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Advisor guide

Mackenzie Group Plans

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Table of contents

The Group Savings Plan opportunity

Group Plan case study

Mackenzie’s Proven Partnership and our marketing and sales support

Where to start: prospecting, sample questions and processes

Types of Group Plans offered

Group Plan management made simple

Steps for setting up or transferring Group Plans (Group RRSPs, DPSPs and DCRPPs)

Contribution options

Appendix

Applications

Checklists

Sample letters

Type of reports

Fees

Investment options

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The Group Savings Plan opportunity

The group plan market is growing rapidly, as more and more companies are finding that having a quality group plan helps to attract and retain high caliber employees.

This growth is providing an excellent opportunity for advisors to become active in the lucrative group plan market. This guide is designed to provide you with the information you need to understand group plan basics and to build your business.

The group plan business has unique attributes that can provide impressive benefits, including:

1. Access to the high net worth market (HNW)

Many small business owners are in the high net worth category. When implementing a group plan with a small business you are usually dealing with ownership. Be sure to naturally evolve the conversation into all the services you provide for small business owners. Give an example of a small business you have already helped.

2. Annuitize your business

Once set up, a group plan provides steady monthly income. All contributions are new money.

3. High retention of assets

Group plan assets tend to be “sticky assets”; client retention is higher than for individual accounts.

Group plan members tend to be savers and stay invested through all types of markets.

4. Daytime activity

Group business is typically a nine-to-five business. Meetings with both employers and employees are typically held at the business.

5. Tremendous cross-selling opportunities

Payroll deductions are just the start. For every $1 in cash flow that goes through payroll deduction, there is a cross-selling opportunity for an additional $5 to $7 in additional business.

Group plans by the numbers

*Source: Statistics Canada **Source: Benefits Canada ***Source: Mackenzie Investments

Over $208 billion in assets**

Only 2% of advisors are active in the group retirement market***

1.15 million small businesses in Canada*

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Group Plan case study

Ultimate Manufacturing Company50 members x $40,000 average earnings

Member contributions: 3% of earnings

Plan sponsor contributions: 3% of earnings

Cash flow through payroll

Potential cross selling1. Potential to maximize contributions from 6% to 18%

2. IPP for top two executives @ $100,000 each

3. Owner’s account, Mackenzie Private Wealth Program option

4. Group RESP 10 x $2,000 annually (plus grant)

5. Rollover individual RRSPs: 5 @$15,000

6. Rollover existing Group Plan (if applicable)

7. Business account placed in Corporate Class

8. Opened a Corporate Charitable Giving account

Total potential cross-selling opportunities

As you can see, a group retirement plan with $120,000 in payroll deductions can lead to $2,099,000 in other business!

$2,000,000 payroll

$60,000

$60,000

$120,000

$360,000

$200,000

$500,000

$24,000

$75,000

$750,000

$50,000

$20,000

$2,099,000


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Mackenzie’s proven partnershipMackenzie Investments proven partnership approach to group plans is a perfect fit for group plans of all sizes. By combining the personal financial planning services of a financial advisor with the respected investment management and record keeping services of Mackenzie Investments, plan sponsors and members reap the benefits of top-quality service and products.

Our commitment

Marketing and Sales Support

Advisor commitment

Provide information, communication and education to plan members and direction to plan sponsors.

The role of the trustee

B2B Trustco, a federally regulated trust company, is the trustee of Mackenzie Group Plans. The Trustee appoints Mackenzie Investments as its agent to provide services to group plans many of which are the same services described above. These include applying to Canada Revenue Agency for registration of certain types of Group Plans, custody of Mackenzie Mutual Fund securities and client reporting, including account statements and tax reporting.

Marketing and sales supportMackenzie Investments has a dedicated group sales team that works closely with advisors to prospect, close and implement new plans. From coaching on how to conduct the initial fact-finding interview to attending meetings and/or making presentations, we offer assistance for all situations during the sales cycle.

Mackenzie group plan collateral support materials include:

• Enrolment kits for both employee and employer

• A fact-finding questionnaire for plan sponsors

• Group plan proposals that can be customized by Mackenzie Investments or advisor

• PowerPoint presentations

• Decision maker presentations

• Employee introductory presentations

• Employee update presentations

• Retirement U, series of presentations to help educate employees

Investment management and

record keeping

Comprehensive reporting

Preparation of certain provincial or federal government filings

Toll free customer

service lines


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Where to startProspecting

All your clients are prospects

Ask yourself:

• Do you have a client who owns a business or is employed?

• Approach clients that own a business or clients that are a key executive with a company.

• Approach acquaintances from previous work experience or contacts.

• Ask existing businesses or business owners you have for referrals.

• Join groups where you can make contacts, for example utilize your local Chamber of Commerce.

Questions to help uncover opportunities

Create a process/habit of questions to ask

• Do you have a retirement plan at work?/Do you offer a retirement plan to your employees?

• What type of plan is it?

• Does your employer contribute to the plan?/Do you contribute to your employees plan?

