Good news! As of February 11, 2022, pension fund audits are no longer required for Defined Contribution Pension Plans in Ontario. You can find the official regulatory change here.
We note that this applies somewhat retroactively, so for example a DC pension plan with a December 31, 2021 year-end that would have filed their audit by June 30, 2022, falls under these new rules and doesn’t need to get an audit done. DC plans will simply need to file a copy of the unaudited pension fund financial statements going forward.
Note that FSRA can still order an audit be performed in exceptional circumstances – presumably if they’ve lost faith in the pension plan administrator/custodian/recordkeeper – so everyone still needs to be doing a good job even if not audited!
Also, Statements of Investment Policies and Procedures (SIPPs) are no longer required for member-directed DC pension plans in Ontario.
Just 6 months ago, in April of 2021, Benefit Advisors Network expanded its membership across the border with our first two Canadian firms. The addition of Owen & Associates and The Leslie Group has been a pivotal step towards facilitating the opportunities and connections our North American members need to collectively provide seamless international service to their customers.
This Summer, our team set up a call with Owen & Associates to hear more about their approach to the Employee Benefits industry and the journey that led them to join BAN Canada as one of its founding members. Michael Owen, the owner and CEO of Owen & Associates, and Steven Owen, who stepped into the President role in June of 2021 were more than happy to answer all of our questions.
Background
Owen & Associates (O&A) is a consulting and brokerage firm based out of Toronto, Canada; with additional locations in Collingwood, Ontario, and Kelowna, British Columbia. Established on a referral basis, their business sees a 98% client retention rate. They continue to service 400+ national clients with 20,000+ insured lives.
Their business model places clients and their needs at the center of all that they do. They strive to meet the unique demands of each business by providing both individual and group solutions for their customers.
On the home page of their website, you’ll see the tagline “Local Service. Global Perspective.”, Our conversation with Michael and Steven clearly highlighted how they embody that statement as a company.
A Unique Approach with First-Class Service
Many Canadian benefits companies are not designed to handle small groups with big brand needs – that’s where O&A comes in to fill the gap in the market. Their focus does not reside on the number of insured lives, but rather on addressing all aspects of their client’s needs. Quality of service continues to remain at its absolute forefront in all operations.
Historically, many of the companies they’ve served have been start-ups based in California’s Bay Area. Recognizing that some of these businesses may be two-life groups forever, they also know that occasionally they turn into 500, 1,000, or 2,000-life groups. Companies such as Yahoo, Square, Spotify, and Yelp have grown at incredible rates while supported by O&A as their partner.
Steven notes that in “the environment we work with, every client has the potential to be a unicorn”. O&A supports the up-front investment they make, by delivering first-class scalable services. This approach has allowed them to hold onto those fast-growing start-ups that scale up to become large companies and has led to their team receiving countless referrals.
O&A approaches business with a holistic technique, to act as a single point of contact for group benefits, group retirement, and third-party administration services. Through this method, their goal is to simplify the client relationship and streamline potential cross-functional enhancements and communication opportunities.
As they were working with global clients, Michael and Steven recognized two reoccurring factors. First, for many clients, Canada represents a smaller population and marketplace. Second, as companies trended toward centralization of HR and administrative functions with international providers, there was a need for Canadian expertise and support.
Administrative responsibilities can create significant financial liabilities if not performed in a timely and accurate fashion and they were identifying gaps in the services provided by carriers. Michael and Steven developed a special service where the O&A team acts as an extension of their client’s HR teams and handles the benefits administration in Canada. They advocate on behalf of their employees and are the dedicated point of contact for all things benefits related in Canada. This reduces the administrative function for the employer and allows them to build stronger relationships with their clients and directly with their employees.
The company now sits at just under 30 full-time employees working with clients across North America, Europe, East Asia, and Australia.
Once they joined Benefit Advisors Network, O&A wasted no time in making connections. They have had the opportunity to work with several U.S. members such as Alera Group Northeast in Hartford, CT; Benico Ltd. in Huntley, IL; Clark & Lavey Benefit Solutions in Merrimack, NH; GCG Financial in Deerfield, IL; and Genesys Enterprises in Atlanta, GA to support their Canadian operations.
The Owen and Associates Legacy
Michael (Mike) Owen started his career with Standard Life as one of the first Toronto hires given the challenge of establishing Standard Life as a viable group life and health carrier with consulting firms and brokerages. Later on, through his involvement in international business at Standard Life, it became clear to Mike that clients were underserved in the Canadian market, and that this was a niche he was interested in pursuing.
