A Combined Pension Solution
For Your Organization’s Defined BENEFIT and Defined CONTRIBUTION
Pension Plans
Defined Benefit (DB) and Defined Contribution
(DC) pension plans with different providers
It’s not unusual for companies to
have a DB plan administered by one
provider and a DC plan administered
by another. This can occur for a
number of reasons.
1 T
he changing pension landscape…
While DB plans were once commonly
offered by private sector organizations, the
pension landscape in Canada has begun
to undergo a shift towards DC plans.
Organizations establishing new DC plans often
looked to providers with greater DC expertise
to support them.
2
Mergers and acquisitions…
As companies have acquired other firms,
they’ve often maintained the DB or DC plans
that were originally offered and continued
to deal with the different providers who
support them.
3 Distinct expertise residing with
different providers...
In Canada, life insurance companies have been
dominant in the DC pension market while
the DB pension market has been supported
by traditional providers of custodial services.
Many companies – and their advisors – haven’t
become accustomed to placing both plans with
a single provider.
Why not consider consolidating your plan with Manulife?
2
Manulife – a trusted, experienced provider of
services for DB and DC plans
With more than 60 years’ experience managing group retirement programs for Canadian
companies of all sizes, Manulife is a market leader delivering a strong variety of investment
options plus effective administration at competitive prices.
For DB plans…
Managing the plan’s assets can be a significant
commitment. Substantial time and resource
requirements, as well as a need for specialized
investment expertise, can prove challenging.
Manulife’s DB Investment Only (IO) product delivers
an integrated solution, combining investment breadth
and flexibility with administrative ease.
Under a single contract, DB IO provides organizations
with access to a variety of segregated funds offered by
a selection of leading investment managers. Separate
agreements with the custodian and the investment
manager(s) are not required. This cost-effective
approach offers increased flexibility and convenience.
Key Features of Manulife’s DB IO
solution
Cost control
Plan sponsors benefit from the significant
purchasing power Manulife enjoys with leading
institutional investment managers and custodians,
and from the attractive fee arrangements Manulife
has with these organizations.
Administrative efficiency
On behalf of the plan sponsor, Manulife deals
with investment managers and the custodian;
in addition, Manulife handles activities related to
making pensioner payments. This saves the plan’s
administrative team the time traditionally required
to manage external relationships and related
administrative activities.
Professional expertise
Manulife’s Defined Benefit Strategic Solutions
Team works with plan sponsors to develop an
effective investment strategy for your defined benefit
plan(s). After analyzing the plan’s key documents,
including the Statement of Investment Policies
and Procedures, this Team develops an investment
strategy appropriate for the plan’s financial position
and risk-return objectives.
3
Services Manulife offers for DC plans
Industry-leading recordkeeping services
With more than a half century of experience providing
recordkeeping services for DC plans, Manulife gives
plan sponsors peace of mind, ensuring their plans meet
organizational goals while fulfilling legislative requirements.
Outstanding communications and member education
Easy-to-follow enrolment kits and account statements,
combined with the dynamic Steps Retirement Program®, form
a suite of resources plan members can use to fully understand
and appreciate their retirement savings plan. Informed plan
members will use the plan to their advantage, which in turn
helps sponsors demonstrate good plan governance.
An innovative, informative plan member website
The secure plan member website ensures plan members have access to account information – as well as the
ability to make transactions – 24 hours a day, 7 days a week. The site also contains a wealth of education material
to help plan members make informed investment decisions that support their long-term retirement goals.
The Steps Retirement Program®
Manulife’s Steps Retirement Program® (Steps) provides members with a continuing estimate of annual retirement
income based on their specific data (age, investor style, contribution rates). Steps also helps members set a
retirement income goal, create a plan to achieve that goal, and track their progress. Members see their personal
estimates both on the secure site and on every statement they receive.
Why haven’t more organizations consolidated their retirement programs?
To meet the CAP Guidelines, organizations must review their DC plan providers frequently. These reviews identify
when a change in provider may be necessary – for example, to benefit from lower fees or more effective service.
However, as plan sponsors are not required to review their DB provider as regularly, most tend to keep this plan with
its original provider.
Moreover, transferring a DC plan to a new provider requires effort from sponsors and providers. Concerned that
transferring the DB plan may require the same level of effort, sponsors are often reluctant to move the plan to
another institution.
However…
Transferring a DB plan is easier than most organizations realize – and there are many good reasons to do this at the
same time the DC plan is being transferred.
4
Advantages of having both plans
with Manulife
Consolidating a retirement program with Manulife offers these benefits:
Significant savings
Convenient access to plan data
By consolidating retirement programs with Manulife,
plan sponsors enjoy the convenience of having a single
point of contact for the day-to-day administration of
both plans. A dedicated Client Relationship Manager
handles all inquiries related to the DC plan and to
the fund management and custody of the DB plan.
Having one dedicated contact – who understands
the organization’s objectives – provides effective
administration that saves time and effort.
From on-demand information available from a
secure website, to regular reports issued each
month, Manulife offers a wide selection of resources
to update plan sponsors, plan administrators and
pension committees.
World-class investment managers
Manulife’s long-standing relationships with investment
managers provides affordable access to many funds
not otherwise available. This gives plans access to one
of the most diverse investment platforms in Canada,
offering a broad spectrum of asset classes and
management styles.
Innovative investment options
Manulife strives to offer an investment platform –
to all group retirement programs – featuring the
most innovative and comprehensive options available.
Manulife’s investment offering – available to plans of
all sizes, is regularly reviewed to ensure it can help
meet the long-term goals of diverse organizations.
Excellent service from knowledgeable
Client Relationship Managers
Plan sponsors and administrative staff are supported
by knowledgeable Client Relationship Managers and
Customer Service Representatives trained specifically
on the details of both plans.
Smooth transition of assets
Manulife’s proven transition process uses a disciplined
project management approach to support a
streamlined movement of assets. This minimizes
support required from clients’ administrative staff to
ease the process of asset movement.
In-house expertise you can count on
Ongoing access to Manulife’s Defined Benefit Strategic
Solutions Team helps plan sponsors tailor effective
investment strategies to align with organizational goals
and their DB plans’ Statement of Investment Policies
and Procedures.
5
Manulife’s Defined Benefit Strategic
Solutions Team
This Team offers valuable guidance to all organizations – whether firms plan to maintain both their defined
benefit and defined contribution plans intact, or want to convert the defined benefit plan to another framework.
The team works with Manulife’s defined contribution plan experts to offer superior support to plan sponsors both
during the implementation phase then on a continuing basis.
Expert support provided by knowledgeable, experienced professionals
This Team includes actuarial and investment experts who provide insights and investment support to defined
benefit pension plan sponsors.
Team members will review the defined benefit plan’s key documents to learn more about the plan’s provisions,
financial position and current investment strategy. This helps Manulife and the plan advisor develop more focused
and effective strategies to help the plan meet its financial and organizational goals.
The Team can also help you understand changes to pension regulations and actuarial standards plus develop
investment strategies that are appropriate for the plan’s financial position and investment objectives.
Finally, the Team provides comprehensive reporting and support to help plan sponsors fulfill fiduciary
responsibilities and plan monitoring requirements.
6
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