Satisfied Employees are the most Loyal

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This is my second in a series preparing businesses for upcoming changes in Ontario Pensions. On May 1, 2014 the Honourable Charles Sousa tabled his budget. I was at the meeting the next morning when he presented it to the Mississauga Board of Trade. As we know, an Ontario election was called and he re-introduced basically the same budget on July 14, 2014. In it is stated that both the employer and employee will both have to contribute 1.9% of the employee’s income to a pension plan.  I did a lot of work and blogged about it on my website on July 28, 2014. Click here to read it.

Many employers do not offer any employee benefits programs as a matter of cost. With the Ontario government introducing the Ontario Retirement Pension Plan (ORPP), you are going to be forced to offer a pension plan. It will be an added burden to your work load on top of the cost. With it being modeled after the Canada Pension Plan, you have to question if it is in your employees best interest.

There is a lot to learn about the provincial plan as they have not released much information, but we do know that employers who have a pension plan already set up will not have to be on the provincial plan. Your own plan can be set up to be less work, thus saving you time and money.  You can have it run by professional pension plan managers, keeping you within the regulations and optimizing the pension for your employees.

Use this time to do better for your employees than a forced plan.

A recent survey shows that 74% of pension plan members want the advice of business advisors. Unfortunately, the vast majority of the plans that are set up can not accommodate this, so they simply offer employees to add more money to the plan already in place. If you have no plan, offering more to employees is a definite plus.

Employees need to be able to work with an independent advisor who can offer to directly meet:

  1. Their Investment needs outside of the pension plan

  2. Their Life Insurance needs outside of any company benefits

  3. Their personal Financial needs

  4. Their estate needs

    • Help them to plan their estate

    • Put them in contact with the proper professionals: Lawyers, accountants, tax preparers

Employee Retention

With these things being take care of directly by a professional, you will have lowered the stress level of your employees. You will have shown that you care. Showing them the loyalty you have towards them, will help them to be more loyal to you. We all know the cost of losing and replacing employees is a great expense to your company.

Employee Attraction

Study after study will tell you that when trying to attract the best, and right, employee’s benefits tips the scales in your favour.

72% of those employers with a Pension Plan state that it attracts and retains Top Talent. One employer I know calls it their Start/Stick and Stay plan.

The pension can be tailored to meet the needs of the employee. For example it does not end with the life of the employee, as it does with Canada Pension plan income.

If you already offer a plan:

  • Is it tax effective? There are ways to optimize your taxes through the correctly set up plan

  • Does your administrator offer to meet with your employees and to satisfy their needs?

  • Does it have an independent advisor who will continually shop the market to make sure you have the best plan for you and your employees?

There are many ways to set this up to suit you that can be altered to meet any government rules that will crop up to avoid the ORPP. Some include:

Defined Contribution Pension Plan

Deferred Profit Sharing Plan

Group RRSPs

Employee Savings Plan/Non-Registered Plan

Group Tax-Free Savings Account

You can be selfish and be a leader to your employees. Save time, save money and give your employees more than another government forced retirement plan. Let professionals run this with you and have your employees teamed up with an individual professional to meet their personal needs.

It is great for you that I am an independent at the largest and most diversified in the industry. Manulife Financial has the strength you want behind your advisor and yet allow me to be an independent, to have the choice of options and suppliers that will suit your business best.

If you want to see what a truly independent advisor can do for you, call me at 905-846-9060, ext.3838, email me at or visit my website at