Keeping your retirement plan up to date
When employees move on from your organization, whether it’s to a new role or into retirement, you want the transition to be as smooth as possible.
Regardless of where they go next, it’s important for members to know that they can keep their Common Wealth plan for life so they can continue to manage their RRSP and TFSA through their working years and into retirement.
Once you remove an employee from your Common Wealth workplace plan, all employer and employee contributions that are processed through your payroll will stop and they will be automatically transitioned into an individual plan.
As the plan administrator for your organization, you play a key role in helping employees understand the actions they need to take. To ensure members retain access to their retirement accounts and have an opportunity to save for their future, there are also some important tasks for you to complete.
Here are some best practices to incorporate into your employee offboarding tasks.
Actions you, the employer, need to take
Remove the employee from the plan as soon as possible. To update your employee list inside the plan, you’ll need to follow these instructions specific to your payroll provider.
Key information for your employee
To retain access to their RRSP and TFSA and to keep saving, your employee needs to take the following actions on a desktop or laptop computer:
- Update the plan with a personal email address, so we can contact them with important details about their plan.
- Confirm their banking information is up to date so that their monthly contributions can continue.
As a helpful resource for your employees, you can share this article, one-pager, and video in your offboarding communications.
Questions?
If you have questions or need help in the process, reach us at support@commonwealthretirement.com or book a call with our Customer Care team.
