1 in 4 Retired Canadians living with debt

A worry-free retirement may be a thing of the past as Canadians struggle to manage debt. From living with a mortgage to unpaid credit cards, retirees can find themselves facing financial challenges in their golden years.The Sun Life Financial Barometer, a new national survey, found that one-in-four (25%) retirees are facing such challenges and living with debt.

Baby boomers are no stranger to today’s increased financial demand; in fact, one-in-five (20%) retirees are still making mortgage payments. The financial strain doesn’t stop there, the survey results reveal that retirees still use credit in some of the same ways they did before retirement. Mortgage aside, here’s where they still owe money:

  • 66% have unpaid credit cards;
  • 26% are making car payments;
  • 7% have unpaid health expenses;
  • 7% owe money on holiday expenses or vacation property; and
  • 6% haven’t paid off home renovations.

“Through our national survey, we took a moment to check-in with Canadians and gauge how they are stacking up when it comes to their finances,” said Jacques Goulet, President, Sun Life Financial Canada. “From credit card debt to a mortgage, retirees are faced with a list of expenses in life after work. We recognize that managing finances can be overwhelming, particularly for those who are no longer working. Seeking sound advice and working with a financial advisor can help you reach your goals.”

At the same time retirees face lingering debt, almost one-quarter (24%) of working Canadians are dipping into their retirement savings. Canadians pulled cash for the following reasons:

  • 63% did so because they needed to (e.g., health expenses, debt repayment);
  • 24% as part of the First Time Home Buyers’ Plan; and
  • 13% because they wanted to (e.g., vacation, car purchase).

“Our survey results highlight the importance of getting ready for retirement,” explains Tom Reid, Senior Vice-President, Group Retirement Services, Sun Life Financial Canada. “Although it can seem far away, retirement creeps up faster than you think – building a financial plan and making meaningful contributions will pay off in the long run. There are helpful tools and resources you can tap into to get on the right track to building the income you want and need to retire.”

The following tips can help Canadians save for a bright retirement:

  1. Start now. Begin saving and investing as early as possible to set yourself up for success.
  2. Don’t leave money on the table. If your employer offers a pension plan and will match your contributions, contribute the maximum amount possible.
  3. Invest wisely. If you do not have access to a defined contribution plan, RRSPs and TFSAs are other great vehicles to consider.
  4. Have a plan and stick to it. It’s never too late to build a financial plan that will get you where you want to be.
  5. Seek valuable advice. A financial advisor can help you create a financial plan, set achievable goals, and guide you through each life stage.

 

About the survey
The Sun Life Financial Barometer is based on findings of an Ipsos poll conducted between October 13 and October 19, 2017. A sample of 2,900 Canadians was drawn from the Ipsos I-Say online panel: 2,900 Canadians from 20 to 80 years of age. The data for Canadians surveyed was weighted to ensure the sample’s regional, age, and gender composition reflects that of the actual Canadian population.

The precision of Ipsos online poll is measured using a credibility interval. In this case, the poll is accurate to within +/- 2.1% at 95% confidence level had all Canadian adults been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to methodological change, coverage error and measurement error.

About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing insurance, wealth and asset management solutions to individual and corporate Clients. Sun Life Financial has operations in a number of markets worldwide, including Canadathe United States, the United KingdomIrelandHong Kongthe PhilippinesJapanIndonesiaIndiaChinaAustraliaSingaporeVietnamMalaysia and Bermuda. As of December 31, 2017, Sun Life Financial had total assets under management (“AUM”) of $975 billion. For more information please visit www.sunlife.com.

All figures in Canadian dollars except as otherwise noted.

SOURCE: Sun Life Financial Canada

Aging Boomers Breaking the Bank – Later Retirement Part of Solution

Canada’s greying workforce will spell big fiscal trouble for future taxpayers, according to a new C.D. Howe Institute report. In “The Fiscal Implications of Canadians’ Working Longer,” authors William RobsonColin Busby, and Aaron Jacobs find that demographic change is squeezing the budgets of Canadian governments—increasing the costs of public programs and eroding the tax base as the growth in traditional working-age people flatlines.

“In the next few decades, Canadian governments will face a fiscal squeeze: rising demand for public services on one side and slower growth of government revenues on the other—and the provinces get squeezed hardest,” says Robson.

Demographics are an important driver. Age-sensitive programs, primarily publicly funded healthcare for an aging population, are pushing up spending while the working-age population is declining and shrinking the tax base.

In the report, the authors estimate the future costs of demographically sensitive programs — including healthcare, seniors benefits, education, and child benefits — as well as the future growth of the tax base. With slow workforce growth holding the economy back, the total tab for these programs will rise from 15.5 percent of GDP today to 24.2 percent by 2066. In dollar terms, the present value of the unfunded liability for age-related social spending—amounts to $4.5 trillion.

If Canadians stayed in the workforce longer – and improvements in health and longevity suggest many will be willing and able to do so – their contributions to output and taxes would mitigate the fiscal squeeze, say the authors. How might policy changes encourage longer working life?

  • First, the federal government should restore the previously scheduled increase in the normal age of OAS eligibility to age 67 – as advised by the government’s own Advisory Council on Economic Growth. Earlier receipt of a reduced amount should be an option, as with the Canada Pension Plan.
  • Second, actuarial adjustments to benefits payable under OAS and the Canada Pension Plan need to stay up to date, to ensure that people are appropriately rewarded for continuing to work after the age when they could first commence receipt.
  • Third, and more generally, other age-related rules also need updating. For example, restrictions on retirement saving after a given age and requirements to start drawing retirement income can affect decisions about when to retire. A key example is the requirement for RRSP savers to start drawing down their savings, now taxable at 71. Failing that, the trigger age should rise immediately and continue to rise with longevity.

The effect of longer work-life on the tax base will not eliminate the fiscal pressures demographic change will create for Canadian governments, note the authors. But those pressures are so large that policymakers should pursue a variety of avenues to mitigate them. “Policy changes to enable later retirement would reduce the unfunded liabilities future finance ministers will otherwise need to confront, and brighten the fiscal futures of Canadians,” says Busby.

Click here for full report: https://www.cdhowe.org/public-policy-research/fiscal-implications-canadians%E2%80%99-working-longer

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

SOURCE C.D. Howe Institute

Canadian pensioners not living as long as expected

Ground-breaking results from Club Vita Canada reveal some DB pension plans are overestimating their liabilities

New research finds longevity for Canadian pensioners is lower than anticipated – which may actually be costing defined benefit (DB) plan sponsors.

Canadian male pensioners are living about 1.5 years less than expected from age 65, according to the latest data from Club Vita Canada Inc. – the first dedicated longevity analytics firm for Canadian pension plans and a subsidiary of Eckler Ltd. Female pensioners are living about half a year less than expected.

“Based on our data, some DB plans are overestimating how long their members are currently living and are therefore taking an overly conservative approach to funding their liabilities,” explains Ian Edelist, CEO of Club Vita Canada. “Correcting that overestimation could reduce actuarial reserves by as much as 6% – improving Canadian pension funds’ and their plan sponsors’ balance sheets just by using more accurate, granular and up-to-date longevity assumptions.”

The data comes from Club Vita Canada’s first annual and highly successful longevity study completed in 2016 – one of the largest, most rigorous research studies on the impact of longevity on defined benefit pension and post-retirement health plans.

The newly created “VitaBank” pool of longevity data (provided by Club Vita Canada members) spans a wide range of industries and geographic regions in both the public and private sectors. VitaBank is currently tracking more than 500,000 Canadian pensioners from over 40 pension plans. Unlike the most widely used study to set longevity expectations – the Canadian Pensioners’ Mortality (CPM) study, which relies on data up to 2008 – VitaBank includes fully cleaned and validated data up to 2014.

The Club Vita Canada study brings to the Canadian pension market leading-edge modelling techniques already used by the insurance industry and in other countries. Club Vita U.K. recently released similar results, noting 25 billion GB pounds could be wiped off the collective U.K. DB deficit by using more accurate longevity assumptions.

“Naturally, the ultimate cost of a pension plan will be determined by how long its members actually live. But assumptions made today really do matter for such long-duration commitments,” explains Douglas Anderson, founder of Club Vita in the U.K. “Club Vita’s data gives DB plan sponsors the tools they need to evaluate their willingness to maintain their longevity risk or offload that risk to insurers.”

About Club Vita Canada Inc. (clubvita.ca)

Club Vita Canada Inc. was created by Eckler Ltd. It is an extension of Club Vita LLP, a longevity centre of excellence launched in the U.K. in 2008 by Hymans Robertson LLP. By pooling robust data from a wide range of pension plans, Club Vita provides its members with leading-edge longevity analytics helping them better measure and manage their retirement plan.

About Eckler Ltd. (eckler.ca)

Eckler is a leading consulting and actuarial firm with offices across Canada and the Caribbean. Owned and operated by active Principals, the company has earned a reputation for service continuity and high professional standards. Our select group of advisers offers excellence in a wide range of areas, including financial services, pensions, benefits, communication, investment management, pension administration, change management and technology. Eckler Ltd. is a founding member of Abelica Global – an international alliance of independent actuarial and consulting firms operating in over 20 countries.

