and staff.  

How does Desjardins group RRSP work? 

Desjardins group RRSP works like other registered retirement savings plans. It is designed to help your employees build their retirement nest egg, while allowing them to access tax incentives.  

"Group registered retirement savings plans from Desjardins Insurance are a collection of individual RRSPs offered by an employer," said Marie-France Amyot, vice-president of group benefits and retirement savings at Desjardins.  

"Just like with other RRSPs, contributions reduce taxable income, helping plan members prepare for retirement while making the most out of their tax benefits. The plan is combined with a LIRA or locked-in RRSP, so any locked-in funds from a previous employer’s pension plan can be transferred over hassle-free." 

Contributions made to group registered retirement savings plans are tax-deductible. This means that the investments grow on a tax-deferred basis until the funds are withdrawn, often in retirement. During this time, the employee is likely to be in a lower tax bracket. This makes a group RRSP ideal for long-term planning.  

"With the centralized administration and lower fees that group RRSPs offer, plan members benefit from tax-free gains and can easily make tax-deductible contributions to the investments of their choice through payroll deductions," Amyot added.  

"When eligible, tax-free withdrawals can even be made outside of retirement: they can be used to buy a property with the Home Buyer’s Plan (HBP) or go back to school with the Lifelong Learning Plan (LLP)."  

She also noted that through a deferred profit-sharing plan (DPSP), employers have the option to share a portion of their company’s profits with employees through the RRSP, driving both savings and employee engagement. 

Here are some factors to consider if you’re planning to enroll your employees in a Desjardins group RRSP: 

Contributions and contribution room 

• Employer contributions aren’t voluntary. But if you choose to, your contributions count as salaries, which are considered taxable benefits. This means that payroll taxes, such as employment insurance, apply.  

• Contributions are made through payroll deductions. Your employees can decide how much they want to contribute. There are no minimum limits on investments or interfund transfers.  

• The contributions you and your staff make can’t exceed their personal RRSP contribution room. As per Canada Revenue Agency (CRA) rules, the annual limit is 18% of their previous year’s earned income, up to a maximum set by the agency. For 2025, the annual contribution limit is $32,490. 

• You, as an employer, aren’t forced into a minimum funding amount. This means you can adjust your contributions any time. 

• Lump-sum contributions and transfers from other retirement savings plans are allowed. 

• Employer contributions are immediately vested. This means that your employees can access them any time.  

Eligibility requirements 

• Desjardins group RRSP is available in all provinces and territories.  

• Once you have opened a plan, all your employees are automatically enrolled.  

• Employees can contribute to the plan until the end of the year when they reach age 71.  

Withdrawals 

• Group RRSP funds can be withdrawn any time, but these are counted as taxable income. The withholding tax rates vary, depending on the province and amount being withdrawn. The current CRA tax rates on RRSP withdrawals are: 

• 10% on withdrawals up to $5,000 (5% in Québec) 

• 20% on withdrawals between $5,000 and $15,000 (10% in Québec) 

• 30% on withdrawals over $15,000 (15% in Québec) 

• Group RRSP matures on the last day of the year when the employee turns 71. At this point, the funds must be taken out either by withdrawal or other means.  

• Withdrawals from Desjardins group RRSP are subject to income taxes, except when used for:   

• the Home Buyers’ Plan (HBP), which lets plan holders withdraw up to $60,000 per calendar year to buy or construct their first home 

• the Lifelong Learning Plan (LLP), which allows employees to borrow up to $10,000 a year to a maximum of $20,000 over four years to go back to school full-time 

This guide on RRSP withdrawals can provide detailed information on the tax implications of taking out funds from your account.   

Fees 

• Desjardins doesn’t impose fees for total or partial withdrawals from any of its registered plans, including group RRSPs. 

• A $100 fee is charged for the transfer of any Desjardins registered plan to another financial institution. This amount is subject to the GST and QST in Québec or HST in Ontario. 

 You can learn more about registered retirement savings plans in this guide to how RRSPs work.   

What are the investment options under Desjardins RRSP? 

Desjardins provides employees two types of investment strategies to suit their risk tolerance, preferences, and investment know-how: 

1. Off-the-shelf approach 

This provides plan members with what the firm calls a lifecycle path, which is a ready-made portfolio designed to suit varying risk tolerance. A lifecycle path can either be predefined or personalized.  

Predefined lifecycle paths 

Employees can choose from three sets of predefined lifecycle paths. These are created by Desjardins investment experts to meet different plan members' needs: 

• Progression path – based on target retirement age 
• Progression path – based on target retirement date 
• Desjardins Sustainable path – based on target retirement date and made up of responsible investment funds 

Plan members can also pick from four target date funds that work like lifecycle paths and are managed by external investment firms: 

• BlackRock LifePath Index – based on target retirement date funds 
• Fidelity ClearPath – based on target retirement date funds (primarily active management) 
• Fidelity ClearPath Institutional – based on target retirement date funds (active and passive management) 
• Fidelity ClearPath Index Plus Institutional – based on target retirement date funds (primarily passive management) 

Personalized lifecycle paths 

These are based on the needs and preferences of a plan sponsor. As an employer, you can select the following features: 

• lifecycle type based on age, number of years until retirement, or target retirement date 
• amount of time between asset allocation changes 
• risk profile 
• underlying investments 

2. Do-it-yourself approach 

This suits employees who have a certain level of knowledge about investing and prefer a more hands-on approach. Your investment-savvy staff can choose either: 

Progression funds 

These are designed for employees who have some investment know-how but want to leave the fund selection to Desjardins experts. 

