Protecting Key Talent using Group Benefits

Building a Sustainable Future Together

As a group benefits specialist, our main objective is to foster a sustainable future by working in partnership with our clients. We believe that a knowledgeable and engaged workforce is essential for any organization’s success. One of the crucial aspects of achieving this goal is protecting key talent within your company. In this article, we will explore how group benefits can play a significant role in safeguarding your organization’s most valuable asset: its people.

The Value of Key Talent

Key talent refers to those employees who possess critical skills, expertise, and knowledge that drive your company’s growth and success. They are the backbone of your organization, ensuring it thrives in today’s competitive landscape. Retaining these valuable individuals is vital as their loss can have a significant impact on your business operations, productivity, and overall morale.

Challenges in Retaining Key Talent

In today’s dynamic job market, retaining key talent can be challenging. Many factors come into play, such as attractive offers from competitors, personal growth opportunities, work-life balance, and employee well-being. As an employer, understanding and addressing these challenges are essential to protect your top performers and maintain a competitive edge.

The Role of Group Benefits

Group benefits can be a powerful tool in attracting and retaining key talent. By offering comprehensive and customized benefits packages, you demonstrate your commitment to your employees’ well-being, security, and future. Here are some key aspects of group benefits that contribute to protecting your key talent:

1. Health and Wellness Coverage

Providing robust health and wellness benefits, including medical, dental, and vision coverage, not only promotes a healthy workforce but also demonstrates your dedication to their overall well-being. When employees feel supported in their health, they are more likely to remain loyal to your organization.

2. Income Protection

Group benefits often include disability insurance, which provides financial protection for employees who might experience an injury or illness that prevents them from working. This security helps ease financial worries during challenging times and creates a sense of stability, encouraging key talent to stay with your company for the long term.

3. Retirement Planning

A well-designed retirement plan is an attractive feature for key talent. It shows that you care about their future and are committed to helping them achieve financial security during their retirement years. Contributing to a retirement plan also reinforces a collaborative and client-focused relationship with your employees.

4. Work-Life Balance Support

Offering benefits that support work-life balance, such as flexible work arrangements, paid time off, and family leave, shows your understanding of the importance of a balanced life. Employees who feel they have the flexibility to manage their personal and professional responsibilities are more likely to stay committed to your organization.

5. Career Development

Group benefits can extend beyond traditional offerings. Consider including professional development and training opportunities within your benefits package. Investing in your employees’ growth not only enhances their skills but also reinforces your commitment to their long-term success.

Educational Approach and Collaboration

Our mission as group benefits specialists is to provide educational and collaborative support to our clients. By engaging in open discussions about your organization’s needs and goals, we can tailor group benefits packages that align with your unique requirements. Together, we can build a sustainable future by nurturing and protecting your key talent.

Protecting key talent using group benefits is not just a sound business strategy; it reflects a client-focused, educational, and collaborative approach to employee welfare. As a group benefits specialist, we are committed to working hand-in-hand with our clients to create comprehensive and customized solutions that safeguard their organization’s most valuable asset – their people. By investing in the well-being, security, and future of your employees, you are not only enhancing loyalty and retention but also building a stronger and more sustainable future for your company. Let’s continue to partner together to ensure a prosperous and thriving workforce.

Group Retirement Benefits

Working at an organization that offers a pension plan is one of the greatest financial advantages a Canadian can enjoy. Pension plans are designed to provide retirement income and help employees reach their retirement goals and for business owners- help retain key employees.

Pension plans can offer:

  • Employer contributions

  • Forced retirement savings for employee

There are 2 main types of pension plan:

  • Defined Benefit Plan

  • Defined Contribution Plan

Defined Benefit Plan

  • Retirement income is guaranteed, contributions are not.

  • The pension amount is based on a formula that includes the employee’s earnings and years of service with the employer

  • Usually, contributions are made by the employee and employer

  • The employer is responsible for investing the contributions to ensure there’s enough money to pay the future pensions for all plan members.

