A WORLD OF POSSIBILITIES TAILORED TO YOUR NEEDS

Transcription

1 M RA ED R O IL TA A WORLD OF POSSIBILITIES TO YO U R N EE D S PA G E 1 SA V IN G S PR O G TAILORED TO YOUR NEEDS

2 ELIGIBILITY BASIC OPTIONAL VESTING PERIOD GROUP RETIREMENT SAVINGS PROGRAM THE GROUP RETIREMENT SAVINGS PROGRAM OFFERED BY WSP ALLOWS YOU TO SAVE AND INVEST FOR RETIREMENT. IN ADDITION TO YOUR PERSONAL INVESTMENTS, WSP CONTRIBUTES TO THE PROGRAM ON YOUR BEHALF. YOUR CONTRIBUTION (GROUP RRSP) Upon hire - Voluntary participation Employee contributions - 1%, 2% or 3% of your base salary, deducted each pay period Contributions of more than 3% of your base salary or any other lump sum amount Immediate + WSP S CONTRIBUTION (DPSP) 3 months after hire Employer contributions - 100% of your contributions up to a maximum of 3% of your base salary, deposited each pay period None After participating in the plan for two years, except in the case of a permanent layoff INVESTMENTS! INVESTMENTS FOR YOUR GROUP RETIREMENT SAVINGS PROGRAM ARE MADE IN ACCORDANCE WITH YOUR INSTRUCTIONS. TWO OPTIONS ARE AVAILABLE TO YOU: OPTION 1 OPTION 2 LIFECYCLE SOLUTION À LA CARTE INVESTMENTS Based on your investor profile and investment horizon. By choosing this approach, your assets will be automatically adjusted over time without any intervention on your part. Choose among a diverse range of funds offered. EXAMPLE OF LIFECYCLE AUTOMATIC ADJUSTMENT AGRESSIVE EQUITY MODERATE FIXED INCOME ALTERNATIVE INVESTMENTS CONSERVATIVE EARLY SAVER MID-LIFE SAVER PRE-RETIREE RETIREMENT PAGE 2 WITHDRAWALS DURING EMPLOYMENT Optional and flexible account contributions can be withdrawn at any time without justification. Your basic contributions cannot be withdrawn without WSP s approval. Contributions made by WSP to the DPSP cannot be withdrawn. You can, however, withdraw funds invested in your Group RRSP (basic and optional contributions) if the withdrawal is made under the Home Buyers Plan (HBP) or the Lifelong Learning Plan (LLP).

3 SHARE PURCHASE PLAN (SPP) THE SHARE PURCHASE PLAN ALLOWS YOU TO BECOME A WSP SHAREHOLDER. YOU CAN PURCHASE WSP SHARES IN AN RRSP, A TFSA OR A NON-REGISTERED ACCOUNT. WITH THE SPP, RETURNS ON YOUR INVESTMENTS WILL BE REFLECTED BY THE PERFORMANCE OF WSP SHARES ON THE STOCK MARKET. YOUR (RRSP, TFSA OR NON-REGISTERED ACCOUNT) + WSP S (NON-REGISTERED ACCOUNT) ELIGIBILITY Upon hire - Voluntary participation Upon hire Employee contributions - Amount of your choosing, with no maximum, deducted directly from your pay each pay period. Employer contributions 1-50% of your employee contributions from the previous year up to an annual maximum of $1,000. VESTING PERIOD Immediate Immediate - when the contribution is made in January 1 If you are a member from Quebec, WSP s contribution is eligible for the Quebec Pension Plan and will increase your QPP deduction at the time of payment in January. CALCULATION OF WSP S CONTRIBUTION To obtain the maximum contribution from WSP ($1,000 per year) to the SPP, you need to contribute via payroll deductions for one full year, without any retroactive contributions. The allocated amount is accumulated every pay and is paid out in January of the following year. You must be a WSP employee at the time of the payment in order to receive the employer contribution. PAYMENT OF DIVIDENDS Dividends from your WSP shares will be automatically reinvested in your account as shares. WITHDRAWALS DURING EMPLOYMENT You are free to sell or transfer your shares at any time. COMPLEMENTARY SAVINGS ARRANGEMENTS WSP S COMPLEMENTARY SAVINGS ARRANGEMENTS GIVE YOU ACCESS TO GROUP SAVINGS SOLUTIONS TO SAVE MORE MONEY FOR PERSONAL PROJECTS. IT IS AN ADVANTAGEOUS SAVING SOLUTION COMPARED TO WHAT YOU CAN FIND ON THE MARKET AS AN INDIVIDUAL. YOUR (TFSA AND/OR NON-REGISTERED ACCOUNT) ELIGIBILITY VESTING PERIOD Upon hire - Voluntary participation Amount of your choosing 2 through payroll deductions or any other lump sum amounts Immediate 2 Some maximums may apply. To find out more, consult page 5. Investments for your complementary savings arrangements are also made in accordance with your instructions. You benefit from the two same options than for your Group RRSP which are the Lifecycle solution and À la carte. WITHDRAWALS DURING EMPLOYMENT Your contributions can be withdrawn at anytime without justification. PAGE 3

