Money & retirement

« Discover how we can help your employees
to be better prepared for their retirement. »

Supportive Arguments

Improvement in the benefits to employees.

Pension Plan service providers offer a very wide range of services to their business clients (plan sponsors) and their employees. Participants in Pension Plans have access to a toll free telephone line and even an interactive web site access. Nonetheless most employees prefer to meet an independent counselor without the pressure of having to “buy” something or “add” to their contributions.

Your Administration and management fees

Having us as your Pension Plan consultant doesn’t necessary increase fees. In fact those fees can sometimes be to a lower level.

Investment options

Pension Plan offer many Investment options and sometimes only one is used (no coaching to employees) without consideration of their Risk tolerance and time horizon. In other cases, employees make choices bases on their feeling or hearsay. When they want to make changes, they have to use the phone (800 numbers) or a website. Investing retirement money this way is not very user friendly. Employees should have the possibility of getting advices to manage their investments in the most appropriate way to get results and alleviate risks.

Regular presence of the consultant at the employer’s premises

As consultant on the file, we offer constant follow-up services to the employer and his employees.
We will schedule periodic presence at the employer’s premises to:

  • help employees in the management of their savings and benefit of the investment options based on their risk profile;
  • help employees in their Retirement Planning: fixing goals in term of retirement income;
  • help the employer (at his request) to set-up an internal Pension Plan Committee;
  • help the employer fulfills its Fiduciary Responsibilities.

Financial Planning to retirement

Financial Planning to retirement is commonly used these days in the financial industry. However our experience is that very few employees, participating in a Defined Contribution Pension Plan, have access to that service. Furthermore, there is nothing to motivate them to address the question to their Financial Institution. It’s a matter of fact that they are too often let to themselves with all their questions related to retirement planning until it is too late.

No cross-selling

As Pension Consultant, we focus our effort to maximize the benefits of the Pension Plan to the employees and we help people maximize their financial planning to retirement. We don’t engage in any cross-selling and we do not pressure employees to transfer their savings with us.

Limit negative reactions to market turmoil’s

Like many other recession period in the economy, the year 2008 has been very difficult on the investment side with heavy losses in most portfolio. Many people think they are not affected by those severe markets downsize. The reality is very different.

For most people in a Defined Contribution Pension Plan, assets are invested in various asset classes like Bonds, Canadian Equities and even Foreign Markets. In other cases, portfolios have not been revised for many years and no changes were made based on their new Risk Profile and Time Horizon. For others being more aware of the situation and their exposure to the market, they can easily panic. They can take negative decisions and modify their asset mix or move to more deemed secured asset and realized heavy losses to their portfolio.

The financial situation and market turmoil we are going through now is a source of distraction and discomfort for employees relating to their retirement and their financial security.

We, as Pension Consultants, help employees check their investment regularly as long as their Risk Profile and move their asset to more secure investment when they are approaching their retirement age. We can also educate employees why they shouldn’t react negatively when the market drop and the economy is in a recession mode.

Our experience demonstrated that the needs to communicate with employees increases when the market is in a difficult situation.

Full respect of the Rules and Regulations

Today, it is strongly advisable to implement a Pension Plan in a workplace with the appropriate support to the employer and mainly to the employees. This support is also recommended because each employee has to take action about the investment of their savings.

The employer, as Plan Sponsor, has the responsibilities to provide investment information and decision-making tools to participants. He has to provide ongoing communication with participants. He has to ensure that investments options are sufficiently diversified and meet the needs of participants based on their risk profile. He also has to ensure there is a reasonable amount of flexibility to transfer funds from one investment option to another option and that participants know the default option when they don’t choose one. Finally, he has to ensure that the termination of the plan or an individual’s membership in the plan is done in accordance with the terms of the plan.

Of course, the tasks related to these responsibilities are delegated to the service provider most of the time and we, as Pension Consultant, play a leading role.