Aspa brown bag pensions

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

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

 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

 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

Governance Structure
Board 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

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

Investment Options

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

Morningstar

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)

 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

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

Non-Academic Defined Benefit Plan
 Before pension eligibility (age 55 or rule of 80):
 Transfer of lump sum value of pension, or
 After pension eligibility:
 Monthly pension to start immediately, or

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

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

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

Sources of Information
 Annual Statements
 Sun Life
www.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 Website
 University of Saskatchewan Pensions & Treasury Office
Room 220, Research Annex
306-966-6633
pensions.inquiries@usask.ca

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