QUÉBEC CITY, Feb. 9 /CNW Telbec/ - In Québec City, Yvon Bolduc,
President and Chief Executive Officer of the Fonds de solidarité FTQ
(the "Fonds"), and René Hamel, President and Chief Executive Officer of
SSQ Financial Group, announced a partnership leading to the creation of
SÉCURIFONDS™, a new payout product designed for retirees. Administered by SSQ
Financial Group, SÉCURIFONDS™ is a balanced segregated fund RRIF that invests in safe stocks and
bonds and that offers a 100% principal guarantee at maturity or in case
of death, subject to certain conditions.
SÉCURIFONDS™ was designed especially for retired Fonds shareholders who have to roll
over their RRSP savings to another investment vehicle. Funds
transferred to SÉCURIFONDS™ are invested in a balanced segregated fund, registered in a RRIF
(Registered Retirement Income Fund).
SSQ Financial Group is the administrator of SÉCURIFONDS™. With this agreement, the Fonds de solidarité FTQ can offer a safe,
attractive solution to retiree shareholders who wish to convert their
RRSP to a RRIF.
"Long-standing Fonds shareholders can now remain with us, knowing that
they are enrolled in a safe payout product and that they will continue
to receive the same quality service," said Fonds CEO Yvon Bolduc.
"In the past, Fonds shareholders who had to roll over their RRSP to a
RRIF had to do all the legwork themselves, in other words, shop around
and compare the countless products on the market. Now they have an
attractive turnkey solution from SSQ Financial Group and SÉCURIFONDS™. We're proud to be able to help Québec workers protect their lifelong
savings," stated SSQ Financial Group's CEO, René Hamel.
The savings rate is still a problem
"The situation is worrisome. The debt level keeps climbing, Quebecers
still have a very low savings rate and the public plans are not enough
for a comfortable retirement. In fact, according to the Régie des
rentes du Québec, the retirement age for Quebecers is one of the lowest
in the world while their life expectancy is among the highest, meaning
more time spent in retirement. In this context, the Fonds believes it
is playing an influential role by encouraging workers to adopt good
retirement savings habits with a solution that's accessible to everyone
thanks to the 30% in additional tax credits. This is also a good
investment for the governments, which recover the cost of the tax
credits in about three years according to a study conducted by SECOR1," added Mr. Bolduc.
Saving doesn't have to be a struggle
The Fonds de solidarité FTQ is calling on all Quebecers, especially
young workers, to acquire good saving habits. The 30% in additional tax
savings provided by the Fonds RRSP makes it easier for people to save
by minimizing the impact on their budgets. For example, to save
$100,0002 in 25 years in a Fonds RRSP, the outlay would be just $22,000 or $880
net per year. Compare that with $67,5003, which is how much a worker would save if the money were placed in
another investment vehicle such as a Canadian balanced mutual fund.
An RRSP that pays off
Factoring in the additional 30% in tax credits, a Fonds shareholder who
invests the same amount each year by way of payroll deduction would
have earned a compound annual return of 10.5%4 over 7 years and 7.9%4 over 10 years, beating out the 4.1% average return generated by
Canadian balanced mutual funds.5
2011 RRSP campaign
For the current fiscal year, the Fonds can issue an unlimited number of
shares, which are available to all and can be purchased in three easy
ways: payroll deduction, preauthorized withdrawal or a lump sum
payment. The additional labour-sponsored fund credits amount to 30% and
are available for investments of up to $5,000 per year.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ helps drive our economy. With net assets of $7.7 billion as at November 30, 2010, the Fund is a
development capital investment fund that channels the savings of
Quebecers into investments in all sectors of the economy to help
further Québec's economic growth. The Fund is a partner, either
directly or through its network members, in 2,052 companies. With its
577,511 owner-shareholders, it has helped, on its own or with other
financial partners, to create, maintain and protect 150,133 jobs. For
more information, visit www.fondsftq.com.
About SSQ Financial Group
With $2 billion in annual revenue and close to $5 billion in assets
under management, SSQ Financial Group is a leading mutual diversified
financial institution. The Group serves over 1 million customers and
provides jobs to more than 1,600 employees. SSQ, Life Insurance Company
Inc., the Group's principal company, is recognized as a leader in the
group insurance industry and as an expert in the investment and
retirement sector. SSQ Financial Group is also a rising star in home
and auto insurance (SSQ General Insurance Company Inc.).
1 "Portraits des investissements du Fonds de solidarité FTQ et analyse de
leur impact économique," SECOR and Regional Data Corporation, June
2 Assuming a year-end contribution and an annual compound return of 3%.
3 Assuming a year-end contribution and an annual compound return of 5%.
4 As at November 30, 2010; these returns do not factor in the RRSP tax
5 Canadian neutral balanced funds compiled by globefund.com.
SOURCE SOLIDARITY FUND QFL
For further information:
Note: The telephone numbers provided below are only for the press and other media representatives.
|Sources: ||Josée Lagacé|
Senior Advisor, Press Relations and Communications
Fonds de solidarité FTQ
Telephone: 514 850-4835 Cell: 514 707-5180
| ||Élaine Dumais|
SSQ Financial Group
Telephone: 418 652-6292 Cell: 418 955-7562