From time to time, I hear this question from clients, "I've got an expectant mom who wants to cancel her LTD coverage while she's on maternity leave. What should I tell her?"
It is understandable as to why this question surfaces. A plan member who is an expectant mother may feel that she can save money during a time when funds might be a bit short. I offer that during a maternity leave isn't a good time to stop a plan member's LTD coverage. No one can predict the future and unforeseen events could result in negative consequences that have a long term negative impact for the plan member. It is about managing risk and protecting yourself when you might need the coverage most.
Here are key tips to consider when a plan member asks if she should stop her coverage during a maternity leave:
There is so much for an expectant mother to consider when she prepares to have a baby. Worrying about disability coverage and the repercussions of cancelling it shouldn't be one of them.
*pre-existing condition definition "a medical condition that occurred before a program of health benefits went into effect."
Increasingly the newspaper headlines tell us that Canadians aren't saving enough for retirement. There is much debate and discussion around reforming our federally administered Canada Pension Plan as well as plans to introduce a Pooled Retirement Pension Plan (PRPP) and in Quebec, the Voluntary Retirement Savings Plan (VRSP).
Recently, a *small business survey of over 1,100 Canadian business owners revealed that 79 percent of employers believe that introducing a group retirement savings program was as much for their benefit as for their employees, yet 58 percent of these same respondents didn't feel an obligation to help employees save for retirement.
As time progresses, we're seeing a shift in the demographics of our nation. More employees are reaching retirement age. What does this mean for a business owner or human resource practitioner? As they say good-bye to key employees and offer their thanks for decades of hard work and dedication, business owners are becoming aware that it is possible to offer something more. They are realizing that it doesn't have to cost them anything but a little of their time or perhaps a small administration fee to set up a plan that can be fully funded by employee contributions.
Introducing a Group Registered Retirement Savings Plan (Group RRSP) can be a great way to attract and retain employees. It can help a business face competition head on and it can be an effective way to reduce turnover.
Education sessions for employees to explain a fund line up as well as diversification options based on investing comfort levels can be prearranged and handed through the service provider along with the support of my service team.
Introducing a savings vehicle for employees is a lot easier than many believe possible. Help your employees get a leg up on their savings for retirement. The time will arrive sooner than any of us imagine. Please call or email me to set up a time to discuss how a Group Savings Plan may best fit the needs of your firm.
*(2 to 100 employees)
Dave Dickinson, B.Comm, CFP, CLU, CHFC
Experienced Benefits Specialist ready to optimize your group benefits and pension plans.