In his career, Mike has held various senior roles at Standard Life, WF Corroon, and Liberty Health, through which he helped establish their businesses in the Toronto marketplace. As a result of his experience in these areas “It was clear that the clients were underserved by both the carriers and on the consulting side of the business. Service was a key element that was missing and this was what led me to establish Owen and Associates – a firm whose vision was to put clients first, find solutions for their issues, and does so regardless of size.” Michael and Steven both believe that this was and remains the key to their success to this day.
“Our broker and consulting partners include the major houses, international networks, many of whom we have worked with since the mid-eighties. We continue to expand our business services, knowledge of the global market, and clients’ needs. We relish the challenge and the excitement of dealing with global companies and solving their issues.”
Prioritizing Relationships & Prioritizing People
Mike has always seen people as one of their business’s greatest long-term investments. Specifically, in regard to the strategic opportunity found in forming relationships with their southern neighbors in the United States. “We always believed that the United States is the greatest exporter of business globally”
Those relationships, paired with a strong service delivery, led to more opportunities and now O&A works through various international networks and their international relationships span 25+ years.
O&A has created client rapport that often results in recurring or longstanding relationships and opportunities. They’ve been serving their client Aligntech since 2002 when they were starting out with just 2 employees. Though just one of their client contacts, they have been led to 9 new engagements over the past 5 years, even as she moved through various employers to assist with global expansions.
All of this to summarize we have seen an average year over year fully organic growth of approximately 15% which has held consistent through the pandemic. Most of all, these longstanding relationships are a testament to the value and strength of our services
We are so delighted to expand the BAN network by partnering with our first set of Canadian members and giving that edge to each of our partners so that we can provide better coverage to our clientele.
Start collaborating today and utilize their expertise! Reach out to Maria Stephens or Steven Owen to connect with our Canadian members today.
For information on Owen & Associates, please contact:
The latest numbers from the U.S. Bureau of Labor Statistics show that there are 10.4 million job openings across the U.S. No wonder the topic of employee attraction has been a key topic this year for employers with businesses of all sizes, industries, and geographic locations. The labor market and the multi-generations currently in the workforce – including Baby Boomers, Gen Xers, Millennials, and Gen Z’s – has certainly made the ability to attract quality employees more difficult than ever. We’ve addressed many of the best practices that employers need to be focused in on establishing their recruiting strategies, including:
• Understanding the difference in the needs of each generation in the workforce. • Elevating HR within the organization to be strategic versus task-oriented. • Recognizing that outside influences (workforce dynamics) disrupt business continuity and play a vital role in the ability to attract and retain quality employees. • Employees are the greatest asset a company has and that should be the focus of strategic initiatives used to attract and retain a viable workforce.
Another practice that may not even be on the employer’s radar, but is certainly worth adopting in their recruiting and retention strategy: marketing their community. This strategic branding opportunity helps highlight the multitude of benefits of a specific region or city while demonstrating to employees the opportunities that exist to live out the lifestyle that embodies the work life balance they seek.
During the COVID-19 shutdowns, many employees choose to isolate in place. With an opportunity to try out a new location, others found alternative places to isolate, whether it was with family members or other attractive places across the country. In fact, United States Postal Service change-of-address data from February to July 2020 shows a 27% increase in temporary movers compared to 2020. The top five areas that lost the most people were major metropolitan areas: New York City; Brooklyn, NY; Chicago, IL; San Francisco, CA; and Los Angeles, CA.
This geographic shift in the ability to pull employees from outside the local area brings new opportunities for a business to continue to market itself. In addition to marketing the perks and benefits of working for a particular company, such as the mission, culture, and benefits, employers should also be marketing their community and the culture of that community.
What does it take to market your community? It is about knowing your audience and understanding what population(s) you are looking to hire and what would attract them. Is your city vibrant with younger communities and activities or is it a more family-oriented suburban area or small town?
What is the tie between your company and the community? Does your company have a longstanding history in the community? Is it a family grown organization with roots? Is it an entrepreneurial company that settled there because of economic advantages or does it provide a solution to challenges within the community? Use whatever story exists to connect the community to the history of the workplace.
