Group Retirement
Employers implement retirement savings programs for a number of reasons. Attracting and retaining good staff is a common goal as is the desire to assist employees in meeting their individual retirement objectives. A number of studies have shown that Canadians who participate in employer-sponsored retirement savings plans are far more likely to have a comfortable retirement than those Canadians without an employer-sponsored plan. Davis Benefits & Pensions Ltd. can help you design a retirement benefits package to meet your specific needs.
There are different plans your company can use in providing group retirement benefits for your employees and executives. Our advisors are experience and can assist you and your company with the following products:
- Pension Plans (Defined Contribution & Benefits)
- Deferred Profit Sharing Plans (DPSP)
- Registered Retirement Savings Plans (RRSP)
- Group Tax Free Savings Accounts (TFSA)
Capital Accumulation Plan (CAP) Guidelines
In recent years there has been increased regulatory pressure on group retirement plans. The regulators, through the Capital Accumulation Plan (CAP) Guidelines, have outlined several responsibilities that the employer has. These responsibilities including providing sufficient investment information to members, reviewing investments offered, and monitoring service providers, service delivery and costs.
We assist our clients with their plan governance responsibilities and documentation of their governance efforts. We suggest an annual review and CAP check up with your management. Of course, we are available to the plan administrator for assistance with new employees, terminating employees, review of plan documents and design and other escalated plan administration issues.
The CAP Guidelines also suggest that plan members consider obtaining investment advice from an appropriately qualified individual. We feel that as advisors on our plans, we know the characteristics of the plan the best and are therefore a good source for members to turn to get assistance. We suggest having onsite access to the plan advisor at least once per year. Large intakes of new employees and terminations are also possible times to call in the advisor.
According to a recent study many employers also feel educating plan members is the best way to protect themselves from liability. On a more positive note, employees that understand what the plan is doing for them are likely to see more value in the plan and therefore in the employer.
- Meeting with members to help them understand the company program.
- Helping members feel comfortable with their investment selections.
- Answering questions regarding integration with their personal RRSP’s & other financial planning concerns.
Given the current market conditions, helping members understand what their goals are and the importance of not losing sight of these goals given current market volatility.
