Group Tax Free Savings Account (TFSA)
TMU policy number: 42745
The TFSA is a flexible, registered, general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet their lifetime savings needs.
Great West Life is the carrier for the TMU Group TFSA.
CUPE 3904, Unit 1 part-time instructors are eligible to join TMU’s Group TFSA.
Key features of a Group TFSA
- You can make contributions through payroll deduction, making saving easier.
- Lower investment management fees.
- Access to fund managers that may not be available to individuals.
- Minimum contribution of $10/pay means you can control your savings plan.
- Group purchasing power means lower investment management fees.
- Investments are non-taxable.
While contributions are not tax deductible, like RRSPs, withdrawals from your TFSA are not reported as income as they would be with RRSP withdrawals. Since TFSA withdrawals are not considered income, they do not impact entitlement to retirement income programs, like Old Age Security or the Guaranteed Income Supplement.
Employees are responsible for ensuring they are eligible for making TFSA contributions and TMU assumes no liability for over contributions, tax implications or penalties/fines.
To learn more, review the (PDF file) Group TFSA brochure.
To enrol in the plan, you must complete the application form and return the hard copy to HR Pension & Benefits. Deductions will begin on the first pay possible following receipt of the form.
Determining fund investment
To complete the member application, you need to decide how the funds are to be invested based on the available options. If you do not elect an investment option, your contributions will be invested in the Money Market Fund, which currently earns about 1% per year.
For investment options, review the current TFSA fund listing options.
Changes to investment elections can be made online on the Great West Life website. If you do not have an Access ID and password, contact Great West Life at 1-800-724-3402.
You will need to provide the TMU policy number: 42745.
The information and forms listed above are also available online in the Pension & Retirement section of our website, under Pension Plan, Group RRSP & TFSA. For any questions on the group TFSA, contact HR Pension and Benefits.