Employer Retirement Guide

Tag: retirement savings

How Can Canadian Businesses Help Employees Protect Their Workplace Retirement Savings From Scams and Investment Fraud?
Employees may receive fraudulent messages, suspicious investment offers, or communications that appear to come from a financial institution, government agency, adviser, or retirement-plan provider.

For Canadian employers, raising awareness about retirement savings scams can help employees recognize common warning signs, understand how their workplace plan provider normally communicates, and know where to verify or report a suspicious message.

Employers are not responsible for employees’ personal financial decisions, and awareness education cannot guarantee that fraud will be prevented.

However, clear and consistent communication can help employees pause before sharing information or acting on an unexpected investment offer.

Quick Answer: How Can Employers Help Protect Employees From Retirement Savings Scams?

“Employ ers can reduce the risk of retirement savings scams by teaching employees how to recognize warning signs and verify suspicious communications

Canadian businesses can support employees by:
1. Sharing common warning signs of investment fraud.
2. Explaining the plan provider’s official communication channels.
3. Reminding employees not to share sensitive information through unverified links.
4. Encouraging employees to verify suspicious messages directly with the provider.
5. Using simple, plain-language fraud-awareness education.
6. Providing clear information about where suspected fraud can be reported.
7. Repeating fraud-awareness reminders throughout employment.
The goal is not to tell employees whether a particular investment is safe.

The employer’s role is to provide general awareness information and direct employees to official sources.

Why Retirement Savings Scams Matter

Fraudulent investment messages can appear professional and convincing.

According to the Canadian Securities Administrators, warning signs of investment fraud may include:
- Pressure to act quickly
- Promises of high returns with little or no risk
- Unregistered sellers
- Exclusive or limited-time offers
- Repeated requests for additional money
- Requests for fees before money can be withdrawn
Employees may also receive messages that appear to come from a trusted financial institution or retirement-plan provider.

That is why employees should be encouraged to verify unexpected communications using official contact information rather than relying on contact details contained in the suspicious message itself.

1. Share Common Investment Fraud Warning Signs

The first step in reducing exposure to retirement savings scams is awareness.

Employers can periodically share general information from Canadian regulators about common fraud warning signs.

The communication should be educational rather than alarmist.

“Retirement savings scams often rely on urgency, imperson ation, or misleading investment claims, so employees should verify unusual requests through official provider channels.”

For example, employees can be reminded to be cautious when someone:
- Pressures them to make an immediate decision
- Promises unusually high returns with little or no risk
- Claims an opportunity is available only to a select group
- Repeatedly requests more money
- Asks for additional fees before releasing funds
Simple reminders may help employees pause and verify an offer before taking action.

2. Explain Official Communication Channels

Employees should know how their workplace retirement-plan provider normally communicates with them.

Employers can make it easy for employees to find:
- The provider’s official website
- Official telephone numbers
- Official email contact information
- Member portal information
- Plan documents and official forms
This can help employees compare an unexpected message with the communication channels normally used by their provider.

If an employee is unsure whether a message is legitimate, the safest approach is to contact the provider directly using official contact details.

3. Protect Personal and Financial Information

Fraud attempts may seek sensitive personal or financial information.

Employees can be reminded not to provide information such as:
- Social Insurance Numbers
- Banking information
- Passwords
- Retirement account credentials
- Other confidential account details
through unverified links, emails, text messages, or other unexpected communications.

Employers should also never ask employees to share passwords or account credentials as part of a fraud-awareness process.

4. Encourage Direct Provider Verification

If an employee receives an unexpected message about workplace retirement savings, the employee should be encouraged to verify it through the plan provider’s official contact channels.

A useful general principle is:

Do not reply to the suspicious message first. Verify the source independently.

For example, an employee can use the telephone number, website, member portal, or contact information contained in official workplace plan materials.

This may reduce the risk of responding directly to someone impersonating the provider.

5. Use Plain-Language Fraud Education

Fraud-awareness education is more useful when employees can understand and apply it quickly.

Employers do not need highly technical cybersecurity language to communicate the basic message.

Short reminders can be effective.

For example:

Before clicking a link, sharing personal information, or acting on an unexpected message about your retirement savings, verify the source using the contact details in the official plan materials. If you are unsure whether a message is from the plan provider, contact the provider directly.

Any sample wording should be reviewed against current plan documents and the provider’s official communication materials before being used.

6. Give Employees a Clear Reporting Pathway

Employees should also know where they may report suspected fraud.

