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A Simplified Group Retirement and Savings Plan for Small Businesses in Canada: How Performers Can Benefit You and Your Employees

In the competitive business landscape of Canada, attracting and retaining top talent is vital to the success of small businesses. Offering a comprehensive group retirement and savings plan can set your business apart, providing your employees with a secure future while benefiting your company. The Performers Group Retirement and Savings Plan from Canada Life offers a simple, cost-effective solution tailored for small businesses. This guide will walk you through the benefits of the Performers plan, how it can support your business, and how to implement it effectively.

Step-by-Step Instructions:

Why Offer a Group Retirement and Savings Plan?

• Employee Attraction: Quality compensation packages, including retirement plans, are highly sought after by job seekers. Offering a group retirement and savings plan can make your business more attractive to potential employees.
• Employee Retention: Employees are more likely to stay with a company that invests in their future, reducing turnover and associated hiring and training costs.
• Financial Benefits: Contributions to a Deferred Profit Sharing Plan (DPSP) can reduce payroll expenses, benefiting your company’s bottom line.

Understanding the Performers Group Retirement and Savings Plan

• Budget-Friendly: Performers is designed to fit within your budget, with no setup fees or ongoing administration costs to your company.
• Ease of Administration: The plan is simple to start and administer, allowing you to focus on running your business.
• Comprehensive Options: Performers offers two types of plans—Group Registered Retirement Savings Plan (RRSP) and Deferred Profit Sharing Plan (DPSP). Additionally, a Group Tax-Free Savings Account (TFSA) can supplement either plan.

Investment Options with Performers

• Continuum Target Date Funds: These funds adjust their investment mix to become more conservative as the target retirement year approaches, making them a low-maintenance option for employees.
• Continuum Target Risk Funds: Tailored to an employee’s risk tolerance, these funds are professionally managed to maintain a consistent risk profile over time.
• Additional Investment Choices: Employees can also choose from a guaranteed investment account with one-, three-, and five-year terms, as well as a daily interest account. Performers includes a select group of individual funds from various investment managers, offering a full range of investment options.

How to Set Up Your Performers Plan

• Step 1: Determine Your Plan Type
  • Decide whether you want to offer a Group RRSP, DPSP, or both. Consider also offering a TFSA as a supplemental option.
• Step 2: Decide on Employer Contributions
  • Determine if you will make employer contributions, which can enhance employee satisfaction and engagement.
• Step 3: Identify Eligible Employees
  • Choose who will be eligible for the plan and set the criteria for participation.
• Step 4: Distribute Digital Materials
  • Canada Life provides digital materials to help you inform your employees about the plan. Distribute these to ensure everyone is aware of the benefits and how to enroll.
• Step 5: Manage Contributions
  • Set up payroll deductions for employee and employer contributions and remit them to Canada Life.

Ongoing Plan Administration

• GRS Access Portal: Use this secure website to upload contribution listings, manage plan details, and access reporting tools.
• Online Enrollment: Employees can easily sign up for the plan online, reducing paperwork and minimizing errors.
• Plan Governance: Canada Life ensures that the Performers plan meets all Capital Accumulation Plan guidelines, helping you remain compliant with privacy legislation and other regulations.

Troubleshooting Tips:

• Difficulty in Choosing Investments: Use the Continuum Target Date or Target Risk Funds, which are designed to simplify the investment process for employees.
• Concerns About Compliance: Rely on Canada Life’s expertise in plan governance and privacy legislation to ensure your plan meets all regulatory requirements.
• Employee Enrollment Issues: Encourage employees to use the online enrollment process to reduce errors and streamline the setup.

FAQ Section:

What are the costs associated with the Performers plan?

• There are no setup fees or ongoing administration costs to your company, making it a budget-friendly option for small businesses.

How does the Performers plan help with employee retention?

• By offering a competitive retirement and savings plan, employees are less likely to leave for other opportunities, reducing turnover and saving on hiring and training costs.

What investment options are available?

• Employees can choose from Continuum Target Date Funds, Continuum Target Risk Funds, and additional investment choices like guaranteed investment accounts and individual funds.

How does Canada Life support plan administration?