Group Savings

Fairfield Watson provides consulting services relating to the establishment and operation of a retirement savings program. Rely on our experience to help you with all aspects including legislation, compliance, cost control, reporting requirements, ethics and more.

At Fairfield Watson, we consult on various Defined Contribution Plans. There are various reasons we would recommend each (or a combination) of these plans because there are benefits to each of them. We would love the opportunity to understand your organization’s strategy and outlook so we can find what plan would best suit your company and your employees!

  • Plan Design
    • Analysis of needs and expectations.
    • Analysis of current program vs. alternatives with recommendations.
  • Request for proposals forwarded to appropriate service providers.
  • Analysis of proposals and recommendations.
  • Recommendation of fund line-up.
  • Coordination of the set up with the selected service provider (all aspects).
    The CAP Guidelines issued by the Joint Forum of Financial Services Regulators have highlighted the fact that CAPs are complex and potentially risky arrangements. Our consulting services are designed to maximize efficiencies of managing the complexities and risks in CAP’s to ensure full compliance with the CAP Guidelines.
  • Governance documentation set-up (adherence to CAP Guidelines).
  • Coordination of enrollment education and communications for employees.
  • Committee Meeting participation
  • Governance Documentation (adherence to CAP/CAPSA Guidelines)
    • Governance Mandate/Code of Conduct/Conflict of Interest (Pension Plans)
    • Governance Policy (Pension Plans)
    • Statement of Investment Policies & Procedures (SIPP)
    • CAP/CAPSA Governance Plan Annual Checklist
  • Plan Review & Investment Analysis
    • Industry update, plan review, economic update, fund review & recommendations
  • Education & Communication Strategy
    • Education “Target” recommendations (Measurable target(s) to increase employee engagement)
      • Hosting/coordinating employee education
      • Written employee communications
    • One on One employee support (on-boarding/during employment/off-boarding)
  • Market Search Analysis (every 3 to 5-year basis)
  • Pro-active communication on service provider & legislative changes.

A retirement savings plan registered with Canada Revenue Agency (CRA). This “umbrella program” covers individual RRSP’s offered by an employer to employees, allowing payroll deductions for employee’s contributions.

  • Investment earnings are tax-deferred until the benefits are paid.
  • Employer contributions are a taxable benefit to members and therefore subject to payroll deductions at source. Employer contribution don’t have a minimum requirement and are a tax-deductible for members.
  • Member contributions are tax-deductible by members and are not subject to payroll taxes. Contributions are voluntary and might attract employer match (as per plan rules).
  • Eligibility: Employer determines this.
  • Vesting: Immediate.
  • Contribution Limit: 18% of last year’s earnings up to CRA limit.
  • Withdrawals: Restrictions may be added. Withdrawals are subject to withholding tax.
  • Plan Documentation: Clients are required to have the following documentation set-up and kept up to date:
    • Statement of Investment Policies & Procedures (SIPP)
    • Annual CAPSA Checklist
    • RRSP receipts (provided by insurance company)
    • T4RSP slip for withdrawals (provided by insurance company)

A Defined Contribution Pension Plan (DCPP) is a pension plan, registered with Canada Revenue Agency (CRA) and the pension jurisdiction that is sponsored by the employer to provide a pension to members upon retirement.

  • Investment earnings are tax-deferred until the pension benefits are paid.
  • Employer contributions are not a taxable benefit to members and therefore not subject to payroll deductions at source. Employer contribution minimum is % of member’s salary.
  • Member contributions are tax-deductible by members and are not subject to payroll taxes. Member contributions can be mandatory or voluntary (as per plan rules).
  • Eligibility: Employer determines this (Pension legislation for each jurisdiction specifies minimum eligibility requirements).
  • Vesting: Legislative minimums for vesting vary by jurisdiction. (Alberta is immediate vesting).
  • Contribution Limit: 18% of current year’s earnings up to CRA limit.
  • Withdrawals: Not allowed on employer or member contributions. Voluntary contributions are allowed to be withdrawn and are subject to withholding tax.
  • Plan Documentation: Clients are required to have the following documentation set-up and kept up to date:
    • Annual Information Return (AIR)
    • Governance Policy
    • Statement of Investment Policies & Procedures (SIPP)
    • Annual CAPSA Checklist
    • Pension Adjustment (PA) reporting on member’s T4 slip)
    • Pension Adjustment Reversal (PAR) reporting

A trusteed arrangement under which an employer shares profits from their business with all or a designed group of employees to provide income at retirement. Usually offered in conjunction with an RRSP.

  • Investment earnings are tax-deferred until the benefits are paid.
  • Employer contributions are not a taxable benefit to members and therefore not subject to payroll deductions at source. Employer contribution don’t have a minimum requirement and are not tax-deductible for members.
  • Member contributions are not allowed.
  • Eligibility: Employer determines this.
  • Vesting: As per plan rules (no later then 2 years of membership),
  • Contribution Limit: 18% of current year’s earnings up to CRA limit.
  • Withdrawals: Not allowed.
  • Plan Documentation: Clients are required to have the following documentation set-up and kept up to date:
    • Statement of Investment Policies & Procedures (SIPP)
    • Annual CAPSA Checklist
    • Pension Adjustment (PA) reporting on member’s T4 slip)
    • T3D trust return within 90 days of calendar year end
    • T4A slip for withdrawals (provided by insurance company)

A registered savings account that allows taxpayers to earn investment income tax-free inside the account.

  • Investment earnings are tax-deferred until the benefits are paid.
  • Employer contributions are a taxable benefit to members and therefore subject to payroll deductions at source. Employer contribution don’t have a minimum requirement and are not a tax-deductible for members.
  • Member contributions not tax-deductible by members and are subject to payroll taxes. Contributions are voluntary and might attract employer match (as per plan rules).
  • Eligibility: Employer determines this.
  • Vesting: Immediate.
  • Contribution Limit: $5500 per year
  • Withdrawals: Allowed and are not subject to withholding tax.
  • Plan Documentation: Clients are required to have the following documentation set-up and kept up to date:
    • Statement of Investment Policies & Procedures (SIPP)
    • Annual CAPSA Checklist