Do we have to keep a former employee in our group RRSP?
It depends on your plan's terms and the law that applies to it. The guideline suggests telling the person whether they can stay, or whether they have to move their savings (section 7).
CAPSA's guideline, one question at a time
When an employee leaves your group RRSP or DPSP
Someone resigns, retires or passes away, and their savings are still in your plan. CAPSA's 2024 guideline has a short section on this moment. Its point is simple: a person may stay a member of the plan for a while after they leave, you keep some responsibilities while their savings are there, and they should get clear information about what happens to their money.
Does our role end when they leave?
Not straight away. The guideline notes that a person can stay a member of the plan for a while after their job ends, and that the sponsor keeps responsibilities toward them for as long as they have savings in the plan (section 7). For most group RRSPs and DPSPs, the sponsor is the employer.
Depending on how your plan is set up, your provider often handles much of the paperwork, such as forms, transfers and statements. Your part is making sure the person gets the information and knows where to go.
What the guideline suggests people hear when they leave
Section 7 lists the kinds of information a departing member, or their survivor or beneficiary, should get where it applies to the plan. In plain words, such as:
- Whether they can stay in the plan, or have to move their savings to another plan.
- How to move their money out, to products outside the plan.
- Whether they have to start drawing income from the plan.
- What it costs to leave the money in the plan, or with the plan's current provider.
- What they need to do, and by when. Any steps and deadlines.
- What happens if they do nothing. Any default that applies.
- How the money will be paid out or moved, and what leaving does to each investment option they hold.
- Tax and other costs. Any tax consequences, early withdrawal penalties, market value adjustments or other fees.
If the plan lets people draw retirement income from it directly, the guideline suggests also explaining each income option, its investments, its fees and what communication they'll get (section 7).
And if the whole plan ends?
The same information applies to everyone, plus what ending the plan means for each investment option. CAPSA suggests giving it promptly (section 8).
Start before anyone leaves
The guideline's education section suggests members can find, among other things, what to do when they leave the plan (section 3.1.1). Telling people at sign-up and in yearly reminders makes the exit conversation shorter, and less stressful for the person leaving.
What the guideline doesn't say
- It doesn't set a notice period or a form you have to use.
- It doesn't make you a tax expert. Tax questions go to the person's tax professional or the CRA.
- It doesn't replace your plan's terms or the law that applies to it. CAPSA says leaving should follow both (section 7).
How RiskX helps
- A booklet for every employee, in your company's name, that explains the plan in plain language, so people know where to turn when the time comes.
- Help with employee education, so leaving isn't the first time someone hears how the plan works.
- A yearly review with your company, and check-ins with HR a few times a year, where questions like this come up.
We take the legwork off your plate. The decisions stay yours. RiskX doesn't give investment, tax or legal advice.
Questions employers ask
Who sends the forms when someone leaves?
Often your provider, depending on how your plan is set up. The guideline's point is that the person gets the information they need: their options, costs, deadlines and what happens if they do nothing.
What if an employee passes away?
The same section covers survivors and beneficiaries. They should get the information that applies, including any steps and deadlines (section 7).
Sources
- CAPSA Guideline No. 3, Guideline for Capital Accumulation Plans, published September 9, 2024 (capsa-acor.org)
- Sections referred to: 1.3.1, 3.1.1, 7, 8. Checked November 7, 2026.
This page explains CAPSA's guideline in general terms. It isn't legal advice. RiskX isn't affiliated with or endorsed by CAPSA.