Aspa brown bag pensions
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Transcript of Aspa brown bag pensions
Pension Information for ASPA MembersKendra Dumont, Pension Manager
University of SaskatchewanJune 25, 2015
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
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
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
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
Investment Options
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
Morningstar
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)
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
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)
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
www.usask.ca/fsd/faculty_staff/pension_plans
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
www.usask.ca/fsd/faculty_staff/pension_plans
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]