Group Pension & Retirement
Jones DesLauriers offers highly customized Group Retirement & Pension Solutions that are cost-effective, efficient and properly governed to adhere to Canadian “CAP” or Capital Accumulation guidelines.
Having a Group Retirement Plan is integral to attracting and keeping key personnel, especially given the long-term viability of government sponsored pension plans is in question. As such, Group Retirement Plans, along with RRSP’s, are playing a major role for most Canadians when saving for their retirement.
The purpose of Pension Plan Governance is to employ best practices and forward thinking to meet fiduciary expectations of all plan members. At Jones DesLauriers, we provide a structured, customized, ongoing governance support structure, as well as financial planning assistance to plan members so they can get the most out of their Group Retirement program.
As a plan sponsor, you depend on the services of a Group Retirement Adviser you can count on – one that offers innovative solutions, is on the leading edge of industry issues, maintains strict adherence to CAP protocols and helps plan members make sound investment decisions.
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Strategic Components of Group Retirement
Financial Planning for Plan Members
At Jones DesLauriers we offer customized financial planning for all plan members and implement disciplined investment management practices to ensure a maximum ROI and overall protection.
One of the primary goals of any employed individual is to have enough savings to enjoy a high standard of living during retirement. Our Financial Advisers provide all plan members who seek financial planning advice through us with a Statement of Investment Policy, a succinct, detailed Financial Plan, an Estate Planning Aide and a Net-Worth Statement. They also regularly review Financial Plans, make recommendations based on current market conditions and trends, and offer products and services that in the long run, could be vital to plan members achieving their financial and retirement goals.
Building a solid financial portfolio consists of investing in a range of funds that work together to create an investment solution for investors. It also involves understanding how various types of investments work in order to combine them to address personal investment objectives. Our Financial Advisers take the worry, inconvenience and potential guesswork out of portfolio construction away from plan members and replace it with a deep confidence in their secure financial future. Further Group Retirement & Pension Planning Strategic Components are as follows:
Defined Benefit Plan
A Defined Benefit Plan or “DBP” is an employer-sponsored retirement plan wherein employee benefits are sorted out according to a formula that is based on factors such as salary history, age, and duration of employment. The investment risk and portfolio management are entirely under the control of the company and there are restrictions on withdrawals that employees can make.
Defined Contribution Pension Plan
A Defined Contribution Plan or “DCPP” is a type of retirement plan in which the amount of the employer’s annual contribution is specified. Individual accounts are set up for participants and benefits are comprised of amounts credited to those accounts through both the employer’s and employee’s contributions, plus any investment earnings on the account balance. Only employer contributions to the account are guaranteed – not the future benefits or rates return. A DCPP is designed to attract and retain employees by encouraging long-term saving and loyalty through a variable vesting schedule and a locking-in feature. In most provinces, including Ontario, employees are eligible to vest their plan after two years of service.
Deferred Profit Sharing Plan
A Deferred Profit Sharing Plan or ”DPSP” is a type of pension. It is an employer-sponsored Canadian profit sharing plan that is registered with the Canada Revenue Agency. Within this type of plan, the employer periodically shares the profits made from the business with all employees or a designated group of employees. Employees receiving a share of the profits paid out by the employer are referred to as Plan Trustees and they do not have to pay federal taxes on the money received until it is withdrawn.
Jones DesLauriers is a unique, multidimensional firm that specializes in pension plan governance. From our initial audit through to providing strict CAP governance, structure and adherence, we consistently ensure all aspects of plan governance are carried out at the highest standard of service.
Employee & Plan Sponsor Communication
Helping employees fully understand and derive the maximum value of their retirement program is of paramount importance to us at Jones DesLauriers. Through our comprehensive, informative and enjoyable programs, we help employees learn how to fully understand their contract and retirement plan and bring awareness to the importance of retirement planning to help facilitate a worry-free environment. We also introduce new, beneficial products and services, deliver innovative and effective investment solutions, and offer investment options that correspond to each employee’s individual life stage, investment style and preference.
Executive Retirement Programs or SERPs
Executive Pensions are otherwise known as “Supplemental Executive Retirement Plans” or “SERPs”. Today more than ever, executive compensation gets high-priority press around the world. Boards, senior management teams and shareholders are constantly struggling with their plan designs in order to get them just right. Negative public attention regarding executive retirement packages should not prevent organizations from offering retirement plans that attract, retain and motivate top executives to achieve success. The attention should, however, motivate organizations to proactively assess and modify their programs and processes to make sure they are compliant, well managed, transparent, and aligned with one another, best practices and business objectives. At Jones DesLauriers, we make sure all executive retirement packages are as such in order to ensure their maximum return on investment.
Group Registered Retirement Savings Plan
A Group Registered Retirement Savings Plan or “Group RRSP” is a retirement saving and investing tool available to most Canadians. It lets the money invested in it grow unaffected by taxes until withdrawn. This way the money grows faster, with a greater accumulation of it than if it had been invested outside of an RRSP. Also, tax deductions are allowed for every dollar that is deposited into an RRSP. Professional, individual investment advice is a crucial part of proper plan governance, and Jones DesLauriers prides itself on just that. All our wealth management clients have our full support and benefit greatly from our timely consulting services.
Individual Pension Plans
An Individual Pension Plan or an “IPP” is a registered, defined-benefit pension plan sponsored by the employer with membership limited to an individual and/or his or her spouse. Special rules govern contributions and investments within this type of plan. Also, each IPP must be registered with Revenue Canada and the appropriate provincial authority. IPPs are creditor-proof and allow for substantially higher contributions than the traditional RRSP. For the employer, all contributions and any expenses incurred to establish and maintain the IPP are tax-deductible. Also, an Individual Pension Plan guarantees a certain level of benefits at retirement. Because of this, unlike RRSPs, an IPP permits additional contributions if the plan earns less than 7.5%. In addition, should the plan member retire before age 65, an additional contribution to the IPP is available which can total up to 50% of accumulated IPP assets.
Retirement Compensation Agreements
Retirement Compensation Arrangements or“RCAs” allow 100% tax-deductible corporate dollars to be deposited into an RCA on behalf of a private business owner and/or key employee. No tax is paid by the owner or the employee until benefits are received at retirement. Contributions to an RCA should not exceed what is required to fund the “entitlement” under the Generally Accepted Guidelines for pensions, that being the following: “A normal level of benefits would be the same benefit provided under a registered pension plan without regard to the Revenue Canada maximum. This would be 2% x years of service x final five-year average earnings, or about 70% of pre-retirement income for an employee with 35 years of service.” (CRA, Roundtable Discussion, 1998).