Mackenzie Dedicated to the Group Market

Mackenzie has been active in the group market since 1988 and will continue to focus on this market in the future.

John Boukouris is the most recent addition to the Group Plans Sales and Marketing team. He will cover Western Canada.

We have overhauled all our marketing materials in an effort to provide you with the tools required to actively promote group plans.

Why were the CAP Guidelines developed?

Rapid growth of CAP plans where members were required to make their own investment decisions.

Available investments among service providers have become more complex.

Need to create a level playing field.

To provide guidance beyond existing pension and other related legislation.

Evolution of the CAP Guidelines

The proposed principles were first developed in 2001.

The “Revised Principles for Investment Disclosure in Capital Accumulation Plans” was finalized in 2002.

The first draft of the CAP Guidelines were released in April 2003.

The official CAP Guidelines were released in May 2004.

3 Main Themes to CAP Guidelines

1. Governance

2. Disclosure

3. Creation of a level playing field.

7 Sections Make up Guidelines

1. Introduction

2. Setting up a CAP

3. Investment information and decision making tools for CAP members

4. Introducing the CAP to members

5. Ongoing communication to members

6. Maintaining a CAP

7. Terminating a CAP

Section 1: Introduction

Definition of a CAP

The intent of the Guidelines

Implications for the CAP sponsor, service providers and CAP members.

Section 2: Setting up a CAP

Clearly define the purpose of the CAP

Establish criteria for the selection of service providers.

The plan sponsor should select investment options to be made available in the plan.

CAP Members should be able to transfer among investment options.

Section 3: Investment Information and Decision-Making tools for CAP Members

Plan Sponsor should provide CAP Members with the following:

Investment information

Decision-making tools

Access to a financial advisor

Section 4: Introducing the CAP to Members The Plan Sponsor should provide CAP members with

information on the plan including:

The features of the plan including contribution levels.

The CAP members rights and responsibilities under the plan.

Sufficient detail about the investment options available.

A description and amount of all fees, expenses and penalties relating to the plan.

Section 5: Ongoing Communication to Members

Members must be provided with:

Account statements at least annually

Details on investment funds and transactions within the account.

Notification of significant changes in investment options.

Section 6: Maintaining a CAP

Plan Sponsor should review all service providers annually.

Section 7: Terminating a CAP

Must be done in accordance with the terms of the plan and any applicable legal requirements.

Members must be notified

Pension Plan Governance Principles

In addition to the CAP Guidelines, there are a set of principles that apply to DC Pension Plans.

Pension plan governance refers to the structure and processes for overseeing, managing and administering a pension plan to ensure the fiduciary and other obligations of the plan are met.

Information on Pension Plan Governance

The pension plan governance guidelines are part of Guideline No. 4. You can obtain a copy of this guideline at www.capsa-acor.org

Use the Self-Assessment Questionnaire, this is part of Guideline No. 4, to determine if your client’s pension plan is compliant.

The advisor opportunity

Identify your existing clients/prospects

Use the CAP checklist to set up a meeting

Focus in on how you can help them comply with the guidelines. www.benefitscanada.com !

Utilize the seasoned Mackenzie sales team to take your business to the next level

Don’t forget to cross-sell