Our pension-plan solutions reduce fiduciary liability and admin burden, while retaining flexibility
Are you doing right by your people?
For employers, it’s a complicated question—and, in recent years, potentially a litigious one.
To date, lawsuits claiming employer fiduciary breach are rare in Canada. But with suits like these becoming more common in the United States, and the baby boomer generation approaching retirement age, it’s only a matter of time before fiduciary breach enters the courtroom lexicon north of the border.
The latest example from the U.S. is Coca-Cola Consolidated Inc., a large independent Coca-Cola bottler, accused of breaching its fiduciary duties in a class-action lawsuit launched by employees enrolled in its company pension plan.
“For plan sponsors, there are critically important questions that need answers. Do you know your plan’s fee schedule? Would you say its expenses are reasonable for participants? Are the investments too risky? Are there more prudent options? And are you communicating all of this to your employees?” says Brian McClennon, President and CEO of Link Investment Management.
“One key advantage of our workplace financial wellness solutions, like our defined contribution LINK Multi Employer Pension Plan, is the fiduciary responsibility element—with Link doing all the heavy lifting,” he adds.
Link’s solutions like the ALPP provide multiple benefits to small and midsize businesses, one of them being mitigation of fiduciary risk.
With Link taking on administration for plan sponsors, governance and fiduciary responsibility are transferred to one centralized pension committee, with established processes and procedures.
Ultimately, that means responsibility lies with Link’s team of plan management professionals—who are better positioned to fulfil those fiduciary obligations, and have a duty to act in the best interest of plan members.
Plan sponsors also benefit from a Link savings vehicle through:
- Reduced strain on internal resources, with Link responsible for design, investment strategy, implementation, monitoring, disclosure, communication and service provider selection and oversight.
- Reduced provider and management fees, through avenues like administrative sharing and asset pooling.
- Reduced compliance burden, with Link responsible for Income Tax Act compliance, pension legislation and plan provisions.
- Plan flexibility, with customizable contribution levels and structures, eligibility and earnings definition that meet employer objectives.
“For a great many small to midsize businesses, their strength is their people,” says Mr. McClennon. “Employers want to do right by them—and Link can help.”
