Aspa brown bag pensions

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Pension Information for ASPA Members Kendra Dumont, Pension Manager University of Saskatchewan June 25, 2015

Transcript of Aspa brown bag pensions

Page 1: Aspa brown bag pensions

Pension Information for ASPA MembersKendra Dumont, Pension Manager

University of SaskatchewanJune 25, 2015

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www.usask.ca/fsd/faculty_staff/pension_plans

History of Plans Prior to January 1, 2000

Members enrolled in the 1999 Academic Defined Benefit Pension Plan

On January 1, 2000 The defined benefit plan was closed to new entrants 2000 Academic Money Purchase Pension Plan was created

Members of the defined benefit plan were given 3 options Stay in defined benefit plan Convert all savings over to new MPP plan Leave current savings in defined benefit plan, and convert to MPP

plan on a go-forward basis

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www.usask.ca/fsd/faculty_staff/pension_plans

Overview of Pension Plan 1999 Academic Defined Benefit Pension Plan

Pension is defined by a formula Employee and Employer contribute equally

(8.50% of earnings) Funds are invested based on plan’s Investment Policy Monthly pension available upon retirement

Custodian – CIBC Mellon

Plan Administrator – University of Saskatchewan

Investment Managers chosen by Pension Committee and monitored quarterly

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Overview of Pension Plan Non-Academic Defined Benefit Pension Plan

Same as 1999 Academic Plan (see previous slide)

CUPE members who move to an ASPA job have the option to stay in the Non-Academic Pension Plan or move to Academic MPP Plan

One-time choice

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www.usask.ca/fsd/faculty_staff/pension_plans

Overview of Pension Plan 2000 Academic Money Purchase Pension Plan

Defined contribution Employee and Employer contribute equally

(6.82% of earnings) Funds are invested based on employee’s asset allocation

decision (of the plan’s available investment options) Total fund balance (including investment income) available upon

leaving the University Immediate vesting

Record Keeper – Sun Life Financial

Plan Administrator – University of Saskatchewan

Investment Managers chosen by Pension Committee and monitored quarterly

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www.usask.ca/fsd/faculty_staff/pension_plans

Governance StructureBoard of Governors

Pension Committee

Investment

- Investment Policy- Investment Monitoring

Benefit, Financial, Accounting and Controls

- Plan Design- Communication/

Education- Expense Controls

- Financial Statement Accounting

Administration and Compliance

- Daily Administration- Plan Documentation

- Regulatory Filings and Compliance

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Eligibility

Membership All eligible employees hired on or after June 30, 2000 Members of the Academic Defined Benefit Plan who elected to

transfer the value of their benefits to the Money Purchase Plan Includes ASPA, Exempt, Faculty, Senior Admin Eligibility for ASPA members

• Permanent or term >= 1 year, >=0.5 FTE

If eligible, HR will contact the employee to have them enroll in pension

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Investment Options

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Investment Options

8 Investment options available Default fund is Balanced Life Cycle Fund

Investment allocations can be changed online or by phone www.mysunlife.ca 1-866-733-8612

No transfer fees charged (see exception below) Short-term trading – 2% fee if funds are moved in and out within 30

days Find out more about investment options online (Morningstar)

Accounts -> Investment Performance -> Select Fund

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Morningstar

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www.usask.ca/fsd/faculty_staff/pension_plans

Leaving the University

2000 Academic Money Purchase Pension Plan Before June 30 following age 55, options include:

Leave funds in pension plan (up to age 71) Transfer to a Locked-In Retirement Account (LIRA) Transfer to the pension plan of your new employer Purchase a deferred life annuity

After June 30 following age 55, options include: All options listed above; plus Transfer to a Prescribed Retirement Income Fund (PRIF)

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Leaving the University University of Saskatchewan offers a custom PRIF through

Sun Life Called the “University of Saskatchewan Group Retirement Fund” Identical investment options to MPP plan Significantly lower fees than retail market High amount of flexibility Brochures available from the Pensions Office

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Leaving the University

1999 Academic Defined Benefit Plan

Before June 30 following age 55 (termination): Transfer of lump sum value of pension, or Deferred monthly pension

After June 30 following age 55 (retirement): Monthly pension to start immediately, or Deferred monthly pension

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Leaving the University

Non-Academic Defined Benefit Plan

Before pension eligibility (age 55 or rule of 80): Transfer of lump sum value of pension, or Deferred monthly pension

After pension eligibility: Monthly pension to start immediately, or Deferred monthly pension

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How to Retire Choose your retirement date

1999 Academic DB or Academic MPP:• Last day of any month• Earliest date is June 30th following age 55• Must transfer/begin pension by end of calendar year of age 71

Non-Academic:• First day of any month• Earliest date is age 55, 30 years of service, or rule of 80

(rule of 80 = Age plus Pensionable Service equal to 80)• Must begin pension by end of calendar year of age 71

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How to Retire Talk to your supervisor – work out whether you are taking

any vacation prior to your retirement date

Write a letter to your supervisor, send a copy to the Pensions Office

Pensions Office will send out a retirement package to your home address (approximately 3 months prior to your retirement date)

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Contributions Your contributions

University’s contributions

Interest earned

Transferred contributions

Pension Payments Individual monthly

payments

Tax Implications Tax-deductible, you get immediate tax

savings each year Tax-sheltered

Tax-sheltered, you do not pay tax on the growth until you withdraw funds

Tax-sheltered

Tax Implications Taxable when paid

Tax Facts

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Learn About Your Pension

Information Sessions offered by Sun Life Spring sessions – Focus on Retirement, including Group Retirement

Fund and Government Benefits Fall sessions – General plan information, investment strategies,

review of online tools

Retirement Sessions offered by the University Full day retirement planning sessions, offered to members age 55+ Includes transition planning, tax strategies, estate planning,

government benefits and University pension

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Sources of Information Annual Statements

Sun Lifewww.mysunlife.ca or 1-866-733-8612

Annual General Meeting (February for MPP, November for 1999 Ac and Non-Ac)

Annual Newsletter (June)

PAWS

Pensions Websitewww.usask.ca/fsd/faculty_staff/pension_plans

University of Saskatchewan Pensions & Treasury OfficeRoom 220, Research [email protected]