• Who is the individual servicing the plan? What is the process for enrolment?

• Which financial institution administers the plan?

Sample employer questions.

An employer with an existing plan

• How satisfied are you on a scale of 1 to 10 with your current group retirement plan? Your employees?

• Followed up by: What would it take to make it a 10?

No existing plan – new plan

• How often do you hear in job interviews what type of retirement plan do you have? How does this affect your ability to attract/hire good talent? and/or

• What are you currently doing/offering to help reward, attract, motivate and retain employees?

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The right questions will have an impact.


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First meeting: Fact finding

• Book a meeting with the decision-maker to assess their current situation and goals for a group plan. The approach is similar to an initial interview with a prospective new individual client.

• Prior to the meeting get as much information as possible through contacts, internet, website.

• Utilize the Fact-Finding Questionnaire developed by Mackenzie Investments. There is a series of questions for new plans and additional questions for existing plans.

Look for an opportunity to redirect existing funds, for example cash bonuses. The bonus directed to a Group Retirement plan is done without deducting income tax. A benefit for both the employer and employee.

Book an appointment to return and present a formal proposal, or a follow up meeting.

Second meeting: Formal proposal (if necessary)

Mackenzie Investments can customize a proposal with two weeks’ notice. A PowerPoint presentation is also available.

Be prepared to discuss:

• Summary of their current situation

• Reinforce your expertise as well as that of your firm

• Recommend Mackenzie Investments as the investment manager and record keeper

• Provide a timeline for the implementation

• Close with a review of how your proposal addresses the decision maker’s goals for a high-quality group plan

Once the decision maker gives the go ahead

Contact Mackenzie Investments Group Sales and Marketing Team to discuss next steps and order supplies for your upcoming member meeting. (Steps to setting up plans can be found starting on page 11).

Member information session

Introduce the plan to members and explain the process. Mackenzie Investments can assist you during the presentation and/or provide you with a PowerPoint presentation.

Individual member consultations

Arrange a 15 to 30-minute meeting with each individual to discuss his or her investment options. Ideally this meeting should take place on site.

Plan sponsor remits contributions or transfers plan

Once all applications have been finalized, the plan sponsor can begin to remit contributions. Contribution options are on page 16.

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Types of Group PlansMackenzie Investments offers a comprehensive selection of group plans designed to meet a variety of objectives, including saving for retirement, sharing company profits or accumulating funds for a major outlay such as a child’s post-secondary education.

Group Plans for retirement and investment needs

Group Registered Retirement Savings Plan (Group RRSP)

A Group RRSP is simply a collection of individual RRSPs where members (employees) make contributions through payroll deductions. The member realizes instant tax savings because the contribution is deducted from earnings before tax.

Highlights

1. Plan sponsor (employer) contributions:

• Taxable benefit and subject to payroll taxes

• Voluntary

• Vests immediately

2. Spousal plans available

3. No set-up costs

4. Can be voluntary (only member contributes)

5. Restrictions on withdrawals is optional

Deferred Profit-Sharing Plan (DPSP)

A DPSP is a means to share company profits. It can be used on its own or as a supplement to a Group RRSP.

Highlights

1. Plan sponsor contributions:

• NOT subject to payroll taxes

• Only plan sponsor contributions are permitted

• No mandatory minimum contribution

• Vesting period of up to two years based on service or plan membership

• Creates a Pension Adjustment (PA)

2. Withdrawals can be restricted to termination, death, and retirement.

3. One-time set up fee may apply.

4. Connected persons (anyone who owns at least 10% of any class of the company’s shares or does not deal at arm’s length with the plan sponsor) are not permitted to participate in a DPSP.

5. Contributions must be made out of profits or retained earnings.

6. Maximum contribution is limited to the lesser of 18% of earned income or a dollar limit equal to one-half of the Money Purchase Limit for the current year.

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• Not locked-in

• Contributions cannot exceed individual’s personal RRSP limit

• Deductible expense for the plan sponsor


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Defined Contribution Registered Pension Plan (DCRPP pension plan)

The contributions to a DCRPP are defined, whereas the benefit at retirement is not. Instead, benefits are dependent on the amount of contributions and the growth of the fund. Legislation requires the plan sponsor to contribute to a DCRPP.

Highlights

1. Plan sponsor contributions:

• Not subject to payroll taxes

• Immediate vesting in most provinces

• After contributions vest, all monies are locked-in

• Minimum employer contribution is 1% of pensionable earnings

• Creates a Pension Adjustment (PA)

2. No redemptions allowed

3. One-time set-up fee may apply

4. Provincial regulatory fees apply and vary from province to province (see page 29 for Provincial Fees)

Individual Pension Plan (IPP)

An IPP is a defined benefit pension plan designed to provide an individual with a steady stream of income in retirement. An alternative retirement savings vehicle that allows for enhanced tax relief and increased pension benefits above and beyond those available through an RRSP. IPPs are suitable for key executives, self-employed professionals or entrepreneurs. Key parameters include:

• Holder should be over 40 years of age

• Have already maximized RRSP contribution (not required)

• Earn $100,000+

• Be an employee of an incorporated company

Note: Mackenzie Investments facilitates the set-up of IPPs with a third party IPP administrator and does not directly support Individual Pension Plans.

