Capital Accumulation Plan Guidelines May Spur Sponsorship

Experts say new guidelines on Capital Accumulation Plans (CAPs) might encourage greater sponsorship from employers and trade unions by clarifying sponsors' roles, rights and responsibilities.

Currently there are an estimated 40,000 CAPs operating nationwide, with invested member assets of about $60 billion. While the number of plans has increased substantially in recent years, the prospects for growth further improved when the Joint Forum of Financial Regulators published new guidelines reflecting broad industry consensus.

All sponsors of defined contribution pension plans, group registered retirement savings plans, profit-sharing and other group savings plans must comply with the guidelines by Dec. 31, 2005. Sponsors must:

• Set up the plan.
• Provide investment information, options and decision making tools to CAP participants.
• Introduce and communicate the plan to members on an ongoing basis.
• Ensure that termination of the plan or the membership of an individual within the plan is done in accordance with the terms of the CAP.

The Canadian Association of Pension Supervisory Authorities notes that many of the rules pertain to the provision of information and documents to CAP participants. In preparing those materials, CAPSA encourages sponsors to use "plain language and in a format that assists readability and comprehension."

With the above responsibilities now on your plate, let us get your company on The RIGHT Path™ to Group Retirement Plan Compliance. Our Group Retirement specialists will coordinate all of the above requirements and manage reporting, fund selection, and offer free financial planning to the entire membership. For more information please contact your Selectpath representative at 1 (888) 327-5777.

Investment Strategies:

Investment and retirement issues are top-of-mind with today’s employees. Proactive employers are finding creative solutions that combine traditional benefits with investment and retirement planning.

Selectpath consolidates benefits and financial consulting services under one roof. By combining areas of specialization, we can help you and your employees build wealth while managing your risks.

Selectpath can offer the following group investment and retirement consulting services to your group:

• Consultation in plan design
• Analysis of record keeping and administration
• Investment Manager searches
• Portfolio performance analysis
• Pension Committee consultation
• Filing and Reporting Assistance (AIR, PA, PAR, T3D, Audited Financials)
• Consultation regarding investment policy and asset allocation
• Risk tolerance measurement
• Individual forecasting
• Individual Pension Plan design and execution
• Retirement benefit design and settlement
• Actuarial Services
• Plan conversions and wind-ups

Individual Member Services:

• Evaluate adequacy of current levels of retirement savings.
• Identify additional ways to save for retirement.
• Identify health and other risks and ways to manage them through retirement.
• Guide estate planning.

What does Retirement Planning involve?

• Defined Benefit (DB)
• Defined Contribution (DC)
• Deferred Profit Sharing Plan (DPSP)
• Individual Pension Plan (IPP)
• Retirement Compensation Agreement (RCA)
• Registered Education Savings Plans (RESP)

More about The RIGHT Path™ and Group Retirement Plans.

THE NEXT STEP IS YOURS. TAKE THE FIRST STEP ON THE RIGHT PATH.

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