The Challenge
Small Business Looks at Pension Possibilities
Klos Concepts, a small family-run business, was interested in setting up the company’s first pension plan for its employees. But with a staff of 12 people at the time, they thought their options would be limited to a group registered retirement savings plan (RRSP). Nevertheless, the small employer hoped to provide their workers with a secure, predictable retirement income they could rely on for life.
In addition, Klos Concepts recognized the importance of offering a competitive total compensation package, including a pension plan, to attract top talent and convince them to stick around. They saw the opportunity to cultivate a vibrant company culture centered around a commitment to employee wellbeing through comprehensive retirement benefits.
The Solution
Shedding Light on Pension Administration
Many small businesses like Klos Concepts believe a defined benefit (DB) pension plan is out of their reach. However, with CAAT’s DBplus, providing a DB pension plan can become a reality. Through DBplus, Canadian businesses of all shapes and sizes can receive the benefits of a DB pension without the typical pension-related costs, or balance sheet risks and liabilities.
DBplus provides a flexible retirement solution tailored to meet an organization’s unique needs. With Klos Concepts, they had three major concerns: complexity, affordability and governance. DBplus addresses these concerns by offering a cost-effective pension solution with fixed costs and no hidden administrative or service fees. Additionally, employers can rest assured CAAT will handle the majority of the responsibilities associated with administering a pension plan, including governance, plan management and investments, and member communication and education sessions.