The advisor’s role in benefits plans

In honour of Benefits Canada’s 35th anniversary, we took the opportunity to go back to the source to explore why employers offer employee benefits programs.

Our research looks at the past, present and future of employee benefits—and shows how much senior business leaders value them.

The shift to more complicated arrangements that require additional communication also means there is a greater role for advisors in the decision-making process.

According to the survey, almost half (47%) of senior executives believe their plan advisor has greater involvement and influence now than in the past, while 43% say the level of involvement is about the same.

The CAP Guidelines and the increasingly complex nature of retirement vehicles make specialists necessary, says Michael Ondercin, assistant vice-president, product marketing, group retirement solutions, with Manulife Financial. “Advisors are much more in touch with what’s going on in the industry and provide specific insights about investment options, education, communication and retirement planning for employees. It makes sense that they are more involved, especially as the DC space grows.”

Increasing complexity is also the reason that advisors are needed to help with health benefits. With sponsors more willing now to tweak plan design or implement new and creative solutions, an advisor is needed to navigate those specific challenges, says Matthew Rotenberg, manager, marketing communications, group products, with Standard Life.

Advisors also have a broader view of the market space, adds Marilee Mark, vice-president, marketing, group benefits, with Manulife Financial, so they can provide valuable benchmarking information for sponsors, which is used to redesign plans to control costs while remaining competitive.

Advisors are particularly valuable in the mid-size and small markets, she notes. “Since the economic downturn, senior managers need to manage costs more closely, and they need support to negotiate plans and shop for prices.”

Leigh Doyle is a freelance writer based in Toronto. leigh.doyle@gmail.com

Get a PDF of this article and other special coverage of Benefits Canada’s 35th anniversary.

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