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Supplementary plansPlan sponsors may wish to help members reach other major goals in life. Mackenzie Investments offers plans for members to set aside money for a large purchase or to save for their children’s education.

Group Tax Free Savings Account (TFSA)

• Contributions are deducted after tax from payroll and are not tax deductible, but investment returns earned in a TFSA are not taxed, even when withdrawn

• Withdrawals are tax free and funds can be used for any purpose

• Unused contribution room can be carried forward to future years

Group Non-Registered Payroll Savings Plan

• Contributions are deducted after tax from payroll and invested in a suitable Mackenzie Mutual Fund

• The member’s savings are always accessible and have the potential to grow considerably faster than they would in a traditional savings account

Group Registered Education Savings Plan (Group RESP)

• A popular way for members to save for their children’s education

• Contributions are deducted after tax from payroll and are not tax deductible, but the investment grows tax free until the beneficiary withdraws the funds for post-secondary education

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Group Plan management made simpleSetting up a new Group RRSP or transferring an existing Group RRSP to Mackenzie

Initial set-up: Order plan sponsor set-up kit for Group RRSP

Have the Group RRSP Plan Sponsor Set-up Form completed with the plan sponsor (employer) and forward to Mackenzie Investments

All applications are fillable PDFs.

Access fillable PDFs from our website at www.mackenzieinvestments.com.

From the Home Page, scroll to the bottom of the page, under Key Resources select Applications and Forms. Note: The minimum number of members to open a new plan is three.

Notify members (employees)

Distribute a notice, on company letterhead, of the implementation of a Group RRSP or of change in recordkeeper and trustee to all members to all members.

The memo should also include the time and date of the information seminar (refer to sample letter in appendix).

Notify existing carrier (for Group RRSP transfer only)

The plan sponsor is to send a letter to the current trustee containing the following (refer to sample letter in appendix).

1. The effective date the plan will be changing carriers.

2. The direction to transfer current assets to Mackenzie Investments.

Complete a Registered Plan Transfer Form (T2033, TARI) for each member to transfer the assets to Mackenzie Investments and forward to the relinquishing trustee.

Note: When transferring an insurance company plan, a bulk transfer may be requested. No individual TARI forms will be required.

Member enrolment: Order Group RRSP member kits

Each member must complete a Group RRSP Member Application Form with the help of the financial advisor. To help streamline the enrolment process it is suggested that for larger cases, these forms be completed in a group session or given to the members to complete the plan holder information. Remember to have your firm’s Know Your Client Form completed as well and give each member a copy of the relevant fund facts.

*Note: Send Plan Sponsor Set-up Form and Group RRSP Member Application to Mackenzie Investments prior to first remittance.

Transfer of assets/contributions

The existing assets will then be transferred directly from the current trustee/administrator to Mackenzie Investments for deposit. The remittances from the plan sponsor will be sent directly to Mackenzie Investments.


http://www.mackenzieinvestments.com

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Setting up a new Deferred Profit-Sharing Plan (DPSP) or transferring an existing DPSP to Mackenzie

Initial set-up: Order plan sponsor kit for a DPSP

Have the DPSP Plan Sponsor Set-up Form completed with the plan sponsor (employer) and forward to Mackenzie Investments.



From the Home Page, scroll to the bottom of the page, under Key Resources select Applications and Forms.

For transfers only: Include a copy of the existing Plan Document, Trust Agreement or Insurance Contract and the latest plan financial statement.

Note: The minimum number of members to open a new plan is three.


Distribute a notice, on company letterhead, of the implementation of a DPSP or of the change in record-keeper and trustee to all members. The memo should also include the time and date of the information seminar (refer to sample letter in appendix).

Note: Mackenzie Investments will be unable to invest any money into the DPSP prior to receiving an executed trust agreement.

For transfer only: Notify existing carrier

The plan sponsor is to send a letter to the current trustee containing the following (refer to sample letter in appendix).



Filing process

New DPSP: Mackenzie Investments will prepare the plan document, trust agreement, resolution, member booklet including a Plan Specific Terms insert and T2214 Canada Revenue Agency DPSP Registration Form. Three copies of the plan document, trust agreement resolution and one copy of the T2214 will be sent to the financial advisor to have signed by the plan sponsor, along with the member booklet with Plan Specific Terms, and the billing for the one-time DPSP set-up fee.



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For DPSP transfer only: Mackenzie Investments will prepare an amended plan document, a trust agreement, an amended resolution and member booklet with Plan Specific Terms insert. Three copies of the updated plan document, trust agreement and amended resolution will be sent to the plan sponsor.