4 YOUR SAVINGS PROGRAM A CHOICE OF ACCOUNTS TO MEET YOUR FINANCIAL GOALS RRSP ACCOUNT OFFERED THROUGH THE GROUP RETIREMENT SAVINGS PROGRAM AND SPP TFSA ACCOUNT TAX FREE SAVINGS ACCOUNT OFFERED THROUGH THE SPP AND COMPLEMENTARY SAVINGS ARRANGEMENTS NON-REGISTERED ACCOUNT OFFERED THROUGH THE SPP AND COMPLEMENTARY SAVINGS ARRANGEMENTS DPSP DEFERRED PROFIT-SHARING PLAN OFFERED THROUGH THE GROUP RETIREMENT SAVINGS PROGRAM CONTRIBUTING TO YOUR SAVINGS PROGRAM All contributions made to a registered account are income tax deductible, up to the RRSP contribution limit established by the Canada Revenue Agency (CRA). Your investments also remain tax sheltered until they are withdrawn. Contributions can also be made to a TFSA, up to your TFSA contribution limit. In this account, the contributions you make are not income tax deductible, however your investment returns are tax sheltered. This means that investment returns are non taxable. An investment in a non-registered account has certain tax implications: 1. Contributions that you make to a non-registered account are not income tax deductible; 2. All contributions made by WSP are automatically deposited into a non-registered account and are taxable; 3. Contributions made to a non-registered account are not tax sheltered. Moreover, capital gains and dividend income from your investments in this type of account are taxable each year; 4. To reduce the tax implications and benefit from tax deductions, you can transfer the funds from a non-registered account to an RRSP or a TFSA account at any time, including WSP s contributions. WSP s contributions to the DPSP do not constitute taxable income and remain tax sheltered until they are withdrawn. These contributions are however considered in your RRSP contribution limit and reported in Box 52 of your T4. TAX IMPLICATIONS REGISTERED ACCOUNT (RRSP) DPSP (WSP S CONTRIBUTION) NON-REGISTERED ACCOUNT TAX-FREE SAVINGS ACCOUNT (TFSA) FISCAL IMPACT WHEN... PURCHASING RECEIVING PAYMENT OF DIVIDENDS / INTERESTS SELLING ASSETS Income tax return (30% to 40%) No income tax return No income tax return No income tax return Non taxable Non taxable Taxable Non taxable Taxable (usually at retirement) Taxable (usually at retirement) Non Taxable (only capital gains are taxable) Non taxable RRSP OR TFSA CONTRIBUTION LIMITS MANAGEMENT AND TRANSACTION FEES Base salary for savings program interpretation purposes, the term base salary means your regular base salary excluding any other type of compensation (hours exceeding your normal work week, bonuses, allowances, etc.). Because of the tax advantages offered by the RRSP and the TFSA accounts, the CRA limits the amount that you can contribute towards these accounts each year. You are responsible for ensuring that the contributions to your RRSP or TFSA (whether they be through Sun Life or another institution), if applicable, respect the limits. The Notice of Assessment sent to you by the CRA indicates the amount corresponding to your RRSP contribution limit for the current year. This information is available in the section entitled RRSP Deduction Limit. Your Notice of Assessment also indicates your unused TFSA contribution room. CHANGING YOUR EMPLOYEE You can stop contributing and start again whenever you choose based on your personal needs and financial situation. You can also change your contribution rates at any time. To make a change, please visit mysunlife.ca and provide your instructions. The change will take effect as soon as possible after the date on which your request is received. Withdrawals or transactions associated with either of your savings program could be subject to fees. For the Group RRSP and the complementary savings arrangements, WSP pays the administration fees and you are responsible for paying investment management fees (IMF). For the share purchase plan, WSP pays the administration fees as well as the fees for purchasing shares, while you pay for the fees when selling or transferring shares. For more information on fees, please visit WSP s Intranet or contact Sun Life. PAGE 4

5 TAKING ACTION MAKING THE RIGHT CHOICES For the share purchase plan, you need to set your contribution level and choose from one of the following accounts: RRSP, non-registered or TFSA. For the group retirement savings program, you need to set your contribution level, determine your investor profile (conservative, moderate or aggressive) and make your investment choices. Several tools are available on Sun Life s website to help you make these decisions. They include a retirement income calculator and documentation on the available investment options. Once you have chosen your savings program, complete the form or visit Sun Life s website to enrol in or make any future changes to the plan. KNOWING YOUR INVESTMENT RETURNS There are three ways to obtain information regarding your investment returns in order to ensure that your investments continue to meet your personal financial goals: 1. Visit Sun Life s website; or 2. Consult the detailed semi-annual statement sent to you by Sun Life twice a year. Indicated on the statement are the movements in your Group RRSP and SPP since your last statement was published; or 3. Contact Sun Life s call centre. SPECIAL PROVISIONS Special provisions may apply if you must be absent from work for a specific reason (for example, maternity leave, layoff, etc.). Under certain conditions, you will be able to continue to contribute towards the savings program offered by WSP. The rules will differ in case of definite termination of employment. To learn more about the rules and conditions of the plans, visit WSP's Intranet under My Services/Savings Plans. PAGE 5

6 FOR ALL QUESTIONS IF YOU HAVE ANY QUESTIONS, FEEL FREE TO VISIT OR CONTACT: WSP's Intranet under My Services/Savings Plans This brochure was prepared for WSP employees and does not replace the legal documents pertaining to the plans. Should there be a discrepancy between the information provided in this brochure and that provided in the legal documents, the latter shall prevail. WSP reserves the right to modify the provisions of the savings program or the eligibility rules. In this event, WSP will inform you of the changes as soon as possible. October 2016 PAGE 6 A WORLD OF POSSIBILITIES