Compensation Glossary

Group RRSP (Registered Retirement Savings Plan)

A contractual arrangement registered under Section 146 of the Income Tax Act between an individual and an insurer, trust company or corporation authorized to accept payments from an individual or his her spouse for the purpose of providing a retirement income for that individual or his or her spouse by, upon maturation of the plan, purchase of a prescribed form of annuity or transfer of the plan assets to a registered retirement income fund (RRIF). Subject to prescribed maximums, such contributions made by a resident of Canada having earned income are deductible for income tax purposes.