A good place to gather information to use in promoting the community to prospective candidates is the local chamber of commerce. From schools to home pricing to social services, local chambers have a plethora of information that would provide vital information to use as marketing tools and is informational for applicants considering a specific area.
If the company is civic-minded, how do employees engage with local charities and team-building activities in the community? It can be surprising today to find that many companies may only sponsor an event around the winter season holidays and forget that employee engagement can occur all year round. These year-round events provide great opportunities to engage employees, their families, and the community as a whole, in turn providing a sense of social well-being for the betterment of all.
Companies in rural areas may find it hard to attract candidates when the nearest town is miles away. However, the sense of community may be stronger in these smaller communities. Look to find out what events are held for singles, families, etc. Consider sponsoring events and joining with other businesses as a way to meet prospective candidates.
No matter where a company is located, employee engagement and culture committees can assist in providing opportunities. Internal committees should be filled with representation from all departments – from line to leadership – to bring a variety of ideas to the table.
Use a company website or intranet to promote these local benefits and use links to tie into the chambers or other reference sites.
Once the story is created, the next step is to generate the interest of applicants. How does this information get shared?
Use it on the company website or job board advertising. The goal is to be creative. Companies can create videos walking around the community, having civic leaders share the story – create the visual story.
Remember the relocation package. When considering relocation packages, employers have so many options, ranging from a “hands-off” approach by providing direct services to employees to offering thousands of dollars to have employees move from one location to another. The less burdensome and the more resources a company can provide to make the move easier for all involved, the better the outcome is for everyone. Let the offering become part of the storyline
Do not let the story die there. Talk about it with candidates, sell the job, the company, the community. Be enthusiastic about the opportunity offered. No longer is it about a company having what a candidate needs. In today’s labor market, the applicants have what employers need. Jobs are plentiful and people are choosy. They have decisions and opportunities available today more than ever and companies have to sell themselves to establish the company as The Best Place to Work.
Life has felt like a proverbial rollercoaster over the past year and a half. It seems no matter how much more prepared the industry is or how much better it gets, the more outside forces continue to disrupt business continuity, constantly challenging the industry to think differently and more strategically as employers plan their annual benefit offerings. Couple this with the most hectic time of year—the fourth quarter— and health and welfare insurance agencies are feeling the pressure from all angles.
These influencing forces, typically called workforce dynamics, can hit employers globally, nationally, regionally, or even locally.
For the 2021-2022 open-enrollment period, examples of such dynamics are COVID-19, damaging hurricanes in the south and east, ongoing fires in the western portion of the United States, and workplace violence.
Cultural and generational changes also impact the way we view plan designs for the year, such as gender diversity, Baby Boomers aging out and Generation Z entering the workforce. Last but not least, the labor market has seen its share of ups and downs over the past year and a half. The unprecedented labor shortage may leave employers wondering how to design their benefit plans to attract and retain qualified employees in such a competitive market. Trusted advisors are needed to be knowledgeable on all these considerations as employers are looking for a one-stop strategic agency.
MEDICAL SPEND INCREASE
With COVID-19 and its variants continuing to plague the globe and confound the medical community, U.S. health plan carriers are making this fourth quarter a bit more of a challenge as they navigate through skyrocketing healthcare costs. While carriers had waived deductibles and copayments for COVID-19 related treatments for insureds, these waivers are ending and it is anticipated that premium increases are on the rise. According to PWC, medical spend is expected to increase six percent for 2022—higher than it was between 2016 and 2020.1 Driving factors in the cost increases are a result of COVID-19 expenses, increased mental-health and substance-abuse services, return to regular care that had been deferred, and health of the overall population, which worsened due to a lack of exercise, isolation and increase substance abuse during COVID-19. Employers will be weighing all their options and strategizing if and how they can pass on increases to their workforce.
TO SURCHARGE OR INCENTIVIZE
Advisors are being called upon to provide guidance on the question “Should employers incentivize or pass on surcharges to employers to encourage vaccinations?” Not only does this question generate serious compliance concerns over equal employment opportunity, HIPAA privacy rules, and the ACA, it also spotlights challenges with employee relations. In a labor market where it is difficult to attract and retain quality employees, would employers be further damaging their ability to maintain or grow their workforce by penalizing unvaccinated workers through surcharges, mandates for only vaccinated hires, or incentivizing the vaccinated? Who is being affected? It is both internal staff and external candidates. It is important to also question whether it is the disenfranchised who are only being affected by policy decisions. Advisors should engage their human resources consultant for a holistic approach to plan and policy development alongside the company culture, turnover, and organizational growth.