For both new and transfer: The plan sponsor is to sign all documents as directed in the set-up letter and return to Mackenzie Investments. Once Mackenzie receives the documents and has a B2B Trust sign the trust agreement,one set of the documents will be sent to the Canada Revenue Agency, and the other set will be kept on file by Mackenzie Investments. A signed copy of the trust agreement will be sent to the plan sponsor. It is the responsibility of the Plan administrator to ensure that all plan members and eligible employees receive a copy of the booklet.

Note: Mackenzie Investments will be unable to invest any money into the DPSP until the Trust Agreement has been signed by B2B Trustco and all the documents have been filed with CRA.

Member enrolment: Order DPSP member kits or Group RRSP/DPSP member kits if a combo plan

Each member must complete a DPSP Member Application Form and/or a Group RRSP Member Application with the help of the financial advisor. To help streamline the enrolment process, it is suggested that for larger cases, these forms be completed in a group session or given to the members in advance to complete. Remember to have your firm’s Know Your Client Form completed in these cases as well as giving each member a copy of the relevant fund facts.

*Note: All DPSP member application forms must have Section 7 completed and authorized by the plan sponsor. The employer must also complete the dates of hire and plan entry. Send Plan Sponsor Set-up Form and DPSP member application forms to Mackenzie Investments prior to first remittance.

Contributions/transfer



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Setting up a new Defined Contribution Registered Pension Plan (DCRPP) or transferring an existing plan to Mackenzie

Initial set-up: Order plan sponsor set-up kit and member kit for a DCRPP

Have the DCPP Sponsor Set-up Form completed with the plan sponsor (employer) and forward to Mackenzie Investments.



From the Home Page, scroll to the bottom of the page, under Key Resources select Applications and Forms. Note: The minimum number of members to open a new plan is three.

Notify existing carrier (for DCRPP transfer only)

The plan sponsor is to send a letter to the current trustee containing the following (sample letter in appendix).




Distribute a notice, on company letterhead, of the implementation of a DCRPP or the change in record-keeper and trustee to all members. The memo should also include the time and date of the information seminar (refer to sample letter in appendix).

Filing process

New plan: Mackenzie Investments will prepare the plan document, trust agreement, resolution, Statement of Investment Policies and Procedures (SIP & P), CRA and provincial regulator registration forms, the DCRPP Investment Options booklet and member booklet with Plan Specific Terms insert. Four copies of the plan document, trust agreement, resolution, Statement of Policies and Procedures (SIP & P), and one copy of CRA and provincial regulator forms will be sent to the financial advisor to have signed by the plan sponsor, along with the DCRPP Investment Options booklet and member booklet with Plan Specific Terms insert.

For transfer only: Mackenzie Investments will prepare a new or amended plan document, and trust agreement, an amended resolution, Statement of Investment Policies and Procedures (SIP & P), DCRPP Investment Options booklet, member booklet with Plan Specific Terms insert, Application to Amend a Registered Pension Plan (T920) and the applicable pension authority form.



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Both new and transfer: Four copies of the plan document, trust agreement, amended resolution and SIP & P will be sent to the plan sponsor, along with the billing for the one-time DCPP set-up fee. The plan sponsor is to sign all documents as directed in the set-up letter and return to Mackenzie Investments. Once Mackenzie receives the documents and has B2B Trustco sign the trust agreement, one set will be sent to the Canada Revenue Agency, one set to the appropriate pension authority and the other set will be kept on file by Mackenzie Investments. A signed copy of the trust agreement will be sent to the plan sponsor. It is the responsibility of the plan administrator to ensure that all Plan members and eligible employees receive a copy of this booklet.

Note: Mackenzie Investments will be unable to invest any money into the DCPP until the Trust Agreement has been signed by B2B Trustco and all the documents have been filed with the CRA and the applicable provincial regulator.

Member enrolment: Order a member kit for DCRPP

Each member must complete a DCPP Member Application Form with the help of the financial advisor. To help streamline the enrolment process, it is suggested that for larger cases, these forms be completed in a group session or given to the members in advance to complete. Remember to have your firm’s Know Your Client Form completed as well as giving each member a copy of the relevant fund facts.

*Note: All member enrolment forms must have Section 7 authorized by the plan sponsor. The Employer must also complete the dates of hire and plan entry. Send Plan Sponsor Set-up Form and DCPP member application form to Mackenzie Investments prior to first remittance.


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Contributions optionsContributions/transfers


Choose how to remit contributions:

1. By mail (default)

Employers may just choose to send us regular cheques by mail along with the contribution list. Pre-printed lists are sent to employers directly with postage paid return envelopes.

2. Electronic remittance (CCP deposits) – three options available:

In all cases a listing is electronically sent to Mackenzie. To get your approved Excel spread sheet, please contact Group Plan Support or your Group Plan sales team.

Three choices to send funds are:

a. Interactive voice response (IVR)

b. Wire transfer/Electronic fund transfer (EFT)

c. Direct deposit

Please call your Mackenzie Group Plans sales team or the group plan support team for details. (Some restrictions may apply).

The remittances from the plan sponsor will be sent directly to Mackenzie Investments.

