Final Inspection
Employee Seminar
Spring 2013
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Agenda
• York’s expectation for notification
• What you should expect from York
• Difficult spousal conversations
• Financial Planners
• Government expectation – CPP and OAS
• What you should expect from the government
• Other
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Retirement
• Retirement can occur any time following your 55th
birthday
• Retirement occurs on the 1st of the month
• Academic employees are to provide nine months notice
of retirement and retire January or July
• All other employees are asked to provide six months
notice, if possible, and may retire on the first of any
month following age 55
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Retirement continued…
• Once you have provided your department with notice of
retirement please e-mail a copy of it to askpb@yorku.ca
• The Pension & Benefits will then mail the Retirement Option
Package to your home address approximately three months
prior to the retirement
• For those employees that have unused vacation credits
remind your department to include those unused vacation
credits on the ETF that is to be provided to Human
Resources prior to your retirement
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Retirement continued…
In order to process your election we require:
ETF from your department confirming your retirement
All completed forms, including proof of age, banking
information, etc.
As long as we have all the necessary paperwork by the
20th of the month we are able to process for the first (1st) of
the month
When the 1st is a holiday or falls on the weekend your
banking institution most often will deposit the funds on the
first banking day after the 1st.
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Retirement continued…
If the necessary paperwork is received 90 days or more
following your retirement date you will be considered a
deferred member
Once you become a deferred member post retirement
benefits are no longer provided
Pension is recalculated to a current date
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Pension options - single
There are four pension options available:
• Single life with no guarantee
$1,479
• Single life with a five year guarantee
$1,472
• Single life with a ten year guarantee
$1,455
• Single life with a fifteen year guarantee
$1,429
There is also the transfer out to a locked-in RRSP option
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Pension options - married
Employee and Spouse same age
* Single life – 0, 5, 10, 15 year guarantee
$2,945 - $2,863
*Joint & Survivor (J&S) 50% - 0, 5, 10, 15 year guarantee $2,945 - $2,903
Joint & Survivor (J&S) 60% - 0, 5, 10, 15 year guarantee $2,916 - $2,882
Joint & Survivor (J&S) 75% - 0, 5, 10, 15 year guarantee $2,873 - $2,851
Joint & Survivor (J&S) 100% - 0, 5, 10, 15 year guarantee $2,805 – $2,800
Spouse five years older than employee
* Single life – 0, 5, 10, 15 year guarantee
$2,945 - $2,863
*Joint & Survivor (J&S) 50% - 0, 5, 10, 15 year guarantee $2,945 - $2,901
Joint & Survivor (J&S) 60% - 0, 5, 10, 15 year guarantee
$2,923 - $2,886
Joint & Survivor (J&S) 75% - 0, 5, 10, 15 year guarantee
$2,890 - $2,865
Joint & Survivor (J&S) 100% - 0, 5, 10, 15 year guarantee $2,838 – $2,830
* Requires a J&S waiver
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Changes after Retirement
• Once the first pension payment has been made
changes can not take place i.e. changing the form of
pension
• The spouse at retirement is the spouse that will receive
a pension in the event of your death, assuming you
elected a joint & survivor pension
• If you have post retirement benefits you can not
change/add new dependents to your coverage
• If you move you need to inform the Pension & Benefits
office as well as CIBC Mellon
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CIBC Mellon
Contact them directly to:
• Update your home address (contact us as well)
• Change banking information
• Access/make changes to government tax forms
• Request your T4A
http://www.cibcmellon.com/Contents/en_CA/English/Home/Home.html
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Increases to Pension
• Once you begin receiving your pension the gross
amount will not go down regardless of the rate of return
of the fund
• Each year the moving four-year average fund return is
determined and applied to your account
• We notify you each year of what your gross pension
paid is and whether an increase is provided or if we are
tracking a lower amount as the pension payable
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Need to contact Pension & Benefits?
• E-mail askpb@yorku.ca
• Call 416-736-2100 extension 27572 (askpb) – the
phone line is open from 9:00 am to 4:00 pm Monday to
Friday. For Fridays in June, July and August the phone
line closes at 3:00 pm.
• Please have your employee ID ready when you call us.
• Any form or document that we may need from you can
be completed, scanned and emailed to
askpb@yorku.ca.
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Difficult Spousal Conversations
• Retirement Expectations
• Both are on the same page
• Together 24/7
• Retiring together or at different times
• Common Ground
• Finding a system/schedule that makes you both happy
• Schedules
• Together or separate?
• Expectations upon Death of a partner
• Will things remain the same, or will the remaining partner
decide to live differently
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Financial Planner Consultations
• Meet to put together a plan
• Project into the future
• Parents longevity
• Health concerns
• Etc.
• Organize funds
• 3 stages of Retirement all requiring different amounts of
money and possibly funded from different sources
•
•
•
Go Go Stage
Slow Go Stage
No Go Stage
• Different types of money for different things
•
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Example - Unregistered money for capital expenses (new roof,
new car etc.)