Depending on the circumstances, this may include:
- The workplace retirement-plan provider
- The employee’s financial institution
- The Canadian Anti-Fraud Centre
- Local police
- The applicable securities regulator
The Canadian Anti-Fraud Centre accepts reports of fraud and cybercrime online and by telephone at 1-888-495-8501.

Canadian securities regulators also provide resources for reporting suspected investment fraud.

Providing employees with a clear reporting pathway may help them respond more quickly when something appears suspicious.

7. Make Fraud Awareness an Ongoing Process

Fraud methods change over time.

For that reason, fraud-awareness education should not be limited to a single onboarding message.

Employers may consider providing reminders:
- During onboarding
- During workplace retirement-plan education
- When provider communication methods change
- Periodically throughout employment
CAPSA guidance for capital accumulation plans recognizes that member communication and education continue beyond initial enrolment.

Regular reminders can help keep fraud-awareness information current and easier for employees to remember.

What Employers Should Avoid

Employers should be careful not to go beyond general fraud-awareness education.

They should avoid:
- Giving individual investment advice
- Deciding whether a specific investment opportunity is legitimate
- Promising that a message or investment is safe
- Asking employees to provide passwords or account credentials
- Using alarmist language that may discourage employees from participating in the retirement plan
- Assuming that a particular employee or employee group is more likely to become a fraud victim
Questions about whether a particular investment or seller is legitimate should be referred to the appropriate securities regulator or another qualified source.

Can Employees Check Whether an Investment Professional Is Registered?

Yes.

The Canadian Securities Administrators state that securities professionals generally need to be registered with the securities regulator in each province or territory in which they conduct business.

Employees who are considering an investment opportunity can be directed to official securities-regulator resources, including the National Registration Search, to check registration information.

The employer should not perform an investment suitability assessment on the employee’s behalf.

What Should an Employee Do After Receiving a Suspicious Retirement Savings Message?

A simple process may help:

Pause → Do Not Share Information → Verify Independently → Contact the Provider → Report Suspected Fraud

Employees should avoid using contact information contained only within the suspicious message.

Instead, they should use official plan materials or trusted government and regulator sources.

Important Boundary for Canadian Employers

This article focuses on general employee awareness regarding retirement savings scams and investment fraud.

It does not address an employer’s own cybersecurity, privacy, or breach-reporting obligations involving payroll or retirement-plan data.

Those responsibilities may require qualified legal, privacy, cybersecurity, or other professional advice.

Employers should also confirm the security practices and official communication methods of their own retirement-plan provider directly with that provider.

How Open Access Limited May Support Fraud-Awareness Communication

Open Access Limited’s public materials include member resources, contact channels, member forms, a member portal, a trusted contact person form, and complaint-related information.

Where a workplace retirement plan is provided through Open Access Limited, employers may direct employees to official Open Access Limited contact information when an employee needs to verify a message relating to the plan.

Employers should confirm current provider practices directly with Open Access Limited rather than making assumptions about security controls.

Open Access Limited
302 Bay Street, Suite 503-01
Toronto, ON M5H 0B6, Canada

Toll-Free: 1 (866) 625-4777
General: 416-364-8877
Fax: 416-955-4878
Email: inquiry@OpenAccessLtd.com
Website: www.OpenAccessLtd.com

Frequently Asked Questions

What Are Common Warning Signs of Retirement Savings Scams?

Common warning signs may include pressure to act immediately, promises of unusually high returns with little or no risk, unregistered sellers, exclusive offers, repeated requests for more money, or demands for fees before funds can be released.

Should Employees Click a Link in an Unexpected Retirement-Plan Message?

Employees should first verify the source using the official contact information contained in their workplace retirement-plan materials or provider website.

Can an Employer Tell an Employee Whether an Investment Offer Is Legitimate?

Employers should generally avoid evaluating specific investment opportunities. Questions about the legitimacy or registration of an investment seller should be directed to the appropriate securities regulator or another qualified authority.

What Personal Information Should Employees Avoid Sharing?

Employees should be cautious about sharing Social Insurance Numbers, banking information, passwords, account credentials, or other confidential financial information through unverified communications.

Where Can Employees Report Suspected Investment Fraud in Canada?

Possible reporting channels include the Canadian Anti-Fraud Centre, local police, the relevant financial institution, the retirement-plan provider, and the applicable provincial or territorial securities regulator.

Should Fraud Awareness Be Included Only During Employee Onboarding?

