YOUR PLAN. Information about your Western Pension Plan for New Members

Transcription

1 YOUR PLAN Information about your Western Pension Plan for New Members

2 Welcome to the Western Pension Plan Congratulations and welcome to the Western Pension Plan one of the most valued of benefits offered by the University. The Pension Plan is designed to help you save and invest to meet your financial goals, whether you re just starting your career, are midway through, or are close to retirement. This guide has what you need to get started: practical information to help you enrol and save in the Western Pension Plan. Being part of the Sun Life Financial community also brings many advantages great services to support members, investing made easy, and tools to help you plan. After you sign the enrolment and authorization form (for regular, full-time employees), or complete the application process at Sun Life Financial (for other than regular, full-time employees), you will be enrolled in the Western Pension Plan. Deductions for your contributions will begin soon, and you can expect to receive a welcome letter from Sun Life Financial in the weeks ahead. Here are the three easy steps you ll need to take to complete your enrollment and registration process and start saving! 1. Register for online access 2. Select your investments 3. Designate a beneficiary Please take the time to read this guide prior to registering. It will help you select the investments that are right for you, and prepare you to complete the three steps outlined above. Note: in this document Western is used in some instances as inclusive of affiliated colleges. Refer to official Plan text for details or clarification. To speak with a Sun Life Financial Customer Care Centre representative, or seek assistance, call from 8 a.m. to 8 p.m. ET any business day. Service is available in more than 190 languages.

3 LEARN 4 my Western Pension Plan Your pension savings add up What s in it for me? Learn more about your Western Pension Plan INVEST 8 my investments Investment options REGISTER 11 three easy steps Step 1 Register at sunlife.ca/western Step 2 Login and select your investments Step 3 - Designate your beneficiary We re with you World of information & tools

4 4 Sun Life Financial LEARN

5 my Western Pension Plan There is no better way to save for your future than through your Western Pension Plan at Sun Life Financial. It makes saving and investing easy. Your pension savings add up Defined Contribution Pension Plan (DCPP) Your Western Pension Plan is a defined contribution plan. This means that your income at retirement is determined by the contributions that are made to your retirement account and the investment earnings that your money generates. All contributions belong to you. It is your responsibility to choose among the investments offered in the plan, and to make decisions on the investments that are most appropriate to meet your personal goals. The retirement income you will receive at retirement is not guaranteed and depends on factors including the return that is realized on the investments you choose, the length of time you are in the plan and the amount of contributions made to the plan. Tools and advice from Sun Life Financial are available as you make these decisions. Contributions to your plan Now that you have enrolled in the Western Pension Plan, you will see your regular contributions come off your pay each month, and your payroll earning statements will also show the contribution made by your employer each month. In addition to your regular contributions, if you want your savings to add up even faster, you can also make voluntary contributions up to the maximum allowed by the Income Tax Act. You may also transfer savings from your personal Registered Retirement Savings Plan (RRSP) or from a previous employer s pension plan to the Western Pension Plan. Regular contributions by you and Western generally remain locked-in until you begin taking an income from the savings when you retire, while voluntary contributions can be accessed anytime. DID YOU KNOW? Western has two registered pension plans for eligible employees - one for staff members and one for faculty members. The combined market value of the plans at November 30, 2016 was approximately $1.1 billion. my work 5

