How do you create an aligned retirement plan when the company was formed through multiple acquisitions?

The challenge

When we began working with one of North America’s largest energy solutions companies, we initiated an audit of their retirement program. Since the company was formed through multiple acquisitions there were several retirement programs, along with multiple investment menus. This made it tedious and difficult for the company’s pension committee to manage and ensure consistency across the chain of legacy organizations.

The Accompass touch

Accompass led the pension committee through a needs analysis and they determined that the purpose of their retirement program was to truly contribute to their employees’ retirement. This resulted in the legacy organization joining the Defined Contribution Pension Plan from a contributory Group RRSP. We then reviewed all investment options available and came up with a best-of-breed investment menu that was consistent across all plan types and legacy organizations. The company had also inherited a Defined Benefit (DB) plan through one of their acquisitions – which the majority of the pension committee members had little experience in managing. We educated the pension committee about managing the plan and helped them decide to de-risk and reduce the funding volatility associated with the DB plan.

The outcome

Not only were we able to align the retirement programs of the legacy organizations, creating consistency for the committee, through extensive education they also became more comfortable with managing the aligned plans. With our help in providing oversight the client continues to manage the plans with due diligence and ease.