**All correspondence should be sent to:

Mackenzie InvestmentsGroup Plans Administration 180 Queen Street West Toronto, ON M5V 3K1

or email [email protected] or fax at 1-866-766-6623

Should you have questions please contact the Mackenzie Group Plans Sales and Marketing Team at 416-967-2077 or toll free at 1-888-653-7070 ext. 2077.


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Appendix

Applications

Completing applications:


Access fillable PDFs from our website www.mackenzieinvestments.com

From the Home page, scroll to the bottom of the page, under Key Resources select Applications and Forms.

Applications and forms available:

• Group RRSP Member Application

• Group Plans Plan Sponsor Set-up Form (Group RRSP, Group TFSA, Group RESP)

• Group TFSA Member Application

• Deferred Profit-Sharing Plan – Plan Sponsor Set-up Form

• Defined Contribution Registered Pension Plan (DCRPP) – Plan Sponsor Set-up Form

• Defined Contribution Registered Pension Plan and Deferred Profit-Sharing Plan (DCRPP/DPSP) – Member Application Form

• Group Plan Member Change Form

Note: All fillable PDF applications can be downloaded and saved on your computer to be completed at a later time.

Pre-populated applications:

Please contact your Group Plans Sales Team to learn how we can help simplify the enrolment process.


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DPSP checklist

New planForward the following to Mackenzie Investments:

Completed Plan Sponsor Set-up Form

Completed DPSP Member Application Forms

Upon receipt of the Plan Sponsor Set-up Form, Mackenzie Investments will prepare and submit draft copies of the following documents/forms for the plan sponsor to review and sign:

Trust Agreement and Plan Document

Resolution adopting the Trust Agreement

Member Booklet with Plan Specific Terms insert

CRA Application for Registration as a Deferred Profit-Sharing Plan (T2214)

The above documents must be signed by the plan sponsor and returned to the Group Plans Administration Department prior to remitting any contributions. Upon receipt of these documents, once the Trust Agreement has been signed by the Trustee and all documents filed with the CRA, Mackenzie Investments will be legally entitled to accept and allocate monies to the selected accounts.

In addition, all DPSP member application forms must be submitted to the Group Plans Administration Department prior to remitting any contributions.

Plan transferForward the following to Mackenzie Investments:


A copy of last filed DPSP Plan Document, all subsequent Amendments and/or Board Resolutions and copies of all correspondence with the Canada Revenue Agency

Completed DPSP Member Application Forms

Upon receipt of the first two items, Mackenzie Investments will prepare and submit draft copies of the following documents for the plan sponsor to review and sign:

Trust Agreement and Plan Document


Member booklet with Plan Specific Terms insert

The above documents must be signed by the plan sponsor and returned to the Group Plans Administration Department prior to the transfer of any funds from the previous carrier. Upon receipt of these documents, once the Trust Agreement has been signed by the Trustee and all documents filed with the CRA, Mackenzie Investments will be legally entitled to accept the transfer of funds and allocate them to the selected accounts.

In addition, all DPSP member application forms must be submitted to the Group Plans Administration Department prior to the transfer of any monies from the previous carrier.


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DCRPP checklist

New planForward the following to Mackenzie Investments:


Completed DCRPP Member Application Forms

A copy of relevant sections of any Collective Agreement (union plans only)

Upon receipt of the Plan Sponsor Set-up Form, Mackenzie Investments will prepare and submit draft copies of the following documents for the plan sponsor to review and sign:

DCRPP Document

Trust Agreement

Resolution adopting the Pension Plan Text and Trust Agreement

Member booklet with Plan Specific Terms insert

Completed CRA Application to register a DCRPP (Form T510)

Completed provincial application form (depending on jurisdiction) for registration of a DCRPP

Cost certificate (for those jurisdictions where required)

Statement of Investment Policies and Procedures (SIP & P)

DCRPP Investment Options booklet

The above documents must be signed by the plan sponsor and returned to the Group Plans Administration Department prior to the remittance of any monthly contributions. Upon receipt of these documents, Mackenzie Investments will be legally entitled to accept pension funds and allocate them to the selected account.

In addition, all DCRPP Member Application Forms must be submitted to the Group Plans Administration Department prior to remitting monthly contributions.


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Plan transferForward the following to Mackenzie Investments:


A copy of last filed Plan Document and all subsequent Amendments and/or Board Resolutions

Complete DCRPP Member Application

A copy of last filed Annual Information Return

A copy of most recent Member Booklet

A copy of Collective Agreement (union plans only)

Copies of all correspondence with applicable provincial pension regulator

Copies of all correspondence with the Canada Revenue Agency, Registered Plans Division

Copies of all correspondence with the Indian and Northern Affairs Canada, if applicable

A copy of current Summary of Contributions Form (where applicable depending on province)

Upon receipt of the above items, Mackenzie Investments will prepare the following documents for the plan sponsor to review and sign:

Trust Agreement and amended Plan Document


Completed CRA Application to Amend a Registered Pension Plan (T920)

Completed provincial application form (depending on jurisdiction) for registration of a DC pension plan amendment

Statement of Investment Policies and Procedures (SIP & P)

DCRPP Investment Options booklet

Member Booklet with Plan Specific Terms insert

The above documents must be signed by the plan sponsor and returned to the Group Plans Administration Department prior to the transfer of any pension funds from the previous carrier. Upon receipt of these documents, once the Trust Agreement has been signed by the Trustee and all documents filed with the provincial regulator and the CRA, Mackenzie Investments will be legally entitled to accept the transfer of pension funds and allocate them to the selected accounts.