About Hymans Robertson LLP (hymans.co.uk)

Established in 1921, today Hymans Robertson is one of the longest established independent consulting and actuarial firms in the UK. The firm offers a full range of services including the provision of actuarial, investment consultancy, administration and general consultancy services to the trustees and sponsors of defined benefit and defined contribution pension schemes, and an enterprise risk management practice advising banks and life insurers. Hymans Robertson is also a member of the Abelica Global network.

SOURCE Club Vita Canada Inc.

For further information: To find out more about how Club Vita Canada works or how to join, visit clubvita.ca or contact Ian Edelist at 416-696-3067 or iedelist@clubvita.ca, or Richard Brown at 416-696-3016 or rbrown@clubvita.ca. For media inquiries, please contact Nancy Peppard at 416-696-3081 or npeppard@eckler.ca.

Canada Pension Plan Changes Are On the Way. Is Your Organization Prepared?

Understanding Retirement Plans and Benefit Offerings Helps Employers and Employees Prepare for Changes

Retirement will look very different for millennials, baby boomers and others as the economy continues to change. The move towards Group Registered Retirement Savings Plans (RRSPs), coupled with the decline of employer-sponsored defined benefit pension plans, brings a new retirement reality for many employees. This changing environment was the impetus for the expansion of the Canada Pension Plan (CPP), a deal struck between the Federal and provincial governments in late 2016, to ensure a higher level of retirement security for Canadians in the future. Employers, including those that currently sponsor retirement plans, will have to ensure compliance with the governments’ plan to move ahead with CPP changes.

Employers will have to take stock of their internal retirement and benefit offerings to ensure they are operationally and financially equipped to make the proper changes needed. In evaluating an organization’s employee offerings, employers should equip their payroll, human resource and accounting staff with practical pension and benefit knowledge through the Canadian Payroll Association’s (CPA’s) Pensions & Benefits seminar.

Understanding Changes to the Canada Pension Plan

Employers will need to have the necessary changes programmed into their payroll systems well in advance to fulfil their legal responsibilities when the CPP expansion goes into effect in 2019. Employers should also anticipate that such changes may affect organizational policies, staff responsibilities and remuneration planning. The CPA offers its members payroll compliance resources, including the valuable e-Source legislative newsletter, Payroll InfoLine Q & A inquiry service (by phone and email), and a host of self-service web resources, to keep payroll, accounting and HR professionals up-to-date on regulatory and legislative changes impacting employers.

“With imminent changes to CPP, employers need to reassess their current retirement and benefit offerings for compliance, practicality, and financial preparedness,” says Steven Van Alstine, Vice President of Education at the CPA. “Employers and employees alike will be impacted by such changes. Employers should make sure their staff and their organization are equipped with comprehensive retirement planning knowledge for the future.”

Reviewing Your Full Offering of Benefits

Part of these preparations should also include an assessment of employer-sponsored benefits plans. Group health, disability and insurance plans should receive a thorough review to ensure that employees are receiving quality benefits without exorbitant costs to employers. Understanding the basics of such plans, how they are formed, and their tax and reporting considerations will help payroll, human resource and accounting staff to better support these functions within the organization and provide fundamental knowledge to help strike better deals at negotiation time. The CPA’s seminars offer comprehensive overviews of these areas; Pensions & Benefits focuses on the key elements used to apply, administer or support pension and benefits functions within the organization, while the Best Practices of Employee Group Benefits seminar focuses on proper management and negotiation of group benefits.

For more information about the CPA and the many benefits that membership provides, visit payroll.ca.

About the Canadian Payroll Association:
Canada’s 1.5 million employers rely on payroll practitioners to ensure the timely and accurate annual payment of $928 billion in wages and taxable benefits, $313 billion in statutory remittances to the federal and provincial governments, and $177 billion in health and retirement benefits, while complying with more than 200 federal and provincial regulatory requirements. Since 1978, the Canadian Payroll Association has annually influenced the payroll compliance practices and processes of over 500,000 organizational payrolls. As the authoritative source of Canadian payroll compliance knowledge, the Canadian Payroll Association promotes payroll compliance through education and advocacy.

SOURCE Canadian Payroll Association

For further information: Alison Rutka, Communications Specialist, alison.rutka@payroll.ca, 416-487-3380 x 125

RELATED LINKS
http://www.payroll.ca

Canada Pension Plan reform, employers have concerns, but many have yet to begin preparing for change

Aon survey suggests less than half of employers will plan for CPP reform in 2017

As the government commitment to expanding the Canada Pension Plan (CPP) moves forward, the need is pressing for Canadian employers to assess employee compensation, pensions and benefits, and to prepare for integrating the new CPP into their total rewards strategies. Yet according to research from Aon Hewitt, the global talent, retirement and health solutions business of Aon plc, most Canadian employers have yet to begin this important task. In fact, less than half of Canadian employers say they will be planning for CPP enhancement this year, and nearly the same proportion do not know when they will begin the planning process.

The survey, completed in early October, compiled responses from nearly 250 Canadian organizations in the private and public sectors about their attitudes towards and level of preparedness for CPP expansion; 95% of surveyed companies offer some form of pension plan (defined benefit, defined contribution or hybrid DB/DC).

When it comes into effect in 2019, CPP enhancement could have a significant impact on employee compensation, pension funding formulas, total rewards strategies and other factors. For Canadian employers, the challenge and the opportunity of enhanced CPP lies in integrating the changes into their rewards and pension strategies. “The CPP enhancement is big enough to provide meaningful benefits, yet small enough that it won’t cause the elimination of workplace pension plans,” said Allan Shapira, Managing Director and Senior Partner, Aon Hewitt. “The challenge for employers now is how best to integrate a bigger CPP into their overall compensation and rewards strategies.”

According to the Aon survey, only 13% of employers have started to plan for CPP reform, and 35% will begin planning by October 2017. Meanwhile, 46% of respondents said they do not know when they will start preparing for CPP reform.

The employers surveyed share some common concerns. Many (36%) are worried about increased administrative complexity; others (22%) are concerned about potentially negative employee reactions. The chief concern, cited by 65% of respondents, is increased cost, although there is no consensus on how best to address this challenge. Two-thirds of respondents said that they simply do not know. Of those who do, about a quarter (27%) said they plan to absorb any cost increases; eight percent said they will make changes to current retirement plans, and six percent plan to change other employee compensation. Meanwhile, only three percent of respondents said they expect to look at health benefits plans to find funding, even though the CPP changes provide an opportunity for employers to look holistically at their pension, compensation and pre-/post-retirement health benefits spends to maximize value.

According to Aon, a comprehensive strategy to integrate the new CPP into their total rewards strategies is vital for employers. Most registered workplace retirement plans are designed to target an overall benefit level for employees, inclusive of current CPP benefits. As part of planning for public pension enhancement, employers should prioritize assessing benefits adequacy in light of a bigger CPP. According to the Aon survey, however, only seven percent of respondents said they are using the CPP enhancement as an opportunity to reassess total rewards strategies, and 18% intend to do so. Still, more than half (57%) have no plans yet.

“The phase-in period for CPP enhancement is a long one, and for good reason, but pension plan sponsors should not look at it as a grace period,” said William da Silva, Senior Partner and National Retirement Practice Leader, Aon Hewitt. “The work to design, implement, communicate and administer the changes is significant, and employers should not underestimate it.”

CONTACT INFORMATION

Canada Revenue Agency maximum pensionable earnings for 2017

canada-revenue-agencyThe Canada Revenue Agency announced today that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2017 will be $55,300, up from $54,900 in 2016. The new ceiling was calculated using a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who earn more than $55,300 in 2017 are not required or permitted to make additional contributions to the CPP.

The basic exemption amount for 2017 remains $3,500.

The employee and employer contribution rates for 2017 will remain unchanged at 4.95%. The self-employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the CPP for 2017 will be $2,564.10 each. The maximum self-employed contribution will be $5,128.20. The maximums in 2016 were $2,544.30 and $5,088.60, respectively.

Quick facts

  • The CPP applies in every province and territory in Canada with the exception of Quebec, where the Quebec Pension Plan (QPP) provides similar pensions and benefits.
  • Every employed Canadian over the age of 18 must contribute to the CPP (QPP for those employed in Quebec) to qualify for a retirement pension.
  • Contributions to the CPP end when a contributor turns 70.
  • The CPP provides retirement, disability and survivor benefits and pensions to contributors and their families.

Associated links

Canada Pension Plan (CRA)

Canada Pension Plan (Service Canada)

Types of Pension Plans (Service Canada)

Stay connected

Follow the Canada Revenue Agency on Twitter and YouTube.

CONTACT INFORMATION

  • Media Relations
    Canada Revenue Agency
    613-952-9184

Canada Pension Plan Investment Board Announces Senior Executive Appointments and Establishes Real Assets Investment Department

Canada Pension Plan Investment Board

Canada Pension Plan Investment BoardMark Machin, President & CEO of Canada Pension Plan Investment Board (CPPIB) announced the following appointments:

Graeme Eadie is appointed Senior Managing Director & Global Head of Real Assets, a new investment department that brings together the Real Estate Investments department with our existing Infrastructure and Agriculture groups. This change will create a better alignment with our Strategic Portfolio. Mr. Eadie has been with CPPIB since 2005, and was most recently Senior Managing Director & Global Head of Real Estate Investments.

