Group Savings Plans
Offering a variety of benefits to your employees can help you compete with larger companies to attract and retain employees even though your company may be small. Groups Savings Plans (GSP) are one employee benefit to consider including in the package.
GSP are one of the best ways to save for retirement, and when offered in a benefit package from an employer, they are an easy way for employees to plan for a secure, long term financial future. GSPs are tax efficient, offer management fee reductions over a personal savings account, provide employees with online access and some even offer training so employees can make the most of the product.
The type of plans you can offer through group saving can be:
- Pension plans
- Registered Savings plans (RSP)
- Registered Education Savings Plans (RESP)
- Tax Free Savings Accounts (TFSA)
Administering these on a group basis offers many advantages to your employees as the funds are managed by professional financial consultants who use their knowledge to maximize growth, are tax efficient and use the power of group purchasing to increase the efficiency.
Big Benefits for Small Businesses
The development of sophisticated computer systems has allowed the major insurance companies to provide smaller companies with all the power and flexibility normally associated with very large corporate user. At Erven Planning, we can help you design a plan that is perfectly suited for both your company and your employees.
Here is a rough guide to the financial products available to you:
Between $10,000 and $75,000 in total annual contributions
- This can be companies with only 2 or 3 employees
- These plans are packaged investment option systems
- The beauty is: they can be implemented with NO FEES
Over $75,000 in total annual contributions
- With as few as 15 employees, you can easily reach this level
- These plans offer customized investment options
- There are annual administration fees, however, the Management Expense Fees (MER) are substantially less than retail mutual funds
Group plans are regulated under the Capital Accumulation Plan (CAP) Guidelines so that you can be sure that the plans are being monitored. Offering quality products that meet the needs of your employees is a priority for every business owner.
In May 2004 the industry established CAP guidelines for plan members; sponsors (the companies that implement a plan for their employees); financial planning professionals (like Erven Planning); and carriers (like Sun Life, Great-West Life, Fidelity Investments, etc.). These guidelines define the obligations of each party. Download a copy of these guidelines.
At Erven Planning, we will find the right group savings plan for your company and employees, at the right price – ask us!