6 What s in it for me? Convenience Easy to contribute: Payroll deductions make saving easy and ensure that you pay yourself first. You ll be amazed by how much you can save just by making regular contributions. Keep in mind that all contributions, by you and by Western, belong to you, no matter when you leave the plan. Easy to access: You have 24-hour access to your account through sunlife.ca/western or by phone at You can also call Sun Life Financial s Customer Care Centre at this number any business day from 8 a.m. to 8 p.m. ET. More money Lower management fees: Because of the combined buying power of Western and Sun Life Financial, you pay fees that are generally lower than what an average person would pay at a bank or mutual fund company for similarly managed funds. When you pay lower fees, more of your hard-earned money is invested and growing for you. This table shows the difference in the total amount you would save under different management fee rates, assuming you invest $4,000 each year and your plan account earns 5.75 per cent annually before the management fee* reduction. YEARS OF CONTRIBUTION TOTAL CONTRIBUTIONS TO YOUR PLAN ACCOUNT MANAGEMENT FEE* 3% 2.5% 2% 1.5% 1% 10 years $40,000 $46,132 $47,512 $48,936 $50,406 $51, years $80,000 $105,634 $112,026 $118,870 $126,201 $134, years $120,000 $182,379 $199,625 $218,814 $240,176 $263,972 Over a 30-year career, a 0.5 per cent difference in fees (1.5% vs. 2%) means an extra $21,362 for your long-term savings. And a one per cent difference (1% vs. 2%) adds an extra $45,158 to your nest egg! $45,158 * Assuming fees charged annually at year-end and contributions are made on January 1. Exclusive investment funds only available in your Western Pension Plan: Contributions to your plan can be invested in a variety of investment funds, which have been carefully selected/designed by Western s Joint Pension Board. Professional investment managers: The funds available in the Western Pension Plan are managed by some of Canada s leading investment managers, also selected by the Joint Pension Board. Instant tax savings: Your Western Pension Plan contributions are invested on a before-tax basis so every cent gets directed to your savings. You won t need to wait until the spring to receive your tax deduction it happens immediately on each pay. No fees to transfer between investments: You can transfer money between investments at any time. There is no charge for transfers unless you make a transfer into a fund followed by a transfer out of the same fund within 30 calendar days (called short-term trading). More information can be found at sunlife.ca/western or by calling the Customer Care Centre at the number above. 6 Sun Life Financial

7 Learn more about your Western Pension Plan Be sure to check out the online Solutions Centre available on sunlife.ca/western, to help connect you with resources, videos, articles, learning sessions, and live support, via phone or in-person. This guide is a great way to get you started in the Western Pension Plan. We encourage you to learn more about how the plan works, and how you can make the most of this valuable opportunity to save for your future. The Western Pension Plan Summary is a document intended to provide you with a deeper level of details about your Plan. It contains: Your plan at a glance a quick overview of the most important things you need to know about your Pension Plan. Eligibility information about how employees qualify to participate in the pension plans. Contribution information full details on the amount you contribute and the amount contributed by Western. These vary depending on your employee group, and on your years of service. Making your investment choices factors to consider in selecting the best investments for your contributions, and what happens if you do not make a selection. Work/life events information on how your plan is affected when your marital status changes, you leave Western, retire, or in the event of your death. Governance learn about the Joint Pension Board and how members elected by you play a key role in selecting the best investments for your plan. Planning your retirement journey information on how your Western Pension Plan is just one part of your retirement journey. Government plans and other savings can boost your income in retirement. You will find a copy of the Western Pension Plan Summary on the Western Pension Plan website and on sunlife.ca/western. my work 7

8 INVEST 8 Sun Life Financial

9 my investments Choosing the investments in your Western Pension Plan is an important decision. In a few easy steps, you re on your way. Investment options The investment choices you make can have a large impact on the growth of your retirement savings. Take the time to select the investments that are right for you. You can create your own portfolio from the list of funds in the table on the next page, choosing a mix of investment funds that match your risk profile. In addition to this broad range of investments that allows you to diversify (not put all your eggs into one basket), Western offers some specific funds that have built-in diversification and make it easier to get broad market exposure. The Balanced Income invests 70% in the Diversified Bond Segregated Fund and 30% in the Diversified Equity Segregated Fund. The Balanced Growth invests 70% in the Diversified Equity Segregated Fund and 30% in the Diversified Bond Segregated Fund. The Diversified Bond Segregated Fund invests in Canadian and non-canadian bonds and debt securities of various durations, including commercial mortgages. The Diversified Equity Segregated Fund invests in Canadian, U.S., international, global and emerging markets equities. DID YOU KNOW? As a member of the Western Pension Plan at Sun Life Financial you will have access to Morningstar, a leading provider of investment news and analysis. Morningstar provides highly detailed fund sheets on each of the investments in the Western Pension Plan, so you will have a full background on the funds at your fingertips. You can also view the fees you pay on sunlife.ca/western. Select my financial centre, and choose Investment performance. Next, select Account fees from the Accounts drop-down menu. my work 9

