Canada Life Introduces RESP for Group Plan Members

Canada Life Introduces RESP for Group Plan Members

Canadians want to give their children a better future and send them to post-secondary education; however, paying high tuition fees makes learning a privilege and put a lot of financial stress on families.

According to Statistics Canada 2019/2020 data, the average tuition cost for Canadian undergraduate programs was $6,463. This number is estimated to go up to $6,610 in 2020/2021. Families struggle to make ends meet and experience challenging times to reach their retirement goals.

 

RESP(Registered Education Savings Plan) is one of the most powerful savings tools available to families hoping to avoid or minimize student debt. As an employer, you can show support to your employees by adding Canada Life’s new self-directed registered education savings plan (RESP) to your existing Canada Life group benefits or retirement and savings plan with no cost to your business.

“ As of November 1, 2020, Canada Life’s first fully digital employer-sponsored RESP started helping employees advance their long-term savings goals! 

How Does Canada Life‘s Group Plan RESP Work?

The contributions are placed into a fund designed to lower the risk of a potential decrease in value as students get closer to starting post-secondary education.

In addition, contributions, potential investment growth and compound interest will grow tax-free until the beneficiary withdraws funds to register at a qualifying educational program.

When the time comes, filling up simple forms and a streamlined withdrawal process will release the funds to the beneficiary.

How Your Employees Will Benefit If You Decide to Add RESP to Your Existing Canada Life Group Benefits or Retirement Plan?

Many Canadians think an RESP is more complicated than coordinating after-school activities.

With Canada Life’s new self-directed registered education savings plan, your employees will;

  • Gain access to traditional RESP advantages like applicable government education grants and tax-sheltered earnings on contributions including Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB),
  • Benefit from Canada Life’s low investment fees,
  • Have convenient payroll deduction, pre-authorized debit or online banking bill payment,
  • Have the ease of fully digital experience,
  • Have the flexibility to choose either the family or individual plan,
  • Family and friends can also make direct contributions.

How to Add RESP to Your Existing Canada Life Group Benefits or Retirement plan?

If you are an employer or a Plan Administrator, please contact your Account Manager at Eagle Bay Financial Services and add the RESP option to your group benefits or retirement and savings plan.

The rest is simple; plan members need to sign up online, and they are all set!

 

When the time comes, it will be easy to withdraw the money for children’s education, and your employees will appreciate that you had the foresight to plan for their future.

This document is adapted from;

* Canada Life blog article “Canada Life’s new RESP employee benefit to help Canadians save for children’s post-secondary education” on October 15th, 2020.
** Canada Life’s email communication “Introducing registered education savings plans for group plan members” on September 14th, 2020.

Premium Deduction For Dental and Extended Health Care Due to COVID-19

Premium Deduction For Dental and Extended Health Care Due to COVID-19

Dear Plan Administrators,

Due to COVID-19 pandemic, many dental and health practitioners have been forced to close. As a result, the use of dental and some other extended health care benefits have declined.

Canada`s three major insurance companies, Sun Life, Canada Life and CINUP have recently announced premium deduction for dental and non-drug-related extended health care benefits for their group insurance clients.

Sun Life Financial

Here are the changes Sun Life is making for all non-refund clients:

  • Dental: 50% dental premium credit per month.
  • Extended Health Care: 20% premium credit on the non-drug coverage portion of extended health care benefit premium

Sun Life is going to apply the April credit to your June 1 invoice and will continue to assess the situation on a monthly basis. For more information, please visit SunLife.ca

 

Canada Life

  • Dental: 50% premium reduction adjustment will be applied.
  • Vision: 20% premium reduction adjustment will be applied.
  • Healthcare (excluding drugs): A 20% premium reduction adjustment will be applied.

Canada Life is going to apply the premium credit retroactive to April 1, 2020. May premium reduction adjustments will be completed on the June billing.

For more information, please visit Canadalife.com

CINUP

CINUP recognizes the impacts of the pandemic and the ability for plan members to utilize their dental and extended health benefits.

CINUP is providing the following credits, retroactive to April 1st, on May 2020 billing:

  • Dental: 50% premium reduction adjustment
  • Extended Health: 10% premium reduction adjustment

Your June bill will show the credits applied for April, as well as the full premium for June. The credits will be monitored monthly and you will be notified of any changes.

 

For any questions and more information, please contact our group benefits managers, Mina Dingle or Denise Perry. They will be more than happy to assist you.

Mina Dingle

Account Manager

Group Benefits

Denise Perry

Account Manager

Group Benefits

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