RETIREMENT
PROGRAM
UPDATE
University of Regina
Charleen Turner | May 13, 2015
RESPONSIBILITIES
University of Regina
Sponsor the program
•Plan design
•Making contributions
•Selecting Investment
Managers
•Selecting funds
•Selecting the
record keeper
•Monitoring the plan
•Member education
•Ongoing information &
communication
2
Sun Life Financial
Record keeping
•Preparing statements
•Developing saving
and investment tools
•Provide member
information sessions
•Rebalance asset mix
of Life Cycle funds
•Member inquiries
Investment Managers
You/member
Funds
•Performing research
•Creating the fund
•Selecting the stocks
or bonds
•Buying and selling
Your Account
•Making contributions
•Understanding
investments
•Choosing
investments
•Monitoring savings
and investments
•Filing personal
information updates
•Paying fund
management fees
•Paying
administration fee
DEFINED CONTRIBUTION
PENSION PLAN
Eligibility
Employee
Contributions
Employer
Contributions
Transferring in
3
• Compulsory for eligible new hires
• 7.5% up to the maximum pensionable
earnings limit (for 2015 is $140,944.50)
• 2015 maximum contribution per month
$880.90
• 7.5% up to the maximum pensionable
earnings limit (for 2015 is $140,944.50)
• 2015 maximum contribution per month
$880.90
• Lumps sums and transfers in permitted
HOW DO YOUR FEES COMPARE?
Average
Retail
Fees*
4
Highest fees
in your
plan**
Money Market
0.81%
0.25%
Fixed Income
1.38%
0.56%
Canadian Equity
2.25%
0.58%
US Equity
2.22%
0.25%
Global Equity
2.58%
0.91%
International Equity
2.43%
1.07%
Target Date
2.16%
0.60%
* As at January 31, 2014, Source: BMO fund facts, TD Asset Management, Scotiabank, RBC,
CIBC Investorpos
**Fund Management Fees as at March 31, 2015
Fund asset mix
Total plan assets
Asset Category/Fund
Canadian Equity
BLK ACTIVE CANADIAN EQ
CC&L GRP CDN EQUITY FND
Fixed Income
PH&N BOND FUND
Foreign Equity
BLK US EQUITY INDEX REG
MFS GLOBAL EQUITY
TMPL INTL STOCK TRUST
Guaranteed/Money Market
SLA 1YR GUARANTEED FUND
SLA 3YR GUARANTEED FUND
SLA 5YR GUARANTEED FUND
SLF MONEY MARKET
Target Date
BLK LP INDEX 2015 FUND
BLK LP INDEX 2020 FUND
BLK LP INDEX 2025 FUND
BLK LP INDEX 2030 FUND
BLK LP INDEX 2035 FUND
BLK LP INDEX 2040 FUND
BLK LP INDEX 2045 FUND
BLK LP INDEX 2050 FUND
BLK LP INDEX RETIREMENT
Grand Total
5
Balances as at Dec 31, 2013
$5,371,748.13
$1,885,857.41
$3,485,890.72
$5,454,227.01
$5,454,227.01
$7,204,987.00
$3,689,396.42
$1,988,749.89
$1,526,840.69
$2,186,677.65
$476,028.76
$338,843.12
$432,776.33
$939,029.44
$74,965,396.83
$9,038,840.18
$12,401,501.61
$13,586,110.00
$13,410,263.20
$11,257,854.83
$6,442,829.98
$3,551,635.34
$242,604.49
$5,033,757.20
$95,183,036.62
% of assets
5.6%
2.0%
3.7%
5.7%
5.7%
7.6%
3.9%
2.1%
1.6%
2.3%
0.5%
0.4%
0.5%
1.0%
78.8%
9.5%
13.0%
14.3%
14.1%
11.8%
6.8%
3.7%
0.3%
5.3%
100.0%
Please note that the BLK LP INDEX 2015 FUND has matured and it’s assets were
swept into the BLK LP INDEX RETIREMENT FUND on December 11, 2014.