  • If there’s a shortfall, the employer pays the difference.

Defined Contribution Plan

  • Contributions are guaranteed, retirement income is not.

  • Usually, contributions are made by the employee and employer.

  • The employee is responsible for investing all contributions.

  • The amount available in retirement depends on how the investment performs including total contributions.

  • At retirement, the money in the account can be used to generate retirement income through purchasing an annuity or transferring the amount to a locked-in retirement income fund.

In summary, a defined benefits plan guarantees you a retirement income and a defined contribution plan guarantees contributions but not retirement income.

Talk to us, we can help.

2019 Federal Budget

2019 Federal Budget

The 2019 budget is titled “Investing in the Middle Class. Here are the highlights from the 2019 Federal Budget.

We’ve put together the key measures for:

  • Individuals and Families

  • Business Owners and Executives

  • Retirement and Retirees

  • Farmers and Fishers

Individuals & Families

Home Buyers’ Plan

Currently, the Home Buyers’ Plan allows first time home buyers to withdraw $25,000 from their Registered Retirement Savings Plan (RRSP), the budget proposes an increase this to $35,000.

First Time Home Buyer Incentive

The Incentive is to provide eligible first-time home buyers with shared equity funding of 5% or 10% of their home purchase price through Canada Mortgage and Housing Corporation (CMHC).

To be eligible:

  • Household income is less than $120,000.

  • There is a cap of no more than 4 times the applicant’s annual income where the mortgage value plus the CMHC loan doesn’t exceed $480,000.

The buyer must pay back CMHC when the property is sold, however details about the dollar amount payable is unclear. There will be further details released later this year.

Canada Training Benefit

A refundable training tax credit to provide up to half eligible tuition and fees associated with training. Eligible individuals will accumulate $250 per year in a notional account to a maximum of $5,000 over a lifetime.

Canadian Drug Agency

National Pharmacare program to help provinces and territories on bulk drug purchases and negotiate better prices for prescription medicine. According to the budget, the goal is to make “prescription drugs affordable for all Canadians.”

Registered Disability Savings Plan (RDSP)

The budget proposes to remove the limitation on the period that a RDSP may remain open after a beneficiary becomes ineligible for the disability tax credit. (DTC) and the requirement for medical certification for the DTC in the future in order for the plan to remain open.

This is a positive change for individuals in the disability community and the proposed measures will apply after 2020.

Business Owners and Executives

Intergenerational Business Transfer

The government will continue consultations with farmers, fishes and other business owners throughout 2019 to develop new proposals to facilitate the intergenerational transfers of businesses.

Employee Stock Options

The introduction of a $200,000 annual cap on employee stock option grants (based on Fair market value) that may receive preferential tax treatment for employees of “large, long-established, mature firms.” More details will be released before this summer.

Retirement and Retirees

Additional types of Annuities under Registered Plans

For certain registered plans, two new types of annuities will be introduced to address longevity risk and providing flexibility: Advanced Life Deferred Annuity and Variable Payment Life Annuity.

This will allow retirees to keep more savings tax-free until later in retirement.

Advanced Life Deferred Annuity (ALDA): An annuity whose commencement can be deferred until age 85. It limits the amount that would be subject to the RRIF minimum, and it also pushes off the time period to just short of age 85.

Variable Payment Life Annuity (VPLA): Permit Pooled Retirement Pension Plans (PRPP) and defined contribution Registered Retirement Plans (RPP) to provide a VPLA to members directly from the plan. A VPLA will provide payments that vary based on the investment performance of the underlying annuities fund and on the mortality experience of VPLA annuitants.

Farmers and Fishers

Small Business Deduction

Farming/Fishing will be entitled to claim a small business deduction on income from sales to any arm’s length purchaser. Producers will be able to market their grain and livestock to the purchaser that makes the most business sense without worrying about potential income tax issues. This measure will apply retroactive to any taxation years that began after March 21, 2016.

To learn how the budget affects you, please don’t hesitate to contact us.