SCHLUMBERGER RETIREMENT AND SAVINGS PROGRAM MY TRANSITION GUIDE

Transcription

1 SCHLUMBERGER RETIREMENT AND SAVINGS PROGRAM MY TRANSITION GUIDE

2 TABLE OF CONTENTS Section 1: It s your move important information you need to know...page 3 Section 2: The transfer of your accounts to Sun Life Financial...page 4 Section 3: One Program, many benefits...page 5 Section 4: Your Program at a glance... page 6 Section 5: Your investment options...page 9 Section 6: Making your move checklist and next steps...page 13 Beneficiary forms...page 15 QUESTIONS? The lines of communication are always open. You can choose the way you want to access information, make transactions and communicate with Sun Life Financial online or by telephone. BY TELEPHONE: Customer Care Centre Representatives are available any business day from 6 a.m. to 6 p.m. MT. You can call this number any time to access the Automated Telephone System. ONLINE: mysunlife.ca/schlumberger You have 24/7 access to the tools, services and information you need. Sign in to mysunlife.ca/ Schlumberger>my financial future> my financial centre to access your Retirement and Savings Program information. You can also use the secure message feature on the member website to contact the Sun Life Financial Customer Care Centre directly.

3 IT S YOUR MOVE! BEGIN A NEW JOURNEY WITH THE SCHLUMBERGER RETIREMENT AND SAVINGS PROGRAM! Effective July 1, 2014, the Schlumberger Retirement and Savings Program will move from your current providers to Sun Life Financial. The move consolidates your plans under one Retirement and Savings Program and offers you new fund options, some new ways to save at work, state-of the-art technology to help you plan effectively, and competitive investment fees on your voluntary accounts. Schlumberger continues to pay the fees on your Defined Contribution Pension Plan (DCPP) and Deferred Profit Sharing Plan (DPSP). Your comprehensive Retirement and Savings Program includes: DCPP Schlumberger makes a basic contribution equal to 2% of your admissible compensation, and a 100% match on contributions up to 3%. Your current employee contribution rate remains in place DPSP Schlumberger makes a discretionary, annual contribution Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) Voluntary, non-matched, no company contributions New online planning tools and calculators This brochure gives you information about the move, including a checklist of next steps on page 13. A WARM WELCOME A representative from Sun Life Financial will give you a welcome call in July or August to help get you started and guide you through your Schlumberger Retirement and Savings Program, including your new investment options. SUN LIFE FINANCIAL Transition Guide 1

4 * CAN YOU AFFORD NOT TO? If you don t contribute to the Schlumberger Retirement and Savings Program, you re missing out on free money! When you invest in your DCPP, Schlumberger will match your contributions. Company matching is one of the most simple and powerful tools you can use to build your wealth through your workplace plan. If you don t contribute, you are missing out on company matching. A good question to ask yourself is: Can I afford not to? Make sure you maximize the company match. Don t leave free money on the table. Need help? Give the Sun Life Financial Customer Care Centre a call at with any questions about your Program or the transition to Sun Life, any business day between 6 a.m. and 6 p.m. MT. 2 SUN LIFE FINANCIAL Transition Guide

