February 2020 Edition

Employees from all across Desjardins gave generously to the Desjardins Cares and Shares campaign again this year.

A record $5.2 million was raised and will be donated to organizations across the country to help improve the lives of the most vulnerable in our communities.

It’s just another example of Desjardins staying true to its mission and cooperative values.

Plan members have until March 2, 2020, to contribute to their RRSP/VRSP and claim a deduction for contributions made between January 1 and March 2, 2020, from their:

• 2019 taxable income OR
• 2020 taxable income

Desjardins Insurance must receive the payments and contribution files by March 2, 2020, for these contributions to be included on the RRSP and VRSP receipts for the first 60 days of the year.

Promotional material

If you haven’t already done so, share this short video External link. Opens in a new window. and display the poster about the first 60 days to remind plan members about the deadline.

How to make lump-sum contributions

Plan members have two ways to contribute:

1. Online, via dfs.ca/participant (a fast, efficient solution). Contributions must be made by 11:59 pm (ET) on March 2, 2020, under My transactions > Contribute.
2. By cheque: (postmarked no later than March 2, 2020). It’s important that they write their full name, group number and plan member number on the back of the cheque.

There is still time to encourage your savings plan members to enter the "Start the year on the right foot" contest.

Registration: All they have to do is visit our Wellness Centre at dfs.ca/participant

Draw: A grand prize of $5,000

Deadline: March 31, 2020

The Wellness Centre helps your plan members:

• Establish a savings plan and learn all about investing
• Discover how to draw up a budget and manage debt and credit
• Understand why insurance means peace of mind

Help us get the word out!

Print and place the poster prominently in the cafeteria, on bulletin boards or in high traffic areas.

11 x 17 poster (PDF, 1.02 MB) Opens in a new window

8.5 x 11 poster (PDF, 705 KB) Opens in a new window

When you promote this contest, you encourage your plan members to find what they need to face their financial future with confidence.

For more details, read the full contest rules and regulations (PDF, 157 KB) Opens in a new window.

Before you fill in your T4 slips, make sure that none of your Deferred profit sharing plan (DPSP) plan members are specified shareholders or persons related to the employer. If you made plan contributions on behalf of these individuals, both you and they could face serious tax consequences and the Canada Revenue Agency (CRA) could revoke your plan’s registration.

If you find yourself in this situation, speak to your tax specialist, who will advise you on the steps to take to rectify your status with the CRA.

A person cannot participate in a DPSP if:

• she/he is related to the employer (for example, the majority shareholder of the employer or the majority shareholder’s spouse, child, brother, sister, mother, father, brother-in-law, etc.);
• she/he is a specified shareholder of the employer or of a company related to the employer, or if she/he is related to such specified shareholder;
• she/he is related to a member of the partnership, if the employer is a partnership; or
• she/he is, or is related to, a beneficiary under the trust, if the employer is a trust.

Generally speaking, a specified shareholder is a person who owns, directly or indirectly, at least 10% of the issued shares of any class of the capital stock of the company or of any other related company. For the purposes of determining the 10% threshold, a person is also deemed to own the shares of a company held by a person with whom she/he does not deal at arm’s length (e.g., a spouse, child, brother, sister, father, mother, brother-in-law, etc.).

Important: These definitions are not exhaustive. For advice on your specific situation, please speak to your tax specialist.

Reminder: Only employers can contribute to a DPSP.

Here are the annual limits:

For previous years’ contribution limits, please visit the CRA website External link. Opens in a new window..

This is the complete schedule for the production and mailing of tax receipts and slips. You can find the same information in the Message centre at dfs.ca/plansponsor and dfs.ca/participant.

Tax receipts (RRSP and VRSP)

Tax slips

The dates shown may vary by a day or two.

An auditor’s report will no longer be required for the filing of financial statements for DB and DC plans registered in Ontario with assets of less than $10 million (calculated at market value).

This change to the Ontario regulations External link. Opens in a new window., under the Pension Benefits Act, has been in effect since December 11, 2019. This new threshold of $10 million is applicable to pension plans whose fiscal year ended December 31, 2019, or later.

As part of its governance process, Desjardins Insurance evaluates each fund offered on its group retirement savings platform on a quarterly basis to ensure compliance with its selection criteria.

This evaluation is based on four main elements:

• Personnel
• Investment processes
• Compliance with the stipulated management style
• Performance

The result of this analysis is that some funds are placed on a watch list that is updated quarterly.

For each fund on the watch list, the areas of concern are identified and then closely monitored. Funds will remain on the watch list until the situation has been resolved, or in the event that the concerns persist, until they are no longer recommended or are removed from the platform.

In addition to producing the fund watch list, the governance process also aims to ensure that managers adhere to their existing investment policies. The result is the production of a General Certificate of Compliance and a Summary of Investment Policy Changes that is updated quarterly.

Our fund watch list, including a list of funds no longer recommended, the General Certificate of Compliance, the Summary of Investment Policy Changes and all of the funds` investment policies are published quarterly on the plan sponsor services website. To access the site, go to dfs.ca/plansponsor and select Log on, then Group retirement savings. Enter your User ID and password. Then from the home page, access the Your news section.

CI Financial

CI Financial announced on December 23, 2019, that it has reached an agreement to become a majority shareholder in One Capital Management, LLC. "One Capital, a California-based registered investment advisor (RIA), specializes in wealth planning with a focus on wealthy families and the needs of professional athletes and entertainers," said CI.

DGIA

DGIA decided to transfer the main management of the DGIA Money Market fund to Anthony Salvatore, effective January 6, 2020, replacing Mathieu Bouthot. The evolution of Mathieu Bouthot's activities and his role in active management, as well as the experience acquired by Anthony Salvatore since his arrival at DGIA led to this decision. Mathieu Bouthot will be the backup manager.

CC&L

CC&L announced that David George, CFA, was promoted to the position of co-head of the fixed income team effective December 31, 2019. This team will continue to be led on a co-head basis, and Brian Eby will retain overall responsibility for investment decisions as chief investment officer.