University of Saskatchewan
Group Retirement Fund
Update to Plan Participants
December 15, 2015
Changes to the Minimum Withdrawal Rate
As part of the 2015 Budget, the federal government recently introduced new, lower minimum withdrawal factors
for ages 71 – 94 for RRIF and other provincially legislated pension accounts, including the University of
Saskatchewan Group Retirement Fund (GRF). This memo explains the changes that have been made and how this
will affect members of the GRF.
Under the old withdrawal rates, at age 71 retirees must withdraw a minimum of 7.38% of their balance from the
GRF. The new budget has lowered the mandatory withdrawal at age 71 to 5.28%. For those that are age 72, the
minimum is reduced from 7.48% to 5.4%. Withdrawal rates still increase every year, but instead of topping out at
20% at age 94, that cap is reached at age 95.
These new factors apply retroactively to January 1, 2015. GRF members are allowed, but not required, to take the
reduced minimum income payments in 2015. Payments using the new minimum factors will automatically take
effect on January 1, 2016. Members who received the “old” minimum income withdrawal amounts in 2015 may recontribute the difference to the GRF before February 29, 2016.
If you would like to find out how to make a re-contribution, or for more information on these changes, please
contact the Sun Life Financial Client Solutions Centre at 1-866-224-3906.
Age at January 1
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
Rate(%)
2.50
2.56
2.63
2.70
2.78
2.86
2.94
3.03
3.13
3.23
3.33
3.45
3.57
3.70
3.85
Revised Minimum Withdrawal Table
Age at January 1
Rate(%)
Age at January 1
65
4.00
80
66
4.17
81
67
4.35
82
68
4.55
83
69
4.76
84
70
5.00
85
71
5.28
86
72
5.40
87
73
5.53
88
74
5.67
89
75
5.82
90
76
5.98
91
77
6.17
92
78
6.36
93
79
6.58
94
95 and over
Rate(%)
6.82
7.08
7.38
7.71
8.08
8.51
8.99
9.55
10.21
10.99
11.92
13.06
14.49
16.34
18.79
20.00
If you have any questions regarding the information presented above, please contact Sun Life Financial at 1-866224-3906, or the Pensions Office at 966-6633, or contact any of the AMPPC members listed below.
G. Tannous, Chair (Finance and Management Science)
M. Racine (Finance and Management Science)
D. Gilchrist (Economics)
L. Kennedy (Office of the VP, Finance & Resources)
J. Dumba (Financial Services)
J. Traves (Advancement and Community Engagement)
This communication, future communications and other pension plan information are available online at:
www.usask.ca/fsd/faculty_staff/pension_plans