In addition, all DCRPP Member Application Forms must be submitted to the Group Plans Administration Department prior to the transfer of any pension funds from the previous carrier.


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Sample letterMemo to employees for a new Group RRSP, DPSP or DCRPP

<< SMART COMPANY LTD. LETTERHEAD>>

From: To: Date: Subject:

In an eff ort to better improve the quality of services to both employees and management<<Smart Company>> has decided to establish a <<Group RRSP/DCRPP/DPSP>>.

The organizations we have selected to handle our plan are as follows:

<<Best Financial Advisors Inc.>>: An independent fi rm of fi nancial advisors.

<<Best Financial Advisors>> focuses on providing the personal retirement planning andinvestment counselling services most individuals need to start and maintain a regular savings program together with a prudently diversifi ed investment strategy.

Mackenzie Investments: One of Canada’s leading mutual fund companies. MackenzieInvestments will be the investment manager and record-keeper for the <<Group RRSP/DCRPP/DPSP>>.

<<Ben A. Fitts>> of << Best Financial Advisors>> will be presenting on <<Date/Time>>,he/she will distribute enrolment kits and explain the details of our <<Group RRSP/DCRPP/DPSP>> program.

We look forward to seeing you there.

Regards,

<<Management>>

Smart Company Inc. ManagementAll Employees of Smart Company Inc.<<Date>>Group RRSP/DCRPP/DPSP


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Sample letter to relinquishing carrierTransferring an existing Group RRSP to Mackenzie Investments


<<DATE>>

<<EXISTING CARRIER>>

<<ADDRESS >>

Dear Sir/Madam

<<SMART COMPANY LTD. >>

Please accept this letter as confi rmation that Mackenzie Investments will administer the above Group RRSP as of <<DATE>>

Please proceed in transferring all assets under the Plan along with a breakdown of eachmember’s funds to the attention of Mackenzie Investments at 180 Queen Street West,Toronto, ON M5V 3K1. Attention: Group Plans Administration Department.

If you have any questions or concers, please feel free to contact me directly.

Sincerely,

<<NAME>><<TITLE>>


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Sample letter to relinquishing carrierTransferring an existing Deferred Profit Sharing Plan (DPSP) to Mackenzie Investments


<<DATE>>


<<ADDRESS >>

Dear Sir/Madam

Re: Deferred Profi t Sharing Plan for <<SMART COMPANY LTD.>>Canada Revenue Agency Registration <<0212120>>

Please let this letter serve as notice that we will be terminating our above cited policy eff ective <<Date>> and no further contributions will be permitted after this date.

Please accept this letter as our confi rmation that Mackenzie Investments and B2B Trustco have agreed to continue to assist in the administration of the above-noted deferred profi t sharing plan under the existing Canada Revenue Agency (“CRA”) registration number. Mackenzie Investments will be providing you with an undertaking to this eff ect in the near future.

As this is a continuing deferred profi t sharing plan and the only change is a change in the carrier and trustee, please proceed in transferring all assets in the Plan along with a breakdown of each member’s funds, to the attention of the Group Plans Administration Department, Mackenzie Investments, 180 Queen Street West, Toronto, ON, M5V 3K1.

An amendment to the plan is currently being prepared by Mackenzie Investments and will besubmitted to CRA with the appropriate Resolution, Trust Agreement or other documentationthat may be required by CRA.

We authorize Mackenzie Investments Pension Analyst to contact you regarding the abovenoted plan.

If you have any questions or concerns, please feel free to contact me directly.

Sincerely,

<<NAME>> <<TITLE>>

cc: Pension Analyst, Mackenzie Investments


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Sample letter to relinquishing carrierTransferring an existing Defined Contribution Registered Pension Plan (DCRPP) to Mackenzie Investments



<<ADDRESS >>

Dear Sir/Madam

<<SMART COMPANY LTD.>>Provincial Registration Number:________________________________________________________________Canada Revenue Agency (CRA) Registration Number:__________________________________________

Please let this letter serve as notice that we will be terminating our above cited policy eff ective <<Date>> and no further contributions will be remitted after this date.

Please proceed in transferring all assets under the Plan along with a breakdown of eachmember’s funds, indicating pre and post values to the attention of Mackenzie Investmentsat 180 Queen Street West, Toronto, ON, M5V 3K1, Attention: Group Plans AdministrationDepartment.

