Plan Design
Selection of Suppliers
The type of program established by the employer will determine the services that need to be provided.
Defined Benefit Pension Plan
Services needed include those of a fund manager, trustee (if the fund manager is not an insurance company), administrator, and actuary.
Marshall Capital Corporation role in this type of plan will be solely a fund management function.
At one time insurance companies provided full packages of these services for defined benefit plans. Most (a small number retained the full service approach) have removed themselves from the actuarial and administrative functions, and now restrict their activities to the investment management role. In either case, it is not required for a plan sponsor who uses an insurer as the fund manager to establish a trust for the plan.
Defined Contribution Pension Plan
Services needed include those of a fund manager, trustee (if the fund manager is not an insurance company) and administrator.
Insurance companies continue to provide a full service package for Defined Contribution Pension Plans, including fund management, administration, and investment communication to investors. A trust is not required when using their products.
Group RRSP
A fund manager, trustee (not required for insurance company products), and administrator will be needed.
Insurance companies offer full service arrangements also, and do not have the requirements of establishing a trust and extensive investment disclosure.