No. Because fraud methods and provider communication practices can change, awareness information may be more useful when it is refreshed periodically.

Can Employers Guarantee That Fraud Awareness Will Prevent Scams?

No. Awareness education may reduce risk and help employees recognize warning signs, but it cannot guarantee that fraud will be prevented.

Final Thoughts

Helping employees recognize retirement savings scams does not require an employer to become an investment adviser or cybersecurity expert.

A practical employer approach is to:

Educate → Verify → Protect Information → Refer to Official Sources → Explain Reporting Options → Repeat the Message

Clear communication can help employees recognize suspicious messages, protect personal information, verify communications through official channels, and understand where to seek help.

The strongest approach is one that provides useful information while maintaining appropriate boundaries between workplace education and individual financial or investment advice.

“A consistent fraud-awareness program can help employees identify retirement savings scams earlier and make safer decisions about their workplace retirement savings.

References
1. Canadian Securities Administrators (CSA) — Know the Red Flags of Fraud, updated June 18, 2025.
  https://www.securities-administrators.ca/investor-tools/avoiding-fraud/know-the-red-flags-of-fraud/
2. Canadian Securities Administrators (CSA) — Are They Registered?, updated January 13, 2026.
  https://www.securities-administrators.ca/investor-tools/are-they-registered/
3. Canadian Anti-Fraud Centre (CAFC) — Report fraud and cybercrime, modified November 27, 2025.
  https://antifraudcentre-centreantifraude.ca/report-signalez-eng.htm
4. Canadian Association of Pension Supervisory Authorities (CAPSA) — Guideline No. 3: Guideline for Capital Accumulation Plans, September 9, 2024.
5. Open Access Limited — Member Resources, Member Forms, Plan-Specific Enrolment Resources, and Contact Us.
October 22, 2026
How Should Canadian Businesses Respond When Employees Ask to Access Workplace Retirement Savings During Financial Hardship?
Financial hardship withdrawals can be one of the most sensitive questions employers receive about a workplace retirement plan.

An employee facing financial pressure may ask whether retirement savings can be withdrawn, unlocked, transferred, or otherwise accessed.

There is no universal yes-or-no answer.

Access can depend on the type of retirement arrangement, official plan documents, whether the funds are locked in, applicable tax rules, pension legislation, jurisdiction, and the employee’s circumstances. OpenAccess_Q56_QA_with_Resource…

For employers, the strongest response is not to decide whether the employee should access their retirement savings.

Instead, the employer can:

Respond respectfully → Identify the plan → Provide official information → Protect privacy → Explain general tax considerations → Direct the employee to the appropriate provider or authority

The employee should make personal financial decisions with access to appropriate plan information and qualified support.

Quick Answer: What Should Employers Do When Employees Ask About Financial Hardship Withdrawals?

When employees ask about financial hardship withdrawals, Canadian employers should first identify the type of retirement arrangement, avoid promising that funds are available, provide current plan documents and official resources, explain general tax considerations without estimating an individual tax result, protect the employee’s privacy, and direct personal withdrawal or unlocking decisions to the plan provider, financial institution, pension regulator, or qualified professional.

Employers should not recommend whether an employee should withdraw retirement savings, stop contributing, unlock pension funds, or change investments.

On This Page
1. Why Plan Type Matters
2. 8 Smart Employer Steps
3. Group RRSP Withdrawals
4. DPSP Access
5. Ontario Locked-In Accounts
6. Federally Regulated Locked-In Accounts
7. Privacy During Financial Hardship
8. What Employers Should Avoid
9. Financial Wellness Before a Crisis
10. Important Implementation Boundaries
11. How Open Access Limited May Support Employers
12. FAQs
13. Final Thoughts
14. Resources and References
Why Financial Hardship Withdrawals Depend on the Type of Retirement Plan

The first question should not be:

“Why do you need the money?”

It should be:

“What type of retirement arrangement are we dealing with?”

The employee may have:
- A Group RRSP
- A Deferred Profit Sharing Plan
- A Registered Pension Plan
- A Defined Contribution pension plan
- A LIRA or LIF
- Another locked-in arrangement
The rules are not interchangeable.

A financial hardship withdrawal that may potentially be available from one type of account may not be available from another.

Employers should therefore avoid making quick assumptions based on how another employee’s plan or account was handled.

8 Smart Ways Employers Can Handle Financial Hardship Withdrawals

1. Respond Respectfully Without Asking Why the Employee Needs Money

Financial difficulty is personal.