This is a change of carrier and trustee only. Mackenzie Investments & B2B Trustco will assist in the administration of the above DCPP under the same Provincial and CRA registration numbers. Please forward a copy of the last executed plan document, all subsequent amendments, the last fi led cost certifi cate and Annual Information Return to the pension offi cer at Mackenzie Investments.

We authorize Mackenzie Investments Pension Analyst to contact you regarding the above noted DCRPP.

If you have any questions or concerns, please feel free to contact me directly.

Sincerely,

<<NAME>> <<TITLE>>

cc: Pension Analyst, Mackenzie Investments


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Sample letterMemo to members for a change in carrier and trustee for Group RRSP, DPSP or DCRPP


To: From: Date: Subject:

In an eff ort to better improve the quality of services to both members and management<<Smart Company Ltd.>> decided to make a change to its existing <<Group RRSP / DCRPP /DPSP>>.

The organizations we have selected to handle our plan are as follows:

<<Best Financial Advisors Inc.>>: An independent fi rm of fi nancial advisors.

<<Best Financial Advisors >> focuses on providing the personal retirement planning andinvestment counselling services along with prudently diversifi ed investment strategy.

Mackenzie Investments: One of Canada’s leading mutual fund companies. MackenzieInvestments will be the investment manager and record-keeper for the <<Group RRSP/ DCRPP/ DPSP>>.

<<Ben E. Fitts>> of <<Best Financial Advisors>> will be presenting <<Date>>, he/she will distribute enrolment kits and explain the details of our <<Group RRSP/DCRPP/DPSP>> program.

We look forward to seeing you there.

Regards,

<<Management>>

All Members (Employees) of Smart Company Inc.,Smart Company Inc. Management<<Date>>Group RRSP/ DCRPP/ DPSP


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List of reports available: Plan sponsor and advisors Plan assets – no member information

This report shows This report does not showAssets within the group by fund Any individual member information. It is designed to

give an overview of the investments within the groupFund nameFund numberMarket value within each fundPercentage of holdings the fund represents

Contributions by trade dateThis report shows This report does not showEmployee and Employer contributions broken down by trade date for each member, within a specific timeframe (you need to determine the timeframe)

Fund(s) the contributions were invested into

Member nameMember account numberTrade dateContribution amount (broken down by Employee and Employer)Total contribution amount for the group (at the bottom of the report)

Active group member listing – advisor reportThis report shows This report does not showAll members associated with a particular group plan with an active account

Any inactive accounts, even if associated with the group

Member name Any account not associated with the groupMember account number Any members whose accounts are set up under a

different dealer rep code for any reasonDealer cross-reference number, if applicableActive or Inactive status within the group (Y for Active, N for Inactive)

Group plan summary reportThis report shows This report does not showOpening Market value Market value by fundTotal Contributions for the period broken down by employee, employer and other

Contributions by fund

Total withdrawalsClosing market valueNumber of members and members added and terminated over the period.


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List of reports available to advisors only Plan assets by member* Redemptions and transfers

This report shows This report shows (for each member)Member name Account numberMember account number Client nameStatus within the group (Active or Inactive) Trade date of redemption or transferFund name and number Gross redemption amountMarket value of each fund, and percentage of the account it makes up

Net redemption amount

Total market value of the account Total DSC charges

Restricted unitsThis report shows This report is used forNumber of employer shares per units Calculating restricted employer units in restricted GRSP

Trailcomm reportThis report showsTrailing commission paid for a certain period, broken down by member

*This report is available to the receiving institution or receiving advisor provided that we have the necessary “in good order” documents i.e., transfer forms.

To request reports, please call our group plan support team at 1-800-665-0513 or email [email protected].

If requesting reports by email, please provide the following:

• Name of the report

• Group type and number

• Dealer/rep code

• Date range (if applicable)

• Special instructions (if applicable)


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Mackenzie Group Plan administrative fees

Plan type Set up Transfers/ withdrawals

Annual regulatory fees

Group RRSP $0 No Fee not applicable

DPSPNew plans, no assets and existing plans with under $10,000 average assets per member and under $250,000 total assets

$250

Total plan wind-up: $10 per member

min: $500

not applicable

DPSPExisting plans with over $10,000 average assets per member and a minimum of $250,000 in total assets

waived

Total plan wind-up: $10 per member

min: $500

not applicable

DCPPNew plans, no assets and existing plans with under $20,000 average assets per member and under $500,000 in total plan assets

$500

Total plan wind-up: $20 per member min: $1,000

Varies per jurisdiction (payable to the Pension Regulator)

DCPPExisting plans with over $20,000 average assets per member and a minimum of $500,000 in total plan assets

waived

Total plan wind-up: $20 per member min: $1,000

Varies per jurisdiction (payable to the Pension Regulator)


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Provincial regulatory fees (applicable to DCRPPs only)Province Set-up fees Annual fees (AIR)

Ontario $250 per application The AIR fee was replaced by a Pension Assessment calculated by FSRA based on their formula. FSRA will invoice the Plan Administrators yearly with the amount after they have filed the AIR. 78 for fewer members = $750 79 or more member based on the below calculations:

