A group retirement savings plan
for small business has never
been easier…
Agenda
 Understanding your needs
 Business concerns
 Retaining employees
 FutureStep
TM
 Product details
 Product options
 Service and support
 Next steps
Unique small-business concerns
 Attracting employees
 Competing with large firms
 When you lose a key person, you feel it
 Knowledge-based small businesses
 ‘Day one’ employees
 How to create effective retention strategies
Important features
 Low cost
 Little time or effort to run
 High employee value and impact
 Easy to understand
 You’re an expert in your business…not group retirement savings
Retirement savings plans play a big role in
attracting and retaining employees
 Did having an employer sponsored retirement savings
plan, influence your decision to join and/or stay with your
current employer?
Join your current
employer
32%
30%
Stay with your
current employer
Undecided
38%
Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)
Employees reluctant to leave because
of the company retirement savings plan
 Do you agree with the following statement?
“I would be reluctant to leave my employer because of the retirement
savings plan offered as part of my compensation package.”
Reluctant to leave
60%
40%
Not reluctant to
leave
 Reluctance increases as retirement approaches
Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)
Manulife has a solution…
FutureStep!
Product details
 FutureStep is an innovative and flexible group retirement
savings plan
 Enhances employee appreciation and loyalty
 Helps you gain a competitive edge
 Conveys your concern for employees' life after work
 Contributes to employees’ financial security
Plan options
 Registered Retirement Savings Plan (RRSP)
 Offered by an employer to his/her employees as a way to save for
the future.
 Both employers and employees can contribute to the plan and attain
certain tax advantages.
 Deferred Profit Sharing Plan (DPSP)
 Reward good company performance, in the form of profit sharing
 Only an employer can contribute to the plan
 Registered as a trust arrangement with the Canada Revenue Agency (CRA)
DPSP option can only be purchased along with the group RRSP and is not a stand-alone offering
You can get started with as little as…
 Two eligible* employees
 Contributions of $10,000** annually (cash flow) as a group
 No cost to you***, unless you choose to contribute on
employees’ behalf
*eligibility criteria is per FutureStep plan
**If the combined cashflow for your RRSP and DPSP plans is less than $20,000.00 in a year, you will be charged a $750 administration trustee fee.
*** if your cashflow falls below a minimum, you may could be charged an administration fee.
Contribution Options
 All contributions are submitted electronically online
 You choose who contributes to the plan:
 Company only
 Company + employee
 Employee only
Employee Eligibility Options
 You may choose different rules for different employees:
 Management
 Non management
 Either way, you will have:
 One contribution file
 One set of online reports
Plan Design Options
 Manulife issues contracts for your immediate review
 You choose a plan design(s) that suits you:
 Eligibility
 Contribution formula
 Definition of earnings
Spousal Account & Withdrawal Options
 Employees may set up spousal RRSP accounts*
 Two types of RRSP withdrawal restrictions:
 Allowed while employed
 Not allowed while employed
 Excludes Home Buyers’ Plan, Lifelong Learning Plan and employee
voluntary contributions
* Not available for the DPSP option
Investment Fund Line-up
 Employees choose their investments
 Competitive investment management fees (IMF)
 One fund line-up
 Managed by Manulife
 Monitored by i-Watch®
 Covered by Certified Diversified® Warranty Program
Investment 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 fund
 Primary: Retirement Date
 Secondary (if date of birth is missing): Moderate Asset
Allocation Fund
 Guaranteed Investment Options
 1, 3, 5 year terms
Investment Fund Line-up
Target Date
Manulife Retirement Date suite of funds
(2020 – 2060) – 1.80%
Manulife Retirement Income Fund (2000) – 1.80%
Asset Allocation
Manulife Asset Allocation suite of funds
(2001 – 2005) – 1.75%
Fixed Income
Manulife Daily High Interest (3191) – 1.35%
MLI Canadian Money Market (3132)– 1.45%
MLI PH&N Bond Fund (4271) – 1.70%
MLI MFC Global Pooled Canadian Bond Index
(4191) – 1.47%
Balanced
MLI Leith Wheeler Diversified Pooled (5301) – 1.75%
MLI Fidelity Canadian Asset Allocation (5141)
– 2.10%
Canadian Large Cap Equity
MLI Jarislowsky Fraser Canadian Equity (7241) – 1.70%
MLI Scheer Rowlett Canadian Equity Fund
(7601) – 1.80%
MLI Greystone Canadian Equity Fund (7481) – 1.70%
MLI MFC Global Pooled Canadian Index (7132) – 1.48%
Canadian Small Cap Equity
MLI MMF Growth Opportunities (7122) – 1.90%
US Equity
MLI U.S. Diversified Growth Equity (Wellington)
(8196) – 1.95%
MLI MFC Global Pooled US Equity Index (8131) – 1.48%
International Equity
MLI International Equity (Templeton) (8192) – 2.05%
MLI BlackRock International Equity Index Fund (8321) – 1.60%
Global Equity
MLI Trimark Fund (8181) – 2.00%
MLI MFS MB Global Equity Fund (8161) – 1. 75%
Lower Investment management fees (IMFs)
 Take advantage of your group’s purchasing power
Potential fee savings for a $5,000
investment over 20 years = $1,353
18
Easy and Convenient Plan Set-up
 Online application is quick and convenient
 Client Relationship Manager
 Dedicated, proactive support for small-business employers
 Invited to a webcast to get you started
 Plan administration guide
Ongoing Support
 Client Relationship Manager support continues
 1-800 Plan Sponsor Call Centre
 Secure sponsor website
 Newsletter and other resources
 Online contributions and access to statements
Pre-authorized debit
Launching to 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 statement
 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 FutureStep?
For you
 A low-cost, high-value way to attract and retain employees
 Quick to set-up, easy to manage
 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