A little something extra on that paycheque? No thanks, we prefer a pension plan.




Multi-Employer Pension Plans (MEPPs) like the one Link has created can satisfy Canadians’ desire for better retirement security.

Money in your pocket or security down the road?

For most Canadians, apparently, the choice is clear.

According to new research from the Healthcare of Ontario Pension Plan (HOOPP), 80% of Canadians would rather have a better pension—or any pension at all—than a salary bump. The survey also found that having enough retirement income is a higher priority for Canadians than personal debt.

“There’s a broad understanding across the country that Canadian pension quality is on the decline,” says David Coletto of Abacus Data, who collaborated with HOOPP on the survey. “Canadian public opinion is optimistic, grateful but increasingly anxious.”

Link’s pension plan: Better outcomes for employers and employees

Link Investment Management, a growing innovator in workplace equity, health and savings plan management, recently challenged that assumption with the introduction of their own MEPP – a defined contribution (DC) pension plan that offers multiple advantages to employers and more retirement savings for employees.

“Our pension plan is open to any Canadian employer,” notes Brian McClennon, President and Chief Executive Officer of Link Investment Management. “And as a Multi-Employer Pension Plan, it offers economies of scale, lower fees, strong governance and a lighter administrative burden—eliminating the barriers that have traditionally prevented companies from offering a pension plan in the past.”

Benefits of a MEPP for an employer include:

  • Management, with Link assuming plan investment strategy and implementation, monitoring, disclosure, communication and service provider oversight, the burden is removed from participating employers.
  • Cost, with lower service provider fees, lower investment management fees and less strain on internal resources, both the employer and employees see reduced costs, putting more money in the pockets of participants.
  • Compliance, is streamlined with federal income tax law, legislation, and plan rules and provisions, and governance through a centralized approach.
  • Reduced fiduciary responsibility and risk, with Link retaining fiduciary liability.
  • Flexibility, with customizable plan features to meet employer objectives.
  • Investment efficiency, employer contributions are 100% NON-TAXABLE (unlike employer RRSP contributions), employees receive 100% of their employer’s contribution.

Robo-advisor algorithm, low-cost ETFs

Significantly, this recent HOOPP survey found that nearly three-quarters of respondents (73%) believe their employer should be able to provide a pension plan regardless of the state of the economy.

“Through our proprietary robo-advisor algorithm, investment portfolios are tailored to an employee’s investment goals, risk tolerance and timeline. And in addition to lower fees, our pension plan uses low-cost, index-tracking Exchange Traded Funds and Target Date Funds,” says Mr. McClennon.

“In the past, some employers simply couldn’t afford to offer a pension plan. With the rise of MEPPs like ours, now they can.”

On Oct 31st 2019, Link’s CEO Brian McClennon hosted a webinar as part of the CPBI’s national webinar series to explain the benefits of Multi-Employer Pension plans titled New Multi-Employer Plan Structures and Technology – Improving the Attractiveness of DC Plans for Employers and Employees. If you are a CPBI member, you can register for the webinar to receive a recording of the presentation.

REGISTER NOW for the recording


Read more: Challenging the status quo: Comparing MEPPs and group RRSPs.

Read more: Multiple employers, multiple benefits: Why MEPPs are better equipped to ease pension plan concerns.

Read more: Simplifying, optimizing and standardizing: How technology is empowering DC Multi-Employer Pension Plans.

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