5 SECTION 1: IT S YOUR MOVE IMPORTANT INFORMATION YOU NEED TO KNOW 1. Your current DCPP payroll deduction rate will continue automatically no action is required by you, except investment selection. 2. Your accounts at your legacy provider will be transferred to Sun Life Financial on the date listed in Table 1 see page To make your investment selections, you ll need to register on mysunlife.ca/schlumberger, beginning May 26, For a step-by-step guide on how to register, look at the FAQ on Enrollment Central at or the NAM RSC site at 4. You can make your new investment fund decisions at any time, but if you want your instructions to be effective from July 1, you will need to do it between May 26 and June 18. See Section 5 of this brochure for more details. 5. If you do not make an investment selection by June 18, your money will be placed into the Sun Life Financial Granite Target Date Segregated Fund closest to, but not exceeding, your 65th birthday. This is the Schlumberger default fund. Example: If you are aged 35 in 2014, your default fund has a maturity date closest to, but not exceeding, 2044, i.e. the year you turn 65. This would be the Granite 2040 fund. You can change your investments at any time after your account has moved to Sun Life Financial. Questions? You will be able to access one-on-one personal advice about your investments through my investment advice, a service available through the Sun Life Financial Customer Care Centre at You will be required to submit a new beneficiary form for each of your retirement and savings accounts at Sun Life Financial. This is a legislative requirement. You can access these forms online at mysunlife.ca/ Schlumberger Select my financial centre>quick Links>Beneficiary info or complete and return the forms included in this brochure to the address shown on the form. 7. Your legacy accounts will now be consolidated in one location. Although you will be automatically enrolled if you previously had a TFSA or RRSP, you will still need to set up payroll deductions to contribute to these plans at Sun Life Financial. Simply sign in to mysunlife.ca/schlumberger, then select my financial centre>requests>contribute. If your RRSP is with HSBC, you have the option of leaving your account with HSBC or transferring it to Sun Life Financial to consolidate your accounts. You can move your funds at any time on or after July 1. If you want to transfer your account to Sun Life Financial, you will have to complete a T2033 transfer form. You can contact the Sun Life Financial Customer Care Centre at to obtain a copy of this form or you can visit If you are interested in saving more through a voluntary plan that you did not previously have with a legacy provider, e.g., a TFSA or RRSP, you can start now by enrolling in the plan online. Visit mysunlife.ca/ Schlumberger>my financial centre>requests>enrol and follow the enrolment flow. 8. You ll be invited to an education session, which takes place between May 26 and June 16. This is your chance to learn more about your plan and have your questions answered. One-on-one advice is also available at these sessions. When you register, you will have the option to book an appointment with an Education Consultant. 9. If you did not contribute to the Program before, now s the time to start! With multiple savings vehicles, so many great investments to choose from, and contributions from Schlumberger on the DCPP and DPSP, it s a great opportunity to get yourself on track for financial success. SUN LIFE FINANCIAL Transition Guide 3

6 SECTION 2: THE TRANSFER OF YOUR ACCOUNTS TO SUN LIFE FINANCIAL Your accounts are scheduled to transfer on the date listed in Table 1 see below. If you have made your investment choices by June 18, your accounts will be invested according to your instructions. If you have not selected investments by June 18, your money will be placed into the Sun Life Financial Granite Target Date Segregated Fund closest to, but not exceeding, your 65th birthday. You can change your investments any time after your accounts have transferred to Sun Life Financial. For more information on target date funds, see Section 5 of this brochure and also refer to the FAQ posted on Enrollment Central at and the NAM RSC at Freeze period In order to prepare for the transfer of your accounts, your existing accounts will be unavailable for a brief period of time, as indicated in Table 1 below. You may continue to view your accounts at your legacy provider; however, you cannot transact during this time. This is known as a freeze period. Normal account activity resumes with Sun Life Financial as indicated in the table below. Table 1: Transfer dates If you were a legacy Your legacy provider was Your existing accounts will be unavailable for transaction as of Your assets will be withdrawn from your previous provider on Normal account activity resumes with Sun Life Financial as of Member of the Schlumberger core plan (DCPP and DPSP) Aon Hewitt June 23, 2014 at 1:00 p.m. MT. June 25, 2014 June 27, 2014 at 6:00 a.m. MT. Smith International employee Sun Life Financial June 20, 2014 at 1:00 p.m. MT. June 23, 2014 June 25, 2014 at 6:00 a.m. MT. M-I SWACO employee Manulife June 19, 2014 at 1:00 p.m. MT. June 23, 2014 June 25, 2014 at 6:00 a.m. MT. Pathfinder or Dyna-Drill employee Great West Life June 23, 2014 at 1:00 p.m. MT. June 24, 2014 June 26, 2014 at 6:00 a.m. MT. Geoservices North America Ltd. employee Standard Life June 25, 2014 at 1:00 p.m. MT. June 26, 2014 June 28, 2014 at 6:00 a.m. MT. 4 SUN LIFE FINANCIAL Transition Guide