10 Investments available in the Western Pension Plan FUND CLASS Money market Bond (Fixed income) Balanced Canadian equity U.S. equity International equity Global equity FUND NAME Money Market Segregated Fund Target Date 2018 Segregated Fund Target Date 2020 Segregated Fund Canadian Bond Segregated Fund Diversified Bond Segregated Fund Long Term Bond Segregated Fund Balanced Growth Custom Portfolio Balanced Income Custom Portfolio Canadian Equity Segregated Fund U.S. Equity Hedged Segregated Fund U.S. Equity Unhedged Segregated Fund Non-North American Equity Segregated Fund Diversified Equity Segregated Fund Socially Responsible Global Equity Segregated Fund Note: If you do not make an active choice for your retirement account, your money will be automatically invested in the Balanced Growth Custom Portfolio. Although this fund may be appropriate for some members at certain ages or who have a particular risk tolerance, it would not be appropriate for all members at all stages of their career. That s why it s important to actively select and regularly review your investment options to ensure you re on the path to a financially secure retirement. Know your responsibilities As a member of the Western Pension Plan, you are responsible for making investment decisions regarding all contributions to your account. Sun Life Financial has some great tools and information and advice to help you make these decisions: The Asset allocation tool can help you understand your risk tolerance. To use the Asset allocation tool, log into the secured Sun Life Plan Member Services website and select my financial centre, followed by my money tools from the Resource Centre drop-down menu. Licensed Investment Advice Specialists are available 8 a.m. to 8 p.m. ET on business days, to provide you with unbiased, one-on-one advice on your pension plan investments. You may also wish to seek investment advice from an external investment professional. 10 Sun Life Financial

11 REGISTER my work 11

12 three easy steps Now that you understand the key features and benefits of your Western Pension Plan and you re familiar with your investment options, it s time to register. Get started on your financial future today. Step 1 Register at sunlife.ca/western Your access ID and password are your tickets to your account, plan information and an entire suite of financial planning tools. To register: Go to sunlife.ca/western Select Register Follow the instructions provided You ll need your account number (see your Sun Life Financial welcome letter) and your date of birth. To retrieve your access ID and/or password at any time, follow the steps below. Simply go to sunlife.ca/western, and under Sign-in help: For your access ID, select I forgot my Sign-in/Access ID For your password, select I forgot my password 12 Sun Life Financial

13 Step 2 Login and select your investments If you joined after January 1, 2017, you may have been enrolled in the Western Pension Plan with the default investment option Balanced Growth. Keep in mind that the default fund is not a recommendation. It remains your responsibility to direct the investment of all contributions. Once you are registered and have your access ID and password, you are ready to select the investments for your pension plan account. You may sign in to the Sun Life Financial secured plan member site through your Pension Account Login Tool available on any Western Human Resources web page, or by going directly to sunlife.ca/western; from my financial future on the Home page, select my financial centre; and under the Requests drop-down menu, select Contribute and Investment options to view and choose your investment options. Remember, your pension account balance will now fluctuate daily and you can make changes to your investment on any business day. You can manage your account(s) online or by phone. Still not sure what investments are right for you? Licensed Investment Advice Specialists are available 8 a.m. to 8 p.m. ET on business days, to provide you with unbiased, one-on-one advice on your pension plan investments. Step 3 - Designate your beneficiary Designating your beneficiary ensures that your plan assets are distributed according to your wishes in the event of your death, subject to the rights of married and common law spouses under pension legislation. You can designate a beneficiary for your Western Pension Plan online and if you need to in the future, review and update your beneficiary information, quickly and simply. Sign in to sunlife.ca/western using your access ID and password Go to my financial centre, select Quick Links, then Beneficiary info. Take action today and be sure this important information is up to date! If you need help, don t worry! You can always call the Sun Life Welcome team at a.m. to 8 p.m. ET Monday to Friday. As a new member of the Western Pension Plan, a Welcome team representative can help you get online, review your contribution levels and assist with your fund selection, as well as provide instructions on how to designate your beneficiary. We re here to help! my work 13