Balances as at Dec 31, 2014
$6,451,293.13
$2,287,385.49
$4,163,907.64
$5,905,264.05
$5,905,264.05
$7,884,589.33
$4,824,423.23
$1,643,963.83
$1,416,202.27
$2,600,171.57
$513,072.62
$217,903.51
$518,353.96
$1,350,841.48
$90,625,477.33
$0.00
$15,369,569.42
$16,995,829.82
$17,676,006.28
$14,063,094.45
$8,363,572.07
$5,054,725.86
$611,440.92
$12,491,238.51
$113,466,795.41
% of assets
5.7%
2.0%
3.7%
5.2%
5.2%
6.9%
4.3%
1.4%
1.2%
2.3%
0.5%
0.2%
0.5%
1.2%
79.9%
0.0%
13.5%
15.0%
15.6%
12.4%
7.4%
4.5%
0.5%
11.0%
100.0%
SLF Overall as at
Dec 31, 2014
30.3% (1)
9.7%
12.8%
10.1%
37.1% (2)
100.0%
(1) Canadian Equity includes company stock
(2) Target date includes balanced funds and asset allocation funds
Data as at December 31, 2014
Number of funds used by members
Balances (1,087 members in the DCPP only)
1000
900
905
Number of members
800
700
600
500
400
300
200
100
44
17
2
3
48
33
4
5
0
1
6
18
12
4
1
2
2
1
6
7
8
Number of funds
9
10
11
12
Data as at December 31, 2014
100% of members in one fund
Balances (905 members in 1 fund only, DCPP only)
160
138
Number of members
140
142
119
120
101
100
107
99
80
60
40
20
0
7
135
28
3
4
10
3
1
5
9
1
Data as at December 31, 2014
Number of funds used by members
Investment Instructions (DCPP only)
1,200
Number of members
1,000
998
800
600
400
200
44
19
47
38
9
5
1
2
2
2
3
4
5
6
7
Number of funds
8
9
10
11
0
1
8
19
Data as at December 31, 2014
100% of members in one fund
Investment Instructions (998 members in one fund only, DCPP only)
160
148
Number of members
140
120
152
122
120
109
100
80
60
34
40
20
0
9
124
146
4
4
12
5
1
5
11
1
Data as at December 31, 2014
Age vs. percent in equities
% Equities (Min)
DCPP ONLY (1,087 members)
% Equities (Max)
100%
Range of Typical
Target Equity roll
down
90%
80%
% in equities
70%
60%
50%
40%
30%
Member average
equity holdings
by age
20%
10%
0%
15
10
25
35
45
55
65
75
Age
Data as at December 31, 2014
Highlights – DC Component
Two Investment Approaches
• Built for you – Target Date Funds/Balanced Fund
• Built by you – Select funds from different asset classes to meet your
risk profile
11
Understanding Risk vs Return
Canadian, US, Global &
International Equities
Balanced
Target Date Funds
Bond (Fixed Income) Funds
Low
Money Market Funds
Guaranteed Funds
Low
12
Risk
High
Highlights – DC Component
Two Investment Approaches
Built for you
• BlackRock LifePath® Index Funds (Passive Strategy)
• investments reflect the applicable index
• 5 year age bands (ie 2020, 2025, etc)
• Default fund: if you don’t elect, both your contributions and your
employer contributions go into the Fund closest to when you turn 65
(but not over 65)
13
BUILT FOR ME
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Fund Class
Fund
Fees*
Target Date
BlackRock LifePath® Index 2020 Fund
BlackRock LifePath® Index 2025 Fund
BlackRock LifePath® Index 2030 Fund
BlackRock LifePath® Index 2035 Fund
BlackRock LifePath® Index 2040 Fund
BlackRock LifePath® Index 2045 Fund
BlackRock LifePath® Index 2050 Fund
BlackRock LifePath® Index Retirement Fund
0.42%
0.60%
*Fund Management Fees as at March 31, 2015 include but are not limited to fund management fees, administration fees and
operating expenses. University of Regina Levy $60 per year plus .06% included in the fee quoted above
SUN LIFE
BLACKROCK LIFEPATH INDEX FUNDS
LifePath Key Features:
Year indicates target year for retirement
• Investment objective is stable consumption
through retirement.
The invention
that changed the
• Strategic glidepath: no tactical bets.
DC landscape
• Static allocations at and through retirement
with an equity landing point of 40%.
Return %
How does it work?