7 SECTION 3: ONE PROGRAM, MANY BENEFITS Why save with the Schlumberger Retirement and Savings Program what s in it for you? There are quite a few benefits to saving through your workplace Program that you won t get when you invest on your own. New investment options Online planning tools Company contributions Payroll deductions No management fees for the DCPP and DPSP! One of the biggest advantages of your Program is the opportunity to explore a wider range of investment options than you had previously, and to make your own investment choices for both your contributions (all accounts) and Schlumberger s contributions (for the DCPP and DPSP). Take advantage of completely new investment options, including target date funds. See Section 5 of this brochure for more details. With your savings plans in one location, you can use the online financial and retirement planning tools, available at mysunlife.ca/schlumberger across all plans: Assess your expected income and expenses Retirement planner Understand your attitude to risk Investment risk profiler Calculate withdrawal calculators Grow your knowledge the money UP online learning challenge will arm you with knowledge in an entertaining way and help you on the road to making healthy financial decisions Everything you need to know on the go access information about your plan anywhere, anytime through the Schlumberger mobile app at mysunlife.ca/ welcometoschlumberger The Schlumberger Retirement and Savings Program is designed to give you a competitive advantage in helping you save for your future. In addition to the base contribution of 2%, when you contribute to the DCPP, Schlumberger will match your contributions dollar-for-dollar, up to 3% of your admissible compensation. That can help your long-term savings add up. When your contributions are deducted directly from your pay to your DCPP or your RRSP account, you enjoy instant tax benefits and the convenience of regular contributions. Schlumberger pays your management fees for your DCPP and DPSP, which means that all of your contributions, and Schlumberger s contributions, are working towards your financial growth. RRSP and TFSA accounts You can now maximize your tax-deductible, tax-sheltered savings room with the RRSP account. The TFSA lets you save after-tax dollars free of tax on interest and investment growth. Just sign in to mysunlife.ca/schlumberger it s a quick and easy online enrolment. Schlumberger has negotiated lower management fees than you would get at a retail institution, such as a bank. Leverage dedicated The Sun Life Financial Customer Care Centre is available for live, in-person support, in-person support 6 a.m. to 6 p.m. MT every business day. Call SUN LIFE FINANCIAL Transition Guide 5

8 SECTION 4: YOUR PROGRAM AT A GLANCE Table 2: The plans available to you in the Schlumberger Retirement and Savings Program General Definition Defined Contribution Pension Plan (DCPP) A DCPP is a registered pension plan that helps you save for retirement. Deferred Profit Sharing Plan (DPSP) A DPSP is a registered plan that lets you share in the profits of your company. Eligibility Automatic participation on the first day of the month, after three months of service as a permanent employee. Automatic participation on the first day of the month, after one year of service as a permanent employee. Fees paid by Shlumberger Yes Yes Type of contributions (employer/employee) Employee and employer Employer only Your Contributions You can contribute from 0% to 5% of your admissible compensation None Schlumberger s Contributions Are Contributions subject to tax at source?* Are investment income and capital gains subject to tax while in the Program? Basic contribution equal to 2% of your admissible compensation, and a matching contribution up to 3% of any contributions you make. No No Discretionary, annual contribution. No No Is there withholding tax on withdrawal? Yes Yes Withdrawals while in the Program? No No Contribution limits for 2014 NOTE: Contribution limits change annually $24,930 $12,465 * Tax is not withheld on the contributions to your DCPP, DPSP or RRSP when the money is deducted from your paycheck but you do pay tax when you withdraw the money. 6 SUN LIFE FINANCIAL Transition Guide