Employees may be dealing with circumstances involving housing, family responsibilities, medical expenses, income disruption, debt, or other private matters.

HR does not need to investigate those circumstances simply because the employee asks whether retirement savings can be accessed.

A professional response might begin:

“We can help you identify the plan information and the appropriate contact for your question.”

That acknowledges the request without asking the employee to disclose unnecessary personal information.

A privacy-first approach is especially important with financial hardship withdrawals.

2. Identify the Retirement Plan or Account Type First

Before discussing access, determine what arrangement the question relates to.

Is it:

Group RRSP?

DPSP?

Pension plan?

LIRA?

LIF?

Federally regulated locked-in account?

The source Q&A emphasizes that access rules differ depending on plan type and jurisdiction. OpenAccess_Q56_QA_with_Resource…

This distinction should happen before HR provides detailed information.

3. Never Promise That a Withdrawal Is Available

One of the most important safeguards is avoiding statements such as:

“Yes, you can take the money out.”

or

“No, those funds can never be accessed.”

Neither answer should be given until the applicable plan terms and rules are confirmed.

For Group RRSPs, for example, withdrawal availability while an employee remains employed may depend on the actual plan terms.

For locked-in retirement savings, special legislation and jurisdiction-specific rules may apply.

For financial hardship withdrawals, the appropriate answer is often:

“We need to confirm what your specific plan or account permits.”

4. Direct Employees to Official Resources and the Correct Decision-Maker

Employers should know where to send the employee.

Depending on the arrangement, that may include:
- The retirement-plan provider
- The financial institution holding the account
- Official plan documents
- CRA resources
- The applicable pension regulator
- A qualified tax professional
- A qualified financial professional
This is particularly important for locked-in accounts.

In Ontario, current FSRA guidance states that financial-hardship applications for eligible locked-in accounts are made to the financial institution holding the account, not directly to FSRA. fsrao.ca

For federally regulated locked-in arrangements, OSFI likewise directs the required forms to the financial institution holding the funds. OSFI

The employer’s job is therefore usually to direct—not adjudicate—the application.

5. Explain Tax Consequences Only in General Terms

Employees may ask:

“How much tax will I pay if I withdraw?”

Employers should resist the temptation to calculate an answer.

RRSP withdrawals are generally taxable, and withholding tax may apply.

But the tax withheld at the time of withdrawal may not necessarily equal the employee’s ultimate tax liability.

The source therefore recommends explaining tax treatment only in general terms and avoiding individualized tax estimates. OpenAccess_Q56_QA_with_Resource…

A suitable employer response is:

“A withdrawal may have tax consequences. Please review the applicable CRA information or speak with a qualified tax professional regarding your personal circumstances.”

6. Protect Employee Privacy

This deserves its own step.

HR should generally avoid requesting personal details such as:
- Medical information
- Debt balances
- Housing problems
- Family circumstances
- Reasons for financial difficulty
- Income information that is not required for HR purposes
If supporting documentation is required for a financial hardship withdrawal, it should normally go to the organization responsible for processing the application.

For Ontario locked-in accounts, for example, the financial institution is responsible for reviewing the hardship application and supporting information. fsrao.ca

This reduces unnecessary exposure of sensitive employee information within the workplace.

7. Make Financial Wellness Resources Available to Everyone

Employee financial education is most useful before a crisis.

Rather than creating a special financial-wellness program only for someone who has disclosed hardship, employers can make resources available to the entire workforce.

These may include:
- Emergency-fund education
- Budgeting resources
- Debt-management education
- Retirement-plan education
- Financial-wellness articles
- Calculators
- Employee assistance resources where available
- Access to appropriate professional support
This approach avoids singling out employees who have asked about financial hardship withdrawals.

The source specifically points to FCAC resources on emergency funds and workplace financial wellness and notes that education should continue beyond initial enrolment. OpenAccess_Q56_QA_with_Resource…

8. Give HR, Payroll, and Managers One Consistent Response Process

Employees may ask their manager first.

Others may ask payroll.

Others may contact HR.

If each person provides a different answer, the risk of misinformation increases.

Create a short internal response protocol:

Acknowledge → Identify Plan → Do Not Advise → Provide Resources → Protect Privacy → Refer

Managers should know when to stop answering and refer the employee to HR or the provider.

HR should know which plan materials apply.

Payroll should not make contribution or withdrawal changes without the required instructions.

A consistent financial hardship withdrawals process improves communication without turning internal staff into financial advisers.