Financial Planner Consultations What you need to bring
• Clear understanding of your Retirement plans
•
•
•
•
Do you plan to travel?
Do you plan to move?
Do you plan to buy property abroad?
Etc.
• Your Monthly Costs
•
•
•
•
•
•
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Household expenses (if you plan to move you may need to
estimate this)
Car
Food habits
Entertainment Habits
Medical Expenses
Debts (mortgage, credit cards, personal loans, car payments etc.)
Financial Planner Consultations What you need to bring continued
• Sources of Income
•
•
•
•
•
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RRSP’s
Other Investments (non registered)
York Pension Information
Foreign Income
List of Assets (Homes, Cottage, Rental Property, Vehicles
etc.)
The Government’s Expectations
• CPP and OAS
• Applications can be submitted up to 11 months ahead of
time – but they do suggest at least six months ahead
• CPP can be submitted on line
• OAS must be submitted via paper application (available in
the Retirement Planning Centre office if required)
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Canada Pension Plan (CPP)
• The CPP was established in 1966
• It is based on contributions that employees and
employers contribute
• It is designed to replace 25% of a person’s average preretirement employment earnings, up to a maximum
amount
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Canada Pension Plan (CPP) continued…
• Contributions are taken until you reach the Yearly
Maximum Pensionable Earnings (YMPE) set at $51,100
for 2013. Once you have earned that value no further
contributions will be deducted from your pay.
• You can access your contribution history and estimate of
your pension at servicecanada.gc.ca
• Set up an My Service Canada Account
• Or you can call Service Canada and request a Statement
of Contributions or a estimate of your pension
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Canada Pension Plan (CPP) continued…
• You can receive your pension anytime between age 60
and age 70. The normal age is 65, and the pension will
be adjusted up or down from there.
• For 2013 the maximum amount you can receive is
$1,012.50, and the average amount paid out is $528.49.
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Canada Pension Plan (CPP) continued…
• If you have direct deposit set up, the payment is
deposited to your account on the third to last banking
day of the month.
• You can receive your payment anywhere in the world
• CPP is taxable
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Canada Pension Plan (CPP) continued…
• Changes to the plan as of January 1, 2012
• Between 60 and 65 and in receipt of the CPP benefit and
continuing to work – mandatory to continue to contribute
• Between 65 and 70 and in receipt of the CPP benefit and
continuing to work – voluntary to continue to contribute
• If you continue to contribute while in receipt of the CPP
benefit and additional Post Retirement Benefit (PRB) will
be calculated (maximum for 2013 $25.31)
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Old Age Security (OAS)
• The OAS is financed from the general revenues of the Government
of Canada
• OAS is a monthly benefit paid to Canadian Residents who qualify
and who are currently 65 years or older
• Qualifications to receive OAS
• Age 65 or older
• Reside in Canada and be a Canadian citizen or legal resident
• Resided in Canada for at least 10 years after turning age 18
• To Receive OAS outside of Canada you must have resided in
Canada for at least 20 years after turning age 18
• Note there are social security agreements with many countries
which may help you qualify if you do not meet the qualifications
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Old Age Security (OAS) continued…
• You need to apply for OAS six months prior to your 65th
birthday (currently), if you wish to receive it.
• As of July 1, 2013 you can defer receiving your OAS.
You can receive it between the ages of 65 and 70. It will
be increased for each month after the age of 65.
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Old Age Security (OAS) continued…
• If you immigrated to Canada you will need to provide
proof of residency and or date of entry
• If you currently do not have these documents you should
contact the Department of Immigration to obtain this
documentation ahead of time
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Old Age Security (OAS) continued…
• You can receive either a full pension or a partial pension
depending on how many years you have spent in
Canada over the age of 18
• To qualify for a full pension you need to have 40 years in
Canada over the age of 18, or meet other rules that can
qualify you
• Partial pension can be paid when you do not meet the
qualifications for full pension – it is calculated based a
percentage of the time you have been in Canada
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Old Age Security (OAS) continued…
• Your OAS payment can be deposited to your bank
account directly and is paid at the same time as CPP
generally.
• If you have resided in Canada for 20 years after turning
age 18 you can have your OAS paid to you outside of
Canada
• The OAS pension is increased by the CPI (Consumer
Price Index) in January, April, July and October
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Old Age Security (OAS) continued…
• There is a Recovery Tax on OAS
• In 2013 pensioners with an individual net income above
$70,954 must repay part or all of the maximum Old Age
Security amount. The full OAS pension is eliminated
when a pensioner’s net income is $114,640 or above
• OAS is taxable
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What you should expect from the
Government
• As long as you get your completed forms to the
government within a reasonable period of time, your
pension should start at the date you request
• The values of these pension are increased based on the
Consumer Price Index (CPI)
• If your income is extremely low there are supplements
available through the OAS program
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Contacting the Retirement Planning
Centre
• Call us at 416-736-2100 extension 66228
• E-mail retire@yorku.ca
• We are located in 101 Central Square
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