À la carte funds 

These are for employees who want to create their own portfolio. They can take advantage of the different investment options available. These include:   

• balanced funds 
• fixed-income funds 
• Canadian equity funds 
• foreign equity funds 
• specialty funds 

These funds are designed to match different management styles and asset classes. Here’s a list of investment options qualified for a Desjardins group RRSP.  

"Desjardins Insurance’s investment solutions are diversified, competitive, and innovative," Amyot said. "They are designed both to meet the business needs of clients and help plan members to reach their savings and retirement goals. A thorough governance process behind the investment platform demonstrates a commitment to offer clients a range of high-quality investment options." 

If you’re aspiring to become an investor but don’t know where to start, this guide on how to start investing can prove useful.  

What sets Desjardins group RRSP apart from competitors? 

Amyot noted that the firm's tools and resources designed to help members make informed financial decisions are among the biggest factors that make the firm's group RRSP stand out.   

"Desjardins Insurance offers simple, user-friendly services to help members better understand their retirement savings and feel more financially empowered," she explained. "These services include a savings simulator, a goal tracker, educational webinars, one-on-one sessions with licensed agents, and a wellness centre to support members in setting financial goals with the tips and tools they need to feel confident.  

"Plan sponsors can work with reputable and experienced investment fund managers to build a customized pool of investment options suited to their business size, while an engagement tracker and intuitive administrator website simplify plan administration." 

Another factor that sets Desjardins group RRSP from others is its list of responsible investment options. The firm considered a set of environmental, social and governance (ESG) criteria to find investments committed to a sustainable and equitable economy.  

Employees have three options: 

1. Desjardins Sustainable Target Retirement Date Path 

This is a ready-made portfolio consisting of responsible investments chosen based on certain criteria, including the plan holder's age and target retirement date. Asset allocation transitions gradually to fixed income over time but speeds up as retirement approaches. 

2. Desjardins Sustainable Target Risk Funds 

This portfolio consists of five funds focused on a target risk level in line with a plan holder’s risk tolerance. These are: 

• Desjardins Sustainable Secure Fund  
• Desjardins Sustainable Moderate Fund  
• Desjardins Sustainable Balanced Fund  
• Desjardins Sustainable Growth Fund  
• Desjardins Sustainable Aggressive Fund 

These funds are rebalanced automatically, allowing investors to be on track of their risk objectives.  

3. À La Carte Funds 

Employees create their own investment portfolio by choosing funds that align with their personal values. In this DIY approach, plan holders are responsible for adjusting their portfolio over time to ensure that it continues to match their investment strategy and financial situation. 

Here are the options: 

• Desjardins Sustainable Fixed Income Fund 
• Desjardins Sustainable Equity Fund 
• Desjardins Sustainable Environmental Bond Fund (Mirova) 
• Desjardins Sustainable Cleantech Equity Fund (Impax) 
• Desjardins Sustainable Positive Change Fund (Baillie Gifford) 

You can find the full details of these funds on Desjardins thoughtful investments page.  

How to open a Desjardins group RRSP 

Desjardins’ website didn’t provide details on how to open a group RRSP for employers, although it listed two contact numbers for those who want to set up a plan:  

• Montréal: 1-800-363-3072 
• Québec City: 1-877-828-7800 

If you need help with an existing plan, the number to call is 1-888-510-4762.  

The website also provided a link to the plan sponsor services portal, where you can sign up for an account. Once registered, you can: 

• manage plan participation, including adding or terminating participants, or changing their personal information 
• access plan participant account information 
• make contribution remittances online 
• access plan management reports 
• review information about investments, governance, and legal requirements 

To be enrolled in the plan, your employees will also need to fill out this form.  

What other group retirement savings plans does Desjardins offer? 

Apart from group RRSPs, Desjardins offers a range of retirement savings plans designed to meet the needs of different businesses and their staff: 

• Tax-free savings account (TFSA): This was created to provide a means for anyone 18 and older to set money aside tax-free throughout their lifetime. Learn more about the difference between RRSPs and TFSAs in this guide.  

• Deferred profit-sharing plan (DPSP): This allows an employer to distribute a portion of profits to employees. Employees aren’t allowed to contribute to the plan.  

• Defined contribution pension plan (DCPP): The employer and their employees make tax-deductible contributions that accumulate on a tax-deferred basis. All funds are locked-in, regardless of who made the contributions. 

• Voluntary retirement savings plan: This is a type of defined contribution pension plan designed for Québec employees without access to a group pension plan. It works almost exactly like the pooled registered pension plan offered in other provinces.  

• Simplified pension plan (SPP): Available only in Québec, this type of defined contribution pension plan is set up on behalf of an employer and administered by a financial institution. Employers are required to contribute, but their contributions remain locked in. Employee contributions, on the other hand, can be withdrawn at any time.  

Wondering about the difference between RSPs and RRSPs? This guide has the answers. 

Is Desjardins group RRSP right for your business? 

To help you determine whether a group registered retirement pension plan suits your business, Desjardins created a table that compares the different group plans side-by-side. Here’s a slightly modified version of the table.  

 

“Supporting the wellbeing of our communities is our priority," Amyot noted. "We offer responsible investment options, helpful educational tools and caring support to help members make investment decisions that align not only with their goals, but with their values. Quality and innovation are behind everything we do to support the needs of our members and give back to them.” 

Visit our Retirement Planning News Section for more tips and strategies on how to maximize your group RRSP. Be sure to bookmark this page to access breaking news and the latest industry updates.