Your Health. Your Wealth.
Prepare today for your tomorrow
Important Enhancements to the
Husky Employee Savings Plan
Agenda
•
•
•
•
•
•
•
•
Savings Plan Philosophy
What's stays the same / What changes?
Making elections & Re Allocations
The Tax-free Savings Account (TFSA) & Share
Purchase Plan
Plan member responsibilities
Fees
Actions required & Choosing your funds
Tools and Services
The Husky Energy Savings Plan
Philosophy
• The objective of Husky savings plan is to assist
employees in saving by supplementing any additional
savings and retirement income they may receive from
other sources:
• This may include government programs, (for
example CPP & OAS)
• It is important to understand that you may require
additional savings and investments to reach your
retirement objectives.
What stays the same?
What stays the same?
• Husky will continue providing 5% of your base earnings
to the savings plan
• No employee match is required
• You can still direct the 5% or a portion thereof to the
Group RRSP
• Low investment management fees.
What changes?
What changes?
• Deposits are made “per pay” directly into the savings
plan rather than an annual lump sum payment,
• Flexibility to make additional voluntary employee
contributions,
• The Savings Plan entitlement section of the pay
advice will be removed. The current period and year
to date contributions can be viewed in the Employer
Contribution and Deduction section of your pay
advice
What changes?
• Greater choice of investment vehicles, including;
• Non-registered funds (same as those in the retirement
plans)
• A TFSA added to the plan
• A Husky Share Purchase Plan has been added to the
plan
What are the changes?
You can now direct Husky’s contribution as follows:
Husky Contribution
(Plus employee voluntary
contributions)
RRSP/Spousal
RRSP
(pre tax)
and/
or
Husky Share
Purchase Plan
(after tax)
and/
or
Non Registered
(after tax)
Elect the RRSP or Husky Share option on iConnect.
If no election is made, the default is the taxable Non Registered
account
What are the changes?
You can direct money from your Non Registered account
as follows:
Non Registered
RRSP/Spousal
RRSP
and/
or
TFSA
and/
or
Husky Stock
Purchase Plan
If no election is made, contributions will remain in the Non-registered
Sun Life Money Market fund
Making Elections
Making my Elections
To elect the Group RRSP or Husky Share Purchase plan:
1. Log into iConnect using your network ID and password
2. Click the Employee Self-Service tab at the top of the
page
3. On the Employee Self-Service Overview page, Click
Savings Plan – Update Husky Provided Allocations to
update the employer portion of your savings plan
4. The Savings Plan Change Form will open in a separate
window; Scroll down to fill in all required fields
Making my Elections (cont.)
5. The Employee General Information section is prepopulated with your name and employee ID, and the
Introduction section provides direction for filling out the
form
6. Select the effective date for the change
7. Select the date from the calendar drop down, and then
click Refresh Data. This displays the current values of
your allocations as at the selected date
8. Input your new allocations by selecting the
percentages from the drop down boxes. Note: Your
selections must add up to 5%
Making my Elections (cont.)
9. Check the box to confirm that you understand the
changes you have made, and authorize Husky to
implement the changes
10. Click Check and Send to verify your selections. Note:
When you do this, the effective date becomes either the
16th of the month, or the 1st of the next month, depending
on the date you selected. Click Send to submit your
changes
Making Investment Changes
Making Investment Changes
• You’ll need an access ID and password to access your
account online
• If you are a current Husky DC Pension or Group RRSP
member, your current Sun Life Financial access ID and
Password will enable you to reallocate your Husky
Savings Plan assets
Don’t have an access ID or password?
• Go to mysunlife.ca and select the “register now” link. You
will need your account number (see your welcome letter
or your statement for this number). Welcome letters with
access IDs & instructions to obtain a password will be
sent to all non-DC / RRSP members shortly
TFSA
Contributions to the TFSA
• Governed by CRA legislation
• CRA will report contribution room on Notice of
Assessment ($5,000 per person in 2012)
• Indexed annually, rounded to nearest $500
• Contributions are after tax dollars
• Unused contribution room carries forward each year,
indefinitely
• Lump sum payments or pre-authorized debit directly
to Sun Life Financial – contact Sun Life for more
information
Contributions to the TFSA
• May have more than one TFSA
• Total annual contribution must stay within the $5,000
limit
• Over-contributions subject to penalty of 1% per month
• Investment management fees are the same as the
other Husky funds
Withdrawals from the TFSA
• Withdraw for any purpose at anytime
• Withdrawals are tax-free, original contributions
plus investment growth
• No restrictions (or suspensions)
• $25 withdrawal fee
• Any amount withdrawn can later be recontributed to a TFSA – the next calendar year
• Increases contribution room in the following year
• Withdrawals have no impact on income tested
government benefits OAS, GIS, EI benefits,
Child Tax Credits, etc.
