If company goes bankrupt, what happens to Group RRSPs?
Hey all,
Sorry if this is the wrong forum, but it was the closest I could think for the question. Feel free to move it to another forum if it's better suited elsewhere.
I read a few articles about the ongoing bankruptcy with Sears. These ones involved the actor Mike Myers' brother, Peter, and those laid off by Sears as part of their restructuring. The CBC article mentioned how he and others were laid off without severance, while The Star dove a bit deeper to cover how their pension might be at risk since employees have to get in line and are behind other creditors.
This made me wonder for people who have a Group RRSP. If their company goes bankrupt or applied for the bankruptcy insolvency like Sears, what happens to the employees who contributed to the Group RRSP? Is there a chance they lose out on what their company contributed over the years? Is there also a chance they lose what they themselves contributed?
For example, if an employee gives $100 every two weeks to their Group RRSP and their company matches 50% making a total of $300 every month between both the company and the employee, will that person lose out on all the money contributed in the Group RRSP (both theirs and the company's) or just what the company contributed to the Group RRSP?
Thanks in advance! I'm a bit of a layman with this and curious.
http://www.cbc.ca/news/business/sears-m ... -1.4199261
https://www.thestar.com/business/2017/0 ... in-ad.html
Sorry if this is the wrong forum, but it was the closest I could think for the question. Feel free to move it to another forum if it's better suited elsewhere.
I read a few articles about the ongoing bankruptcy with Sears. These ones involved the actor Mike Myers' brother, Peter, and those laid off by Sears as part of their restructuring. The CBC article mentioned how he and others were laid off without severance, while The Star dove a bit deeper to cover how their pension might be at risk since employees have to get in line and are behind other creditors.
This made me wonder for people who have a Group RRSP. If their company goes bankrupt or applied for the bankruptcy insolvency like Sears, what happens to the employees who contributed to the Group RRSP? Is there a chance they lose out on what their company contributed over the years? Is there also a chance they lose what they themselves contributed?
For example, if an employee gives $100 every two weeks to their Group RRSP and their company matches 50% making a total of $300 every month between both the company and the employee, will that person lose out on all the money contributed in the Group RRSP (both theirs and the company's) or just what the company contributed to the Group RRSP?
Thanks in advance! I'm a bit of a layman with this and curious.
http://www.cbc.ca/news/business/sears-m ... -1.4199261
https://www.thestar.com/business/2017/0 ... in-ad.html