Quebec From December 31, 2019 to December 30, 2020: $250 + $10.50 per active member, non-active member and beneficiary (maximum = $150 000)

From December 31, 2019 to December 30, 2020: $250 + $10.50 per active member, non-active member and beneficiary (maximum = $150 000)

Newfoundland & Labrador

$10.00 per active member and $5.00 per deferred member. Min: $200 Max: $12,500

10.00 per active member and $5.00 per deferred member. Min: $200 Max: $12,500

Nova Scotia $5.80 per member Min: $116.65 Max: $8,749.75

$5.80 per member Min: $116.65 Max: $8,749.75

New Brunswick $5.00 per member Min: $100 Max: $10,000 Amendments: $100

$5.00 per member Min: $100 Max: $10,000

Manitoba $7.20 per member Min: $120 Max: $18,000


Saskatchewan $10.00 per member Min: $300 Max: $30,000

$10.00 per active member $5.00 per non-active member Min: $300 Max: $30,000

Alberta $2.50 per member Min: $250 Max: $75,000


British Columbia $8.35 per active member $7.30 per non-active member Min: $250 Max $85,000

$8.35 per active member $7.30 per non-active member Min: $250 Max $85,000

Federal (changes yearly)

Information on OSFI’s current pension plan assessment schedule can be accessed by visiting the “Pension Assessments” section of OSFI’s website at http://www.osfi-bsif.gc.ca/Eng/pp-rr/ppa-rra/pa-crr/Pages/fee_schedule_pensions.aspx

Information on OSFI’s current pension plan assessment schedule can be accessed by visiting the “Pension Assessments” section of OSFI’s website at http://www.osfi-bsif.gc.ca

Plan membership increments First 1 – 1,000 Next 1,001 – 6,000 Next 6,001 – 12,000 Next 12,001 – 60,000 Next 60,001 – 150,000 150,001+ plan members

Marginal fee $8.62 $7.72$6.14$2.88$1.70$0.06


http://www.osfi-bsif.gc.ca/Eng/pp-rr/ppa-rra/pa-crr/Pages/fee_schedule_pensions.aspx



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Investment optionsMutual FundsMackenzie Investments’ product lineup offers access to a range of asset classes, geographic regions and investment styles needed for a well-diversified portfolio of leading funds. These include:

Alternative AssetsAlternative StrategiesCanadian BalancedCanadian EquityCanadian Fixed Income Global BalancedGlobal Equity

Global Fixed IncomeHigh Yield Fixed IncomeMoney MarketRegional EquitySector and SpecialtyUS Equity

Multi asset solutionsMackenzie ETF Portfolios

To help address an investor’s risk profile, mitigate impact of market volatility and deliver an appropriate investment mix, Mackenzie Investments offers risk-based asset allocation solutions in the Mackenzie ETF Portfolios. These multi-asset portfolios are constructed using a combination of Mackenzie’s ETFs to create a one-ticket solution.

Symmetry Portfolios

Symmetry is a series of diversified and balanced portfolios, each tied to distinct risk tolerances and return needs of investors. The portfolios are managed by a team with deep pension experience, and are constantly monitored to ensure each portfolio remains true to its risk tolerance and investment objectives.


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Monthly income portfolios

Predictable income for retirement

Retirees and older investors face unique challenges. Many retirees struggle to generate sufficient, predictable investment income over a retirement that could last 25 years or more. Given the length of retirement, these retirees could face multiple economic downturns, which could negatively impact their portfolio by triggering sharp drawdowns of their life savings.

Sustainable, responsible and impact investing (SRI)

Align your investments with your values

Mackenzie’s SRI approach provides investors with opportunities to invest with impact. Our solutions are designed to generate long-term competitive returns while supporting positive environmental, social and governance changes.

Mackenzie Monthly Income Portfolios can help address those challenges and help smooth the way for investors who are looking for less risky income solutions.


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This should not be construed to be legal or tax advice, as each client’s situation is different. Please consult your own legal and tax advisor.

FOR ADVISOR USE ONLY. No portion of this communication may be reproduced or distributed to the public as it does not comply with investor sales communication rules. Mackenzie disclaims any responsibility for any advisor sharing this with investors. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Past performance may not be repeated.

The content of this document (including facts, views, opinions, recommendations, descriptions of or references to, products or securities) is not to be used or construed as investment advice, as an offer to sell or the solicitation of an offer to buy, or an endorsement, recommendation or sponsorship of any entity or security cited. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it.

General InquiriesFor all of your general inquiries, account information, or to order marketing literature and materials, please call:

English: 1-800-387-0614 Bilingual: 1-800-387-0615Montreal: 1-800-363-4357Fax: 1-866-766-6623E-mail: [email protected]: mackenzieinvestments.com

Find fund and account information online through Mackenzie Investments’ secure AdvisorAccess. Visit mackenzieinvestments.com/advisor for more information.

mackenzie group plans€¦ · ultimate manufacturing company 50 members x $40,000 average earnings...

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