• Glidepath of diversified portfolios that
systematically reduces risk as participants
move closer to retirement
• Early career portfolio allocation that
provides growth through diversified equity
exposure
Time horizon
Long
Short
Risk %
Allocations are for illustrative purposes only
15
• Retirement portfolio allocation that
optimizes the probability of 30 years of
successful retirement over a range of
drawdowns and return assumptions
Source: BlackRock
TARGET DATE FUNDS =
LIFEPATH® FUNDS
Source: BlackRock
16
HOW TO CHOOSE
YOUR TARGET DATE FUNDS
LifePath 2020
LifePath 2025
35
LifePath 2030
30
Years until retirement
LifePath 2035
2015
LifePath 2040
:
2045
LifePath 2045
Your retirement year
LifePath 2050
17
DIVERSIFY
Growth of $10,000 – December 2004 – December 2014
Dec 14
Jun 14
Dec 13
Jun 13
Dec 12
Jun 12
Dec 11
Jun 11
Dec 10
Jun 10
Dec 09
Jun 09
Dec 08
Jun 08
Dec 07
Jun 07
Dec 06
Jun 06
Dec 05
Jun 05
Dec 04
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$20,793
$25,000
$16,798
$20,000
$15,000
$12,107
$10,000
$11,877
$5,000
BUILT BY ME
Fund Class
Fund
Risk
Fees*
Guaranteed /
Money Market
SLA 1,3,5 Year Guaranteed Fund
SLF Money Market Fund
Low
N/A
0.25%
Fixed Income
PH&N Bond Fund
Low-Moderate
0.56%
Canadian Equity
BlackRock Active Canadian Equity Fund
CC&L Group Canadian Equity Fund
Moderate High
0.56%
0.46%
US Equity
Blackrock US Equity Index Fund
Moderate High
0.25%
International and
Global Equity
MFS Global Equity Fund
Templeton International Stock Trust Fund
Moderate High
0.91%
1.07%
Fund Management fees as at March 31, 2015, include but are not limited to fund management fees, administration fees and operating
expenses. University of Regina Levy $60 per year plus 0.06% included in the fee above.
19
SUN LIFE RESOURCES
Call 1-866-733-8612
– For access to your account
• Account balances
• Rates of return
• Market information
• Transfer between funds
• Change investment instructions
– For help understanding your plan
• Enrolment assistance
• Help available in 150 languages
20
Mon-Fri.
5 a.m. – 5 p.m.
PT
Automated
Telephone System
Customer Care
Centre
mysunlife.ca
Tools
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Information
Transactions
Asset allocation tool
Account balances
Retirement planner
On-line statements
Transfer between
funds
Financial and
retirement planning
tools
Personal rates of return
Investment reports
from Morningstar
Change investment
instructions
MAKING CHANGES
• Customer Care Centre – 1-866-733-8612
– ID and password
– Or personal information
• Mysunlife.ca
– ID and password
– Change by $ or %
22
WEB DEMO: mySunlife.ca
23
MAKING CHANGES
• Changes to your payments (PRIF)
• Sun Life Customer Solutions Centre
• 1-866-224-3906
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FINANCIAL PLANNING
Resources available:
• Sun Life Financial:
• www.mysunlife.ca/uregina
• Bulletins, on-line newsletters, etc.
• On-line tools such as: Investment Risk Profiler and
Retirement Calculator
• Customer Care Centre 1-866-896-6976
• Financial Services Consultant (In Plan Advice)
1-888-864-5463
25
• Consult a Financial Advisor:
• Sun Life Financial – Jennie Aldworth & Joe Moffat
• Certified Financial Planners website www.fpsc.ca/
SPECIALIZED RETIREMENT SUPPORT
University of Regina members approaching retirement have complimentary
access to licensed Retirement Consultants by phone, who can provide:
26
Needs analysis
• Income needs, pros/cons and suitability of various income vehicles,
including the University of Regina Group Retirement Fund
• Risk tolerance and pre- and post-retirement investing strategies
• Need for protection products
• Other circumstances, e.g., non-resident status, outside assets, DB pension,
etc.
Education &
guidance
•
•
•
•
•
Setting up an
income stream
• Determine the appropriate income solution and investments as applicable
• Assist with asset consolidation, inquiries on other products such as travel
insurance
• Setting your retirement plan into action and starting income payments
Unlocking rules
Minimum and maximum payments
Basic tax considerations
Illustrations showing the depletion of savings under various scenarios
General information on government benefits, including CPP and OAS
In addition, referrals to Sun Life Advisors are also available for members
seeking holistic retirement planning support.
YOUR PENSION BENEFIT
Your DC Benefit Options on Termination of service (if less than age 55)
• Sun Life Choices (i.e. Locked-In Retirement Account)
• Other Employer Pension Plan (if permitted)
• Other Personal Retirement Plan
• RSP / Cash (if considered a small benefit, less than $10,720)
• $75 fee for transfers outside of Sun Life Financial
27
YOUR PENSION BENEFIT
Your DC Benefit Options at Retirement (if age 55 and over)
• Same as for Options on Termination
• Sun Life Financial Options:
• Group Retirement Income Plan (PRIF/RIF) sponsored by
University of Regina or SLF Group CHOICES PRIF/RIF
• Annuity
• Outside of Sun Life Financial
• Other Prescribed Income Plan
• Annuity
• Note: transfer out fee ($75) if leaving Sun Life Financial
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THANK YOU