When a group RRSP changes providers, employees' existing balances move in one of two ways. Either the providers move the group's accounts together as a plan-level transfer, often called a bulk transfer, or each employee's account moves on its own direct-transfer request. For an RRSP-to-RRSP direct transfer, the CRA form is the T2033. Which route your switch uses depends on the providers involved and your plan's terms, so ask before you choose the new provider, not after.
This is for the HR lead or controller who will be asked, "Do I have to sign something?" The route decides how much paperwork lands on HR, what employees are asked to do, and how long it takes for every account to arrive. The switching guide covers the full sequence; this post covers the money-moving step.
What is a plan-level (bulk) transfer?
In a plan-level transfer, the outgoing and incoming providers move the group's accounts together, under transfer documents the providers prepare and the employer signs as plan sponsor. The accounts are typically moved as one exercise on an agreed timetable rather than one employee at a time.
Ask the providers whether each employee still needs to sign or authorize anything, and who collects it. Don't assume the sponsor's signature covers every employee action. The answer depends on the plan's terms and the providers' processes.
What is an individual T2033 transfer?
In a member-by-member transfer, each employee's account moves on its own direct-transfer request. Form T2033 records a direct transfer from one RRSP to another, naming the employee, the plan the money leaves and the plan that receives it. A financial institution may handle the request with its own paperwork; ask what employees will actually be given to sign.
Because each request moves separately, balances can arrive on different days. Someone has to track which employees have returned their forms and which accounts have arrived.
What if your employees' accounts are set up as individual RRSPs?
Some group retirement arrangements aren't one plan-level account at all. Each employee holds an individual RRSP at a financial institution, and the employer's contributions go into those individual accounts. When that kind of arrangement moves, there is no single group account to transfer, so each employee's money moves on its own.
That is where the receiving provider's process matters most. The group retirement providers RiskX works with use an online process for these transfers, built to make moving money simple for employees: the steps are done online rather than on paper. Ask any provider you are considering to show you exactly what an employee will see and do.
Who pays the fees to close the old accounts?
Outgoing providers may charge a fee to close an account or transfer it out. Ask for those charges in writing, and for who pays each one.
When a plan moves to one of the group retirement providers RiskX works with, the provider covers those closing or transfer-out fees, so neither employees nor the employer pays them. That doesn't cover everything a move involves: money may still be out of the market while cash moves, and your team still puts time into the transition. Confirm the written terms for your plan.
What does each route mean for HR?
With a plan-level transfer, HR's work is mostly coordination: supplying the employee list, confirming dates, and passing on the providers' instructions. With individual transfers, HR may also be distributing forms, following up with employees who haven't returned them, and keeping a list of who has moved.
Either way, ask the providers for a written timetable and a way to confirm that each account has arrived. A submitted transfer is not the same as a completed one.
What does each route mean for employees?
Employees mainly want to know three things: whether they need to do anything, whether their money stays invested, and when they will see it in the new account.
- Action: with a plan-level transfer, employees may not need to start the transfer themselves. With individual transfers, each employee signs a request. Confirm which applies before the announcement.
- Investments: either route can involve holdings moving as investments (in kind) or being sold and moved as cash. If holdings are sold, money may be out of the market while the cash moves. Continuous investment is not guaranteed. The payroll and investments post covers this in more detail.
- Timing: ask when each employee's balance will show in the new account, and how they will be told.
Generally, a qualifying direct transfer from an unmatured RRSP to another RRSP for the same employee does not use additional RRSP contribution room. Confirm eligibility with both providers, and direct plan-specific tax questions to a qualified tax adviser.
Which accounts might not move with the group?
Ask the providers specifically about accounts that may follow different rules:
- Former employees who still have balances in the group plan. Confirm whether their accounts move with the group or need their own instructions.
- Employees on leave, who may not see workplace announcements.
- Locked-in money that was transferred into the plan from a pension plan. It may be governed by pension legislation and may need a different process.
- Spousal RRSP accounts, if your plan offers them.
- The DPSP, if you have one. A DPSP transfer follows its own Income Tax Act rules, separate from the group RRSP. Treat it as its own part of the move. The DPSP guide has background.
What about an employee who leaves and wants to move their group RRSP?
That is a separate question from a provider switch. An employee who leaves can generally move their group RRSP balance to a personal RRSP by direct transfer, which is where Form T2033 usually comes up. The plan's terms and the provider's process apply.
What should you ask both providers before choosing?
- Will this switch use a plan-level transfer or individual transfers, and why?
- What does each employee need to sign or authorize, and who collects it?
- Will holdings move in kind or as cash? Which funds are affected?
- What is the timetable, and how will we know each account has arrived?
- How are former employees, members on leave, locked-in money and the DPSP handled?
- What fees apply to closing or transferring the old accounts, who pays them, and is that in writing?
- If accounts are individual RRSPs, what will each employee see and do, and is it done online?
Keep the answers with the decision record. The keep, reprice or move post explains what else belongs on that page.
Questions employers ask
Do employees have to fill out a T2033 when we switch providers? It depends on the route. With individual transfers, each employee signs a direct-transfer request. With a plan-level transfer, they may not, but confirm whether any individual authorization is still required.
Does a T2033 transfer use up RRSP room? Generally, a qualifying direct transfer from an unmatured RRSP to another RRSP for the same employee does not use additional contribution room. Income Tax Act, section 146(16).
What happens if some employees don't return their forms? Ask the providers before the announcement. Agree who follows up, by when, and what happens to an account that hasn't moved by the cutover date.
Do employees have to pay to close their old accounts? Outgoing providers may charge closing or transfer-out fees. When a plan moves to one of the group retirement providers RiskX works with, the provider covers those fees, so neither employees nor the employer pays them. With any provider, confirm the terms in writing.
Can we choose which route we use? Sometimes. It depends on the providers' processes and your plan's terms. Ask both providers, and treat the answer as part of comparing proposals.
Sources: CRA, Form T2033; Income Tax Act, section 146(16); Income Tax Act, section 147(19).
RiskX helps employers understand group RRSP and DPSP questions, connect with relevant providers and coordinate agreed support. The employer retains responsibility for its plan. RiskX does not provide legal, tax or securities advice, recommend individual investments or guarantee compliance, savings or investment outcomes. Confirm plan-specific questions with the appropriate provider or qualified adviser.
The existing-plan review explains the starting conversation. RiskX's current group-retirement service is for employers outside Quebec.