Husky Share Purchase Plan
Husky Share Purchase Plan
Share Transaction Processing:
• Frequency of trading is daily (employees can initiate
transactions every day)
• Market timing of trade is next-day (i.e. today’s transaction have
a “pending” status overnight and get traded on market next
business day morning)
• Contributions are processed when received
Trading price – all investment or redemption instructions are
processed and a net trading price is determined
• Brokerage commissions are paid by the employee - $0.03/share
•
Husky Share Purchase Plan
• Inter-fund and inter-product transfers are permitted
Three types of withdrawals permitted (no penalties or
consequences for withdrawals) :
•
Cash withdrawal (cheque mailed)
• In-kind transfer (electronic book based transfer to a brokerage firm)
• Physical share certificates (couriered to employee)
Transactions (redemptions and transfers) can be
processed:
•
Up to 3pm ET by phone through the call centre
• Up to 4pm ET on the Internet
Husky Share Purchase Plan
• Savings plan allocation and / or additional voluntary
payroll deduction make purchasing Husky shares
easy and convenient
• Lower trading costs; because of the combined buying
power of Husky and Sun Life, you pay fees that are
generally lower than what you would pay on your own
• Husky pays most of the administration fees on your
behalf
• It’s an excellent way to share in the long-term growth
of your company
• There is no Husky matching or discounting
• Dividends are reinvested to purchase more shares
Your Responsibilities
Responsibilities as a member of
your plan
You are responsible for:
• Understanding and being aware of your annual
RRSP / TFSA contribution limit (stipulated on your
CRA Notice of Assessment and not over contributing
• Defining, monitoring and revising your investment
strategy
• Paying for the fund management fees
• Understanding your risk tolerance and potential
volatility of your investments
Responsibilities as a member of
your plan (cont.)
• Researching and reviewing the available investment
options
• Making use of the information and tools available to
assist you in making informed decisions
• Obtaining independent advice should you deem it
necessary
• Allocating the contributions among the available
investment options
Plan Fees
Investment Management Related Fees:
• Fund Management Fees are paid monthly (they appear
as an expense transaction the first business day each
month)
• No front or back end load charges
Plan Administration Fees:
• Fees paid by Husky
• Withdrawals or transfers for the GRSP/NREG:
• One free withdrawal per calendar year
• $10 for each additional withdrawal or transfer
NREG Withdrawals and Plan
Fees Cont’d
Sun Life Financial will pay withdrawals to you:
– By cheque or
– Electronic bank transfer
Plan Administration Fees:
• TFSA and Share Purchase Plan withdrawals or inter
plan transfers:
− $25 per withdrawal
Action Required
Action Required
• From September 17, 2012, you will have the opportunity
to direct Husky’s contributions to the investment
vehicle(s) of your choice via iConnect.
• You must make your selection using the Husky selection
tool found on iConnect
• If no election is made, Husky’s contributions will be
directed to the Sun Life money market fund within the
Non-Registered savings plan.
Action Required
• If you wish to participate in the Group RRSP, TFSA or
the Husky Share purchase plan, you must enrol to
ensure contributions are allocated as you desire. The
enrollment form can be found on iConnect under the
Health, Benefits & Retirement Forms
• Contributions can be made to the TFSA by transferring
your NREG funds, providing lump sum contributions to
Sun Life or by the Automatic Cheque Plan (Complete
Section 5 on the TFSA Application if this is your desire)
Action Required
• If you are a current Husky DC Pension or Group RRSP
member, your current Sun Life Access ID and
Password will enable you to change your Savings Plan
investment options
Accrual Amount
July - September
• This payment will occur as it has in the past
• Allocation will be paid as taxable cash, unless
the employee elects the Group RRSP,
• If the RRSP is elected – the allocation will be
sent to Sun Life Financial
• The actual dollar allocation can not be used to
purchase shares or be deposited into the Non
Registered since taxes apply
• The employee must ensure they have enrolled
in the RRSP or have an existing account in the
plan
After October 1st
• Allocations to the RRSP occur on a pre tax basis
• Allocations to the stock plan or NREG will be
after tax
– Taxes deducted for the NREG or Stock Plan
allocations will be estimated based on the marginal
tax rate from your province of residence
Choosing Your Funds
Which approach is right for
you?
