CSA Group doubles participation in DC pension

CSA Group has doubled employee participation in its defined contribution pension plan – from 40 per cent to 85 per cent – following a number of changes and a targeted communications campaign.

In 2014, the not-for-profit organization changed the contribution structure for its DC plan and its group registered retirements savings plan, because it “wanted to encourage employees to think about the future and retirement and start saving more,” according to Melodie Mason, director of total rewards at CSA Group.

Before the changes, employees had been required to make minimum contributions of 2.5 per cent to the DC plan, while CSA Group also contributed 2.5 per cent and put another 2.5 per cent into a group RRSP. From June 30, 2014, the full five per cent from the organization was contributed to the DC plan.

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In addition, employees hadn’t been able to contribute more than the required base amount, but with the changes they were allowed to make additional voluntary contributions, up to four per cent of salary. And, if they had completed at least five years of service, their voluntary contributions would be eligible for a matching contribution from CSA Group. The organization also introduced a tax-free savings account.

Despite all these changes, many employees, particularly long-term staff, were still not using the DC plan, so the human resources team decided to take initiative.

“We actually had the team calculate by employee how much money they’re leaving on the table,” says Mason. “If they had more than five years of service, we phoned them up and said: ‘Did you know that because you’re not choosing to contribute, you’re leaving this amount of money on the table?’”

The targeted phone calls made a huge difference, as participation in the pension plan increased from 40 per cent to 85 per cent.

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Later that year, CSA Group introduced a number of changes to its benefits provision, including: a new company-paid health spending account, critical illness benefit and basic accidental death and dismemberment benefit; revised short-term disability and long-term disability plans; a new optional employee, spouse and dependent life insurance plan; changes to the coverage for paramedical services, such as acupuncture, massage therapy, physiotherapy, psychology and speech therapy; and changes to the coverage for dental and prescription drugs.

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The communications campaign that followed these changes, as well as the changes to the retirement savings plan, led to CSA Group being named a finalist in two categories at Benefits Canada’s 2015 Workplace Benefits Awards — Benefits Plan Communications and Pension Plan Communications.

“We were making tons of changes,” says Mason. “There were teaser e-mails… detailed communications that were mailed home to make sure that employees shared the information with their families and made decisions.”

CSA also hosted education sessions and webinars and sent follow-up communications, while its provider Sun Life Financial visited offices to give employees a refresher about how to use the website and to process claims.

“It was quite an extensive campaign,” says Mason, adding this was why the company implemented pension plan changes before the benefits plan changes. “The whole timeframe was entirely separate… nothing overlapped.”

Has your organization developed a creative and effective pension or benefits communication program?

The 2016 Workplace Benefits Awards are now open for nominations.