9 Registered Retirement Savings Plan (RRSP) An RRSP is a registered plan that helps you save for retirement. Voluntary participation on the first day of the month, after three months of service as a permanent employee. Tax-free Savings Account (TFSA) A TFSA is a registered plan that functions as a tax-free, multi-purpose, savings account. Voluntary participation on the first day of the month, after three months of service as a permanent employee. Non-registered Account (NREG) A NREG is a non- registered plan that functions as a savings account. Your Program has two NREG accounts. The first account (NREG) operates only for DCPP and DPSP contributions in excess of the annual Canada Revenue Agency (CRA) limits. The second account (NREG 1) is for transfers of previous NREG balances, if you had a NREG at your legacy provider. NREG 1 is not open to new contributions. NREG: Automatic participation with contributions in excess of the annual CRA limits. NREG 1: No new contributions permitted. No No NREG: Yes NREG 1: No Employee only Employee only NREG: Employee and employer NREG 1: No new contributions permitted. You may make voluntary contributions, up to your RRSP contribution limit. You may make voluntary contributions, up to your TFSA contribution limit. NREG: In excess of annual CRA limits on the DCPP and DPSP. NREG 1: No new contributions permitted. None None NREG: In excess of annual CRA limits on the DCPP and DPSP. NREG 1: No new contributions permitted. No Yes Yes No No Yes Yes No No Yes subject to plan rules. Yes NREG: No NREG 1: Yes Check your Notice of Assessment from CRA $5,500 A TFSA lets you carry forward unused contribution room, and amounts you withdraw can be added back to the available contribution room the following year. More information about your plan is available on Enrollment Central at None SUN LIFE FINANCIAL Transition Guide 7

10 * KNOWLEDGE TIP WHAT ARE THE MAIN DIFFERENCES BETWEEN A TFSA AND RRSP? With an RRSP, your contributions are deducted before you pay income tax (you re saving pre-tax dollars). This is valuable because it means that the amount of income you are taxed on is reduced. You pay tax on your RRSP money when you withdraw it if you re in a lower tax bracket when you withdraw it, you ll save on your taxes. Your RRSP must be converted to a retirement income vehicle by age 71. With a TFSA, you re saving after-tax dollars; so, you ve already paid income tax before you contribute this money into your TFSA account. The investment earnings or interest paid on your savings is not subject to tax. And, unlike the RRSP, your capital and your investment returns are tax-free on withdrawal. The TFSA is a great complement to an RRSP. There is no withdrawal requirement based on age there is no need to convert it to another type of account at any age. INVEST IN YOUR DCPP AND DPSP IT S GREAT VALUE! Schlumberger pays the fees for your DCPP and DPSP, in addition to making contributions to these accounts. That s a lot of free money! If you don t participate, or you save elsewhere, you ll lose out banks and other retail institutions will charge you fees. INVEST IN YOUR RRSP AND TFSA IT S GREAT VALUE! Schlumberger has negotiated fund management fees for your RRSP and TFSA that are typically lower than what you would pay if you invested in these accounts at a bank or other retail financial institution. This means that more of your money is invested and growing for you. If you don t participate, or if you save elsewhere, you ll lose out. 8 SUN LIFE FINANCIAL Transition Guide

11 SECTION 5: YOUR INVESTMENT OPTIONS The Schlumberger Retirement and Savings Program offers a variety of investments to choose from, with two distinct investment approaches: Built FOR Me and Built BY Me. BUILT FOR ME The Built FOR Me approach is made up of target date funds structured to coincide with a key life event such as retirement. Target date funds have asset mixes that adjust automatically as you get closer to your target date (the date when you expect to need your money). All you have to do is select the date when you will need your money; for example, your planned retirement year or the year you reach age 65, and then choose the target date fund closest to, but not exceeding, this date. You do not need to complete the Asset allocation tool if target date funds are your preferred investment approach. Look for more information on target date funds on the Schlumberger mobile app, launched in early May. Example: If you are aged 35 in 2014, you would select a target date fund with a maturity date closest to but not exceeding 2044, i.e. the year you turn 65. This would be the Granite 2040 fund. Table 3: Target date funds available in your plan Fund Category Target date Fund Name Sun Life Financial Granite 2015 Segregated Fund Sun Life Financial Granite 2020 Segregated Fund Sun Life Financial Granite 2025 Segregated Fund Sun Life Financial Granite 2030 Segregated Fund Sun Life Financial Granite 2035 Segregated Fund Sun Life Financial Granite 2040 Segregated Fund Sun Life Financial Granite 2045 Segregated Fund Sun Life Financial Granite 2050 Segregated Fund Sun Life Financial Granite Retirement Segregated Fund FMFs* 0.35% 0.41% 0.46% 0.52% 0.52% 0.52% 0.52% 0.52% 0.35% * Fund Management Fees (FMFs) are applicable to the TFSA, RRSP, and NREG 1 only. Fund Management FMFs as of March 31, The FMFs displayed in this document do not include the applicable sales tax. However, these taxes are charged to your account. FMFs include, but are not limited to, fund operating expenses and investment management fees Look for more information on target date funds online on the Schlumberger mobile app at mysunlife.ca/ welcometoschlumberger or mysunlife.ca/schlumberger>financial future>quick Links>Investment performance. On the right hand side of the screen select my fund performance>morningstar. SUN LIFE FINANCIAL Transition Guide 9

