Group retirement for Canadian employers

CAPSA's guideline for group RRSPs and DPSPs, in plain words

In September 2024, CAPSA, the association of Canada's pension regulators, published a new guideline for plans like group RRSPs and DPSPs. It replaces the 2004 version, the first update in about twenty years.

It isn't law. It's the regulators' view of good practice. The central idea is simple: once your plan is set up, you keep looking after it, even when a provider does the day-to-day work. That means knowing who does what, explaining the plan to your people as they go, checking fees, providers and investment options from time to time, and keeping a record of what you decided.

This page explains what that looks like for an employer like you.

Colleagues gathered around a table discussing documents.

Is it the law?

No. The guideline says it doesn't replace or change any legal requirement (section 1.1). It describes what the regulators see as good practice for running a plan where employees choose their own investments.

So there's no penalty in it and no form to file. It's a sensible standard for looking after a plan your people are counting on.

Does it apply to our plan?

If you offer a group RRSP or a DPSP and your employees choose from the investment options in the plan, yes, it's written with plans like yours in mind (section 1.2.1). For most of these plans, the employer is the plan sponsor (section 1.2.2).

It also scales. CAPSA says how much is reasonable depends on the size and complexity of your plan. A 40-person company isn't expected to run its plan like a large pension fund.

The dates

  • September 9, 2024: the guideline was published and took effect.
  • January 1, 2026: CAPSA asked that any system or process changes needed to support it be in place by this date. It's a target, not a legal deadline. If you haven't looked at your plan since, now is a fine time.
  • 2004: the version it replaced.

Who does what

Your provider can run a lot of the plan: the accounts, the statements, the website, the investment options. Your employees choose how much to put in and how to invest it. But as the sponsor, you still oversee the plan, even when someone else does the work (sections 1.3.1 and 2.1.4).

In practice, for most employers that comes down to two jobs: keeping your people informed, and keeping an eye on the providers who run the plan.

What the guideline suggests you keep doing

  1. Write down who does what. A short record of your role, your provider's and your broker's, sized to your plan (section 2.1.2).
  2. Keep explaining the plan. Education shouldn't stop at sign-up. Your people should know what the plan is, what it costs them, how to get help and what to do when they leave (section 3).
  3. Check fees, with value in mind. Review what your people pay from time to time, and what they get for it. Low cost matters, but it isn't the only measure (section 6.2). What a CAPSA fee review means for your group RRSP
  4. Review your provider and the investment options. Look at how your provider is doing from time to time, and at the investment options at least once a year (sections 6.3 and 6.4).
  5. Keep records. Note what you reviewed, what you decided and when you'll look again (section 2.3).

What it doesn't say

  • It doesn't say you have to switch providers.
  • It doesn't set a fee you have to beat.
  • It doesn't make you an investment expert. Choosing and reviewing investments is work you do with your provider and properly registered investment professionals.
  • It doesn't replace the law that already applies to your plan.

How RiskX helps

RiskX is a family-owned group retirement brokerage. We work with employers that already have a group RRSP or DPSP, and we help you look after the plan you have:

  • Explaining the plan to your people. A custom printed booklet for every employee, in your company's name, plus help with employee education.
  • A yearly review. Each year we go over the plan with you: what it costs your people, what support they get, and what's worth changing, if anything. In between, we check in with HR.
  • Our pay, disclosed. We tell you how RiskX is paid.
  • No move needed. You can keep your provider and change only your plan's broker to RiskX, with a short letter on your provider's form, which your provider has to accept.

We take the legwork off your plate. The decisions stay yours. RiskX doesn't give investment, tax or legal advice, and we don't choose or rank funds.

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Questions employers ask

Is CAPSA's guideline the law?

No. CAPSA says it doesn't replace or change any legal requirement. It describes good practice for looking after a group RRSP or DPSP after it's set up.

Does the guideline apply to a small company's group RRSP?

It's written for plans where employees choose their investments, including group RRSPs and DPSPs, and it's meant to scale. What's reasonable for a small plan is simpler than for a large one.

Did we miss the January 2026 deadline?

It wasn't a legal deadline. CAPSA asked that any process changes needed to support the guideline be in place by January 1, 2026. If you haven't reviewed your plan against it yet, you can start now.

Do we have to switch providers?

No. Nothing in the guideline says you should. It suggests reviewing your provider and fees from time to time and writing down what you decide. Many employers keep their provider. What changing your plan's broker involves

Sources

This page explains CAPSA's guideline in general terms. It isn't legal advice. RiskX isn't affiliated with or endorsed by CAPSA.