Group Investment Accounts

Puhl Employee Benefits offers advice on Group Investment Accounts for employees and businesses in Calgary.  

Why Group Investment Accounts?

A Group Investment Account (GIA) is a non-registered savings plan set up by an employer for their employees.

The objective behind a GIA is to help you save for a major investment such as a home purchase, to support your education, to pay for a medical emergency, or even to go on a vacation to Spain that you’ve always wanted.

You can invest into a GIA directly from your monthly salary. A set amount is deducted from your income every month and invested into the GIA. This allows you to take advantage of dollar-cost averaging and save more for the future.

Who is a Group Investment Account for?

For Employers

If you are a business or a company that wants to provide additional benefits to your employees apart from the GRSP or DPSP, you should consider a GIA for them.

Setting up a GIA at your company is a great way to help your employees save for the future. It leads to much happier and satisfied employees and is good for the morale at the workplace.

For Employees

The GIA allows you to save for the future. It could be for a short term goal such as paying off your student loans, or buying your first-home. Or it could be for an expensive medical procedure that a member of your family has to go through.

Key Features of Group Investment Accounts

Investment Options: The investment options under GIA are chosen by the employers. This is based on the list of choices that are already available with the plan.

Spousal Plans:  GIA allows you to add your spouse as a beneficiary.

Contribution Sources: Under GIA, contributions are made by the employer AND/OR the employee.

Member Withdrawals: You can withdraw without having to worry about any tax implications. All deductions are from the after-tax dollars. There are no tax receipts issued.

Contribution Limits: You don’t have to worry about any contribution limits under a GIA.

Sponsor Tax Implications: Any contributions made by the employer under GIA are deemed to be a part of the employee’s salary. These are seen as a salary expense and hence are tax deductible. Payroll taxes as EI and CPP apply to the contributions made by the employer.

Vesting Not Allowed: Vesting is not permitted under this plan. If the employee wishes to withdraw funds, a notification of the withdrawal form has to be submitted and signed by their employer. The employer can choose to suspend matching contributions to the employee’s plan temporarily.

Termination and Retirement: Following retirement or termination from the job, the assets accumulated under GIA can be withdrawn in cash.

Your Next Step

If you have any questions on Group Investment Accounts, all you need to do is to pick up the phone and call us at Puhl Employee Benefits on this Toll Free number: 1(888) 508-0077 or fill up this contact form. Our representatives will get back to you as soon as possible. You could also walk into our office at 209, 2577 Bridlecrest Way SW, Calgary, Alberta.