Whether you are a veteran of the group business or looking to gain a foothold in this expanding marketplace, the VRSP and PRPP present excellent opportunities to grow your business.
In Quebec, the VRSP offers a special opportunity because, as of July 1, 2014, it will be mandatory for small- to medium-size Quebec businesses with 5 or more eligible employees (subject to the phase in period referred to above), who do not already have the opportunity to contribute via payroll deduction to a registered retirement savings plan or tax-fee savings account and are not members of a registered pension plan, to offer a VRSP. According to Statistics Canada, as of 2012, there were a total of over 95,000 such businesses in Quebec1. That represents a significant “captive” market with an urgent need for a VRSP or other retirement savings product.
In the rest of Canada, the PRPP opens the door to new or renewed conversations about group retirement plans. The media attention invites discussion with any group benefit clients who, for whatever reason, felt that employer-sponsored retirement savings plans were beyond their resources. And if your focus is the individual market, you may find you have a number of clients who own small- to mid-size businesses whose employees would definitely benefit from a PRPP.
If you're active in the group retirement services market, you'll find a growing need for your advice.
Even though the core VRSP / PRPP plan designs will be set by regulation, employers will need help choosing a provider. As we help you to address those needs, chances are you'll find other opportunities to add value – first through your advice and then by providing additional products and services.
Your clients will appreciate the many advantages we offer as Canada's leading supplier of group retirement services:
- A turn-key product that is easy for employers and employees to understand
- Complete administration support every step of the way
- Award-winning education and communication services for plan members
- Financial strength, stability and a tradition of excellence
And both you and your clients can rest assured that the solution we provide – whether it's a VRSP, PRPP or more traditional retirement savings plan – will meet the legislative requirements.
It's also important to remember that every group account you have is made up of individual people. People who need advice. The closer they get to retirement, the more focused they are on building savings. They want to preserve their capital and they need tailored strategies to generate predictable retirement income. By providing seminars and other value-added services you can easily market to this prime audience.
If you're active in the group benefits or individual markets, the VRSP and PRPP can help you branch out into new and lucrative territory.
Today, employers of all sizes compete for good employees. And they'll continue to do so as boomers retire in ever greater numbers. With their flexibility and ease of administration, a Sun Life Financial VRSP or PRPP will be an effective addition to the benefit plans of any small-scale employer.
If you're in Quebec and have group benefit or individual clients who own small- to medium-size businesses, the mandatory VRSP is a great opportunity. By helping your clients meet their legislated obligation you're providing a service they simply have to have. And by presenting the Sun Life Financial solution, you'll be sharing the best design solutions from the industry's leading provider.