Common Questions

What are the fees CST charges and what are they used towards?

As with all investment vehicles, our plans have fees associated with them. Each of our plans have different fee structures associated with them.

Group Savings  Plan (GSP 2001) - One time sales charge of $200/unit deducted from your contributions and used to cover the cost of selling the plan, including paying commissions. A portion also goes into the sales charge refund account to make sure money is available in future years to refund a minimum of 50% of the sales charge to eligible subscribers or beneficiaries. 

- All-inclusive management fee of 0.62%* of assets (administration (0.50%), trustee and custodian (0.01%), portfolio manager (0.11%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2015)

- Account maintenance fee of $3.50-$10 per year depending on your contribution schedule plus applicable taxes.

Individual Savings Plan - One time sales charge of $50 deducted from your initial contributionand used to cover the cost of selling the plan including paying commissions. No charges for plans only opened for children to collect the Canada Learning Bond.

All-inclusive management fee of 1.17%* of assets (administration (1%), trustee and custodian (0.07%), portfolio manager (0.10%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2015)

Family Savings Plan - One time sales charge of $50 deducted from your initial contribution and used to cover the cost of selling the plan including paying commissions. No charges for plans only opened for children to collect the Canada Learning Bond.

All-inclusive management fee of 1.12%* of assets (administration (1%), trustee and custodian (0.02%), portfolio manager (0.1%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2015)

 

As with all investment vehicles, our plans have fees associated with them. Each of our plans has different fee structures associated with them.

Group plan (GSP 2001)
  • One time sales charge of $200 per unit deducted from your contributions and used to cover the cost of selling the plan, including paying commissions. A portion also goes into the sales charge refund account to make sure money is available in future years to refund a minimum of 50% of the sales charge to eligible subscribers or beneficiaries.
  • All-inclusive management fee of 0.63%* of assets (administration (0.50%), trustee and custodian (0.01%), portfolio manager (0.12%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2013)
  • Account maintenance fee of $3.50-$10 per year depending on your contribution schedule.
Individual savings plan
  • One time sales charge of $50 deducted from your contributions and used to cover the cost of selling the plan including paying commissions. No charges for plans only opened for children to collect the Canada Learning Bond.
  • All-inclusive management fee of 1.14%* of assets (administration (1%), trustee and custodian (0.05%), portfolio manager (0.09%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2013)
Family savings plan
  • One time sales charge of $50 deducted from your contributions and used to cover the cost of selling the plan including paying commissions. No charges for plans only opened for children to collect the Canada Learning Bond.
  • All-inclusive management fee of 1.13%* of assets (administration (1%), trustee and custodian (0.02%), portfolio manager (0.11%)) plus applicable taxes payable from the Plan’s income. (*for year ended October 31, 2013)
Discontinued Group plans (Group Savings Plan and Founders’ Plan) – No longer available for sale
  • One time sales charge of $200 per unit deducted from your contributions and used to cover the cost selling the plan, including paying commissions. For Group Savings Plan, a portion of the sales charge also went into the sales charge refund account to make sure money is available in future years to refund 100% of the sales charge to eligible subscribers.
  • All-inclusive management fee of 0.65% * of assets for Group Savings Plan and 0.69%* of assets for Founder’s Plan. Account maintenance fee of $3.50-$10 per year depending on your contribution schedule.

To determine the overall fees for your group plan, you need to know factors such as the number of units purchased and your contribution schedule as well as the number of years you have to save and/or how much you’d like to accumulate in the long run. When you meet with one of our Sales Representatives and map out your goals, they will be able to calculate the sales charges you’ll pay upfront as well as the account maintenance fee (group plans only). Each plan’s all-inclusive management fees are subject to change, so those cannot necessarily be determined at the point of sale.

I’ve read that I can only access the funds in my RESP when the child has enrolled in eligible studies. What qualifies, and does it have to be a 4 year university program?

Group Savings Plan and Group Savings Plan 2001

In the Group Savings Plans, your child is able to collect EAPs in four installments (1 EAP per year). To collect an EAP, your child must be enrolled in eligible studies for that year. Both full-time and part-time studies are eligible to receive EAPs, and you also qualify for a sales charge refund if you meet the terms of your plan.