12 SECTION 5: CONTINUED BUILT BY ME The Built BY Me approach allows you to create your own portfolio from a list of specially selected funds (see chart below) and is best suited to individuals who want to actively choose and monitor their investments. If this is your preferred approach, it is advisable to complete the online Asset allocation tool, which will help you understand your personal risk tolerance. Go to mysunlife.ca/schlumberger>my financial centre>quick Links>my money tools and follow the steps. Based on your risk profile results, you can choose from the funds shown in the table below to create a portfolio that matches the asset mix recommended by your risk profile. Look for more information on Built BY Me funds on the Schlumberger mobile app at mysunlife.ca/ welcometoschlumberger, launched in early May. Understanding risk versus return Low Return High Equities Balanced Bond Low Risk High Table 4: Built BY Me funds available in your plan Fund Category Fixed income / Bond Canadian equity U.S. equity International equity Global equity Fund Name PH&N Bond Segregated Fund Templeton Global Bond Segregated Fund CC&L Group Canadian Equity Segregated Fund BlackRock US Equity Index Segregated Fund (Non-registered) this investment is available for your TFSA, NREG and NREG 1 BlackRock US Equity Index Segregated Fund (Registered) this investment is available for your DCPP, DPSP and RRSP MFS International Equity Segregated Fund MFS Global Equity Segregated Fund FMFs* 0.35% 0.75% 0.31% 0.15% 0.14% 0.60% 0.55% * Fund Management Fees (FMFs) are applicable to the TFSA, RRSP and NREG 1 only. FMFs as of March 31, The FMFs displayed in this document do not include the applicable sales tax. However, these taxes are charged to your account. FMFs include, but are not limited to, fund operating expenses and investment management fees. 10 SUN LIFE FINANCIAL Transition Guide

13 BUILT FOR ME OR BUILT BY ME... WHICH APPROACH IS RIGHT FOR YOU? Use the following chart as an additional guide, along with the results of the Asset allocation tool. Based on what is important to you, the suggested investment approach is check-marked. Table 5: Built FOR Me vs Built BY Me Choose what is important for you from the following statements Built FOR Me Built BY Me I am looking for professional expertise in fund selection. I am looking for an approach that is 100% maintenance-free. I want asset allocation and rebalancing issues taken care of. I am interested in selecting my own funds. I will take the time to read the fund pages and understand the risks involved. I want an approach that fits my personal risk profile and I will re-balance my account as necessary. * For advice on the investments available in the Schlumberger Retirement and Savings Program, use my investment advice, a service available through the Sun Life Financial Customer Care Centre at A specialized professional will help you understand more about your investments. SUN LIFE FINANCIAL Transition Guide 11

