There comes a time when you have to change, because you are being forced to. One such occasion is coming over next while. The Ontario Liberals are going through with an Ontario Pension Plan. Businesses in Ontario will be mandated to either set up a pension plan for employees in which both the business and employee contribute, or they will be forced to contribute to the provincial plan. This will be mandated.
While I do have an opinion as to whether this plan should be put in place, it doesn’t matter whether I am for or against this plan. I am here to help Ontario businesses do the best for both their employees and themselves.
The plan is to be set this up similar to the Canada Pension Plan. In this case you can see where you and your employee are both going to have to contribute. Let’s say that is $900 each per year. This $1,800 will be put side annually. It will be pooled and generate a government pension for your employee. When the employee dies, so will the benefit.
Build employee loyalty
Why not be proactive and set up a plan in which you both contribute the same, but allows more flexibility for your employee. For example:
Setting up a beneficiary will allow the money left over (when the employee eventually dies) to go to their heirs. You are now doing more for your employees, with no extra effort. This builds Loyalty.
Offer Expert Advice;
Rather than just another Government mandated plan, you can set up the plan with experts who are the best at this. You can also set up the ability for your employees to use this expert advice on their personal investments. Again, with no extra effort, you are adding to your employees’ well-being. Another Loyalty builder.
Ahead of the Crowd
By getting ready for this ahead of time, you can reduce your stress by working on your schedule. Your employees won’t see your initiative as you simply reacting, but working in their best interest. By the time it is all over the news, you will have it in place with your employees. More Loyalty built.
Setting up a group RRSP for your business can be done for as little as 2 of you, with no limit to the number allowed.