Shane Feeney is appointed Senior Managing Director & Global Head of Private Investments. Mr. Feeney will also join CPPIB’s Senior Management Team. In this role, Mr. Feeney will be responsible for CPPIB’s private investment activities and will report to Mark Machin. Mr. Feeney was most recently Managing Director, Head of Direct Private Equity for CPPIB. He joined CPPIB in 2010 and has 18 years of private equity experience. Before joining CPPIB, he was a partner and founding member of Hermes Fund Managers Limited’s direct private equity business. He had also previously been an Associate Director with Morgan Grenfell Private Equity in London.

Ryan Selwood is appointed Managing Director, Head of Direct Private Equity, and will be responsible for overseeing co-sponsorships and other direct private equity transactions. Mr. Selwood was most recently a Managing Director in the Direct Private Equity group and lead for CPPIB’s financial institutions investing initiative. Mr. Selwood previously led CPPIB’s direct private equity activities in Europe. Prior to joining CPPIB in 2006, Mr. Selwood was a Vice-President at Merrill Lynch & Co. in the Financial Institutions Group in the Investment Banking Division in New York.

Mr. Eadie, Mr. Feeney and Mr. Selwood will transition into their new roles effective immediately.

Mr. Machin also announced today that Mark Jenkins will be leaving CPPIB on September 16 to assume a senior leadership role at The Carlyle Group. Mr. Jenkins joined CPPIB in 2008 and was most recently Senior Managing Director & Global Head of Private Investments.

“These appointments demonstrate the deep bench strength and investment expertise we have developed at CPPIB. Graeme, Shane and Ryan have been instrumental in a number of our major transactions and will no doubt continue to provide superb leadership in their new roles,” said Mr. Machin. “I would also like to thank Mark for his strong leadership and many contributions to CPPIB’s success.”

The Private Investments department will continue to invest in a wide range of private equity and credit assets, and will comprise four groups: Direct Private Equity, Natural Resources, Principal Credit Investments and Portfolio Value Creation.
About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 19 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments.

Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and Sao Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2016, the CPP Fund totalled $287.3 billion. For more information about CPPIB, please visit www.cppib.com or follow us on LinkedIn or Twitter.

CONTACT INFORMATION
Canada Pension Plan Investment Board
Dan Madge
Senior Manager, Media Relations
+1 416 868 8629
dmadge@cppib.com

Canada Pension Plan Investment Board
Mei Mavin
Director, Corporate Communications
+1 646 564 4993
mmavin@cppib.com

Many Ontarians living pay cheque to pay cheque

Canadian Payroll Association

Canadian Payroll AssociationOntario employees’ retirement goals challenged by debt and economy, payroll survey finds

For many working Canadians, including those in Ontario, the road to a comfortable retirement is becoming longer and more difficult. A large portion of the working population is living paycheck to paycheck, unable to save, and worried about their local economy, according to the Canadian Payroll Association’s eighth annual Research Survey of Employed Canadians, released today ahead of National Payroll Week. The survey reveals that only 37% of working Ontarians and 36% of Canadian employees, expect the economy in their city or town to improve in the coming year.

Almost half of working Ontarians living pay cheque to pay cheque
Many working Canadians are cash strapped and barely making ends meet. In Ontario, almost half (49%) report it would be difficult to meet their financial obligations if their paycheque was delayed by even a single week (48% nationally). Nationally, just 20% in Ontario and 24% nationally say they probably could not come up with $2,000 if an emergency arose within the next month, making Ontarians the least financially prepared for an emergency in all of Canada.
“A significant percentage of working Canadians carry debt, have a gloomy view of their local economy and are fearful of rising interest rates, inflation, and costs of living,” says Patrick Culhane, the Canadian Payroll Association’s President and CEO. “In this time of uncertainty, people need to take control of their finances by saving more. ‘Paying Yourself First’ (by automatically directing at least 10% of net pay into a separate savings account or retirement plan) enables employees to exercise some control over their financial future.”

Incomes flat, saving capacity drained by spending and debt
“Survey data suggests that household income growth has stalled, as respondents reporting household income above $100K has hardly increased in five years,” says Alec Milne, Principal at research provider Framework Partners. “In fact, real incomes have actually declined when inflation is taken into account.”
While pay has remained largely unchanged, employees’ spending and debt levels have affected their ability to save. According to the survey, 38% of employees in Ontario, and 40% nationally, say they spend all or more than their net pay.
Despite employees’ challenging financial situations, only 28% of respondents nationally (and in Ontario) cite higher wages as a top priority. Instead, an overwhelming 46% in Ontario, and 48% nationally, are most interested in better work-life balance and a healthy work environment.
“Clearly, many Canadians are concerned about their financial situation,” says Lucy Zambon, the Canadian Payroll Association’s Board Chair. “But better work-life balance does not have to mean reduced financial security if you spend within your means and ‘Pay Yourself First’ as a step towards financial well-being.”

Ontario employees feeling overwhelmed by debt
Nearly one-half of working Ontarians (42%), and over one-third (39%) of working Canadians, feel overwhelmed by their level of debt, an increase from the three-year average of 36%. Debt levels have risen over the past year for 32% of Ontario respondents and 31% of respondents nationally. Unfortunately, 11% nationally and in Ontario do not think they will ever be debt free.
Similar to prior years, 92% of Ontario respondents nationally carry debt (93% nationally). Over half of respondents nationally (58%) said that debt and the economy are the biggest impediments to saving for retirement.
Retirement savings fall short, retirement pushed back Half of Canadians and 55% of Ontario respondents think they will need a retirement nest-egg of at least $1 million. Unable to save adequately, the vast majority of working Canadians have fallen far behind their retirement goals, with 76% nationally and in Ontario saying they have saved only one-quarter or less of what they feel they will need.
Nearly one-half of employees nationally (45%) now expect they’ll have to work longer than they had originally planned five years ago, primarily because they have not saved enough. Respondents’ average target retirement has risen to 62, whereas these same respondents’ target retirement age five years ago was 60.

How payroll can help
“Payroll professionals can arrange to automatically deduct a portion of an employee’s net pay each pay period and direct it into a separate savings or retirement account. These deductions come right off the top, making it easier to save,” Zambon explains.
To learn more about automatic savings – and how you can Pay Yourself First – talk to your payroll professional.
The Canadian Payroll Association’s Research Survey of Employed Canadians is conducted to mark National Payroll Week (September 12-16, 2016). For more information about National Payroll Week, and the mission-critical role of payroll professionals, visit npw-snp.ca.

Canadian Payroll Association spokespersons are available across Canada for interviews.
Contact:
Robert Stephens robert@prpost.ca 416.777.0368
Leslie Challis lesliechallis@sympatico.ca 416.767.0167
Alison Rutka alison.rutka@payroll.ca 416.487.3380 x 125

Canadian Payroll Association Research Survey of Employed Canadians
A total of 5,629 employees from across Canada, and from a wide range of industry sectors, responded to an online research survey between Monday, June 27th, 2016 and Friday, August 5th, 2016, using a convenience sampling methodology. The survey was developed by the Canadian Payroll Association and conducted by Framework Partners. The survey is consistent with a margin of error of plus or minus 1.3% 19 times out of 20, but as a non-probabilistic methodology was used, a definitive margin of error cannot be expressed.

Payroll Professionals – Keeping Canada Paid
Canada’s 1.5 million employers rely on payroll practitioners to ensure the timely and accurate annual payment of $901 billion in wages, $305 billion in statutory remittances to the federal and provincial governments, and $163 billion in health and retirement benefits, while complying with more than 200 federal and provincial regulatory requirements. Since 1978, the Canadian Payroll Association has annually influenced the payroll compliance practices and processes of over five hundred thousand organizational payrolls. As the authoritative source of Canadian payroll knowledge, the Canadian Payroll Association promotes payroll compliance through education and advocacy.

See original PDF here.

‘Sell ‘n STAY’ incorporates across Canada from Keller Williams Realty Solutions

sell n stay

sell n stay‘Sell ‘n STAY’ Just incorporated across Canada creating a partnership between Theresa Baird, Broker and Saskia Wijngaard, Sales Representative, from Keller Williams Realty Solutions in order to serve Canadians everywhere.

‘Sell ‘n STAY’ is an alternative to reverse mortgages providing 100% of the equity with no property tax, no maintenance. The Senior’s heirs loves ‘Sell ‘n STAY’ because they don’t pay Probate on a home that needs to be sold. However, this program is not just for seniors anymore, recently 40’s and 50 year old are listing their home as a hedge against future uncertainty. This program delivers 21-35% ROI for investors, in a simple and safe way.

‘Sell ‘n STAY’s concept is so easy. Here is how it works: ‘Sell ‘n STAY’ has a roster of Investors looking to put their money into the Real Estate market. They have no desire to live in the property, their biggest concern is getting a good tenant. But to think of it, who is better to rent from the investor than the person who has previously loved and cared for the home? With the ‘Sell ‘n STAY’ program, people can sell their home to an investor, take the money and reinvest it with their trusted financial advisor! People can pay their rent using the interest from the equity!! It’s a simple and brilliant concept isn’t it?