14 * IT S IMPORTANT Remember whether you choose the Built FOR Me or Built BY Me approach, you need to make investment selections. Choose a target date fund for the Built FOR Me approach, or individual investments for the Built BY Me approach. To learn more about individual investment funds in your Retirement and Savings Program, you can use Morningstar, a leading provider of investment news and analysis, available through mysunlife.ca/schlumberger>my financial future>quick Links>Investment performance. On the right hand side of the screen, select my fund performance>morningstar. To change your investments, visit mysunlife.ca/schlumberger>my financial centre> Requests>Change investments. You can also update your account by calling Sun Life Financial s Customer Care Centre at any business day from 6 a.m. to 6 p.m. MT. Possible charges for interfund transfers There are no charges for transfers; however, a two per cent fee may be charged when you move money into a fund followed by a move out of the same fund within 30 days. This is known as short-term trading. Regardless of which investment approach you take, you should monitor your investments on at least an annual basis. As a participant in a retirement program it s your responsibility to: Understand your plan Keep your personal information and beneficiaries up-to-date with Sun Life Financial Choose how much to contribute Understand the available investment options Understand your individual risk profile Choose your investments for both your contributions and Schlumberger s contributions, and monitor your account Seek independent financial advice from a qualified professional if that makes sense for you Remember your investment decisions will impact the amount you accumulate in the Program. 12 SUN LIFE FINANCIAL Transition Guide

15 SECTION 6: MAKING YOUR MOVE CHECKLIST AND NEXT STEPS Access the Frequently Asked Questions (FAQ) document hosted on the Schlumberger Enrollment Central web site, and the NAM RSC at do?id=id This document is updated regularly so check back often. Use your tablet, smartphone or computer to visit the Schlumberger mobile app for anytime access to information about the transition. Go to mysunlife.ca/welcometoschlumberger today! Register online for an education session in-person or online. Learn about the transfer of your accounts, changes to your Program and ask any questions you may have. Go to for locations, dates and times. When you register, you can set up an appointment for a personal consultation with an Education Consultant. During the week of May 12 you should have received a welcome letter from Sun Life Financial that included your account number; you will need this to register for your online user name and password to sign in to mysunlife.ca/schlumberger. Beginning May 26, register on mysunlife.ca/schlumberger, using the account number in your welcome letter. Go to mysunlife.ca/schlumberger>register now. Then, follow the steps provided. Once you have registered, you will have your personal access ID and password, which will enable you to manage your plans online on an ongoing basis. Between May 26 and June 18, make investment selections for all of your accounts. You will need to set up investment direction for both your contributions (all accounts that you have) and Schlumberger s contributions (DCPP and DPSP only). Sign in to mysunlife.ca/schlumberger>my financial centre>requests> Change investments. Reach out to a team of experts for one-on-one personal advice on the funds in your Program at SUN LIFE FINANCIAL Transition Guide 13

16 Beginning May 26, join the voluntary RRSP and/or TFSA through mysunlife.ca/schlumberger>my financial centre>requests>enrol. By June 18, complete your investment selections. If you do not make an active selection by June 18, your account balances and future contributions will be automatically invested in the Sun Life Financial Granite Target Date Segregated Fund; this is the Schlumberger default fund. Complete and submit your beneficiary form for the DCPP and DPSP. This is a critical step in the transfer process and it s a great opportunity to make sure your records are up to date. If you have a legacy RRSP, TFSA or NREG, please complete a separate beneficiary form for each of these plans. If your legacy RRSP was with HSBC and you are leaving your account with HSBC, you do not need to complete a new beneficiary form for the HSBC RRSP but you should double check that the current form with HSBC is up to date. Beneficiary forms are available on mysunlife.ca/schlumberger>my financial centre>quick Links> Beneficiary info, or at the back of this brochure. Return all beneficiary forms to the address shown on the form. From July 1, watch the mail for your final statement of account from your legacy provider. From July 1, If you hold an RRSP at HSBC, and you want to transfer your account to Sun Life Financial, you ll need to fill out a T2033 form. Either visit or call Sun Life Financial s Customer Care Centre at to have a form mailed to you. Alternatively, you have the option to leave your funds at HSBC. In early July, watch the mail for the Confirmation of asset transfer letter from Sun Life Financial, confirming the transfer of your accounts from your current provider. You may receive more than one confirmation letter if your accounts transferred from more than one provider. In July or August, once the transition is complete, Sun Life Financial will give you a call to make sure all of your questions are answered. 14 SUN LIFE FINANCIAL Transition Guide

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28 Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies. 04/14-VB-MP