PLAN DESIGN
Typically when we think of plan design, we think of stereotypical employees and their medical needs. Gender diversification, parental needs, generations leaving and entering the workforce, and the emotional wellbeing of employees working through workforce dynamics are a primary are a focus of this fourth quarter for employers. We should also be promoting a holistic well-being culture. Be fluid, resourceful, and strategic, and think holistically.
Physical, emotional, financial, and social wellbeing create a productive and profitable culture in the workforce—no matter the size of the client.
COMMUNICATION
In addition to the potential of carrier increases and plan-design considerations, advisors are still faced with the continuing challenges of timing, communication, participation, and compliance with new legislation. Lessons learned throughout the pandemic continue to be strategies to put into play to work through these challenges.
Don’t assume because the client is small that it doesn’t need technology to be more efficient. Smaller clients are run on tighter staff and tighter budgets and could use the added assistance. Also, many employees are still working remotely and need access to current technologies that will allow them to do their jobs efficiently and effectively.
Challenges exist for employers in the age of technology, including budgets and employee access. Brokers should align themselves with resources that can vet the most efficient, cost-effective technology solutions.
Effective communication is key to making sure benefit plans are clearly, concisely presented. Be creative and flexible with presentations and style. Engagement surveys show employees don’t know or understand their benefits. Communicate and educate in ways that make it easy, fun, and impactful to learn.
THE TOTAL PACKAGE
Benefits are part of a total rewards package. Broadening your scope of services to offer human capital management solutions is necessary to continue to be competitive in today’s marketplace. Total rewards encompass compensation, well-being, benefits, recognition, and development. Together, these lead to optimal organizational performance.
IN CONCLUSION
Be innovative, be strategic, and think holistically. Remember that health and welfare is a competitive market—not only against the traditional competitors but HR consultants are also now at the playground, and they have friends in benefits. If advisors are not talking about and presenting strategies and creative ideas to clients concerning holistic thinking in innovation, organizational growth, flexibility, technology, and compliance, someone else is.
Bobbi Kloss has served as BAN’s director of human capital management services since 2014. She also oversees all HR-related functions for BAN internal practices. She has a deep
understanding of the increasingly complex and diverse HR industry, with more than 20 years of human resource generalist and executive-level human capital management experience. Bobbi began her career as an employment law compliance paralegal for a national PEO after graduating with high honors from the Career Institute for Paralegals. She has a passion for service and has helped establish two nonprofit organizations in
Texas, co-founding Teenage Parent Program Scholarships in Houston and founding Heritage Children San Antonio in 2003 to help at-risk youth develop necessary life skills. She currently volunteers her time mentoring women in addictive behavior recovery.
I am pleased to announce that HRprimed Inc. has entered into a definitive merger agreement with HR Covered Inc., a leading provider of Human Resources Products and Support based in Ontario, Canada. HR Covered has a proven track record in offering customized solutions to every aspect of HR and H&S document and tools development, online training, and expert HR on-call support. HR Covered shares our commitment to the integrity of our HR products as well as an aggressive value-based approach to make expert HR affordable for all sizes of companies across Canada.
The merger will create a large team of experienced HR experts who are dedicated to serving the human resources needs of emerging and growth-oriented companies like yours, across the country.
This merger with HR Covered will allow us to offer our clients access to an HR Research and Policy Development Department, as well as their own customer service representative and IT support. The combination of HRprimed’s HR consulting expertise and HR Covered’s impeccable HR services will provide our clients with an end-to-end HR experience. This partnership is also expected to result in greater efficiencies and a significant increase in our market value.
For our BAN members and their clients, nothing changes. BAN members will still receive all of the expert HR support we currently offer. In addition, you will have access to greater resources, new consulting, recruiting services, and HR products.
Now part of HR Covered, the focus will always be on customer experience. We assure you that our pricing, product, and support procedures will remain unchanged for now. Existing commitments and pricing remain unchanged and strong. Upon renewal, you may continue on with your existing service and price or select from HR Covered’s core membership options. We are excited about expanding to all the avenues of HR by incorporating some exciting service lines including Recruitment, Payrolling and Consultation. HR Covered is all set to be your One Stop Solution for everything HR.
If you have questions about our upcoming services or need more information on the merger, please feel free to write back to me.
