Mission
Provide an efficient and flexible mechanism for delivering retirement and savings programs that meet the varied needs of dealers and their employees.
Purpose
By aggregating resources and effort across Ford dealers and their affiliates, employees can benefit from lower costs, better program features and superior services compared to what they can likely achieve on their own.
About the Program
The Canadian Ford Dealers & Affiliates Pension & Financial Wellness Program was established by Ford Dealers and is the only pension plan in the automotive industry created by dealers, for dealers. It is offered exclusively to employees of Ford Dealers and any affiliated automotive franchises in which a dealer principal has an ownership interest.
Since its inception in 1994, the Program has grown to over 4,500 members and holds more than $275 million in assets. The Program is overseen by a Board of Trustees consisting of current or retired Dealer Principals from across Canada, as well as Independent Trustees.
The Trustees and the Program are advised by Aon, one of Canada’s leading HR consulting firms. Program assets are professionally and securely managed by several of Canada’s largest and most reputable investment managers. Member support and administration are provided by Desjardins.
What is it?
The Program consists of a Defined Contribution Pension Plan (registered under British Columbia’s Pension Benefits Standards Act), a group RRSP, and TFSA for all of your savings goals. Then, when you are ready to shift gears into retirement, the program offers a Group RRIF and LIF, which allow you to convert your savings into retirement income.
How is it structured?
The Plan is governed by a Board of Trustees of Ford Dealer Principals and two independent industry experts from across Canada. There is a strong focus on industry leading pension plan governance and information security.
How the program works
Both you and the dealership make regular contributions to the DC Pension Plan.
This helps you reach your retirement goals faster. Participation rules depend on your dealership.
In addition, you can participate in the voluntary Group RRSP and TFSA for your other savings goals. The dealership doesn’t contribute to these two plans, but you benefit from the convenience of payroll deductions, access to a competitive investment fund lineup, and lower fees than investing on your own.
You decide how the funds in your account(s) will be invested—there are professionally managed investment funds to choose from. Contributions and investment earnings grow in your account(s) over the course of your career.
Not sure how to invest?
We’ve got you covered with investment options suited for the novice to the expert investor. There is something for everyone and support for anyone who needs it.
When you leave the company, you can take your money with you (employee contributions, vested employer contributions, and related investment earnings) or leave it in the program.
You can transfer your account balances to other registered savings vehicles to receive a retirement income (Pension Plan, Group RRSP) or use for other savings purposes (TFSA).
Did you know?
In the program, you pay a 0.9% all-in fee compared to 2.1%, which is the average fee typically charged outside of a group program. This keeps more money in your accounts and increases growth potential.
Highlights
- A nationally-offered registered pension plan for core retirement savings
- Tax-deferred individual accounts for employees
- Provides for flexible employee & dealership contributions
- Employees choose their own investments – made easy
- Additional voluntary savings options through a group RRSP and TFSA
- Tax-deferred growth on investments
- No payroll taxes on Employer Contributions
- Tax deductible compensation for Employee and Employer
- Low cost model – management fee currently 0.9%
- Low-cost retirement income products and services
- Access to Group RRIF and LIF