FCA has been providing benefit solutions to Canadian Companies since 1919.
FCA takes pride in providing Canadian companies with the highest standards of service, advice and experience for their employees for their benefit and pension plans. One of our main goals is simplifying the process of creating sustainable programs that form a key piece of your employee’s compensation package.
A common formula is 2% employee deposit with a matching 2% deposit by the company. However, organizations can set funding formulas at their discretion. Organizations can also set up a DPSP (Deferred Profit-Sharing Plan) for the matching deposits as company dollars in this type of vehicle are considered a tax-free transaction. All deposits are withdrawn pre-payroll, so it minimizes payroll taxes for the employee and employer each pay period. Employees are more likely to participate in a voluntary GRRSP when the employer matches their deposits or combination GRRSP and DPSP.
Using the typical 2% matching example from above, the employee’s 2% is deducted from regular payroll and deposited prior to payroll expenses and typically the employer’s matching deposit would be deposited into a DPSP (Deferred Profit-Sharing Plan). The reason for the DPSP is because the employer’s deposits to an employee’s RRSP is considered a taxable benefit and must include payroll expenses whereas the DPSP is non-taxable and you can choose to include up to two years vesting on these deposits. This means that the deposits you make on behalf of your employees stays with the company for at least two years.
Contact FCA to get started. An FCA broker will provide you with options from multiple companies, comparing the fees and investment options and possible funding formulas for matching employee deposits.
When offering a retirement income program to your employees, the company and your advisor have a fiduciary duty to provide access to education for new employees, education updates for existing employees, sufficient investment options, clear communication of the options and a process for signing up for the program. It is also recommended to form a committee to review the performance of the investments, the fund managers and the plan options once a year and set an education strategy with the same cadence. Much of the education offerings can be done through the trustee of the program, that is the insurance company or bank providing the program. The FCA CapShield program provides a process to follow the CAP guidelines so that your program always meets employee needs and legislative requirements.
Jenna, Mar 2021
Todd has been a great partner in navigating difficult benefits claims, and in working with our benefits provider to resolve time sensitive questions or issues. As the HR Specialist at StoreForce, I have valued the knowledge and expertise Todd provides, as it helps me better serve StoreForce employees. Todd has travelled to our office to provide benefit plan refresher presentations, and often reaches out to check-in and ensure StoreForce is happy with the services we receive. When needed, Todd researches and provides options to StoreForce that suits the current needs of the organization. We are happy with the level of service provided by Todd and the team at FCA Insurance Brokers.
Lauren, Jan 2020
Exceptional client service from FCA. Was able to assist us with a unique issue and was always very responsive.
Yellow Bean, Nov 2019
FCA covers us for all our business requirements, from equipment to liability, property, builds, benefits and everything in-between.