Saskia Wijngaard is the brilliant mind who took the idea and ran with it is a REALTOR with Keller Williams Realty Solutions, creating a solution born of the Rotary Club’s four way test. Looking for a partnership to take ‘Sell ‘n STAY’ to the next level she partnered with Theresa Baird. Theresa immediately loved a concept which protected seniors and yet benefitted investors and utilized her formidable resources to promote the concept. Theresa Baird, Broker, as a top producer, a recognized trusted name in Mississauga, loved the concept and utilized her formidable resource to promote the concept. “This is an alternative to the Reverse Mortgage beneficial to all parties concerned” she said.

The program has thought of all the “What ifs” and made the appropriate provisions. Someone takes a spill and needs to go into long term care? No problem. There is a clause that speaks to the various case scenarios that can occur. It is a program that works for both the Investor and the Seller. It is a win/win scenario.

About ‘Sell ‘n STAY’

‘Sell ‘n STAY’ which is a residential sale and leaseback program available in Ontario is now able to Specially trained, licensed and insured real estate agents deliver creative solutions to owners of a home, condo, and townhouse. Wherever people are located in Ontario, mostly in the Greater Toronto Hamilton Area they are able to sell your home and lease it back to investors. For more information, please go to www.sellnstay.com

Media Contact
Company Name: Sell ‘n STAY Inc.
Contact Person: Saskia Wijngaard & Theresa Baird
Email: saskia@kw.com
Phone: 905- 855- 1558
Address: 2580 Homelands Drive
City: Mississauga
State: Ontario
Country: Canada
Website: http://www.sellnstay.com/

MFDA Protecting Seniors from Financial Harm

Mutual Fund Dealers Association of Canada

Mutual Fund Dealers Association of CanadaSeniors across Canada are celebrated during Seniors’ Month and Seniors’ Week events held across the country in the month of June. The Mutual Fund Dealers Association of Canada (the “MFDA”) is marking this by launching its first Investor Bulletin with a focus on seniors’ issues. The Investor Bulletin provides general investor news, alerts, notable cases and information on how investors can better protect themselves from financial harm.

“Protecting senior investors and enhancing investor education are key initiatives of the MFDA under its strategic plan, and the launch of the MFDA Investor Bulletin broadens the scope of our investor focused communications. Readers of the first edition will learn about the actions the MFDA is taking to protect seniors, as well as steps investors can take to avoid financial harm,” said MFDA President and CEO Mark Gordon.

All MFDA Investor Bulletins will be published on the For Investors section of the MFDA website. Readers can also subscribe to receive the MFDA Investor Bulletin by email by using the MFDA Subscription Service.

The MFDA also encourages senior investors to visit the Seniors’ Section of the MFDA website where investors can find links to resources for seniors organized by Province and Territory, as well as links to investor education resources from the MFDA, its regulatory partners, and other organizations.

In addition, below are some regulatory activities and initiatives recently undertaken by the MFDA in regards to protecting senior investors:

In October 2015 the MFDA held its second Seniors Summit where various specialists and subject matter experts provided practical advice on dealing with the issues and challenges faced by dealers and advisors in servicing senior clients. A webcast of the 2015 Seniors Summit is available on the MFDA website.
The MFDA continues to place a priority on cases involving Seniors and Vulnerable Persons. Forty percent of proceedings commenced in 2015 (other than signature falsification cases that do not involve a client complaint or harm to a client) involved Seniors or Vulnerable Persons. Highlights from enforcement proceedings involving senior investor and other vulnerable investors are set out in the 2015 Annual Enforcement Report.
The MFDA published amendments to strengthen and clarify its existing rule against advisors having any form of control or authority over the financial affairs of a client, such as a power of attorney from a client, or an appointment to act as a trustee or executor of a client or client’s estate.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.

SOURCE Mutual Fund Dealers Association of Canada
For further information: Ian Strulovitch, Director, Public Affairs, (416) 943-7425 or istrulovitch@mfda.ca

RELATED LINKS
http://www.mfda.ca

Generation X Driving Demand for Recreational Properties

Generation X buyers of cottages, cabins and chalets across Canada outnumber Baby Boomers by almost two to one, according to the Royal LePage 2016 Canadian Recreational Housing Report released today. Still, planning for retirement living is among the most common reasons potential buyers give for the purchase of a recreational property. The annual report compiles information from a cross-Canada survey of real estate advisors who specialize in recreational property sales.

The survey found that 65 per cent of advisors polled indicated that potential purchasers were considering their retirement needs in deciding to buy a recreational property, while a significant number of respondents (88 per cent) said that potential purchasers identified desired lifestyle and vacationing as their main purpose. Just under half of respondents (49 per cent) said that clients wanted a recreational property as an investment and a little over a third (37 per cent) indicated that low interest rates were a deciding factor.

The family status of the typical recreational property buyer is a couple with children, according to 76 per cent of survey respondents. When asked about the most prevalent age range of current buyers, 63 per cent of respondents identified Gen Xers (36 to 51 years old), almost double the 33 per cent who identified Baby Boomers (52 to 70 years old).

“We found it interesting that a majority of respondents identified retirement as a driving factor for a recreational property purchase consideration, but Gen Xers, still decades from retirement, were identified as the typical buyer in the current market,” said Phil Soper, president and chief executive officer, Royal LePage. “This cohort, having reached a place of stability, and often owners of primary residences in the country’s city centres, is making recreational property purchases for family enjoyment in the near-term and as a key strategy for retirement.”

“Canada’s extended low interest rate environment has clearly provided buyers with the confidence they need to invest in a cottage or cabin,” added Soper. “In contrast to urban home purchase decisions, buying a property on a lakefront or mountainside is much less about interest rates, and more about enhancing lifestyle. Cash savings trump mortgage financing when it comes to how people are acquiring recreational property.”

Foreign purchases – A relatively small proportion of transactions

Almost 95 per cent of respondents stated that foreign buyers1 were responsible for 10 per cent or less of recreational property transactions. When asked to identify where foreign buyer activity originates from, the most common answer was North America (79 per cent), with the majority (64 per cent) of those who specified a country of origin stating purchasers were Americans. Respondents were split on factors driving international interest between the quality of living in Canada (30 per cent), geography (27 per cent) and the low Canadian dollar (27 per cent).

“We Canadians enjoy a wonderful recreational real estate reciprocity with our American cousins. Like flocks of happy geese, we fly south in the winter, and in return, Americans head to the beautiful north country when summer arrives. Canadians have been, for years, the principal foreign buyers of sunbelt property in states like Florida and Arizona, while a lower Canadian dollar has encouraged a new wave of U.S. buyers here,” said Soper. “Whether recreational property buyers live in Canada or come from abroad, the beauty of this country, from coast-to-coast, is the appeal for families looking to ‘get away’ and enjoy the cottage experience, one that is quintessentially Canadian.”

Regional trends – Sales volumes increased year-over-year in majority of Canada’s recreational property markets

While common elements impacting the country’s regional recreational property market can be identified, variability in provincial economies and inter-provincial migration has resulted in disparate local conditions. Depressed oil prices may have dampened the recreational property activity in energy-dependent regions, and caused workers who moved for energy jobs to return to their home provinces. These provinces have seen a general uptick in demand for real estate, as the older, repatriated workers look to spend their savings on leisure properties.

Across the country, roughly two-thirds (67 per cent) of those polled said they have seen increases in sales over the past 12 months, and over half (53 per cent) expect sales activity in 2016 to exceed 2015 levels.

British Columbia saw year-over-year2 price appreciation, and Royal LePage expects sales activity to increase throughout the remainder of the year. Advisors cited demand from retirees as a major factor driving the market.

In Alberta, sentiments were somewhat mixed, with advisors generally expecting continued softness in both price and sales activity in the coming year.

In neighbouring Saskatchewan, recreational property prices were up slightly compared to last year, with inventory and demand levels remaining stable.

Meanwhile in Manitoba, the recreational property market is recording slight softness, with inventory levels outpacing demand.

In Ontario slight increases over last year were reported in both price and sales volumes across the recreational property communities studied, with inventory levels slightly down in most markets. Looking ahead, Ontario’s recreational property markets are expected to be active for the remainder of 2016.

Similarly in Quebec, most reported that recreational property prices and activity levels have been showing slight increases this year over last, with sales volumes projected to remain healthy for the remainder of the year.

Atlantic Canada recorded that regional market conditions were mixed. Advisors in Nova Scotia reported slight year-over-year price and sales activity increases, while recreational property markets in New Brunswick remained stable on both fronts. In contrast, Newfoundland’s recreational property market reported slight decreases in prices and sales when compared to the same period last year. In light of the negative economic impacts of the oil industry’s downturn, this softness is expected to continue for the remainder of 2016, as buyers and sellers wait on the sidelines amid market uncertainty.

Average regional prices

The chart below provides average 2016 prices across Canada for six recreational property types studied in the report including lakefront, riverfront, oceanfront, island, woods cottage/cabin, and resort/condo.

