Transcript GSRS Small Business Product

Introducing…Manulife’s
FutureStepTM Group RRSP
Offering a group savings program
has never been easier for small business…
Agenda
 Understanding of your needs
 The Manulife FutureStepTM Group RRSP
Product details
Product options
Service and support
 Next steps
Unique Small Business Issues
 Attracting talent
Competing with large firms
 When you lose a key person: you feel it
Knowledge-based small businesses
‘Day one’ employees
 How do you create effective retention strategies?
Important features
 Low cost
 Little time or effort to run
 Easy to understand
You’re an expert in your business… not group retirement savings
 High employee value and impact
Employee attitudes influenced
by a company retirement plan
Question: I think of my employer more positively because
of the retirement plan offered as part of my compensation
Strongly agree
2008
2007
2006
Somewhat agree
40%
43%
36%
4th annual Benefits Canada Capital Accumulation Plan Member Survey
82%
42%
37%
39%
2009 n=1271
80%
75%
2008 n=1195 2007 n=1122
2006 n=1122
Employees reluctant to leave because
of the company retirement plan
Question: I would be reluctant to leave my employer because
of the retirement plan offered as part of my compensation package
Strongly agree
2009
2008
2007
2006
20%
59%
39%
30%
32%
28%
4th annual Benefits Canada Capital Accumulation Plan Member Survey
Somewhat agree
27%
26%
27%
57%
58%
55%
2009 n=1271
2008 n=1195 2007 n=1122
2006 n=1122
Manulife has a solution…
The FutureStep Group RRSP
Manulife’s FutureStep Group RRSP
 Works with your compensation approach
Enhances employee appreciation and loyalty
Helps you gain a competitive edge
Tangibly conveys your concern for employees' life after work
Contributes to employees’ financial security
Creates a workplace in which your employees want to stay
for the long term
Get started with as little as…
 Two members
 Contributions of $10,000 annually (cashflow) as a group
 No cost to you, unless you choose to contribute on
employees’ behalf
FutureStep Options
 We work together during set up
 You choose who contributes
Company only
Company + Employee
Employee only
FutureStep Options
 You may choose if you want different rules
for different employees
e.g. ‘management’ vs. ‘non management’
 Either way, you will have
One contribution file
One set of online reports
FutureStep Options
 You choose plan design(s) that suit you
Eligibility
Contribution formula
Definition of earnings
 Manulife issues contracts for review immediately
FutureStep Options
 Employees may set up spousal RRSP accounts
 Two types of withdrawal restrictions
Not allowed while employed
 Excludes Home Buyers’ Plan, Lifelong Learning Plan,
and employee voluntary contributions, or
Allowed while employed
FutureStep Fund line-up
 Employees choose their investments
 One fund line-up
Managed by Manulife
Monitored by i-Watch®
Covered by Certified Diversified® Warranty Program
 One very competitive fee
Varies by fund
FutureStep Fund line-up
 Range of choices for all types of investors
No touch - Retirement Date
Low touch - Asset Allocation
High touch - selection of ‘build your own’ funds
 Default
Primary: Retirement Date
Secondary (if date of birth is missing): Moderate Asset Allocation Fund
FutureStep Fund line-up
Target Date
Manulife Retirement Date suite of funds
(2015 – 2050) – 1.85%
Manulife Retirement Income Fund (2000) – 1.85%
Asset Allocation
Manulife Asset Allocation suite of funds
(2001 – 2005) – 1.80%
Fixed Income
Manulife Daily High Interest (3191) – 1.40%
MLI Canadian Money Market (3132)– 1.50%
MLI PH&N Bond Fund (4271) – 1.75%
MLI MFC Global Pooled Canadian Bond Index
(4191) – 1.52%
Balanced
MLI Leith Wheeler Diversified Pooled (5301) – 1.80%
MLI Fidelity Canadian Asset Allocation (5141)
– 2.15%
Canadian Large Cap Equity
MLI Jarislowsky Fraser Canadian Equity (7241) – 1.75%
MLI Scheer Rowlett Canadian Equity Fund
(7601) – 1.85%
MLI Greystone Canadian Equity Fund (7481) – 1.75%
MLI MFC Global Pooled Canadian Index (7132) – 1.53%
Canadian Small Cap Equity
MLI MMF Growth Opportunities (7122) – 1.95%
US Equity
MLI U.S. Diversified Growth Equity (Wellington)
(8196) – 2.00%
MLI MFC Global Pooled US Equity Index (8131) – 1.53%
International Equity
MLI International Equity (Templeton) (8192) – 2.10%
MLI BlackRock International Equity Index Fund (8321) – 1.65%
Global Equity
MLI Trimark Fund (8181) – 2.05%
MLI McLean Budden Global Equity Fund (8161) – 1.80%
Other Investment Options
 Group Investment Accounts
1, 3, 5 year terms
 FutureStep GIA rate
Lower fees = High impact
 A difference of over $23,000 after 25 years
Value of your savings
$250,000.00
Impact of fees on your retirement savings
$205,490
$181,604
$200,000.00
A difference of $23,886!