How Group RRSP Withdrawals May Work

For a Group RRSP, access while the employee remains employed can depend on the employer’s specific plan design and provider rules.

Some workplace arrangements may restrict withdrawals.

Employers should therefore review the official plan documents before telling an employee that funds are available.

Where an RRSP withdrawal does occur, the amount is generally taxable income and withholding tax may apply. OpenAccess_Q56_QA_with_Resource…

An employee considering a withdrawal should receive plan-specific information and personal tax guidance from the appropriate sources.

What About DPSP Money?

A Deferred Profit Sharing Plan follows different rules.

Only the employer contributes to a DPSP.

CRA registration rules also address vesting.

Whether a member can access vested DPSP amounts while still employed depends on the actual plan provisions. OpenAccess_Q56_QA_with_Resource…

This means a Group RRSP answer should not automatically be applied to a DPSP.

Ontario Financial Hardship Unlocking

Ontario provides specific financial-hardship rules for certain locked-in accounts.

Current FSRA information describes four hardship categories:
- Medical expenses
- Arrears of rent or default on debt secured against a principal residence
- First and last months’ rent
- Low expected income
The application relates to eligible locked-in accounts rather than money that remains inside the pension plan itself. fsrao.ca

FSRA’s current guidance also emphasizes that approved forms and eligibility requirements apply.

These are Ontario-specific rules.

They should not be presented as Canada-wide rules.

Federally Regulated Financial Hardship Unlocking Is Different

Federally regulated locked-in arrangements use a different framework.

Current OSFI guidance describes financial-hardship unlocking for federally regulated locked-in retirement savings in circumstances involving low income or qualifying medical/disability-related costs. OSFI

Again, the application is handled through the financial institution holding the account.

This difference between Ontario and federal rules illustrates why employers should not maintain a generic statement such as:

“Financial hardship always qualifies for pension unlocking.”

It does not.

Jurisdiction matters.

A Privacy-First Employee Response

A simple internal response could be:

Workplace retirement savings may be subject to specific plan, tax, and legal rules about access. We cannot provide personal financial, tax, legal, or investment advice. We can direct you to the applicable plan documents and provider so you can confirm the options available under your arrangement.

This wording follows the approach in the underlying Q&A. OpenAccess_Q56_QA_with_Resource…

It should still be adapted to the employer’s specific plan before use.

What Employers Should Avoid

Employers should not:
- Promise that retirement funds can be withdrawn
- State that funds cannot be accessed without first checking the plan
- Suggest that a hardship application will qualify
- Suggest that an application will be approved
- Recommend a withdrawal
- Recommend against a withdrawal
- Tell an employee to stop contributing
- Recommend selling investments
- Calculate the employee’s personal tax impact
- Ask for unnecessary medical, family, housing, or debt information
- Use the employee’s hardship as a sales opportunity
The source specifically identifies withdrawal promises, personal recommendations, unnecessary private questions, and individual tax estimates as areas employers should avoid. OpenAccess_Q56_QA_with_Resource…

Why Financial Wellness Should Begin Before Financial Hardship

A workplace financial-wellness strategy should not begin the day an employee asks for money.

Preventive education can make resources available long before financial pressure becomes urgent.

Possible topics include:

Building an Emergency Fund

General education can explain why emergency savings may be useful for unexpected expenses.

Understanding Workplace Retirement Savings

Employees should understand contribution rules, restrictions, and long-term objectives before requesting withdrawals.

Budgeting and Cash-Flow Awareness

General budgeting resources may help employees better understand short-term financial obligations.

Where to Find Qualified Help

Employees should know which questions belong with:
- HR
- The retirement-plan provider
- CRA
- A pension regulator
- A qualified tax professional
- A qualified financial professional
This supports employee financial wellness without assuming that every employee has the same financial needs.

How Can Employers Keep Financial Hardship Communication Accurate?

A strong process should use:
- Current plan documents
- Current provider materials
- Current regulator information
- Current CRA resources
- A written HR response process
- Privacy safeguards
- Clear referral points
- Periodic review
Do not copy a hardship rule from another plan, province, or jurisdiction.

Do not rely on a form saved several years ago.

Financial-hardship criteria and forms can change over time; for example, FSRA publishes year-specific Ontario forms for financial-hardship applications. fsrao.ca

Important Implementation Boundaries

Access to retirement savings may involve:
- Plan documents
- Pension legislation
- Tax law
- Privacy
- Human-rights considerations
- Employment matters
- Provider agreements
- Jurisdiction-specific unlocking rules
The Ontario and federal examples in this article are illustrations—not national rules.

