What kind of arrangement is the Common Good Plan?

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).

When can members start receiving a retirement income?

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.

What happens to members after they retire?

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.

How can members view their transaction history?

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.

How can members check on the progress of their retirement plan?

Members can log into their account and view their progress in the “My Plan” section. On this dashboard, they can view the current value of their TFSA and RRSP and the total contributions into the plan. 

If a member is interested in seeing their progress towards their retirement income, they can click on the “This plan” section of the retirement income bar chart.

Members also receive an annual statement that is available online in their account, and they will receive an email notifying them when it becomes available.

What kind of support and guidance does Common Good offer for plan members?

Part of the value that the Common Good Plan can offer its members is in the education they can access through the plan. This ranges from planning suggestions during enrollment, to a library of educational articles, and education sessions with specialists from Common Wealth, the plan provider. All of these resources are aimed at equipping Common Good Plan members with more and better information on saving for their retirement, so they can make the right decisions for their savings goals. Members can also reach Common Wealth support staff via email or phone (admin@commongoodplan.ca). 

In addition to all of the above, you (as the employer and plan sponsor) can choose an enhanced onboarding package to give your team members access to a Common Wealth specialist to help set up their individual plan through a guided enrollment.

What are the contribution limits, and how much can members contribute to the Common Good Plan?

General contribution limits for RRSPs and TFSAs are set by the government and can be found here. Each person can view their individual contribution limits by logging into their CRA My Account or by looking on their latest notice of assessment under “Available contribution room for [YEAR].”

It is the responsibility of a member to ensure they do not exceed their limits under the Income Tax Act. Members will be solely responsible for any taxes or fines imposed if contributions exceed the RRSP or TFSA limits. We provide education to members about their limits as part of their account.

Members can set up a monthly savings plan, and make other contributions throughout the year as they would like. Monthly savings plans are pro-rated and capped at the annual contribution limits, but if members have more contribution room, they can make additional contributions as they wish.