April 2025 Edition

Since March 28, users on the plan sponsor site, plan member site and Omni mobile app must enter a 6-digit security code sent via text message or voice call to access their account.

This update aligns with Desjardins' security standards and significantly enhances protection for members and clients.

On September 9, 2024, the Canadian Association of Pension Supervisory Authorities (CAPSA) published an update to Guideline No. 3, which pertains to capital accumulation plans (CAPs).

Plan sponsors are invited to a virtual information session to gain insights into the recent changes and learn the necessary steps to ensure sound plan governance.

Topics to be covered:

• Roles and responsibilities of individuals and parties involved in plan governance
• Communication process To allow members to ask questions or submit complaints
• Code of professional conduct, including a policy to manage conflicts of interest
• Risk management framework to mitigate plan risk
• Framework for reviewing service provider performance, including investment managers, on a regular basis
• Overall process for the regular review of various governance aspects

Session dates

Invitations and links to the virtual sessions were sent out on April 3. If you missed them, here's the link to sign up: Booking Opens in a new window..

Are your plan members ready to achieve their retirement goals? Our upcoming webinars are designed to provide your plan members with the knowledge and tools to help them make informed financial decisions.

How to register: Encourage your plan members to register today via the secure plan member website, in the Wellness Centre Opens in a new window..

Upcoming webinars:

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Supporting asset consolidation: A fully digital solution that helps your plan members get a clearer picture of their savings and maximize the advantages of their group savings program.

Just over a year ago, Desjardins Insurance launched a streamlined asset transfer-in process, demonstrating our commitment to enhancing your plan members' experience and supporting their financial wellness.

Plan members with accounts at other financial institutions can now submit their account transfer requests independently and online.

Key benefits for your plan members:

• Simplified experience: Self-service that's entirely digital
• Fast processing: Requests are submitted in under 5 minutes and transmitted almost instantaneously to the other financial institution
• Easy tracking: Application status updates via e-mails or online at any time
• Improved financial wellness: Provides a better overview of assets, promoting saving and empowering members to reach their financial goals

How you benefit

An enhanced experience boosts plan member engagement. The group program's fees, generally lower than those of individual plans, could help your plan members grow their savings.

3 quick and easy steps to share with your plan members:

1. Access their online account via dfs.ca/GroupPlanMember or the Omni app
2. Go to My Transactions > Managing my account > Transfer an account
3. Follow the steps

Please note requests for transfers involving a marriage breakdown or a death claim must continue to be made using the paper process.

Questions? Contact Plan sponsor services at 1-888-510-4762, Monday to Friday, 9 am to 5 pm (ET).

Last fall, the Nova Scotia government amended the Pension Benefits Act and the Pension Benefits Regulations of Nova Scotia.

These changes came into effect on April 1, 2025, impacting pension plans and life income funds (LIFs).

Changes affecting pension plans:

• New options for reduced life expectancy: Members can now choose between a lump-sum payment or converting the pension benefit into a series of payments for a fixed period if they meet the prescribed conditions for reduced life expectancy;
• Lump-sum payments for non-residents: Former plan members who have not resided in Canada for the past two years can request a lump- sum payment of their pension benefit. Note : If they resided in Canada for 183 days or more during the year, they will be considered a resident and ineligible for this lump-sum payment;
• Biennal statements: Administrators must send pension plan statement to former plan members and retirees every two years. Previously, statements were only sent annually to active plan members.

The changes affecting LIFs:

• As of April 1, 2025, it will no longer be possible to enroll or transfer funds into a LIF established under the current Schedule 4;
• One-time ability to unlock up to 50% of pension funds when transferring to a LIF under the new Schedule 4A if the individual is at least 55 years of age;
• Unlocking of small amounts (50% of the YMPE) is allowed from age 55, whereas previously it was allowed from age 65;
• Elimination of temporary income for LIFs established after April 1, 2025, under Schedule 4A;
• Easier unlocking for plan members with a shortened life expectancy (less than 2 years) or non-residency in Canada (reported by the CRA and the application made 2 years or more after leaving Canada).

Please note there will be two types of LIFs until December 31, 2034: the current Schedule 4 LIF where existing annuitants will be able to continue to receive benefits, including temporary income, and the new Schedule 4A LIF that will allow future annuitants to benefit of the one-time unlocking option up to 50%.

As a result, effective January 1, 2035, the Schedule 4 LIFs will cease to be in effect and the Schedule 4A LIF will be deemed to apply to all LIFs, including LIFs established before April 1, 2025.

We'll keep you informed of any new developments.

On March 27, Jimmy Jean, Vice-President and Chief Economist at Desjardins Group, and Emna Braham, Executive Director of the Institut du Québec, provided an update on economic and financial forecasts.

Don't miss our latest economic outlook web conference replay Opens in a new window. (in French only).

On February 10, 2025, Desjardins Investments removed Grandeur Peak Global Advisor as one of the sub-managers of the Desjardins Global Small Cap Equity Fund, which is offered on the group retirement savings platform. Consequently, Wellington Management Canada now serves as the fund's sole sub-manager, benefiting from its relatively neutral investment style.

The fund's fundamental objective remains unchanged: to offer long-term capital growth by investing in a diversified portfolio of small- and mid-cap securities from global stock markets. However, the investment strategy has been modified to reflect the sub-manager removal. The fund now exclusively employs a bottom-up decision-making process driven by quantitative and macroeconomic analysis. Additionally, the fund's maximum allocation to emerging market securities has been reduced from 25% to 15%.

These modifications did not impacthe fund's investment fees.

The DFS Acadian Global Managed Volatility Equity Fund has transitioned to a global all-country strategy.

On January 16, 2025, the underlying strategy of the DFS Acadian Global Managed Volatility Equity Fund, offered on the group retirement savings platform, was changed. Specifically, the global equity mandate that exclusively covered developed markets was replaced by a global equity mandate encompassing both developed and emerging markets. The new mandate continues to be managed by Acadian Asset Management and is based on the same investment strategy. However, the fund's benchmark has shifted from the MSCI World Index to the MSCI All Country World Index.

This change is expected to enhance the fund's value-added potential relative to its benchmark. Historically, quantitative strategies like the one employed by the fund's manager have tended to add more value in less efficient markets, such as emerging markets.

This modification did not impact the fund's investment fees.