Innovative multi-employer pension plan for incorporated physicians will address longstanding demand
MD Financial Management Inc. (MD) and Scotiabank are developing a multi-employer pension plan designed specifically for Canadian incorporated physicians. The Medicus Pension Plan will provide incorporated physicians with a unique opportunity to access predictable lifetime retirement income. Plan development is underway and expected to launch within a year, subject to applicable regulatory approvals.
The Medicus Pension Plan will provide a lifetime pension based on a physician’s personal earnings and years of service with their medical corporation, while pooling investments, longevity and economic risks among all Plan participants. Incorporated physicians will have an opportunity for an added layer of peace of mind knowing they can plan for a predictable income stream in retirement, including financial protection for their families.
“MD Financial Management’s foundational purpose since its inception over 50 years ago is to enable physicians to achieve financial peace of mind,” explained Daniel Labonté, President and CEO, MD Financial Management. “For decades, the physician community has called for the formation of a pension plan. With Scotiabank’s deep technical experience in pensions, investment and governance, combined with MD’s exclusive focus on physician financial security, we are excited to be able to deliver the long sought-after solution that physicians desire. The Medicus Pension Plan will be an excellent complement to the vast array of investment services and advice already available to all physicians – incorporated or unincorporated – through MD and Scotiabank.”
As the plan evolves, MD and Scotiabank will work with their many partner organizations, who represent the interests of physicians across the country, on the roll-out of this pension plan. An Administrative Board for the Medicus Pension Plan will be formed, including physician representation, to provide fiduciary oversight and fulfil applicable regulatory requirements.
To ensure successful administration of the pension plan, MD and Scotiabank have teamed up with LifeWorks, Canada’s largest administrator of employee pensions and benefits, which provides administrative solutions to more than 1,400 retirement plans, covering over 7.5 million participants.
To stay updated on the progress of the plan, please visit md.ca/medicuspensionplan.
About MD Financial Management Inc.
With more than 50 years of physician-focused experience, MD Financial Management Inc. (MD) is dedicated to providing financial peace of mind to Canada’s physicians and their families, so they can enjoy what matters most to them while achieving their career and life goals. MD had more than $59 billion in assets under management as of December 31, 2021. MD Management Limited was the first of the MD Group of Companies to be founded, in 1969. MD Financial Management Inc. wholly owns or has a majority interest in the MD Group of Companies. It provides financial products and services, is the fund manager for the MD Family of Funds and offers investment counselling services. For a detailed list of the MD Group of Companies, visit md.ca.
Scotiabank is a leading bank in the Americas. Guided by our purpose: "for every future", we help our customers, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of approximately 90,000 employees and assets of approximately $1.2 trillion (as at January 31, 2022), Scotiabank trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more information, please visit http://www.scotiabank.com and follow us on Twitter @ScotiabankViews.
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Senior Manager, Communications, Global Wealth Management