Can I name a beneficiary on my employer's group RRSP in Ontario?
In most cases, yes — group RRSPs administered through your employer typically allow you to name a beneficiary, but the specific rules depend on the plan document and the financial institution managing the plan. Contact your plan administrator or HR department to find out whether a beneficiary designation is available and how to complete it.
The tax treatment of a group RRSP on death follows the same rules as an individual RRSP: the full value is included in the deceased's income on the terminal return, subject to the same spousal rollover if the named beneficiary is a spouse or common-law partner.
One difference from individual RRSPs is that group plans sometimes offer a "death benefit" that is separate from the RRSP itself — for example, a flat payment or a multiple of salary. This death benefit may have its own beneficiary designation and different tax treatment. Confirm exactly what benefits your plan offers and how each is paid out on death.
If you have multiple retirement savings accounts — a group RRSP through work and individual RRSPs — each one needs its own beneficiary designation. Keeping a complete list of all your accounts and their designated beneficiaries, updated regularly, is a key part of estate organization.
Key takeaways
- Most group RRSPs allow a beneficiary designation — check with your plan administrator
- The same tax rules apply as for individual RRSPs, including the spousal rollover
- Group plans may have a separate death benefit with its own designation form
- Maintain a list of all accounts and beneficiaries across your individual and group plans