 

Newfoundland and Labrador

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Newfoundland

$250,000

$200,000

$180,000

$300,000

$300,000

 

Prince Edward Island

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Prince Edward Island

$120,000

$120,000

$100,000

$150,000

 

Nova Scotia

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Nova Scotia

$325,000

$275,000

$175,000

$400,000

$180,000

 

New Brunswick

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Fredericton

$97,000

Perth and Rowena

$275,000

$100,000

Southeast New Brunswick

$150,000

$150,000

$200,000

$40,000

$250,000

 

Quebec

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Chaudière-Appalaches (Lac
Saint-François)

$350,000

$200,000

Capitale-Nationale  (Charlevoix,
Mont Sainte-Anne, Saint-Ferréol-
les-Neiges)

$229,000

$152,000

$79,000

$242,000

Estrie (Lac Brome, Sutton,
Bromont)

$350,000

$350,000

$210,000

$300,000

Estrie (Memphrémagog)

$308,000

$260,000

Lanaudière (Sainte-Julienne,
Rawdon, Saint-Alphonse, Saint-
Donat, Sainte-Marceline, Saint-
Come)

$450,000

$200,000

$150,000

$150,000

The Laurentides (Mont-
Tremblant, Lac Supérieur, Lac
Labelle)

$750,000

$400,000

$350,000

$350,000

The Laurentides (Saint-Sauveur,
Sainte-Adèle, Saint-Adolph
d’Howard, Sainte-Marguerite-du-
Lac-Masson)

$260,000

$195,000

Capitale-Nationale (RCM de la
Jacques-Cartier: Lac-St-Joseph,
Lac-Beauport, Lac Delage, Lac
Croche, Fossambeault-sur-le-Lac)

$600,000

$350,000

$250,000

$250,000

Capitale-Nationale (RCM de la
Jacques-Cartier: Sainte-Brigitte-
de-Laval, Sainte-Catherine-de-la-
Jacques-Cartier, Saint-Gabriel-de-
Valcartier, Shannon, Stoneham-
Tewkesbery)

$400,000

$325,000

$175,000

Outaouais (Petite-Nation Nord)

$300,000

$220,000

$200,000

$200,000

Outaouais (Petite-Nation Sud)

$300,000

$200,000

Capitale-Nationale (Portneuf Lac
Sept-Îles, Lac Sergent, Lac-Blanc,
Rivière à Pierre, Deschambeault-
Grondine, Saint-Raymond)

$350,000

$150,000

$100,000

 

Ontario

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Island

Lakeview

Year-
round
Lakefront

Seasonal
Lakefront

East Kawarthas

$700,000

$400,000

$350,000

$550,000

Haliburton Highlands

$400,000

$250,000

$200,000

$250,000

Honey Harbour

$650,000

$250,000

$350,000

Kawartha Lakes

$695,000

$350,000

$145,000

Land O’ Lakes

$325,000

$95,000

$209,000

Muskoka

$790,000

$290,000

$400,000

Niagara-on-the-Lake

$769,000

$700,000

Orillia/ South Muskoka

$650,000

$275,000

Parry Sound

$400,000

$250,000

$200,000

$350,000

Rideau Lake

$400,000

$300,000

$250,000

$250,000

Southern Georgian Bay

$845,000

$400,000

$275,000

$452,000

Southwestern Ontario

$485,000

$245,000

$205,000

$246,000

St. Joseph Island and Lake Huron

$80,000

$250,000

$150,000

Sudbury

$230,000

$210,000

$100,000

$175,000

 

Manitoba

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Grand Beach district

$250,000

Interlake

$300,000

$100,000

Lac du Bonnet

$293,000

$270,000

$137,000

Lake Manitoba

$155,000

$100,000

Lake Winnipeg

$180,000

 

Saskatchewan

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Christopher Lake, Emma Lake
and Candle Lake

$454,000

$266,000

Melfort

$320,000

$225,000

Regina

$350,000

$280,000

$180,000

 

Alberta

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Lakefront
Cabin

Canmore

$2,500,000

$750,000

Sylvan Lake

$1,000,000

Wabamun Lake, Lac St. Anne,
and Pigeon Lake

$480,000

 

British Columbia

Lakefront

Riverside

Resort/
Condo

Woods
Cabin

Oceanfront

Island

Island
with Ferry
Service

100 Mile House

$320,000

Central Vancouver Island

$380,000

Cranbrook and Kimberley

$800,000

$300,000

$200,000

$200,000

Gulf Islands

$500,000

$1,000,000

Kelowna

$1,600,000

$350,000

$450,000

Sunshine Coast

$500,000

$390,000

$400,000

$800,000

$700,000

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of over 16,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.

For more information, visit: www.royallepage.ca.

__________________________________
1
For the purposes of the Report, “foreign buyers” are defined as buyers who live outside of Canada all, or most of the time.
2 The survey specifies year-over-year as May 2015/2016.

SOURCE Royal LePage Real Estate Services

Details of Ontario Retirement Pension Plan Act

Ontario Pension Plan

Ontario Pension PlanThe passage of the Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 delivers on the government’s commitment to strengthen retirement security for the more than 4 million Ontario workers — including many younger workers — who do not have access to an adequate workplace pension plan. The act enshrines in legislation key requirements of the plan, including participation, contributions, benefit types, and plan sustainability.

The government will continue to formalize additional plan design details, including those previously announced, in regulations expected this summer.

This act ensures employers and employees across the province have the information needed to prepare for implementation, with enrolment starting in January 2017, and the collection of contributions phased in, starting on January 1, 2018.

Overview of the Legislation

Participation and Eligibility:

Workers between 18 – 70 years old: By 2020, every eligible worker aged 18 to 70 in Ontario will be part of the ORPP or a comparable workplace plan. A member will be required to stop contributing when they reach 70 years of age.

Self-employed and non-crown federally-regulated workers: Self-employed individuals and those who work in industries such as banks, telecommunications, railway and air transportation will not be eligible to participate at this time, due to the current structure of federal income tax and pension rules. The province is currently in discussions with the federal government to support the participation of federally-regulated employees and the self-employed in the ORPP.

First Nations: On-reserve First Nations employers and their employees will have the option to opt-in to the ORPP.

Religious Exemptions: Individuals who object to participation in the ORPP on religious grounds may apply to the ORPP AC for an exemption. Future regulations will lay out the criteria for a religious exemption which would follow a similar approach to CPP.

Definition of Ontario Employee:

A person will be considered employed in Ontario if they report to work, full- or part-time, at an employer’s establishment in Ontario. This also applies to a worker whose salary or hourly wages are paid from an Ontario-based employer, but who is not required to work at an employer’s place of business (e.g., work from a home office).

Employer Duties:

Employers will be required to pay contributions on behalf of each of the eligible workers employed in Ontario, and also to collect and remit contributions from those workers.

Employer and Employee Contributions:

Employees and employers will each contribute 1.9 per cent of the employee’s annual earnings up to $90,000 (2017 dollars).

The full contribution rate would be phased in over time based on the size of the business.

Contributions Held in Trust:

All contributions will be held in trust and invested for the benefit of the members of the plan, and will not form part of general government revenues.

Benefit Types:

The plan will offer two benefits: a retirement benefit and a survivor benefit (payable to a surviving spouse, beneficiary or an estate).

The ORPP is designed to provide plan members a 15 per cent income replacement rate after 40 years of contributing to the plan. A member will be eligible to begin collecting a benefit at 65, with actuarially adjusted benefits as early as 60 or as late as 70. The ORPP will begin to pay benefits in 2022.

Indexation:

The amount of money an individual receives from the ORPP after they retire will depend on how many years they contribute to the pension plan and their salary throughout those years. Pension benefits and the maximum earnings threshold will be indexed to inflation.

Survivor Benefits:

Pre-Retirement Death: If a member dies before retirement, a lump sum will be paid to their spouse, beneficiary or estate.

Post-Retirement Death (Without a spouse): If a member retires without a spouse, they will receive a full pension. If the member dies within 120 months of retirement, the remaining value of their pension up to 120 months after retirement will be paid to their beneficiary or estate.

Post-Retirement Death (With a spouse): If a member retires and has a spouse, they will receive a joint survivor pension. This means that their retirement benefit is adjusted, and when they die, their spouse will receive a survivor benefit for life.

120-Month Guarantee Period:

The member and their spouse will be able to choose to waive the survivor benefit and receive a full pension with a 10-year guarantee period paid in 120 monthly instalments. If the member dies within 10 years of retirement, the remaining value of their pension, up to 10 years after retirement, would be paid to their spouse.

Comparable Plans:

The ORPP will be mandatory for employees and employers without a comparable workplace pension plan.

Comparable workplace pension plans are registered pension plans that meet a minimum benefit/contribution threshold:

Defined benefit (DB) plans – where an employee’s earnings history is considered as part of their retirement income calculation, the annual benefit accrual rate must be at least 0.5 per cent
Defined contribution (DC) plans – must have a minimum total contribution rate of 8 per cent, with employers contributing at least half that amount (voluntary contributions would not be applicable for the purposes of the ORPP comparability test)
Multi-employer pension plans (MEPP) – individual employers would have the option to assess the pension benefit comparability of their plan by using either the DB accrual or DC contribution rate threshold
Pooled-registered pension plans (PRPP) – when available in Ontario, a benefit/contribution threshold will be set for PRPPs.
Should future pension plan innovations address the principles of comparability that the government has identified, the government remains open to examining those plans for comparability.

A plan’s comparability will be assessed at the “subset” level of employees within a pension plan. A subset of members could exist where a pension plan provides for different contribution rates or benefit structures for employees, based on a clear definable category, such as:
▪ The nature of the member’s employment

▪ The terms of employment, years of service

▪ Whether or not the member belongs to a union

Members who belong to a subset must be subject to the same contribution or benefit structure.

