BlackRock has created a new version of its LifePath target date funds for the Common Good Plan and other plan sponsors that offer group defined contribution retirement arrangements through a non-insurance platform. The new LifePath Target Date Funds will include very similar, but not identical, investment holdings and adopt asset allocation methodology that is used by Blackrock for its existing LifePath target date funds. BlackRock’s existing Canadian LifePath target date funds are the market leader in Canada for target date funds, have been in operation since 2007, and have over $32 billion in assets under management. Because the BlackRock funds that have been created for the Common Good Plan are new, they do not currently have a performance history. Performance history for the new LifePath Target Date Funds will be available on the fund fact sheets (available during the enrollment process and on the plan’s online dashboard) in the future.
Founded in 1988, BlackRock is the world’s largest asset manager, with over $8.67 trillion USD in assets under management, including managing over C$200 billion in assets for Canadian clients. The firm’s purpose is to help more and more people experience financial well-being. Steeped in innovation, BlackRock pioneered target date funds in 1993 with the launch of LifePath Portfolios. As the fastest growing target date fund manager in Canada with over C$30 billion in assets in its LifePath products, BlackRock has been serving Canadian investors since 2007, and today offers investment management services to over 65,000 defined contribution plans, reaching more than 35 million participants.
A target date fund offers a balanced investment portfolio within a single fund, and the investment mix is calibrated by the investment manager based on a retirement date. BlackRock LifePath Target Date Funds are professionally managed, diversified portfolios and are structured to reduce risk as the ‘target date’ approaches.
You can learn more about LifePath Target Date Funds in this video.
We will calculate your fees, issue you an invoice, and charge you following month-end processing. These amounts will be automatically withdrawn via Electronic Fund Transfer (EFT).
Members can see exactly how much they pay in fees by visiting the “My Contributions” section of their account.
The Common Good Plan is a group retirement plan composed of a group Registered Retirement Savings Plan (RRSP), a group Tax-Free Savings Account (TFSA), and a group Registered Retirement Income Fund (RRIF).
Yes. Members can initiate a withdrawal of their plan assets, either in part or in full, while they are still an active employee. The same $75 transaction fee would be applied.
It’s important to remember that withdrawing from RRSPs before retirement can result in negative tax implications, while withdrawing from a TFSA before retirement does not.
Unlike in a registered pension plan, the Common Good Plan offers flexibility when members can start receiving retirement income because it is composed of a RRSP/TFSA/RRIF. For example, members can start payments even as they are working part-time later in their career.
Members must convert their RRSP to a RRIF no later than the end of the year they turn 71, at which time minimum payments must be made. The TFSA is flexible, and members can start receiving retirement income at an age that accommodates their needs.
The plan will provide members with planning tools to assist with developing a retirement income plan – converting savings to income in retirement and integrating various income sources, such as government benefits.
Even after retirement, members will continue to reap the benefits of the Common Good Plan. They would still have access to the investment funds as part of the plan, which would automatically be adjusted (more conservative) according to their age and stage. They would continue to pay the same low fees as when they were employed. We’ll also provide support in turning their nest egg into actual retirement income by converting to and managing a RRIF. Members would still receive education on critical topics, such as how to access Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS).
Members will be able to access their Common Good retirement income in a number of different ways. They include setting up a regular withdrawal based on a percentage of assets and/or a fixed pension-like payment. Members also have the option to withdraw funds in a lump sum or through a transfer to another TFSA, RRSP, or RRIF.
Members can log into their account and view their current holdings and transaction history in the “My Investments” section. They can also select a different target date fund here.
Members can log into their account and view their transaction history in the “My Contributions” section. They can view any upcoming or past transactions, including withdrawals and fees.