What are the fees?
You, as the plan sponsor, pay a fee of $10/month for each employee who is enrolled in the plan. This fee covers:
- Common Wealth’s digital retirement planning technology
- Employer service (e.g., onboarding, payroll deduction)
- Member service (e.g., inquiries, one-on-one member support)
- Education for you and your employees
Members pay a fee of 0.6% of assets. For comparison, the average mutual fund fee in Canada is over three times higher at more than 2% per year. This low fee for the Common Good Plan can make a dramatic difference in how much money members save for retirement. These are all-in fees, which cover:
- Investment management
- Plan administration
- Custodial fees and other costs associated with running the plan
Members who join as individuals, or leave their employer but remain in the plan, pay a fee of 0.7% of assets and a $3/month membership fee.
Certain transactions will also incur fees. Transaction and processing fees of $35 per transaction are charged for partial fund withdrawals. Full fund withdrawals and all transfer-out transactions trigger a $75 per transaction fee. For non-sufficient funds (NSF) transactions, the fee is $40 per NSF failed withdrawal.
We don’t charge any fees to transfer existing RRSP or TFSA assets into the plan, although the financial institution a member is transferring out from may have fees associated with the transfer of those funds. Processing fees do not apply during the drawdown period in retirement.