With the TFG Global Insurance Solutions Ltd. large block of employee benefit clients and experience, we are well positioned to let you take advantage of both the best rates and options available for your employee benefit plans. We act as independent brokers to advise and assist in the implementation and review of benefit plans with special attention to communication and service. We offer group insurance plans for companies from 2 to 400 employees. Download our brochure which details the extensive employee group insurance and pension plan services that we offer Canadian companies.
If your company is already covered by a group or pension plan, please send a copy of the last two renewals if possible, especially the health, dental and short term disability experience versus premiums paid. A copy of your current benefit is also needed.
All information is kept in strictest confidence. TFG Global will then call to review your benefit needs and then report back to you with a proposal.
After implementation and an employee seminar, we keep you abreast of emerging trends and review your plan every year to make sure it fits your current needs in addition to regular contact.
Benefit plans are an excellent way to reward and keep employees, especially since most of the benefits are tax free for the employees. Since we are compensated by the respective insurance company, there are no charges for our initial or ongoing services. TFG Global also works with foreign companies with Canadian offices and employees in need of employee benefit plans.
Group Pension Plans
In addition to group insurance, the TFG Global Insurance Solutions Ltd. brokers Group Pension and RRSP plans to numerous employers. Employees and employers alike know that they can’t rely on government programs such as CPP. Many more companies are choosing Group RRSPs over Pension Plans (Defined Contribution) as a way to foster retirement planning for their employees. Which is better depends on your company goals and preferences.
A Group RRSP is simply a collection of individual RRSPs that are administered via an employer for the employees. The employee can either receive his/her refund at tax time or the employer can simply deduct the monthly contribution from his payroll and no tax will be payable on the amount deposited. Employees AND employers can make contributions. The money is fully vested with the employee, who can collapse the RRSP and pay the tax at any time or transfer the funds to a personal RRSP. At retirement, the employee can cash in the RRSP, buy an annuity or transfer into a RRIF.
Whereas with a Defined Contribution pension plan, the funds are locked in until death or retirement after age 55 (depends on Provincial Legislation that is applicable). The employer usually matches the employees contribution up to a fixed amount or percentage of earnings. If the employee terminates, his portion is fully vested and the employer’s money is usually vested after two to five years. The administration costs are higher with a pension plan and you have to deal with lots of provincial red tape.
When a member of a defined contribution plan retires, he can transfer the funds into a RRSP and keep it there until age 68. Also, he/she can transfer the funds into an annuity or a Life Income Fund(LIF). A LIF is similar to a RRIF, except there are maximum and minimum payments and the remaining funds at age 80 have to be turned into an annuity.
Some employers like Defined Contribution plans because it gives them more control over their contributions and ensures that the funds won’t be collapsed before retirement to buy a boat or take a holiday. Others like the Group RRSP because of its low costs and simplicity. Both plans offer the employees the choice of where the funds can be invested.
A third choice is a Defined benefit plan that pays a percentage of final earnings at retirement. I will not go into detail about this plan. Suffice to say that there are very few sold and/or still offered today except for large corporations. I have found that these plans are very difficult to understand for all parties concerned, a possible future liability for the employer, expensive to operate and only of value to the employee if they stay with that employer for a very long time.
The bottom line is that it is important to get some type of plan in force so when employees are in their less productive states later in life, they will have the money there to retire and make room for new hires. This helps avoid the retirement liability for the employer!