CEO outlines how the platform could fast track retirement savings objectives for plan members
BMO Global Asset Management and digital workplace savings and pension plan platform LINK Investment Management have joined forces to launch the new BMO-LINK Workplace Savings Platform, aimed to improve the way Canadian employees invest for retirement.
At the heart of the partnership is a push to lower investment costs using exchange-traded funds (ETFs) and to streamline plan access under “a digital-first approach”, explained Trevor Philp, managing director, head of group investment plans at BMO GAM.
When introduced in their workplace, BMO-LINK plan holders will have the ability to contribute to several types of employer-sponsored group plans, including Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and Deferred Profit-Sharing Plans (DPSPs). BMO-LINK plan holders will also be able to construct portfolios with BMO Exchange-Traded Funds (BMO ETFs) that offer diversification, liquidity, flexibility and low fees.
BMO’s decision to launch the new workplace savings platform stemmed from both its long-standing business in retirement planning and commitment to ETFs. While the bank already operates a group RRSP business through its branch network, Philp noted the firm saw an opportunity to innovate and combine BMO’s ETF expertise along with a growing demand for digital access.
“When we were looking for ways to evolve and bring new things to the market, this really stood out for us,” he said. “We hear from a lot of clients that they want to be able to access their investments online. They want to be able to handle this all digitally.”
Meanwhile, Brian McClennon, CEO and president of LINK, underscored the development of their digital group savings platform was driven by deep, attentive listening to both plan sponsors and plan members. By partnering with BMO, the goal was to simplify the experience for both plan sponsors and plan members, from enrollment to account management to retrieving documents at tax time.
This also allows for a more scalable approach, he highlighted because historically, while banks have had group savings options, they were heavily reliant on in-branch advisor interactions and required some employees to visit branches, undergo Know Your Customer (KYC) processes and be matched to suitable portfolios. Additionally, advisors simply referred clients to insurance companies because no effective solution existed within the bank channel, he explained.
Regardless of employees’ existing banking relationships, Philp emphasized the new platform is open to all plan sponsors.
“We don't require anybody to have a BMO bank account to participate in this,” he said, adding that workplaces can work with BMO either independently or alongside another provider to design a tailored group RRSP plan. As for a plan member's existing ETF fund from another provider, only BMO ETFs are currently offered, "but the platform could accommodate ETFs from other providers in the future.”
“Any type of matching program that they want to administer, from different accounts, whether it's RRSP, TFSA or others, we would administer within this,” he added.
When it comes to fees, Philp stressed that cost transparency and competitiveness are central to the offering as the pricing structure includes a flat service fee and a weighted average cost of the ETF portfolio. He also highlighted the absence of employer fees. Philp believes the main advantage for plan sponsors lies in the platform’s ability to reduce costs while improving employee outcomes.
“We’re really trying to focus on costs with this,” he said. “When you think about cost, what that really means for the end employee is more money in their retirement. It means better returns.”
Cost savings aside, Philp emphasized the platform’s modern design and usability. As a digital-first solution, it gives plan members control over their retirement programs with tools to track, manage, and adjust their investments easily and at their fingertips.
Consequently, McClennon outlined how LINK’s tech-driven approach for plan setup and implementation minimizes friction for plan sponsors, which enables them to more easily deliver intended benefits to employees. From the beginning, LINK supports sales agents in collecting plan data, which allows them to pre-populate key documents such as e-signature agreements, member eligibility, declarations of trust, and client service agreements.
“The less friction that you can provide or put in front of a plan sponsor to get a benefit off the ground that they intend for their employees, the better,” he explained, emphasizing the importance of automation and early data capture. “We’ve ingested much of the plan setup information, so the plan is pretty much ready to go to be launched on the platform.”
A significant advantage for plan sponsors, McClennon highlighted, is LINK’s ability to integrate with HR and payroll systems at the plan setup stage, which allows demographic data to be automatically pulled, and determines eligibility and streamlines member onboarding.
Eligible members then receive a customized onboarding experience. They verify their data, review plan documents, and then make investment selections. Plan members can then choose from defaults such as a target-date or balanced fund or opt for digital advice by completing a suitability questionnaire, which has already been vetted by the regulator.
“They’ll go through a questionnaire that will determine the objective, their appetite for risk, their appetite for volatility,” explained McClennon. “When they come out on the other end of that, they'll have a suitable prescribed portfolio. That's another thing that we think reduces a lot of the inertia to get members in the plan is through product selection.”
He also underscored ongoing support during and after the plan launches on the platform. This includes hosting kickoff meetings, virtual onboarding sessions, and educational webinars to help sponsors and members understand the program.
“I would guess that many members participating in plans don't have a high degree of financial investment sophistication, so that can prove to be a barrier for them to actually participate in the plan,” he emphasized.
“We believe through this approach, we get more members participating in the plan, realizing the benefit of an employer match, and starting to save to retirement much more quickly than they might otherwise.”
