June 2022 Edition

Some problems can have major financial and tax implications for your plan members.

Avoid:

• A payment without a corresponding contribution list
• Unpaid contributions
• Discrepancies between contribution lists and payments
• Missing enrolments

Consequences:

For RRSPs, TFSAs and non-registered plans, investments can’t be made until the resolution of the discrepancy or the transmission of the missing information.

In addition, RRSP contribution receipts can’t be issued if there is missing or incorrect information.

Here’s what happens:

Did you know that pre-authorized debits (PAD) could help you avoid certain problems regarding contributions? Discover how with the article Remitting contributions: Save time with pre-authorized debits Opens in a new window..

Find out more about the tax implications of missing enrolments in our October 2021 article Opens in a new window.

Forget about sending your contributions by cheque, e-transfer or online payment. Pre-authorized debits (PAD) save you time and energy.

What’s a PAD?

A pre-authorized debit (PAD) is an authorization you give to Desjardins to withdraw the contribution amounts from your company’s bank account when you remit contributions to your plan.

Why change your payment method to PAD?

Because it’s quick, easy and reliable. A PAD is automatically triggered when you send us your contribution list and withdraws the exact amount from your account.

Advantages of going with PAD:

• Just one step: send your contribution list
• Payment amount automatically matches the total contribution amount, minimizing errors and delays
• Processing times are significantly shorter
• Forgetting to send the payment with the contribution list is avoided

Consult the article Problems to avoid at all costs External link. Opens in a new window. to understand the implications of certain contribution defaults.

You keep control

You control when the withdrawals are made and how much is withdrawn, since the PAD is triggered when you send in your contribution list. Also, the PAD doesn’t permit any other types of transactions to be performed in your account.

Important: If you noticed a mistake with your contributions when submitting your list, please call Plan Sponsor Services or your client relationship manager as soon as possible to quickly rectify the situation.

How to enrol

Just complete and return the form (PDF, 197 KB) External link. Opens in a new window. to us by mail OR through your account at dfs.ca/plansponsor, under File transfer.

This form is also available in the Forms section at dfs.ca/plansponsor, from your plan administrator, or from Plan Sponsor Services by email at grs_plansponsor@dfs.ca or by phone at 1-888-510-4762.

When you rehire an employee, regardless of the reason (seasonal layoffs, a competitive labour market, etc.), don’t forget to contact your administrator or Plan Sponsor Services before you start remitting contributions for them. If you don’t, the remittance for all your employees will be delayed.

If we aren’t given advanced warning, we’ll need to contact you to understand the situation and to update the rehired employee’s status in our system. By letting us know ahead of time, you can avoid potential complications and your remittance will be processed on time.

To prevent delays, contact your administrator or send a note to grs_plansponsor@dfs.ca. We’ll do the rest!

As of April 1, 2022, changes were made to the Amundi Global High Income & Low Volatility Equity Funds (hedged and unhedged versions) offered on Desjardins Insurance’s group retirement savings investment platform. The manager added a complementary strategy that uses listed derivatives on equity indices as an overlay to the current strategy.

This change aims to improve the funds’ underperformance during market downturns without affecting the strategy’s defensive qualities. This should lead to a higher expected return with a slightly superior risk level, which translates into an enhanced risk-adjusted return of the funds.

With this change, the funds’ investment fees will increase by 0.02% starting on August 1, 2022.

For more information about this change, don’t hesitate to contact your Client Relationship Manager.

On May 4, 2022, Beutel Goodman announced the hiring of Kaili Ma as an ESG Analyst. Her arrival enhances the team’s responsible investment capabilities.

On May 9, 2022, Fiera announced the departure of Anik Lanthier, President, Public Markets, and Nicolas Papageorgiou, Global Head of Equities and Liquid Alternative Investments. These 2 positions were merged into a single position, Chief Investment Officer, Public Markets. This new position is filled by Jean Michel, who was Chief Investment Officer at Investment Management Corporation of Ontario (IMCO) prior to joining Fiera.

On May 18, 2022, T. Rowe Price announced the departure of Eric Yuan, Ben Thompson and Yang Yang and the hiring of George Wang, Amy Curry and Sebastien Murphy to the Emerging Markets Equity Investment team. These changes occur within a team of over 30 people.