St. Thomas University
Meeting agenda
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Who we are
What is changing
Plan Overview
Changes to OAS/CPP
Investment Fund review
Services and Support
Simply Speaking Tools
Next Steps
The
Great West Life
Assurance Company
Our organization
Our organization
$201.1* billion in assets under administration
serving more than 12 million Canadians…..
Or
1 in 3 Canadians does business with us!
*as at Sep 30, 2011
(www.greatwestlife.com Quarterly Results)
What is Changing
Why and How
• Your Pension Committee – Went through a proposal process and chose GWL
• Decision – Your Pension is moving from BMO to Great-West Life
• Your Total Assets
– Transferred from BMO in a lump sum in October
• Applications:
– Each member must complete a Member Application
Plan Overview
Group RPP
Full Time Staff/Faculty – Date of Employment
Part Time Faculty – Upon Reaching “Level 2”
Eligibility
What Members contribute
You contribute 6%
(5% if salary is < $40,000)
What the University contributes
RRSP - Voluntary Contributions
When do the Contributions vest
CRA T.I.P.S.
Automated Services
1-800-267-6999
Your employer 7%
Up to Your personal allowable per CRA
Immediately
*RRSP contribution limit is 18% of previous years
salary up to a maximum of $22, 970 (for 2012)
Can you save more?
It’s easier than you think!
Bi-weekly
Per pay
Net cost
per pay
Less tax at
source (30%)
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Annual
contribution
1%
$15
$10
$5
$400
2%
$31
$22
$9
$800
3%
$46
$32
$14
$1,200
4%
$62
$43
$19
$1,600
5%
$77
$54
$23
$2,000
*Tax rates subject to change
Amounts Vary
Salary based on $40,000 per year
Retirement Savings Balance
Investment management Fees
Retirement Savings
Assumptions:
6% Rate of Return
$200 per month contributions (employer and employee contributions)
30 year saving period (Age 30-65)
Investment Management fee difference – 0.50 % St Thomas University versus 2.0% privately
Monetary Difference - $66,210 (approximately)
Changes to OAS/CPP
Changes to OAS
• Changes to commence April 2023- 2029
• Increase in age to 67 before eligible
• If born prior to March 31, 1958 – No change
• Applies to both OAS and GIS
Changes to the Canada Pension Plan
• CPP retirement pension amounts Increase if taken
after age 65 (42% more pension at age 70)
• CPP retirement pension amounts Decrease If taken
before age 65 (36% less pension at age 60)
• Work Cessation rule changes
• Working while receiving your CPP retirement pension
• Impact of low or zero earning years to your CPP
retirement pension amount calculation
Source: www.servicecanada.gc.ca (1-800-277-9914)
Market Update
Asset classes
What kind of investor are you?
Canadian Equities 1950 - 2011
Launch of
Sputnik
Year
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
Nixon resigns
over Watergate
Canadian
Equities
51.69%
25.44%
0.01%
2.56%
39.37%
27.67%
12.68%
-20.58%
31.25%
4.59%
1.78%
32.75%
-7.09%
15.60%
25.43%
6.68%
Cuban
Missile Crisis
Year
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
Gulf War
Canadian
Equities
-7.07%
18.09%
22.45%
-0.81%
-3.57%
8.01%
27.38%
0.27%
-25.93%
18.48%
11.02%
10.71%
29.72%
44.77%
30.13%
-10.25%
62 Year Return (2011)
Stocks
10.46%
Bonds
6.44%
CPI
3.76%
Year
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
Canadian
Equities
5.57%
35.49%
-2.39%
25.07%
8.95%
5.88%
11.08%
21.37%
-14.80%
12.02%
-1.43%
32.55%
-0.18%
14.53%
28.35%
14.98%
Tech bubble bursts,
911 Terrorist attack
Canadian
Equities
Year
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
-1.58%
31.71%
7.41%
-12.57%
-12.44%
26.72%
14.48%
24.13%
17.26%
9.83%
-33.00%
35.05%
17.61%
-8.71%
10 Year Returns (2011)
Stocks
7.03%
Bonds
6.48%
2.13%
Afghanistan, CPI
Iraq,
North Korea
House bubble bursts,
Credit Crunch
Canadian Equities
2010
2006
2008
2004
2005
2007
1997
2003
2000
1995
1996
1987
1991
1989
1986
1988
1985
2011
1982
1977
1978
2009
1998
1973
1976
1972
1999
1994
1971
1975
1968
1993
2002
1992
1965
1967
1964
1983
2001
1984
1960
1963
1955
1980
1990
1970
1959
1956
1951
1961
1981
1969
1953
1948
1949
1958
1940
1966
1952
1944
1936
1954
1937
1962
1947
1943
1934
1945
1931
1974
1932
1946
1941
1942
1926
1935
1979
1950
1930
1957
1929
1939
1938
1924
1925
1928
1927
1933
-40 to -30
-30 to -20
-20 to -10
-10 to 0
0 to 10
10 to 20
20 to 30
30 to 40
40 to 50
> 50
Annual Rates of Return
Source: Canadian Institute of Actuaries (1924 to 1955); Toronto Stock Exchange (1956 to 2011)
What kind of investor
are you?