Contribution Waves:

Contributions to the ORPP will occur in waves, starting on January 1, 2018, depending on the size of the employer. Employer size would be based on the number of T4s that were issued to Ontario employees in 2015.

Opt-in:

Employers that have comparable workplace pension plans will be able to opt-in to the ORPP starting in 2020. This includes if a decision to opt-in is made as part of a collective bargaining negotiation. An employer that elects to opt-in must do so for all of its employees.

ORPP Administration Corporation (ORPP AC):

This bill will enable the ORPP AC to continue implementing the ORPP. The ORPP AC is the independent, arms-length organization that will administer the ORPP, including investing in opportunities that maximize returns for plan members. Its broad responsibilities include enrolling members, collecting and investing contributions in trust, administering benefits, and communicating with employers, members and other beneficiaries. The ORPP AC will determine where and how contributions are invested.

Plan Sustainability:

The government has designed the ORPP to be sustainable over the long term. This act establishes formal funding rules to guide the actions of the ORPP AC and the government in the event of a funding shortfall or excess.

To support transparency and accountability regarding plan sustainability, the government is committed to introducing legislation this fall that would establish an Office of the Chief Actuary. This office would provide the government and the ORPP AC with expert and impartial advice and guidance.

Compliance and Enforcement:

This bill establishes the ORPP AC’s compliance and enforcement framework to encourage employers and plan members to comply with ORPP legislation, address issues of non-compliance, and create a way to resolve disputes.

The compliance and enforcement framework will apply to all stages of the administration of the ORPP, from the employer verification process to the collection of contributions and the payment of benefits.

The ORPP AC will be permitted to administer fines. Employers who fail to deduct or remit contributions will be charged interest on late payments.

Review Period:

The ORPP will be reviewed five years after its full implementation in 2027 to help ensure the plan is meeting its intended objectives. Subsequent reviews of the ORPP will occur every 10 years.

Source: Ministry of Finance

Ontario expanding pension coverage

Ontario Pension Plan

Ontario is expanding pension coverage to over four million workers without an adequate workplace pension plan.Ontario Pension Plan

The province passed the Ontario Retirement Pension Plan Act The Ontario Retirement Pension Plan (ORPP) will bring financial security and drive economic growth for generations to come, by providing Ontario workers with a predictable stream of income in retirement, paid for life. The ORPP will also offer a survivor benefit for all plan members.

Along with regulations expected this summer, the legislation gives employers and employees the information they need to prepare for the launch of the ORPP. This is a crucial step forward in fulfilling the government’s commitment that every eligible employee is part of the ORPP or a comparable workplace pension plan by 2020.

Strengthening the retirement income system is critical to the future prosperity of the province. Studies show that many of today’s workers are not saving enough to maintain their standard of living in retirement. Pension coverage is also low for many Ontarians, with only one in four younger workers, aged 25 to 34, participating in a workplace pension plan.

Building a secure retirement savings plan is part of the government’s economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talents and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is also making the largest investment in public infrastructure in Ontario’s history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented business.

Quick Facts

  • The ORPP will offer a predictable, reliable and inflation-indexed stream of income in retirement, paid for life, by providing a pension of up to 15 per cent of an individual’s pre-retirement income. Employees and employers would contribute an equal amount, capped at 1.9 per cent each on an employee’s annual earnings up to $90,000.
  • A cost-benefit analysis conducted by the Conference Board of Canada found that over the long-term, the ORPP will add billions to Ontario’s economy.
  • Since 2014, the government has consulted extensively on the design of the ORPP with the business community, labour, academia, non-profits and Ontario workers, including holding public consultations in more than 10 communities across the province. Over 1000 responses were also submitted online and by mail.
  • Ontario looks forward to participating in the Federal-Provincial-Territorial Finance Ministers Meeting on June 20 in Vancouver. Ontario supports CPP enhancement. Ontario is open to exploring a range of potential CPP enhancements for a national solution to strengthening retirement security as long as it is targeted to those who need it most and provides substantial earnings replacement benefits in retirement.

 

Source: Ministry of Finance

Old Age Security pension goes from age 67 to 65

pensions

pensionsThe Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development, today reaffirmed the Government of Canada’s commitment to help improve the quality of life for seniors through new investments announced in Budget 2016.

Budget 2016 makes the goal of a comfortable and dignified retirement more attainable for seniors and working Canadians through various measures, such as restoring the age of eligibility for the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) from 67 to 65. This change will put up to $17,000 into the pockets of the lowest income Canadians each year, as they become seniors.

Restoring the age of eligibility for the OAS pension and the GIS from 67 to 65 is only one of the many enhancements announced that will help improve the quality of life for seniors. Additional measures include:

  • increasing the GIS top-up by $947 annually for the most vulnerable single seniors;
  • providing higher benefits to senior couples receiving GIS and Allowance benefits and who are living apart for reasons beyond their control;
  • enhancing the Canada Pension Plan based on consultations with provinces, territories and Canadians, with the goal of being able to make a collective decision before the end of 2016;
  • looking at how a new Seniors Price Index that reflects the cost of living faced by seniors could be developed; and
  • providing for the construction, repair and adaption of affordable housing to help the many seniors who face challenges in accessing affordable housing.

Quote

“Our government is working hard to grow the bottom line for the increasing number of Canadians who need our support. Public pensions are an important part of the retirement income of Canadians, particularly for lower-income single seniors who face a much higher risk of living in poverty. Budget 2016 reaffirms our commitment to strengthening public pensions and improving the quality of life for seniors.Everyone deserves to live with dignity and respect—especially our seniors.”
– The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development

Backgrounder

On March 22, 2016, Budget 2016 announced important changes to address the needs of vulnerable low-income seniors, including:

Restoring the age of eligibility for Old Age Security
In 2012, the Old Age Security Act was amended to gradually increase the age of eligibility for the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) from 65 to 67 over six years. The changes were scheduled to start in April 2023 with full implementation by January 2029. Budget 2016 announced the intent to restore the age of eligibility for the OAS pension and GIS from 67 to 65 and Allowance benefits from 62 to 60.

This change will put up to $17,000 into the pockets of the lowest income Canadians each year, as they become seniors.

Increasing the Guaranteed Income Supplement for single seniors
The GIS will be increased by up to $947 annually for single seniors with the lowest incomes, starting in July 2016.

This will support seniors who rely almost exclusively on OAS and GIS benefits and may therefore be at risk of experiencing financial difficulties. This measure will improve the financial security of about 900,000 single seniors across Canada.

Increasing benefits for couples living apart for reasons beyond their control
Amendments to the Old Age Security Act will be introduced to ensure that couples who receive GIS and Allowance benefits and have to live apart for reasons beyond their control (such as a requirement for long-term care) will receive higher benefits based on their individual incomes, not their combined incomes.

Exploring a new Seniors Price Index
The Government of Canada is committed to ensuring that OAS and GIS benefits keep pace with the actual costs of living faced by seniors. The Government is therefore looking at how a new Seniors Price Index that reflects the cost of living faced by seniors could be developed.

Introducing a new Home Accessibility Tax Credit
The Home Accessibility Tax Credit for seniors and persons with disabilities will help with the costs of ensuring their homes remain safe, secure and accessible.

Enhancing the Canada Pension Plan
To help improve the retirement income security of working Canadians, the Government has begun discussions with provinces and territories to enhance the Canada Pension Plan with the goal to make a collective decision before the end of 2016. In the coming months, the Government will launch consultations to give Canadians an opportunity to share their views on enhancing the Canada Pension Plan.

Supporting affordable housing for seniors
The Government will support the construction, repair, and adaption of affordable housing for seniors through an investment of$200.7 million over two years starting in 2016-17 to help the many seniors facing challenges in accessing affordable housing.

In addition, the Minister of Families, Children and Social Development has been mandated to:

  • lead the development of a Canadian poverty reduction strategy that would set targets to reduce poverty and measure and publicly report on the Government’s progress.

 

SOURCE Employment and Social Development Canada

For further information: Media Relations Office, Employment and Social Development Canada, 819-994-5559, media@hrsdc-rhdcc.gc.ca

Budget 2016

Details of Proposed Ontario Retirement Pension Plan

Ontario Pension Plan

Ontario Pension Plan

The introduction of the Ontario Retirement Pension Plan Act (Strengthening Retirement Security for Ontarians), 2016 delivers on the government’s commitment to strengthen retirement security for the more than 4 million Ontario workers — including 75 per cent of younger workers — who do not have access to an adequate workplace pension plan. The act, if passed, would enshrine in legislation key requirements of plan design, including participation, contributions, benefit types, and plan sustainability.

The government will continue to formalize additional plan design details, including those that have been previously announced, in regulations expected this summer and in future legislation.

This act would ensure employers and employees across the province have the information needed to prepare for implementation, with enrolment starting in January 2017, and the collection of contributions phased in, starting on January 1, 2018.

Overview of the Legislation

Participation and Eligibility:

Workers between 18 – 70 years old: By 2020, every eligible worker aged 18 to 70 in Ontario would be part of the ORPP or a comparable workplace plan. A member would be required to stop contributing when they reach 70 years of age.

