GSRS Small Business Product
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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