What kind of investor are you?
1st Step…
Investment Personality Questionnaire
• How long has it been since you looked at your profile?
• Have you had a major Life Change?
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Marriage
Children
Divorce
Death
Illness
Your investment personality
questionnaire should be reviewed on a
regular basis or whenever you have a
substantial change in your life.
What kind of investor are you?
Investment personality questionnaire
Conservative investor
Moderate investor
Advanced investor
Balanced investor
Aggressive investor
Asset classes
Fixed income
Foreign equity
Canadian equity
Balanced
The “Hands On” approach ?
Build your own….
• You choose your own asset mix
• You monitor your investments
• You know your investor style
• You have a well balanced portfolio
Need help with fund selection?
Investment menu and fund reports
The “Hands off” Approach
Asset allocation funds
Simple yet sophisticated...
Target Risk - 5 different profiles
Target Date Funds
Current portfolio line-up
Asset mix of fund line-up in 2010
2050 Fund
2045 Fund
2040 Fund
2035 Fund
2030
2030Fund
2025Fund
2020 Fund
2015 Fund
2010 Fund
Investments
New Investment Platform:
Target Risk Funds
Target Date Funds
Balanced Funds:
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Beutel Goodman Balanced
CC&L Balanced
Fixed Income Funds:
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Beutel Goodman Bond
London Capital Bond Index
Mortgage Fund
Canadian Equity Funds:
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U.S.Equity Funds:
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GWLIM Real Estate
Mackenzie Resource Fund
AGF American Growth Equity
TDAM U.S. Equity Index
Global Equity Funds:
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Specialty Equity Funds:
London Capital Dividend Fund
Beutel Goodman Canadian Equity
Beutel Goodman Pure Canadian Equity
GWLIM Ethics Fund
Renaissance Small Cap
Mackenzie Foreign Equity
International Equity Funds:
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Sprucegrove International Equity
Investment Changes-
Mapping your funds
Previous Fund
New Fund
Integra Conservative
Integra Strategic
Integra Growth
Moderate Profile
Balanced Profile
Advanced Profile
Default Fund – Target Risk
Determined based on Estimated Date of Retirement
Previous Fund
New Fund
Canadian Funds:
Integra Canadian Value Growth Fund
Integra Equity Fund
Beutel Goodman Pure Canadian Equity
Beutel Goodman Canadian Equity
Fixed Income Funds:
Integra Bond Fund
Beutel Goodman Bond Fund
International Funds:
Integra International Equity Fund
Sprucegrove International Equity
U.S. Funds
Integra US Value Growth Fund
AGF American Growth Equity
Previous Fund
New Fund
Balanced Funds:
Integra Balanced Fund
Beutel Goodman Balanced Fund
Speciality Funds:
Integra Ethical Growth Fund
GWL Ethics Fund
Cash and Equivalents:
Integra Short Term Investment Fund
Special GIC 1 Year
Special GIC 3 Year
Special GIC 5 Year
GIC 5 year
Money Market Fund
1 year GIA
3 year GIA
5 year GIA
5 year GIA
You make the Choice
Make a Choice for you
You choose where your money is
invested in the new plan
If you do not Choose
Your Investments will automatically be reinvested according to Specific Fund Mapping
Services and support
Support from enrolment to retirement years
Services & support
Newsletters & Handouts
Education Sessions
www.grsaccess.com
Statements
Retirement Illustrations
1-800-724-3402
Your Retirement Guide or YRG
For New Members
GRS Access
• Account balances
• Change investment instructions
• Process inter-fund transfers
• Retirement planning tool
• On-demand statements
• http://www.grsaccess.com/
Access ID: DEMO
Password:ONLINE4U
GRS Access - Smart tools
• Online articles, videos,
calculators, e-magazines
• Offered in levels to suit you
– Getting started
– Getting serious
– Getting close
• One stop education and
information through home
page
Calculators …
Calculators …
Services & support
Newsletters and Individual Articles - English
Education
Education
“Getting Started” – New members
“Getting Refreshed” – For existing members
“ Getting Close” – For those within 10 years of
retirement
Webex
great alternative to a live meeting
One on One’s
additional service
members should attend a group session first
members feel that it was a useful exercise
Next Steps
Next Steps
• Pick up Enrollment guides
• Fill out Application - Deadline:
• Make Investment Choices
• Book One-on-one Session (if required)