Self-employed and non-crown federally-regulated workers: Individuals who work in industries such as banks, telecommunications, railway and air transportation would not be eligible to participate at this time, due to the current structure of federal income tax and pension rules. The province is currently in discussions with the federal government to support the participation of federally-regulated employees and the self-employed in the ORPP.

First Nations: On-reserve First Nations employers and their employees would have the option to opt-in to the ORPP.

Religious Exemptions: Individuals who object to participation in the ORPP on religious grounds may apply to the ORPP AC for an exemption. Future regulations will lay out the criteria for a religious exemption which would follow a similar approach to CPP.

Definition of Ontario Employee:

A person would be considered employed in Ontario if they report to work, full- or part-time, at an employer’s establishment in Ontario. This also applies to a worker whose salary or hourly wages are paid from an Ontario-based employer, but who is not required to work at an employer’s place of business (e.g., work from a home office).

Employer Duties:

Employers would be required to pay contributions on behalf of each of the eligible workers employed in Ontario, and also to collect and remit contributions from those workers.

Employer and Employee Contributions:

Employees and employers would each contribute 1.9 per cent of the employee’s annual earnings up to $90,000 (2017 dollars).

The full contribution rate would be phased in over time based on the size of the business.

Contributions Held in Trust:

All contributions would be held in trust and invested for the benefit of the members of the plan, and would not form part of general government revenues.

Benefit Types:

The plan would offer two benefits: a retirement benefit paid for life and a survivor benefit (payable to a surviving spouse, beneficiary or an estate).

The ORPP is designed to provide plan members a 15 per cent income replacement rate after 40 years of contributing to the plan. A member would be eligible to begin collecting a benefit at 65, with actuarially adjusted benefits as early as 60 or as late as 70. The ORPP would begin paying benefits in 2022.

Indexation:

The amount of money an individual receives from the ORPP after they retire would depend on how many years they contribute to the pension plan and their salary throughout those years. Pension benefits, contributions and the maximum earnings threshold would be indexed to inflation.

Survivor Benefits:

Pre-Retirement Death: If a member dies before retirement, a lump sum will be paid to their spouse, beneficiary or estate.

Post-Retirement Death (Without a spouse): If a member retires without a spouse, they would receive a full pension. If the member dies within 10 years of retirement, the remaining value of their pension up to 10 years after retirement, will be paid to their beneficiary or estate.

Post-Retirement Death (With a spouse): If a member retires and has a spouse, they will receive a joint survivor pension. This means that their retirement benefit is adjusted, and when they die, their spouse would receive a survivor benefit for life.

10-Year Guarantee Period:

The member and their spouse can choose to waive the survivor benefit and get a full pension with a 10-year guarantee period. If the member dies within 10 years of retirement, the remaining value of their pension, up to 10 years after retirement, will be paid to their spouse.

Comparable Plans:

The ORPP would be mandatory for employees and employers without a comparable workplace pension plan.

Comparable workplace pension plans are registered pension plans that meet a minimum benefit/contribution threshold:

  • Defined benefit (DB) plans – where an employee’s earnings history is considered as part of their retirement income calculation, the annual benefit accrual rate must be at least 0.5 per cent
  • Defined contribution (DC) plans – must have a minimum total contribution rate of 8 per cent, with employers contributing at least half that amount (voluntary contributions would not be applicable for the purposes of the ORPP comparability test)
  • Multi-employer pension plans (MEPP) – individual employers would have the option to assess the pension benefit comparability of their plan by using either the DB accrual or DC contribution rate threshold
  • Pooled-registered pension plans (PRPP) – when available in Ontario, a benefit/contribution threshold will be set for PRPPs.

Should future pension plan innovations address the principles of comparability that the government has identified, the government remains open to examining those plans for comparability. A plan’s comparability would be assessed at the “subset” level of employees within a pension plan. A subset of members could exist where a pension plan provides for different contribution rates or benefit structures for employees, based on:

  • The nature of the member’s employment
  • The terms of employment, years of service
  • Whether or not the member belongs to a union

Members who belong to a subset would be subject to the same contribution or benefit structure.

Contribution Waves:

Contributions to the ORPP would occur in waves, starting on January 1, 2018, depending on the size of the employer. Employer size would be based on the number of T4s that were issued to Ontario employees in 2015.

Opt-in:

Employers that have comparable workplace pension plans would be able to opt-in to the ORPP starting in 2020. This includes if a decision to opt-in is made as part of a collective bargaining negotiation. An employer that elects to opt-in must do so for all of its employees.

ORPP Administration Corporation (ORPP AC):

This bill will enable the ORPP AC to continue implementing the ORPP. The ORPP AC is the independent, arms-length organization that will administer the ORPP, including investing in opportunities that maximize returns for plan members. Its broad responsibilities include enrolling members, collecting and investing contributions in trust, administering benefits, and communicating with employers, members and other beneficiaries. The ORPP AC will determine where and how contributions are invested.

Plan Sustainability:

The government has designed the ORPP to be sustainable over the long term. This act would establish a formal funding policy to guide the actions of the ORPP AC and the government in the event of a funding shortfall or excess.

To support transparency and accountability regarding plan sustainability, the government is committed to introducing legislation this fall that would establish an Office of the Chief Actuary. This office would provide the government and the ORPP AC with expert and impartial advice and guidance.

Compliance and Enforcement:

This bill would establish the ORPP AC’s compliance and enforcement framework to encourage employers and plan members to comply with ORPP legislation, address issues of non-compliance, and create a way to resolve disputes.

The compliance and enforcement framework would apply to all stages of the administration of the ORPP, from the employer verification process to the collection of contributions and the payment of benefits.

The ORPP AC would be permitted to administer fines. Employers who fail to deduct or remit contributions would be charged interest on late payments.

Review Period:

The ORPP would be reviewed five years after its full implementation to help ensure the plan is meeting its intended objectives. Subsequent reviews of the ORPP would occur every 10 years.

Source: Ministry of Finance

Pensions & Benefit Complexities

Canadian Payroll Association logo

Canadian Payroll Association logo

Pension & Benefit Complexities and the Ongoing Focus on Financial Wellness Call for Compliance Knowledge from Payroll Practitioners and Employers

Even before the new Liberal government took office, the need to provide additional retirement savings to Canadians was a crucial topic. The Canadian Payroll Association’s (CPA’s) National Payroll Week research continually shows that Canadians are challenged in saving enough for their retirement goals.

With financial wellness high on the agenda of governments and employers, payroll, accounting and HR practitioners involved in pensions and benefits processing and administration must stay abreast of developments and regulation by taking ongoing pensions and benefits training to enhance their payroll compliance knowledge.

The CPA offers three pension and benefit seminars: Pensions and Benefits from a Payroll Perspective, Advanced Pension Case Studies from a Payroll Perspective, and Best Practices of Employee Group Benefits, offering the most up-to-date payroll compliance knowledge practitioners require to successfully administer their plans.

Pensions Highly Valued Among Employees and Payroll Practitioners, Survey Shows

The CPA’s recent Employment and Retirement Benefits Survey ranks pensions plans (including RRSPs, defined benefit and defined contribution pension plans) among the top 15 most common employer-provided benefits. These types of pension benefits are also viewed by payroll professionals as one of their most valued benefits, according to Hays Canada’s 2016 Payroll Salary Survey.

“With the spotlight on pensions, and their role in supporting Canadians’ retirement goals, employers and payroll practitioners must be knowledgeable in payroll compliance so they can accurately administer these plans,” said Janet Spence, the CPA’s Manager of Compliance Services and Programs. “The Canadian Payroll Association’s Professional Development Seminars help to achieve this goal.”

Pension Legislation and Regulations Have Payroll Implications

Governments continue to discuss pension legislation – from potential Canada Pension Plan (CPP) enhancements to the Ontario Government’s proposed Ontario Retirement Pension Plan (ORPP). The CPA’s Professional Development Seminars help payroll practitioners and their employers navigate legislation and regulation to ensure compliance.

“The Association works collaboratively with all levels of government to enhance the efficiency and effectiveness of payroll-impacting legislation, regulations and administration for all stakeholders,” says Rachel De Grace, the CPA’s Manager of Advocacy and Legislative Content. “We are thankful to be a part of the Ontario Government’s ongoing Pre-Budget and ORPP consultations to provide our recommendations on pension reform from an employer perspective and we look forward to carrying on this working relationship.”

Payroll Compliance Resources Available for All Levels

Payroll practitioners rely on the CPA to communicate and advise on legislative updates that impact payroll, including those related to pensions and benefits. The Association continually updates its payroll compliance tools and resources and Payroll Best Practices Guidelines to provide the most current payroll compliance information.

The CPA offers over 20 different Professional Development Seminars across Canada, for members and non-members in payroll, accounting, finance and human resources professionals who recognize the value of payroll compliance knowledge.

For a complete listing of seminar dates and for more information on the Canadian Payroll Association’s Professional Development Seminars, Certification Programs and Benefits of Membership, visit payroll.ca / paie.ca.

About the Canadian Payroll Association:
Canada’s 1.5 million employers rely on payroll practitioners to ensure the timely and accurate annual payment of $901 billion in wages and taxable benefits, $305 billion in statutory remittances to the federal and provincial governments, and $169 billion in health and retirement benefits, while complying with more than 200 federal and provincial regulatory requirements. Since 1978, the Canadian Payroll Association has annually influenced the payroll compliance practices and processes of over 500,000 organizational payrolls. As the authoritative source of Canadian payroll compliance knowledge, the Canadian Payroll Association promotes payroll compliance through education and advocacy.