Build your own
Pre-built
• Build your portfolio using
the different investment
funds
• The Fund Manager creates a
fund with specific asset
allocation – “one-stop shopping”
• Match your investment risk
profile with a suggested
asset mix
• Match your investment risk
profile to the right fund
• You’ll need to rebalance
periodically to maintain your
target asset allocation
• Based on your risk
tolerance - revisit
periodically
• The Fund Manager rebalances
the fund
• Based on your risk tolerance revisit periodically
Investment Risk Profiler
Conservative Investor
Score of 35 points or less
Moderate Investor
Score of 36 to 85 points
Balanced Investor
Score of 86 to 145 points
Your investment fund choices
Asset Class
Fund Name
Risk
FMF*
Low
N/A
0.39%
Low – Moderate
0.49%
Moderate
0.51%
0.56%
0.55%
0.58%
0.67%
Guaranteed/
Money Market
 Sun Life Assurance Guaranteed 3 Year
 Sun Life Financial Money Market
Bonds
 Beutel Goodman Income Fund
Balanced
 Beutel Goodman Balanced Fund
 BlackRock Moderate Balanced
 BlackRock Conservative Balanced
 BlackRock Aggressive Balanced
 Greystone Balanced Segregated Fund
Canadian Equity
 Beutel Goodman Canadian Equity
 Beutel Goodman Small Cap
 MFS McLean Budden Cdn Equity Gwth Fund
Moderate – High
High
0.51%
0.53%
0.60%
U.S. Equity
 Sun Life MFS McLean Budden US Equity
Moderate – High
0.66%
Foreign Equity
 MFS Global Equity
Moderate – High
1.11%
*FMFs as of Aug 31st, 2012
Build your own asset mix
Example: A score of 36 to 85 points - Moderate
Investment
Type
15%
Intl. Equity
10%
Money Market
15%
U.S. Equity
40%
Fixed Income
20%
CDN. Equity
Investment Option
15% U.S. Equity
 Sun Life MFS McLean Budden US
Equity
15% International
Equity
 MFS Global Equity
20% Canadian Equity  MFS McLean Budden Cdn Equity
Gwth Fund
 Beutel Goodman Canadian Equity
40% Bond/
Fixed Income
• Beutel Goodman Income
10% Guaranteed/
Money Market
 SLF Money Market
 Sun Life Assurance 3 Year
Guaranteed
Get Involved
Additional on-line tools to help
Planning Tools
•
•
•
•
•
•
Withdrawal Calculator
Capital Gains vs. RRSP Calculator
Mortgage vs. RRSP Calculator
RRSP Loan Calculator
Non Resident Tax Calculator
Retirement Planner - Updated
Retirement Tools
• Annuity Premium Calculator
• Old Age Security Calculator
• Registered Retirement Income Fund (RRIF) Calculator
Sun Life is Here To Help
Customer Care Centre
1-866-733-8612
Internet
mysunlife.ca/
• 24 hour automated phone
account access
• Representatives available every
business day (8 am to 8 pm ET)
• Account updates
• 189 languages supported
• Transaction processing and
support
• Receive up-to-date account
balances
• View transaction history
• Make investment changes
• Link directly to investment reports
• View online member statements
my Sun Life Mobile
• My balances
• My contributions
• Help me save
My Sun Life Mobile
• Check plan balances
Fast and easy access, wherever you go
• View recent contributions
• Three new financial planning
tools to help you save!
Visit mysunlife.ca/mobile
for a test drive
*App available for download, free of charge
through the BlackBerry and iPhone app stores
Questions?
HRINFOLINE@huskyenergy.com OR
Call 403-298-6658