Employers should confirm their own plan’s withdrawal provisions with the plan administrator or provider before developing an employee response process.

The source also stresses that an employee’s decision belongs to the employee, with provider and qualified professional support where appropriate. OpenAccess_Q56_QA_with_Resource…

How May Open Access Limited Support Employees Asking About Access to Savings?

Where the workplace retirement arrangement is provided through Open Access Limited, employers may direct employees to Open Access for plan-specific information.

Open Access Limited’s resources include plan information, member forms, financial-wellness materials, calculators, and Client Relations support.

Its public materials also describe forms relating to withdrawals and transferring locked-in funds. OpenAccess_Q56_QA_with_Resource…

Depending on the applicable plan, Open Access Limited may help employees:
- Identify the applicable plan rules
- Find relevant forms
- Understand the submission process
- Access financial-wellness resources
- Review plan information
- Connect with Client Relations
The existence of a withdrawal form does not mean every plan or employee is eligible to make a withdrawal.

Open Access Limited should not be positioned as guaranteeing access to funds or providing individualized tax or legal advice.

Open Access Limited
302 Bay Street, Suite 503-01
Toronto, ON M5H 0B6, Canada

Toll-Free: 1 (866) 625 4777
General: 416 364 8877
Fax: 416 955 4878
Email: inquiry@OpenAccessLtd.com
Website: www.OpenAccessLtd.com

Frequently Asked Questions About Financial Hardship Withdrawals

Can Employees Withdraw Money From a Workplace Group RRSP During Financial Hardship?

Possibly, but the answer depends on the applicable Group RRSP plan terms and provider rules. Employers should not assume withdrawals are automatically available.

Are Financial Hardship Withdrawals Taxable?

Withdrawals from registered retirement arrangements may have tax consequences. Employees should review current CRA information and obtain personal tax advice where necessary.

Can Employees Withdraw Financial-Hardship Money Directly From an Ontario Pension Plan?

Ontario hardship-unlocking provisions described by FSRA apply to eligible locked-in accounts rather than money still held within the pension plan. fsrao.ca

Who Processes an Ontario Financial Hardship Application?

The application is submitted to the financial institution that holds the eligible locked-in account, not directly to FSRA. fsrao.ca

Are Federal Financial Hardship Rules the Same as Ontario Rules?

No. Federally regulated locked-in retirement accounts operate under a separate legislative framework and current federal hardship criteria differ from Ontario’s. OSFI

Should HR Ask Why an Employee Is Experiencing Financial Hardship?

HR should avoid collecting unnecessary private information. Documents needed for an application should normally be provided to the institution responsible for processing it.

Can an Employer Recommend That an Employee Withdraw Retirement Savings?

No. Employers can explain general plan information and provide referrals, but the employee should make the personal withdrawal decision.

Can Open Access Limited Confirm Whether a Withdrawal Is Available?

Where the plan is provided through Open Access Limited, employees may contact Open Access to confirm applicable plan provisions and forms. Availability still depends on the specific plan and applicable rules.

Final Thoughts

Financial hardship withdrawals require careful communication because the employee is asking an important financial question at what may be a difficult time.

The strongest employer response is neither:

“Yes, take the money.”

nor:

“No, you cannot access it.”

It is:

Respond Respectfully → Identify the Plan → Confirm the Rules → Protect Privacy → Explain General Tax Considerations → Provide Official Resources → Refer Personal Decisions → Document a Consistent Process

This approach helps Canadian employers provide useful support while maintaining appropriate boundaries around privacy, personal financial advice, tax advice, and jurisdiction-specific retirement rules.

Resources

For employee-facing information, prioritize authoritative sources:

Canada Revenue Agency — RRSP withdrawal and tax information.

Financial Services Regulatory Authority of Ontario — Ontario locked-in account financial-hardship rules and current forms.

Office of the Superintendent of Financial Institutions — Federally regulated locked-in retirement savings and financial-hardship unlocking.

Financial Consumer Agency of Canada — Emergency-fund and workplace financial-wellness education.

Canadian Association of Pension Supervisory Authorities — Capital accumulation plan education and governance guidance.

Open Access Limited — Plan-specific materials, member forms, financial-wellness resources and member support.