14 We re with you If you have any questions or run into any problems, the Sun Life Customer Care Centre representatives are available any business day from 8 a.m. to 8 p.m. ET at Licensed Investment Advice Specialists are also available 8 a.m. to 8 p.m. ET on business days, to provide you with unbiased, one-on-one advice on your pension plan investments. World of information & tools Once enrolled, you can login to access the financial tools available to you and to manage your accounts online or by phone. Sun Life Financial s plan member website, sunlife.ca/western, has a full range of tools to help you keep on top of your workplace savings. Online financial planning tools You can check your balances, transaction history, account fees, investment performance and personal rates of return, under the Accounts drop-down menu. While under the Requests drop-down menu you can change investments, make withdrawals and obtain tax slips. Under Resource Centre > my money tools, you can find: The Asset allocation tool, which provides a suggested investment mix based on your risk tolerance The Retirement planner to help you determine how much you need to save to meet your personal retirement goals The Payroll Contribution Calculator, to show you the actual cost to you of increasing your payroll contributions, and the difference an increase can make to your savings Calculators (under the Tools heading) that give you answers to some of the most common financial planning questions View your funds online By selecting Investment performance under the Accounts drop-down menu, you have access to Morningstar, a leading provider of investment news and analysis. You can find detailed fund information such as: The fees you pay on each fund The overall fund performance Historical rates of return Fund manager descriptions The risk level and fund asset class The underlying makeup of each fund Learn more Watch for webinars, on-campus information sessions and other opportunities to increase your knowledge about your Western Pension Plan. 14 Sun Life Financial

15 Privacy Respecting your privacy is a priority for the Sun Life Financial group of companies. We keep in confidence personal information about you and the products and services you have with us to provide you with investment, retirement and insurance products and services to help you meet your lifetime financial objectives. To meet these objectives, we collect, use and disclose your personal information for purposes that include: underwriting; administration; claims adjudication; protecting against fraud, errors or misrepresentations; meeting legal, regulatory or contractual requirements; and telling you about other related products and services that we believe meet your changing needs. The only people who have access to your personal information are our employees, distribution partners such as advisors, and third-party service providers, along with our reinsurers. We will also provide access to anyone else you authorize. Sometimes, these people may be in countries outside Canada, so your personal information may be subject to the laws of those countries. You can ask for the information in our files about you and, if necessary, ask us in writing to correct it. To find out more about our privacy practices, visit sunlife.ca/privacy. More choice means better communication Sun Life Financial is committed to providing you with the information you need to stay informed and get the most out of your plan. We re also committed to using electronic channels for more communications so that together, we ll reduce the amount of paper we use, making us even greener! We have introduced new contact preferences to allow you to specify how you would like to receive information from us. These changes support our ability to comply with new anti-spam legislation (Bill C-28), which impacts all electronic communications. We have also updated our Privacy Policy to describe the choice you have about receiving information regarding other products and services from Sun Life Financial. Please visit sunlife.ca/privacy to view our Privacy Policy. If you wish to change your preferences regarding the information you receive from us, you can let us know by visiting the Contact Preferences page under the Profile section of the mysunlife.ca web site or by calling the Sun Life Financial Customer Care Centre. Disclaimer This material is intended as a general guideline for information purposes, and is current as of the date indicated on the last page. Market conditions and other factors change over time, and this will affect either positively or negatively one or more asset classes. The investment assumptions we ve used are based upon historical investment returns, and past returns may not reflect future investment performance. In order to identify an asset allocation model, which is appropriate for your individual circumstances, you should consult a qualified financial planner who is familiar with your personal financial circumstances and understands your tolerance for risk. The term fund as used in this document is meant to imply segregated funds, mutual funds or asset allocation models/portfolios that may be available in your plan. Even though we use the term my money throughout this guide, contributions and returns invested in guaranteed or segregated funds while under a group annuity policy with Sun Life Assurance Company of Canada (Sun Life Financial) are the property of Sun Life Financial. Contact Sun Life Financial s Customer Care Centre any business day from 8 a.m. to 8 p.m. ET if you have any questions about your plan at work.

16 Contact Sun Life Financial s Customer Care Centre at any business day from 8 a.m. to 8 p.m. ET. if you have any questions about your Western Pension Plan. C0Y79, /16-pu-cm This my work guide is protected by copyright. All rights reserved. Reproduction in any manner of the information contained herein is prohibited. Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies. Sun Life Assurance Company of Canada, Life s brighter under the sun