MFHA Group Savings Plan
By Michael Demner
The MFHA Group Savings Plan is an exclusive offering for our members – whether you pay a fee for our services or not.
The MFHA Group Savings Plan is administered by BenFlex Services Inc., located in Vancouver. The Trustee is Canadian Western Trust, also located in Vancouver. The BenFlex Group Savings Plan has been in operation since 2004 and currently holds more than $60 million in clients’ savings accounts.
The MFHA Group Savings Plan offers our members participation in a registered group RRSP, or a registered group TFSA, or simply on a non-registered basis. The RRSP and TFSA are already registered with CRA.
Canadian Western Bank offers GICs through Canadian Western Trust.
The investment funds available for purchase by our members are pooled pension funds managed by Phillips Hager & North and Leith Wheeler. As a member of the MFHA Group Savings Plan, you’ll enjoy lower fees (management expense ratio or MERs) than you would be charged as an individual investing with these management companies. Your MERs would also be lower than any mutual fund, including funds offered by banks and insurance companies.
Due to the size of the BenFlex portfolio, the Leith Wheeler investment fees are reduced further, and as an MFHA member you will benefit from these lower fees. Most of Leith Wheeler investment funds have a MER, after fee rebates, that’s less than 0.6 percent--compared to typically 2 percent or more at the banks and mutual fund companies.
As an MFHA member, you will not be charged a MER fee by BenFlex. A small administration fee charged by MFHA at only 0.5 percent of your assets under management, will be applied to maintain and improve the MFHA website.
If you are a paying member of MFHA, and you invest your savings in the MFHA Group Savings Plan, your membership fees will be reduced over time. Once your savings account is large enough that the 0.5% administration fee exceeds your membership fee, then you will no longer be required to pay a membership fee for MFHA as long as you maintain your account with the MFHA Group Savings Plan.
Other unique features of the MFHA Group Savings Plan include:
· Online access to your accounts 24/7, including quarterly financial statements and RRSP contribution receipts;
· Access to our call centre three days per week, where you can ask Lauralyn your questions at no charge;
· A guarantee that your account balance will always exceed your savings over any five-year calendar period for as long as you do not change your investment strategy; and
· Automated monitoring of your account balance with annual reporting of your savings compared to your pre-approved target, as long as you are a paying member of MFHA.
You can transfer in accounts from other investment managers at no charge. If you wish to withdraw any part of your savings, there is only a small fee charged by Canadian Western Trust.
Applying for participation in the MFHA Group Savings Plan is simple. We just need the following information to hold your account and there is no charge for doing this:
· Your First and Last Name: ____________________________________
· Your Date of Birth: __________________________________________
· Your address: ______________________________________________
· Your email: ________________________________________________
Click here to send this information to Lauralyn at the MFHA Call Centre. You can call her from Monday through Wednesday 8 am to 4 pm PST at 604 261-2444.
Lauralyn will contact you by email to ask for any other information that we will need. Lauralyn will also arrange to debit your bank account monthly with any amount you wish to save and invest.
We will not establish your account with BenFlex Services Inc. until you have agreed to participate and arrange for the bank debit.
We are looking forward to helping you make your money work!
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