Employers who set up group retirement plans are looking to do the right thing for their employees’ financial future. One way to protect your employees is by choosing a provider that is prepared to adhere to a higher legal standard called a fiduciary duty. This standard means the provider is obligated to put the interests of plan members first. Providers of Registered Pension Plans are required, by legislation, to adhere to this standard. For Group RRSPs and Group TFSAs, however, the standard is optional, as no such legislation yet exists, despite advocacy by regulators and consumer financial protection advocates. It is up to your provider whether they incorporate this standard into the agreement they will sign with you.
Common Wealth Retirement, who is the plan provider for Common Good, believes that employers who offer Group RRSPs and Group TFSAs deserve the same protection for their employees as larger employers who offer pension plans. That is why a “best interests” standard is built into the contracts with employers, giving you and your employees the comfort that the Common Good Plan will put their interests first. Other providers’ standards vary. Be sure to ask about this as part of the buying and contracting process with whatever provider you choose.
Find out more about navigating the market for group retirement plans by downloading our free guide to choosing a group retirement plan.