Participating employers will sponsor the Common Good Plan and will support Common Wealth, the plan provider, with the distribution of plan materials and facilitation of employee education sessions.
It means that Common Wealth, the plan provider, has to act in the best interests of plan members.
There are a few different roles when it comes to managing the Common Good Plan:
Common Wealth is the plan provider. This means they provide and maintain a self-service platform, provide administration and recordkeeping services in respect of the Common Good Plan, support member communication and education sessions, and respond to member and employer inquiries.
Canadian Western Trust (CWT) is the custodian and trustee for the plan. They are responsible for holding and safeguarding the assets of plan members, as well as maintaining the registration of the plan with the Canadian Revenue Agency (CRA).
BlackRock is the investment provider and fund manager for the plan. Plan members can invest their contributions by selecting one of BlackRock’s nine target date funds.
The Common Good Plan is a group retirement income 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).
The Common Good Plan was established to enhance Canadians’ financial security and designed to help make saving for retirement easier and more affordable through a high-quality, nationally portable arrangement.
The Common Good Plan is a portable savings program designed to make retirement easier and more affordable for Canadians, regardless of their age. By combining group purchasing power, digital technology, and world-class retirement research, the plan has the potential to deliver up to 3x the value for money of a typical individual approach to saving for retirement.
While most investment options on the market focus on accumulation of assets, the approach for the Common Good Plan is based on monthly retirement income. The plan does all of this with lower fees and a legal duty to administer and manage the plan in the plan members’ best interests.
This plan is meant for all!
There is no maximum age limit to join the Common Good Plan, although you cannot contribute to a TFSA if you are under 18 years old. You can contribute to an RRSP as long as you have available contribution deduction room or until December 31st of the year you turn age 71.
Members must be Canadian residents for tax purposes in order to join the plan.