As specialists in Group Benefit Plans, part of our work involves being Group RRSP and Pension Consultants. As Group RRSP and Pension consultants, we help employers design, implement, and manage employer sponsored retirement programs such as:
- Group Registered Retirement Savings Plans (Group RRSP)
- Defined Contribution Pension Plans (DCPP)
- Deferred Profit Sharing Plans (DPSP)
- And potentially Pooled Registered Pension Plans (PRPP)
Broker vs Consultant
Terminology in any industry can be confusing. In the Group retirement business, the term broker and consultant are often interchangeable. That being said, one of the distinctions between the two may be how they derive compensation.
Consultants usually bill for time or work. That fee is typically paid by the employer. The fee is usually driven around projects or tasks like a benchmark report, designing a plan, reviewing the plan, completing an investment review, education sessions, etc.
Brokers will typically get compensated by the plan via the plan provider. The compensation is imbedded into the plan’s overall costs. There are pros and cons to both routes and at Clearpoint Benefit Solutions, we can operate either way.
Designing a new plan
A Group RRSP pension consultant will help employers design the Best Plan based on the needs of the organization. Here are some key issues where Clearpoint Benefit Solutions can help you:
- Choosing the right plan: Group RRSP, Pension or DPSP
- Providing the right matching formula
- Benchmarking and ensuring the benefit is competitive to the marketplace
- Advice and consulting around withdrawal provisions, eligibility and vesting periods.
- Tendering the plan to plan providers
- Negotiating plan fees
- Investment selection for the plan
(Estimated time that goes in to plan design 10 to 20 hours)
There are three key reasons to create a business plan. The first is that it helps you to plot your business’ future, the second is that it will help you to determine what you hope will happen to your business in a specified time frame, and the third is that it gives you a chance to calculate how you are going to achieve your goals. Creating a business plans are an ongoing process, and you have to keep reviewing the contents of your plan on a regular basis. A current plan makes it easier to persuade interested people to invest money and time in your business.
Implementation of a new plan
Once the design of a plan is complete, the next step is to implement the plan. At this stage there is a number of responsibilities of the Pension Consultant:
- Application process
- Enrolment meetings (the larger the organization, the more time consuming this process is)
- Individual consultations with employees
- Coordinate enrolment and member booklets
- Working with the employer to implement that plan
(Estimated time that goes into plan implementation – 10 to 30 hours)
Management of the plan
Once a plan is designed and implemented, pension consultants can help with a number of tasks and responsibilities:
- Making sure the plan is compliant according to the Capital Accumulation Plan guidelines
- Reviewing the plan design to ensure it still meets the needs of the employer
- Reviewing the plan statistics to ensure the plan is running to expectation
- Provide ongoing benchmarking data to ensure the competitiveness of the plan
- Reviewing the investment line up annually
- Reviewing the default investment annually
- Negotiating lower Investment Management Fees with the plan provider
- Making sure the Investment Management Fees are fair and competitive
- Assisting with the day to day administration of the Group Retirement Plan
- Provide Education for the members/employees
- Individual planning
- Web based learning
- Newsletters and communication
- Help members with enrollment and terminations
- Help members with investment selection
Working with a Pension Consultant should reduce your workload, costs, stress and liability. At Clearpoint Benefit Solutions, we take pride in working for you to ensure that you have the BEST Group retirement plan in place.
Is Your Group Retirement Plan Ordinary?
When was the last time your group retirement program reviewed?
When was the last time someone provided some financial education for your employees?
When was the last time your broker shopped your plan around to make sure the pricing is competitive?
We can make your group retirement plan exceptional