Switching RRSP Providers for Better Employee Value
Moving a company RRSP program from a traditional bank to a virtual provider, keeping the same employer cost while increasing employee perceived value.
What they had
The company offered a group RRSP through a major bank. Employees could contribute through payroll, and the bank managed the pooled accounts. The program existed, but it was not doing much for the people in it.
What broke
Three problems stood out. First, the investment menu was small and conservative. Second, the management fees were high relative to what employees could get on their own. Third, the bank did not actively help employees put their money to work. Most of the pooled balance was sitting in cash or near-cash options, earning almost nothing while inflation ate away at it.
The platform also created friction. New hires delayed enrolling because the process was not self-serve. Employees who wanted to change investments or rebalance had to call or visit a branch. Transfer-out fees made leaving the plan expensive. The program was technically available, but it did not feel like a real benefit.
The deeper issue was that the company was spending money on a benefit employees did not value. A benefit is not a check mark. If the people it is supposed to serve do not perceive it as useful, it is wasted budget.
What we chose
I surveyed employees about what they actually wanted from the RRSP program and how they rated the current platform. Then I led a review of alternative providers and recommended moving the group plan to a modern virtual platform. The switch kept the employer cost flat while giving employees a better experience: no transfer-out fees, a wider range of investment options, lower management fees, easy online enrollment, and a self-serve dashboard.
The key improvements were:
- No transfer-out fees. Employees could move their money without penalties if they left the company.
- More investment options. A wider menu made it easier for employees to choose investments that matched their goals.
- Lower fees. Employees kept more of what they invested.
- Easy enrollment. New hires could sign up online instead of filling out paper forms.
- Self-service management. Employees could check balances, change contributions, and adjust investments on their own.
My role
I gathered employee feedback, evaluated providers, compared fees and features, presented the business case to leadership, coordinated the transition with payroll and HR, communicated the change to employees, and ran the enrollment process. The goal was not just to switch platforms but to maximize the perceived value of the benefit within the same budget.
Outcome
- Employer RRSP cost stayed the same.
- Employee enrollment improved because signing up became easier.
- Complaints about transfer-out fees, limited options, and high fees stopped.
- The benefit was perceived as modern and employee-friendly, increasing its value as a retention tool.
The takeaway
Offering a benefit is not the same as delivering value. Before changing providers, we asked employees how they perceived what they already had. That feedback made it clear that the budget could be used better. The right move was not to spend more — it was to spend smarter by choosing a platform employees actually wanted to use.
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