Vesting gives a plan member ownership of the employer’s DPSP contributions. A DPSP can have a maximum vesting period of two years from the plan enrollment date. If an employee terminates their employment before they vest in the plan, the account value will be forfeited and returned to the employer, and the member’s RRSP contribution […]
Only for-profit making companies are eligible to sponsor a DPSP, and only employers can contribute to the plan. Contributions are tax-deductible for the employer and must be made no later than 120 days after the end of the fiscal year. There is no requirement for an employer to make contributions if they did not generate
How does a DPSP work? Read More »
Common Wealth’s fully digital platform offers registered group retirement plans, including a group Registered Retirement Savings Plan (RRSP), a group Tax-Free Savings Account (TFSA), a group Registered Retirement Income Fund (RRIF), and a Deferred Profit Sharing Plan (DPSP). Select plans also offer a group annuity, or guaranteed lifetime income program.
What types of plans does Common Wealth offer? Read More »
A Deferred Profit Sharing Plan (DPSP) is a workplace savings program that many businesses use for employee incentives, or to help them save for retirement. Only employers can contribute to a DPSP. The annual contribution limit is either 18% of the employee’s annual earned income or half of the money purchase limit (up to $15,390
The investment manager is BlackRock, the world’s largest asset manager. Founded in 1988, BlackRock has over $10 trillion USD in assets under management, including managing over C$275 billion in assets for Canadian clients. The firm pioneered target date funds in 1993 with the launch of LifePath Funds. BlackRock is the market leader in Canada for
Who manages the investments for the plan? Read More »
We are interested in offering something thoughtful on responsible investing, also known as ESG (Environmental, Social, and Governance), as part of our plan. The plan’s target date funds are managed by BlackRock, which manages more than $10 trillion in assets and serves more than 35 million investors. BlackRock is committed to evaluating sustainability insights and
What is the plan’s policy on ESG or responsible investing? Read More »
Plan members can select from one of a series of BlackRock target date funds, which provide a mix of equities, fixed income, and real assets. The fund is matched to each plan member’s expected retirement date, and the asset mix is automatically adjusted to become more conservative as they get closer to that date.
How are plan funds invested? Read More »
As the plan sponsor, employers are required to sign two agreements: A Sponsor Agreement with the plan custodian, Canadian Western Trust Company (CWT). The agreement outlines the roles and responsibilities of each party. For example, it outlines that CWT is responsible for holding and safeguarding the assets of plan members and for maintaining the registration
What paperwork is required for joining the plan? Read More »
It means that Common Wealth has to act in the best interests of plan members.
What does a fiduciary duty to plan members mean? Read More »
As the sponsor of the plan, you would be responsible for: Supporting Common Wealth with the distribution of plan materials Working with us to facilitate employee education sessions Providing an up-to-date file of eligible employees, including information to support payroll deduction processing Providing a payroll file that contains member and, if applicable, employer contribution details
What is the employer role in supporting the plan? Read More »
Common Wealth is an award-winning digital retirement platform, earning awards for innovation in plan design and technology from the international wealth management publication Pensions & Investments, and for pension leadership from Canadian Investment Review magazine.
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