References
1. Canada Revenue Agency — Tax Rates on Withdrawals.
2. Canada Revenue Agency — Register a Deferred Profit Sharing Plan: Conditions for Registration.
3. Financial Services Regulatory Authority of Ontario — Withdrawing From Locked-In Accounts Because of Financial Hardship.
4. Office of the Superintendent of Financial Institutions — Financial Hardship Unlocking.
5. Financial Consumer Agency of Canada — Setting Up an Emergency Fund.
6. Financial Consumer Agency of Canada — Financial Wellness in the Workplace.
7. Canadian Association of Pension Supervisory Authorities — Guideline No. 3: Guideline for Capital Accumulation Plans.
8. Open Access Limited — Group Retirement Plans in Canada; Member Forms; Financial Wellness Resources; Member Resources.
October 15, 2026
How Can Businesses Design Retirement Benefits for a Mobile Workforce Without Creating Confusion When Employees Change Jobs?
Retirement plan portability is becoming increasingly important as employees change employers, locations, and employment arrangements more frequently throughout their careers.

Modern employees may move between permanent, contract, part-time, and hybrid roles. They may also work for several organizations before retirement. While workplace retirement benefits can provide meaningful long-term value, employees may become confused about what happens to their retirement savings when they leave an employer.

A mobility-aware retirement strategy does not mean that every benefit can automatically move from one plan to another. Plan rules, transfer rights, tax treatment, deadlines, and available options can vary.

Instead, businesses should focus on making retirement plan portability easier to understand. Clear communication, structured onboarding and offboarding, visible responsibilities, and access to qualified guidance can help employees protect their retirement savings while reducing administrative pressure on HR teams.

Why Does Retirement Plan Portability Matter?

When employees change jobs, they may leave retirement accounts behind, miss important deadlines, lose track of plan administrators, or misunderstand their available choices.

Some employees may have retirement savings connected to several former employers. Others may not realize that certain registered retirement amounts may be eligible for direct transfer, depending on the type of plan, governing rules, and individual circumstances.

Confusion can reduce employee confidence and increase the risk that retirement savings become fragmented or forgotten.

For employers, retirement plan portability supports a more organized employee experience. It can reduce repetitive questions, strengthen communication, improve HR efficiency, and demonstrate that the organization supports employees throughout their employment journey—including when they leave.

7 Proven Steps to Improve Retirement Plan Portability

1. Explain the Retirement Plan During Onboarding

Retirement plan portability begins when an employee first joins the organization.

Onboarding materials should clearly explain employee and employer contributions, investment options, fees, vesting or locking-in rules where applicable, and the responsibilities of both the employee and the plan provider.

Employees should also understand what may happen to their account if their employment ends.

Providing this information at the beginning of employment helps employees view retirement benefits as part of a long-term financial strategy rather than an isolated workplace program.

2. Build a Structured Employee Offboarding Process

Departing employees should receive timely and understandable information before access to internal systems ends.

A clear offboarding package may explain available options, important deadlines, required forms, plan-provider contact information, account access, and the possible consequences of each decision.

The information should be written in plain language rather than relying only on technical pension or investment terminology.

A consistent offboarding process can reduce uncertainty and help employees remain connected to their retirement savings after leaving the organization.
1. Use Consistent Language Across HR and Plan Communications
Retirement terminology can be complicated.

Confusion may increase when HR documents, payroll materials, retirement-plan statements, and provider communications use different terms for the same process.

Businesses should coordinate retirement communications with their plan provider so employees receive one clear and consistent explanation.

Using standardized language across onboarding, annual education, employee portals, and termination materials can strengthen retirement plan portability and reduce avoidable follow-up questions.

4. Support Informed Decisions Without Directing Personal Choices

Employers can provide education, general information, and access to qualified professionals. However, they should avoid telling employees which transfer, preservation, withdrawal, or investment decision is best for them.

An employee’s most appropriate option may depend on personal finances, age, plan type, tax circumstances, retirement goals, and the rules of the receiving arrangement.

The employer’s role is to make information accessible and understandable—not to replace personalized legal, tax, or financial advice.

This balanced approach supports employee confidence while protecting appropriate professional boundaries.

5. Keep Account Records and Responsibilities Visible

Employees should know who holds their retirement account, where statements are delivered, how to update contact information, and whom to contact after leaving the organization.

This is especially important when an employee’s corporate email account is closed.

Businesses can encourage employees to provide an appropriate personal mailing or email address to the plan administrator, where permitted.

Clear responsibility for record updates can prevent employees from losing contact with their retirement savings and support stronger retirement plan portability over time.

6. Review the Employee Journey Regularly

Employers should evaluate the complete retirement-benefit journey from enrollment through departure.

