The rising cost of living in the post-pandemic era has impacted all aspects of employees’ financial wellness, including retirement savings.
In 2023, Hofmann-La Roche Ltd. examined the savings needs of its multigenerational workforce and determined more flexibility was required to encourage employees to set aside retirement savings, said Rana Kassab (pictured right), the company’s director of rewards and recognition, during a panel discussion at Benefits Canada’s 2024 Defined Contribution Investment Forum.
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To encourage savings, the company provides an employer match to the DC pension plan for contributions made to any of its capital accumulation plans, including a group registered retirement savings plan and group tax-free savings account. “We wanted to move to a more flexible approach so we can support our employees on their individual financial journeys,” she said. “In order for us to do that, we moved away from requiring employees to contribute to the DC plan in order to get the employer match.”
Canadian Baptist Ministries also made several significant changes to its retirement offerings, which include a DC plan and group TFSA, in order to support plan members’ retirement savings. In 2022, it changed both its record keeper and its investment manager.
“In doing so, [plan members’] immediate family members could also join the group plan,” said Rob Jackett, senior director of finance and administration. “We’re also a completely open plan — members can transfer assets into both the group TFSA and also from their other registered products into our registered pension plan. We also accommodate additional voluntary contributions up to the regulatory maximums.”
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At Enercare, all employees are enrolled in a non-contributory DC plan that’s fully funded by the employer and can also contribute to a deferred profit-sharing plan and group TFSA, said Debra Hall (pictured left), the company’s director of total rewards and human resources operations.
“I think because our [DC] plan is non-contributory, it’s kind of forced savings for everybody. It’s essentially free money. Something else that we’re looking into right now is giving them the option to transfer out of the DPSP into a home buyer’s plan to give them more options and more money to get into that first home.”
Regarding DC investment options, Enercare employees have access to target-date funds and index funds, said Hall, adding the company’s record keeper helps members choose between these options through personalized financial advice.
Members of Canadian Baptist Ministries’ DC plan can choose between a suite of target-date funds based on age, said Jackett, noting the plan was previously in a traditional target-risk mandate.
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“It was a big issue to try and get people into the proper risk for their age at retirement. That was one of the reasons why we moved to the target-date mandate and it has really helped us because we’ve ended up with about 98 per cent of our members at the right target date.”
To support workers’ investment decisions, the organization’s financial education program includes webinars, in-person seminars and short videos on various financial topics, he added.
Hofmann-La Roche offers 20 different fund options for DC members to account for a range of risk tolerances and financial literacy. Similar to Enercare and Canadian Baptist Ministries, the company provides extensive financial education to employees.
“We support our employees by offering complementary access to financial advice and wellness sessions, during which employees can learn about a particular type of investment or our financial saving vehicles,” said Kassab.
Read more coverage of the 2024 DC Investment Forum.