Plan Sponsors - Overview

The Joint Forum of Financial Market Regulators have finalize their recommended Guidelines for Capital Accumulation Plans (CAPs).   Driven by the complicated, multi-layered financial governance system across Canada, combined with the underlying purpose of enhancing the protection for all stakeholders involved, the Forum expects CAP sponsors, plan members, service providers and advisors to work within the framework of their policy.  The Canadian Association of Pension Supervisory Authorities (CAPSA) has recently introduced their Governance Guidelines, as well. Understandably, the legal and accounting professions are encouraging their clientele to address and comply with these recommendations too.  

Workplace Pension Solutions can provide simplified solutions for the challenges ahead. We are familiar with the concerns of all businesses operating in Canada, including those with USA or UK global headquarters.   Have your CAP Advisor contact us for more details on how we can work together, as a team, in making your CAP a positive success in the workplace.

Plan Sponsors - Business Scope

Workplace Pension Solutions specializes in coordinating the safe management of one or more of the following employer sponsored savings plans designed for each of the following employee groups:

For the Executive

• Individual Pension Plan (IPP)
• Retirement Compensation Arrangement (RCA) or Secular Trust
• Self-Directed Registered Retirement Savings Plan (Group RRSP)

For Management

• Structured Group Registered Retirement Savings Plan (SRSP)
• Employee Stock Option Plan (ESOP)
• Deferred Profit Sharing Plan (DPSP)
• Non-registered Employee Thrift or Savings Plan (NRSP)

For the Salaried and Hourly Staff

• Defined Contribution Registered Pension Plan (DCRPP)
• Deferred Profit Sharing Plan (DPSP)
• Structured or Voluntary Group Registered Retirement Savings Plan (VRSP)
• Non-registered Thrift or Savings Plan (NRSP)

Note: For U.S.A. parent companies that control a Canadian subsidiary, WPS can recommend a Canadian plan design that most closely resembles a 401(k) Plan, IRA or Roth IRA.  WPS can also coordinate the implementation of a combined employee stock purchase plan that could report in many different global currencies.

Plan Sponsors - Support Services

If your firm has made the decision to establish a new plan or manage an existing one, without the services of a plan Advisor, Workplace Pension Solutions can provide an independent direct consultation.  If a decision is made to market the plan, we can help manage the process for you.  As part of our services, we will:

• Offer plan design recommendations
• Survey eligible employees
• Establish a Retirement Plan Committee and Agenda
• Ensure compliance outlined within your Statement of Management Policy & Procedures
• Prepare a Request for Proposal from a list of pre-selected service providers
• Prepare a Cost-Benefit Analysis
• Co-ordinate any plan changes or new plan implementation
• Provide ongoing monitoring services

Otherwise, or in addition to the aforementioned and in support of your fiduciary obligations, WPS has developed a package of control mechanisms closely tied to the Joint Forum and CAPSA Guidelines in which all facets of plan management can be customized for each situation.   You can subscribe to either or both of the following monitoring tools:

• The Cost-Benefit Analysis – this analysis illustrates all of the pertinent service provider criterion in an orderly and measurable fashion.
• The Life Insurance Company Pooled Fund Performance Survey – this unique report monitors the performance of the fund managers and their respective pooled funds against their stated benchmarks and is updated quarterly.

Flex Fee System

The fees associated with these services would be commensurate with the specific needs of the Retirement Plan Committee and the required frequency (quarterly, semi-annually or annually). Fees could be paid on a fee for service basis or paid by your service provider as a commission.

Communications

Integrated or hybrid pension plan arrangements present difficult communications challenges. After spending very large sums of capital on “improving” your retirement plan, your eligible employees should clearly understand and appreciate the new plan features. Talk to WPS about customizing a workplace presentation to ensure your employees more easily understand the complex changes.

Terminating Plan Members will also need clear and timely communications on their options. WPS will facilitate an acceptable solution so that each individual receives professional, unbiased counseling on a one to one basis.