$150,000.00
$100,000.00
$50,000.00
$1
3
5
7
9
11
13
15
17
19
21
23
25
Years
Investing in Manulife Small Business Group RRSP - average fee of 1.75%
Investing in Canadian Equity mutual fund - average fee of 2.45%
Assumptions:
$25,000 initial transfer,
$3,000 annual contributions.
gross annual return of 6%
(reduced by management fees).
Source : Globefund- Canadian
Equity category as at
February 28, 2010
Member Reward Program
 For any member whose
balance in the plan is...
 Their IMFs decrease
or GIA increase by…
$25,000 to $39,999
0.10%
$40,000 to $59,999
0.20%
$60,000 plus
0.25%
Member with $60,000 could have Retirement Date fund at 1.60%
Impact of Member Reward Program
 Your employees may wish to transfer
in their personal savings
Effect of fees on your retirement savings
Value of your savings
$350,000.00
$320,038
A difference of over $54,000 after 25 years
$300,000.00
$265,322
$250,000.00
$200,000.00
$150,000.00
Assumptions:
$100,000.00
$50,000.00
$0.00
1
3
5
7
9
11
13
15
17
19
21
Year RRSP - average fee of 1.50%
Investing in Manulife Small Business Group
Investing in Canadian Equity mutual fund - average fee of 2.45%
23
25
$60,000 initial investment, $3000
annual contributions (based on
$50,000 annual salary with 3%
employer contributions and 3%
employee contributions), gross
annual return of 6% (reduced by
1.50% for the Manulife Group Plan
and 2.45% for the average
Canadian Equity Fund.
Note:Member Rewards Program
reduction in fees has been
included in this example.
Source: Globefund –
Canadian Equity category as at
February 28, 2010
Support during FutureStep set up
 National Service Consultant
Dedicated, proactive support for small business employers
Invited to a webcast to get you started
Plan Administration Guide
Ongoing Support
 National Service Consultant support continues
 1-800 Plan Sponsor Call Centre
 Secure sponsor website
Make contributions, access statements online
 Pre-authorized debit
Newsletter and other resources
Launching to your Employees
 Three options
[your name here if you will do in person employee meetings]
Online multi-media presentation
1-800 Financial Education Specialists
 Monday to Friday, 9 a.m. to 5 p.m. ET
Employee Enrolment Support
 Enrolment package with booklet
Award winning
Easy to use
Plain language
Supports selecting investments
Ongoing Member Support
 Annual electronic statement in December
 Secure website
Steps Retirement Program®
Online and phone transactions
 Paper transactions not recommended
 1-800 Member Call Centre
Monday to Friday from 8 a.m. to 8 p.m. ET
Why the FutureStep Group RRSP?
For you
 A low cost, high value way to attract and retain employees
 Quick to set up, easy to manage
 One low fee associated with each fund
 Top quality product, very competitive price for your employees
For your employees
 Low fees so retirement savings grow faster
 First-class services and support
 Access to financial advice
[include if you will be providing this service]
Next steps
 [fill in your next steps here]
Questions