Recurring employee questions can reveal where communication is unclear.

For example, frequent questions about contribution rules may indicate weaknesses in onboarding. Repeated confusion about account access, deadlines, or transfer options may show that offboarding materials need improvement.

Businesses can review employee feedback, HR inquiries, plan-provider reports, and communication outcomes to identify recurring issues.

Regular review helps organizations improve processes before confusion affects a larger number of employees

7. Work With an Experienced Retirement Plan Provider

An experienced retirement-plan provider can help employers coordinate employee education, plan communications, governance processes, and transition support.

The provider can also help ensure that information reflects the specific plan structure rather than relying on general assumptions.

This support is important because retirement plan portability is not identical across every retirement arrangement.

Transfer rights, locking-in requirements, deadlines, tax treatment, and permitted destinations may differ by plan type and jurisdiction.

How Does Portability Support the Business?

A mobility-aware retirement-benefit strategy can create value beyond the individual employee.

Improved Employee Experience

Clear onboarding and offboarding information reduces uncertainty during career transitions.

Employees are more likely to appreciate retirement benefits when they understand both the immediate and long-term value of the plan.

Stronger Employer Brand

Supporting employees during departure demonstrates that the organization values people beyond a single stage of employment.

This can contribute to a more positive professional relationship and workplace reputation.

Greater HR Efficiency

Repeatable communication and offboarding processes can reduce avoidable follow-up questions.

HR teams can spend less time responding to the same concerns and more time supporting strategic workforce priorities.

Better Risk Management

Timely, consistent, and plan-specific communication can help reduce misunderstandings.

It also encourages employers to review materials with the plan provider and appropriate professional advisers.

Stronger Long-Term Plan Value

When employees remain connected to their retirement accounts after changing jobs, they may be more likely to continue thinking about long-term retirement planning.

Retirement plan portability therefore supports continuity even when employment changes.

Important Implementation Considerations

Employers should not describe portability as a universal or automatic process.

Different retirement arrangements may have different transfer rules, locked-in requirements, deadlines, tax consequences, and receiving options.

An option available under one plan may not be available under another.

Before creating detailed employee instructions, businesses should work with their retirement-plan provider and obtain appropriate legal, tax, pension, or financial guidance.

Communications should clearly distinguish between general education and personalized advice.

This approach helps employers provide useful information without creating unrealistic expectations or directing personal financial decisions.

How Open Access Limited Supports Retirement Plan Portability

Open Access Limited helps Canadian employers create a clearer retirement-benefit journey from enrollment through departure.

Its services include group retirement-plan support, employee education, coordinated communications, plan-governance guidance, and employee-focused retirement solutions.

Open Access Limited can help employers explain plan responsibilities, improve onboarding and offboarding communication, and create practical processes that help employees understand what happens to their retirement savings when employment changes.

A coordinated strategy may reduce confusion, support informed employee decisions, and strengthen the long-term value of workplace retirement benefits.

Open Access Limited
302 Bay Street, Suite 503-01
Toronto, ON M5H 0B6
Canada

Phone: (416) 364-8877
Email: inquiry@openaccessltd.com
Website: https://openaccessltd.com

Final Thoughts

Retirement plan portability is an important operational and employee-experience consideration for businesses with a mobile workforce.

Employers cannot guarantee that every retirement benefit will transfer seamlessly between plans. However, they can make plan rules, responsibilities, deadlines, and transition options easier to understand.

By improving onboarding, creating structured offboarding, using consistent communication, maintaining clear records, reviewing the employee journey, and working with an experienced plan provider, businesses can reduce confusion when employees change jobs.

A strong retirement plan portability strategy helps employees remain connected to their retirement savings while supporting HR efficiency, employee confidence, and long-term benefit continuity.

References

Financial Consumer Agency of Canada
Employer Pension Plans
https://www.canada.ca/en/financial-consumer-agency.html

Canada Revenue Agency
Registered Pension Plan Lump-Sum Payments
https://www.canada.ca/en/revenue-agency.html

Canada Revenue Agency
Transferring Between Registered Plans
https://www.canada.ca/en/revenue-agency.html

Office of the Superintendent of Financial Institutions
Directives and Pension Plan Guidance
https://www.osfi-bsif.gc.ca

Statistics Canada
Working Lives and Workforce Mobility Research
https://www.statcan.gc.ca

Open Access Limited
Group Retirement Plan Solutions
https://openaccessltd.com
July 29, 2026