Montridge Financial Group Ltd.


Montridge Edge Update

Keeping You Informed
In This Issue
Business Succession
Pension Plan Reform
Montridge on Facebook
GWL: Welcome Plan Premiums
Sun Life: Mobile App Live
Manulife: Important Changes
BBD: Reducing Carbon Footprint


Like us on Facebook 


Sign Up! Join Our Mailing List










Vancouver: 604.682.1603

Toll-Free: 1.866.682.1603

Facsimilie: 604.682.1621

Suite 1200

1111 West Hastings St.

Vancouver, BC
V6E 2J3
Issue 13October 2011
Business Succession is Not a Choice...

...But Planning for It Is  


To a business owner, their company is their life, and the two are rarely separated.  Succession planning is the process that lets business owners plan and fund their retirement; ensure continuity of their enterprise; and maximize its value for subsequent generations or potential buyers.   


Montridge has partnered with ZLC's Business Family Succession Planning division to create an enhanced, efficient approach to the succession process.  Working with you, your family members and advisors, an actionable report is produced that allows business owners to undertake planning that maximizes shareholder value.  It's never too early to uncover what aspects of your business need to be improved, in order to ensure the best possible outcome for your business succession plan.  Contact us for more information.

Pension Plan Reform

Private Sector Moves Towards Defined Contribution Plans 


The move away from Defined Benefit pensions continue in the private sector.

Over the last decade, the shift continues as a growing number of employers are moving away from Defined Benefit pension plans and into Defined Contribution plans.  At the end of September, RBC (Canada's largest bank) announced they would be making the switch at the beginning of January.  The move will be made effective for all new hires, and for existing employees that are also willing to make the move.

A primary reason companies are making this change goes back to the characteri
stics of a DB plan, where funding obligations (read: shortfalls) have become overwhelming for some employers.  Unlike a DB plan, where contribution amounts are fixed at a predictable cost of payroll, a DB plan must factor in the costs and payment of retirement benefits.  Factors such as historically low interest rates, more employees retiring (combined with increased longevity of plan members) make funding difficult over the long term.

From the employee's perspective, this change may coincide with work force mobility.  When employees move from one company or industry to another, they will often not be on a DB plan long enough to take full advantage of the plan.  On the other hand, an employee is primarily responsible for making their own investment decisions under a DC arrangement.  With increased exposure to the markets, an employee becomes directly responsible for the performance of their retirement savings. 

Now, more than ever, plan design and investment options need to be reviewed to ensure suitability for plan members.  On-going education sessions, member statements and investment reviews are a paramount part of DC plan management for plan sponsors, and something that Montridge and insurance companies will continue to assist with in this changing landscape. 
"Like" Us on Facebook!

Win a Prize if You Join Our Page by October 31!  


Montridge now has a Facebook fan page.  Visit our page for updates on industry trends, healthcare stats, and other relevant information to you and your employees.  "Like" us by October 31 and you will be entered to win a $50 gift certificate to Browns Social House!

 Like us on Facebook

Great-West Life Lowers Welcome Plan Premiums

The Welcome Plan from GWL provides temporary basic health insurance for individuals and their family members who do not yet qualify for provincial health coverage. 

Many employers today are hiring employees from outside Canada.  This special product is perfect for those satisfying the waiting period for provincial health care.

Effective January 1, 2012, Welcome Plan rates will be decreased by 15%. The new rates will be applied to existing covered plan members asFlags well as new plan members added January 1, 2012 and later.

GWL clients interested in the Welcome Plan for new foreign employees, should contact us. 

Sun Life Launches Highly Anticipated Mobile App 

After months of build-up, Sun Life launched my Sun Life Mobile on September 7. 

The free app, the first of its kind in the Canadian insurance industry, allows plan members to:
  • Submit medical and dental claims for automatic processing, and receive payment in their bank account within 48 hours
  • View information about recently submitted or processed claims
  • Access drug and travel cards
  • Access interactive financial planning tools for future planning
  • Check retirement and savings plan balances and recent contributions (where applicable)

An online demonstration is available at   

Manulife: Two Important Changes 

#1) Effective January 1, 2012, Manulife is making some changes to their process for orthopaedic shoe claim submissions.  Members making claims of this nature will now be required to provide the name of the shoe manufacturer, and the model name and/or model number of the shoes or boots.  This information should be provided with a completed and signed Extended Health Care Claim form.

#2) After an increase for Electronic Fund Transfer (EFT) deposits, Manulife is now offering plan members the options of switching to direct deposit for their Life and Disability claim payments.  Plan members currently receiving their benefit payment by cheque will receive correspondence directly from the claims department with detailed information on how to switch to EFT.  

Benefits by Design Donates Thousands 

Benefits by Design have joined other insurers in the green initiative by providing electronic booklets instead of printed copies to plan members.

However, BBD has gone a step further and is pledging $1 to the United Way for every booklet not printed.  This allowed BBD to donate $20,000 in late last year alone.  

Renewal packages are also being sent out electronically, saving over 8,800 pieces of paper each month! 

This newsletter is for general information only and is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.  All information and opinions contained in this newsletter are obtained from various sources and are believed to be true and dependable; however, accuracy of content is not guaranteed and is not to be read or applied as professional advice.