Simplifying, optimizing and standardizing: How technology is empowering DC Multi-Employer Pension Plans
- Posted By: Craig Goodwin
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- Posted on: 2nd October, 2019
Link’s Pension Plan is an attractive, cost-effective solution for unaffiliated employers
They’re making the complex simple. And they’re doing it with the leading edge of technology.
Non-union DC Multi-Employer Pension Plans (MEPPs) are expected to be increasingly attractive in the workplace financial wellness market.
What makes these so attractive? They reduce administration and costs, remove regulatory demands and mitigate fiduciary responsibility for participating employers while still having the ability to customize contribution structures and eligibility rules. For plan members, pooling administration and assets lowers costs, which factors heavily in asset accumulation; and has the potential to substantially improve outcomes.
This trend is being enabled by technology and automation. MEPPs require an advanced record keeping platform for tracking multiple employers and customizing design features. Technology can also integrate multiple systems that optimize efficiencies. Automation can eliminate or simplify many manual tasks thereby reducing time and cost to the employer and reduce the risk of human error.
The benefits to MEPP members are wide-ranging, notes Link Investment Management’s President and Chief Executive Officer Brian McClennon.
“Technology, particularly automation, has brought with it cost optimization, process and administration efficiencies, robo-advisor algorithms and Exchange Traded Funds,” he says, “along with improved data security, improved member response, and better investment tools, among other benefits.”
A unique offering for small and midsize businesses
It’s into this brave new world that Link Investment Management’s own Pension Plan was born.
Link’s Pension Plan, is the newest heavily technology driven, non-union defined contribution MEPP registered in Alberta—and we recently started offering it nationwide.
“Our Pension Plan is a cost-effective solution—whether your business is thinking about introducing a pension plan, or refining your current retirement plan approach,” notes Mr. McClennon.
Link’s Pension Plan is a unique offering. Here’s how it can work for you:
- It is an automation based, non-union DC pension plan universally open to any non-collectively-bargained employer across Canada;
- It uses our proprietary robo-advisor algorithm that matches an investment portfolio to an employee’s investment goals, risk tolerance and timeline;
- It features auto-enrolment for members and automatic regular portfolio rebalancing;
- It’s built on an agnostic digital platform that allows an employee to view their plan information on any device;
- It’s absolutely secure, with a recordkeeping platform secured in multiple geo-redundant locations using industry-leading security practices and tools;
- It uses low-cost, index-tracking Exchange Traded Funds and Target Date Funds;
- It offers expertise in the day-to-day operation of DC plans, specifically in the areas of investing, compliance, communications and recordkeeping; and
- It ensures responsibility is allocated to professionals better positioned to fulfil fiduciary obligations and protect the interest of plan members.
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