Pension Plans

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FCA Pension Plans

A pension plan is a registered savings vehicle and is commonly referred to as an RPP and provides mandatory tax-sheltered growth for employees and is dedicated to providing a retirement income for them. Unlike a Group RRSP an employee cannot cash in a pension plan, rather it must be used to provide a retirement income at the earliest of age 55 and the latest at age 71. As with any group savings plan the employer may choose to match deposits that an employee makes up to a specified maximum.

As an integral part of the employee’s compensation package the addition of a Pension Plan can build moral within a company and attract and retain quality employees.

Types of Pension Plans Available:

 

  • Defined Benefit Plan

    As the name suggests this type of pension plan defines the calculation of retirement income for employees so they understand how much income they receive in retirement.

  • Defined Contribution Plan

    This type of pension does not have a formula to calculate income, rather the amount of income provided is directly related to the amount of contributions an employee and employer makes and the interest rates available when setting up a retirement income plan.

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What are my responsibilities as the sponsor of a Pension Plan?

As with any retirement income plan that you offer to your employees, it is our recommendation that the sponsoring company along with your advisor have set a plan to create an education strategy for new employees, existing employees and maintain regular reviews of the plan, its options, investments and the associated returns. It is also our recommendation to form a create a pension committee to perform these reviews on at least an annual basis. The committee should be made up of managers, employees, your advisor. Through the FCA CapShield program we provide you with a process to follow the CAP guidelines so that your program always meets your employees needs and legislative requirements.

Who needs a Pension Plan?

In today’s competitive workforce environment, the best and brightest employees expect not only a competitive salary, but also a comprehensive benefit plan including an employee pension plan. Offering this will help your company attract great employees, increases employee loyalty and may also provide you with a competitive advantage over your competition. Plus, it just feels good to know that you are helping your employees save towards the goal of retirement security. The best is that there are options available to suit your individual philosophy and objectives.

Is there a cost to setting up a pension plan for the plan sponsor?

Yes, an RPP does have costs associated with managing the program. Whether it is a defined contribution (DC) plan or defined benefit (DB) there are costs. Defined contribution plans are far more prevalent now and do not require actuarial analysis each year but do require specific filings within a specified time frame.

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What Are the Main Requirements when Setting up A Dc Pension Plan?

Canadian Association of Pension Supervisory Authorities (CAPSA) Guidelines

In general terms a plan sponsor should follow the CAPSA guidelines for managing a pension program. This is an extensive document and your advisor can help guide you through it.

Statement of Investment Policies & Procedures (S.I.P.P)

This is a document that outlines the governance of the plan including selection of a pension committee, record keepers, investment managers and process for the review of the investment funds offered in the program and should also include education strategies for new, existing and terminating plan members. This form must be filed within 60-days from when the new plan is registered.

Form 7

This is a summary of the expected monthly contributions for the year and must be filed with the trustee of the plan within 90-days of the establishment of the plan and within 60-days after each fiscal year thereafter.

A.I.R. Form

This form must be filed annually within 6-months of the plan year end. It details all of the features of the plan and whether there have been any changes to the Plan Sponsor, Trustee, Plan Administrator, Custodian of Funds. The trustee of the plan can generally assist with the preparation of this document but as the plan sponsor you must submit it to the FSRA. (Formerly FSCO)

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.

Why Choose FCA Insurance?

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Ease of Doing Business

We set the industry standard for turnaround time for both new and existing clients, you can expect excellence.

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We help you to manage the process

From the design through the implementation, we assist you with building a program that follows the Capital Accumulation Guidelines through our CapShield Program.

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Decades of Experience

Through our many years of experience managing pension plans you can be confident that your program is a first rate offering for your company

Testimonials

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.

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Our mission is to make benefits accessible. We put you in control of your benefits experience. FCA informs and empowers you, so you can choose amongst robust options, confident in the value of your benefits plan and in the broad reach of your advocates.

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