Under these plans, we recognize institutions that range from community colleges, CEGEPs and universities to part-time, vocational, technical, trade and religious schools, and we’re evaluating new schools and programs all the time.

We recognize distance learning and correspondence courses, too. Any program of three weeks or more in Canada is eligible. If your child is studying outside of Canada, any full-time university program of three weeks or more is eligible; any other post-secondary program abroad must be of 13 weeks or more in duration. If a program qualifies under the Income Tax Act (Canada), it also qualifies under our plan to receive EAPs.

Your child also has until the 36th year of the plan to collect all of their EAPs.

Founders’ Plan

If you have a Founders’ Plan, which we no longer sell, your child is only able to receive EAPs if they enroll in full-time studies at a university or community college. They will receive EAPs in three installments (during the 2nd, 3rd and 4th academic year or equivalent) and must apply for all of them by the age of 24. Proof of academic advancement is required.

The Founders’ Plan does not cover part-time studies. In order to receive EAPs for part-time studies, you must transfer to our Individual or Family Savings Plan before the plan’s maturity date.


Students in Quebec:

  • In Quebec, students can access their EAPs in their third year of a 3-year CEGEP program or upon entry into the first year of studies at university after the completion of their two year CEGEP program. Students will receive EAPs in three installments (during their 1st, 2nd and 3rd academic year or equivalent) and must apply for them by the age of 24. Proof of academic advancement is required.

Does my child have to go to school for all four years to collect all of their money?

If you have a group plan, your child must enroll in four years of school (or equivalent) to collect all of their EAPs. Your child can only receive one EAP each year, but can take a break between years of study, change schools or program and still qualify for the rest of their payments.

If you have an Individual or Family Savings Plan, your child does not have to attend all four years to collect their money. It’s entirely up to you to control the timing and payout as long as you abide by the rules of the Income Tax Act (Canada).

What happens to my money if I cancel my group savings plan?

When you sign up for a plan with CST, you have 60 days to change your mind and get back ALL of your money (excluding any optional life and disability insurance premiums, which are non-refundable). If you cancel your plan after 60 days, you’ll get back your contributions but you won’t get your sales charges and any fees back. Any government grants you received will also be returned to the government. Any income earned on the plan goes into a pool, which will later be distributed among other students that enter post-secondary the same year your child is scheduled to.

Are there penalties for missing a payment?

Your group plan will go into default if we don’t receive an expected contribution within 4 months of the due date. We will always send you at least one notice advising you of the missed contribution and ask that you contact us to make arrangements to keep you on track with your original savings schedule.

If your plan goes into default and your sales charges have not been fully paid, we will cancel your plan. If your plan goes into default and you have paid your sales charges, we will transfer your plan to either the Individual or Family Savings Plan, which are other plans we offer. When your plan is transferred to the Individual or Family Savings Plan, you will keep your savings but will no longer be entitled to your group plan benefits.

In general, we strongly advise that you contact us to bring your plan back into good standing and discuss your options. While you will need to make up missed contributions and income, you won’t be charged for the process. Once you get back on track, your child will still qualify for the same payments and sales charge refund and there will be no additional penalties. You have up until the original maturity date to come back to your plan and catch up.

How much flexibility do I have with my contributions? If I lose my job, for example, and miss a payment, will I lose all my money?

Right from the start, we offer a wide range of choices. If you are not comfortable committing to a regular contribution schedule, you can make single contributions when you are able to. Want to contribute just once a year? We can do that. Monthly contributions? No problem. Alternatively, you can open an Individual or Family Savings Plan as these plans don’t require ongoing contributions.

We understand that life happens and certain situations may make it impossible to meet your regular contribution schedule. However, if you miss one or more of your contributions, you will be in default of your group plan commitment. To stay in the plan as you originally set it up, you’ll have to make up all of the contributions that you missed. You will also have to make up what the contributions would have earned if you had made them on time.

If you’re worried about missing a payment, we encourage you to contact our Customer Care Department at 1-877-333-7377 to talk about your options. There are a number of things you can do, such as hold your payment for a short period of time, change your contribution schedule or reduce the number of units in your group plan.

We’ve helped many people sort through difficult times, but we need to hear from you in order to help you. Don’t be afraid to call our team. Talking through the situation will help us get you back on track sooner and find a solution for you and your family.