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Corporate DB Pension Administration: Boutique Actuarial Firms Are Quickly Gaining Ground.

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Finance, Human Resources, Compensation, and Benefits Teams Take Note:  Sponsors of Corporate DB Pension Plans have access to bespoke service from seasoned boutique actuarial teams.

February 11th, 2025

Ryan Ackers

The Canadian Defined Benefit Landscape

According to a 2022 StatCan report, over 4.7 million Canadians were active members of a Defined Benefit (DB) pension plan in 2022, up 3.3% from 2021.  DB plans account for 68.1% of total membership in Registered Pension Plans.  Yet, common thought says that DB pension plans are decreasing, rather than increasing. 

The focus of this article is not to differentiate between corporate and government pension plans, but rather, to rebut outdated practices in Corporate DB Plans and discuss the rising popularity of boutique Actuarial Services for Corporate DB Pension Administration.

Corporate DB: Active vs Legacy DB

Many companies in Canada offer Corporate DB plans to their employees, either on an Active basis, where new employees can continue to enroll; or a Legacy basis, where a company no longer permits new employees to join the DB plan, but permits employees who were active members in the DB plan at the time it was closed to new entrants to continue to participate for the remainder of their career.  This is referred to as a Legacy DB plan. 

In some cases, the Legacy DB plan might also prohibit further DB pension accrual for such legacy members but permit them to retain the DB entitlement they had already accrued, including their growing in of early retirement enhancements and higher average earnings.

Larger players such as Willis Towers Watson, Mercer, and AON dominate corporate DB in Canada.  But did you know that boutique actuarial firms like GBL can provide customized services to meet the unique needs of each client for such Legacy DB plans on a more cost-effective basis?

There is a Better Way for Corporate DB: Boutique Actuarial Firms

Many members of GBL’s actuarial team for instance, had previously worked at the larger firms on a wide range of DB plans in the public and private sectors before choosing to work with like-minded peers to offer their actuarial expertise in a more effective way.  So why should a corporate plan sponsor consider switching from a large incumbent firm to a boutique actuarial firm for their Corporate DB Pension Administration?  The answer lies within GBL’s Value Proposition: Experience – Service – Cost – Guidance.

  • Experience – GBL’s actuarial team possesses a combined 300+ years of experience, adhering to the same professional standards set by the Canadian Institute of Actuaries and the Society of Actuaries as our counterparts do.  We have expertise in pension plan design and setup, ongoing administration, and plan wind ups; and expertise in performing actuarial valuations for all purposes including funding, solvency, and accounting.
  • Service – With an average tenure of 10+ years, GBL’s administration and sales teams possess the expertise to answer questions accurately and on a timely basis – usually within 24 hours.  It is likely that you will work with the first person who you built the relationship with for the course of your engagement with GBL, rather than having to get to know a new consultant every 2-3 years.
  • Cost – Because boutique firms have lower overhead, cost savings are passed onto the client.  As a result, GBL’s costs for the required actuarial and administration services are often ⅓ to ½ ongoing costs from the larger actuarial incumbents.
  • Guidance – Not comfortable switching plan administrators?  Not a worry.  GBL will make its Head of Sales, Vice President of Administration, and Chief Actuary available to review your company’s DB plan to evaluate the fit.  If it makes sense, we will guide you through the process of switching your plan administration to GBL with ease.  If it doesn’t make sense, then you can walk away knowing that you have completed prudent due diligence on your company’s DB plan.

Ready to Experience the Benefit in Corporate DB Pension Administration?

Ready to optimize your company’s DB plan?  There is a better way for companies to manage the actuarial and administrative needs for Active and Legacy DB plans.  Contact GBL today for a free consultation and see how much you can save with boutique actuarial services for Corporate DB Pension Administration.

Contact GBL to find out why more large Corporate DB plan sponsors are experiencing the benefit of improved service and lower costs through a boutique actuarial firm.

Founded in 1995, GBL is a leading provider of retirement, health, and cross-border solutions for business owners, and corporate pension administration across Canada. With offices in Calgary and Toronto, we have served 7,000+ clients, have 3,000+ Financial/Investment Advisors in our network, actively manage 2,000+ IPPs,  RCA, and SERPs.  We have created 1,000+ HBPs and 3,000+ FMVs. We’re known for our industry leading client service and administration, as well as our top-notch actuarial group. Contact us today at  [email protected] or 403.249.1820 and follow us on LinkedIn to learn how we can help Build Your Future.  www.gblinc.ca

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