CAP stands for Capital Accumulation Plan. CAPs are savings plans that are typically sponsored by an employer and allow members to select investments from two or more options. Some example of CAPs include Defined Contribution Pension Plan (“DCPP”), Group Registered Retirement Savings Plans (“GRRSP”), and Deferred Profit Sharing Plans (“DPSP”) […]
Category: Retirement Services
What is the difference between a DCPP and GRRSP?
DCPPs DCPPs are retirement plans that allow employees to save for retirement. DCPPs are regulated by Canada Revenue Agency (“CRA”) under the Income Tax Act and provincially under the government of each province. For example, in Ontario, DCPPs are regulated by Financial Services Regulatory Authority (“FSRA”) under the Pension Benefits Act. One of the key […]
What is the cost to offering a retirement plan to our employees?
The bulk of the cost of offering a retirement plan to your employees will come from the employer contribution, if the employer decides to contribute to their employee plans. GRRSPs can be set up with no employer contribution, just voluntary employee contributions. Other fees include Investment Management Fees (“IMF”) which can be paid by the […]
What are Investment Management Fees?
IMFs cover the majority of the fees required to manage a retirement plan. The fees typically cover services such as record keeping, custodian, investment management and consulting. IMFs are equivalent to Management Expense Rations (“MER”) on the retail side. […]
How do consultants get paid?
We offer flexible fee options, including commission, fee for service and fixed fees. For commission based fees, we imbed the commission in the IMFs so the fees are paid for by the employees. […]
Do most companies offer retirement plans to their employees?
No, approximately one-third of employers in Canada offer a retirement program to their employees. […]