The recent updates to the Capital Accumulation Plan (CAP) Guidelines mark the biggest changes in over 20 years. These guidelines are the cornerstone of how group retirement plans are structured, administered and regulated in Canada.
While regulatory shifts like these can seem daunting, they also present a unique opportunity for advisors to enhance client relationships, strengthen engagement, and grow their group retirement practice.
Alex Mazer, Co-Founder and Co-CEO of Common Wealth, hosted a webinar featuring industry leaders Carolyn Blouin, Tiffany Flood, and John Boukouris, highlighting key updates on CAP Guidelines. The panel explored how these changes can help advisors to:
- strengthen client relationships
- grow their practice
- improve member outcomes
If you missed it or want to revisit any of the insights, you can watch the recording here!
Webinar Summary
Deepen Client Relationships
- Broaden Focus Beyond Investments: The updated guidelines emphasize overall retirement outcomes, not just investment options. Engage your clients by discussing how CAP plans can help achieve sustainable retirement income for their employees.
- Emphasize Governance: With greater emphasis on governance standards, offer governance reviews as a service to help clients assess their plan’s performance in line with the new guidelines.
- Promote Behaviorally-Informed Features: Features like auto-enrollment and auto-escalation are now endorsed. Use this opportunity to recommend plan designs that encourage better member outcomes.
Utilize New Tools and Reporting Solutions
- Customized Governance Reporting: Common Wealth has introduced new governance reporting tools tailored to clients’ plan sizes and needs. These tools enable you to offer comprehensive reviews with minimal effort, assisting clients in complying with the new CAP guidelines.
Unlock the Value of Group Plans
- Enhance Engagement Through Education: Regular, ongoing education for plan members is now more strongly encouraged. Position yourself as a long-term partner by offering workshops or digital tools to keep employees informed and engaged.
- Highlight Employer Benefits: Frame CAP plans as essential tools for attracting and retaining talent. With nearly 70% of employees preferring retirement benefits over salary increases, this is a compelling conversation starter with employers.
Shift to Value-Based Conversations
- Focus on Value: The new guidelines prioritize value over money. Help employers evaluate whether they are achieving the best outcomes in governance, member education, and plan efficiency.
- Conduct Regular Reviews: Offer regular plan reviews focusing on investment options, contribution rates, and member engagement to ensure plans evolve with client needs.
Next Steps
The 2024 CAP Guideline updates bring significant changes that advisors and sponsors need to address. To make this process more straightforward, we’ve created:
- A concise checklist to help small sponsors understand and align their plans with the new CAP Guidelines.
- A detailed guide with practical steps to navigate the changes effectively and enhance plan outcomes.
Here’s a quick preview:
Adapting to these updates doesn’t have to be overwhelming. Book a call with our team for a personalized walkthrough and tailored recommendations on how to make these updates work for you and your clients.
We’re here to help you navigate the updates and unlock new opportunities.