SOURCE Canadian Payroll Association

For further information contact:
Alison Rutka
Communications Specialist
alison.rutka@payroll.ca
416-487-3380 x 125

Ontario Retirement Pension Plan

current rates

current rates

Ontario Takes the Next Step Towards Strengthened Retirement Income Security

Ontario has announced new decisions on the proposed design of the Ontario Retirement Pension Plan (ORPP) — another step in delivering on its commitment to strengthen retirement income security for the two-thirds of Ontario workers without a secure workplace pension plan.

Premier Kathleen Wynne joined Minister of Finance Charles Sousa and Associate Minister of Finance Mitzie Hunter today to share information on a range of decisions, including the structure of ORPP benefits, compliance and enforcement, plan comparability and member participation.

The government also released details on the ORPP’s funding policy.

The details released today, combined with details released last August, will help employers prepare for the implementation of the ORPP, beginning on January 1, 2017.

Ontario has made significant progress on the ORPP in recent months. This includes the Ontario Retirement Pension Plan Administration Corporation appointing a CEO and Board of Directors, passing two pieces of enabling legislation and releasing key design and implementation details.

Studies show that many Ontarians are not able to save enough to maintain a similar standard of living when they retire. For many workers, long-term, full-time employment with pension benefits is no longer attainable. Today’s announcement brings the government closer to achieving its goal of ensuring that every eligible Ontario employee is part of the ORPP or a comparable workplace pension plan by 2020.

ORPP plan design details have now been shared with the Canada Revenue Agency.

Building a secure retirement savings plan is part of the government’s plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan also includes investing in people’s talents and skills, making the largest investment in public infrastructure in the province’s history and creating a dynamic, supportive environment where business thrives.

Quick Facts

  • Pension coverage is lower for young workers than for any other age group. Only about one quarter of Ontario workers aged 25 to 34 participated in a workplace pension plan in 2012, compared to nearly half of workers aged 45 to 54.
  • The ORPP would expand pension coverage to more than 4 million workers. It would provide a predictable, reliable and inflation-indexed stream of income in retirement by replacing up to 15 per cent of an individual’s earnings, up to $90,000 (in 2017 dollars).
  • Enrolment would be phased in to ensure that the ORPP is focused on workers without access to a workplace pension plan, and to give employers time to adapt.
  • Under the proposed phase-in, plan members would start making contributions in 2017 and the ORPP would start providing benefits in 2022.

Background Information

Additional Resources

Quotes

Kathleen Wynne

“Our government is unwavering in its focus on ensuring a financially secure retirement for every worker in our province through the Ontario Retirement Pension Plan, and I am committed to ensuring that Ontarians have a strong, stable and prosperous retirement. Today’s announcement brings us another step closer to achieving this goal.”

Kathleen Wynne

Premier of Ontario

Charles Sousa

“After a lifetime of contributing to the economy, every Ontarian deserves a secure retirement. In the long-term, the economy will also benefit from the increase of investments and savings. Ontarians deserve a secure retirement and a strong economy, and the ORPP will help us achieve that goal.”

Charles Sousa

Minister of Finance

Mitzie Hunter

“We’ve shown tremendous progress on our commitment to build the ORPP as a strong, stable and sustainable plan. This puts us on the right course to ensure Ontario workers are able to achieve the retirement security they deserve. We know that people need a reliable, predictable plan that will support workers today, tomorrow and for generations to come.”

Mitzie Hunter

Associate Minister of Finance (Ontario Retirement Pension Plan)

Press release by the Province of Ontario.

Canada Pension Plan and Old Age Security benefits effective Jan 1, 2016

cpp oas

cpp oas

Employment and Social Development Canada today announced the benefit amounts for the Canada Pension Plan (CPP) and Old Age Security (OAS) effective January 1, 2016.

CPP benefits will increase by 1.2 percent for those already receiving CPP benefits. For 2016, the maximum CPP retirement benefit for new recipients age 65 will be $1,092.50 per month, an increase of $330 for the year compared to the 2015 maximum CPP retirement benefit.

The new CPP rates will be in effect until December 31, 2016. CPP benefits are revised once a year, in January, based on changes over the 12-month period (November 2014 to October 2015) in the Consumer Price Index (CPI), which is the cost-of-living measure used by Statistics Canada.

OAS benefits, which consist of the basic OAS pension, the Guaranteed Income Supplement (GIS) and the Allowances, will increase by 0.1 percent for the first quarter of 2016 (January to March). As of January 1, 2016, the basic OAS pension will increase from $569.95 to$570.52 per month.

OAS benefits are also based on the CPI, but are reviewed quarterly (in January, April, July and October) and revised as required to reflect increases in the cost of living as measured by the CPI. Although OAS and CPP benefits are not indexed at the same time, they are both adjusted with the cost of living over a given year.

Quick Facts

  • The Old Age Security (OAS) program and the Canada Pension Plan (CPP) enhance the quality of life of Canadian seniors by providing a modest base upon which to build additional income for retirement.
  • The OAS program is funded through general tax revenues and provides a basic monthly income for Canadian seniors. For 2014–15,$44.1 billion in OAS benefits were provided to 5.6 million individuals.
  • The CPP is funded through contributions by Canadian workers, their employers and the self-employed and through investment earnings on the Plan’s funds. In addition to retirement benefits, the Plan provides disability, death, survivor and children’s benefits.

Quote

“I would like to reiterate the government’s commitment to improve the income security of seniors, which includes increasing the Guaranteed Income Supplement for seniors who live alone, indexing Old Age Security and Guaranteed Income Supplement payments to a new senior’s price index, and cancelling the increase in the age of eligibility, from 65 to 67 years, for Old Age Security.”
The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development

Associated Link

For up-to-date CPP and OAS benefit amounts, please visit http://www.esdc.gc.ca/en/cpp/oas/payments.page.

Backgrounder

The CPP is a stable, well-designed plan that is portable from province to province. According to the 2013 Chief Actuary Report, the CPP is expected to meet its obligations and remain financially sustainable over the long-term under the current contribution rate of 9.9 percent.The OAS program is funded through general tax revenues and provides a basic monthly income for Canadian seniors.

The GIS and the Allowances provide additional income to low-income pensioners, their spouses or common-law partners, and eligible survivors. These benefits are income-tested. This means that a person’s entitlement depends on their previous year’s net annual income, or the combined net income with their spouse or common-law partner, excluding the OAS pension.

The OAS program has played a major role in reducing the incidence of low-income among seniors. In 2013, the rate of low-income among seniors was 3.7 percent. Canada now has one of the lowest rates of low-income among seniors in the world.

Source: Employment and Social Development Canada

SecurOption – Lifetime Retirement Income

SecurOption Pension Plan

SecurOption Pension Plan

A Financial Group Launches its new Version of SecurOption – Lifetime Retirement Income

iA Financial Group (Industrial Alliance Insurance and Financial Services Inc.) is proud to launch the improved version of SecurOption – Lifetime Retirement Income, the guaranteed lifetime retirement income option of its group retirement plans.

SecurOption is a simple, innovative and distinctive option offered in the iA Financial Group’s DPSPs and group RRSPs. It allows members to build guaranteed lifetime retirement income the amount of which is known in advance, through their accumulation plan. The first version of SecurOption made iA Financial Group a leader in group retirement plans offering income security. With its new solution, which provides an increase to the annuity based on the amount as well as the complete integration of data in all its tools, iA Financial Group meets a challenge in terms of innovation and makes the retirement planning process significantly easier for its clients while reducing the risk related to increased longevity.

“SecurOption addresses our clients’ dire need for income security.  Many members of defined contribution retirement plans have less tolerance to risks related to financial markets, worry about outliving their savings, and look for new ways to ensure a guaranteed retirement income supplement for their retirement. With SecurOption, our innovative solution, we meet this new needs”, states Renée Laflamme, Executive Vice‑President, Group Benefits and Retirement Solutions.

The new version of SecurOption is described in detail at securoption.com/advisor. With this initiative, iA Financial Group demonstrates once again that it offers smart and high-performance solutions as well as superior services in order to build with its clients long-term relationships focused on simplicity.

About Group Savings and Retirement
Group Savings and Retirement has been administering pension funds for more than 60 years. It offers a wide range of products and services adapted to the needs of savings and retirement plan members. With regional offices across Canada, it is one of the largest group savings and retirement service providers in the country.

About iA Financial Group
Founded in 1892, iA Financial Group offers life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgages and car loans, and other products and services for both individuals and groups. It is among the four largest life and health insurance companies and one of the largest publicly traded companies in Canada. iA Financial Group stock is listed on the Toronto Stock Exchange under the ticker symbol IAG.

 

SOURCE Industrial Alliance Insurance and Financial Services Inc.

For further information: Pierre Picard, Manager, Public Relations, Office phone: 418-684-5000, ext. 11660, Email: pierre.picard@ia.ca

RELATED LINKS
http://www.inalco.com

Please note: This post for information purposes – The Mortgage Wellness Group only arranges mortgage products through Industrial Alliance and does not have any information or dealings in the above mentioned products and services.