1. 1 Spring 2015 Within 5 Years of Retirement– Pension and Benefits

2. 2 Topics 1. Designating a Beneficiary8. Annual Adjustments to Pensions 2. Contributing to the Plan9. Receiving your Pension Payment 3. Leaves of Absence10. Death Before and After Retirement 4. Transferring funds into the plan11. Post Retirement Benefits 5. Retirement Dates12. Planning Retirement 6. Calculating your Pension13. On line Help 7. Maximum Pension

3. 3 Designating a Beneficiary When you join the Pension Plan you are required to designate a beneficiary by completing a Declaration of Marital Status and Beneficiary Designation Form. It is important you review your beneficiary information on a regular basis. This can be done by visiting HR Self Serve. At retirement you will be asked again to review your beneficiary(ies) If you have an eligible spouse you must designate your spouse as your beneficiary for any pension benefits upon your pre-retirement death unless you complete a Waiver of Pre-retirement Death Benefit Form.

4. 4 Years Maximum Pensionable Earnings (YMPE) The dollar amount set each year by the Canada Revenue Agency (CRA) which determines the maximum amount on which to base contributions to the Canada Pension Plan. The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year. For 2015 the dollar amount is $53,600. The YMPE changes each year and CRA normally announces the new figure in November.

5. 5 Pension Contribution Formula Current Employee 5.85% up to the YMPE and 7.89% above the YMPE Complete Changes Effective Date% Below YMPE% Above YMPE Original4.506.00 March 1, 20144.956.63 September 1, 20145.407.26 March 1, 20155.857.89 September 1, 20156.308.52 March 1, 20166.759.15

6. 6 Contributing to the Plan Your contributions are tax-deductible York University matches your contributions dollar for dollar All contributions are tracked in your Money Purchase Account along with the rate of return. The amount you accumulate is directly affected by the investment performance of the Trust Fund, and therefore will fluctuate. A member who is at or past their Normal Retirement Date (NRD) may elect to stop making contributions to the York Pension Plan, and continue to work. This election is irrevocable and must be made at least two months in advance.

7. 7 Additional Voluntary Contributions (AVC’s) As a member of the pension plan you are allowed to contribute AVC’s Not matched by the University AVC’s can not be withdrawn until you sever your relationship with the University either by terminating or retiring By making the maximum AVC contribution in a given year you eliminate your RRSP room. AVC contributions receive the same rate of return as your mandatory contributions AVC contributions receive a immediate tax advantage as they are deducted before income taxes are applied. To set up AVC’s through payroll deduction log onto the York University Retirement Planner (YURP) at https://www.yorku-ret.ca/.

8. 8 Leaves of Absence/Reduced Load We must be informed by your department Ideally two to three months prior to your leave, to allow time to send you the appropriate information Implications Maintaining pension contributions Maintaining benefit coverage Your responsibilities include: Providing your department sufficient notice and meet any requirements that are outlined in the collective agreement or Standard Operating Procedures. Check your pay advice to ensure any and all deductions that need to be made are taken each pay.

9. 9 Retirement Dates Early Retirement - You may retire as early as age 55. Your Money Purchase Component Account pension will be calculated using the applicable actuarial factor. Your minimum guarantee benefit, would be reduced as follows: If you retire between ages 60 and 65, your minimum guaranteed benefit will be reduced by 0.25% for each month between your actual retirement date and age 65. If you retire between ages 55 and 60, your minimum guaranteed benefit will be reduced by 0.5% per month between your actual retirement date and age 60 and an additional 0.25% for each month between ages 60 and 65 (i.e. 30%)

10. 10 Retirement Dates Mandatory Receipt of Pension - Under the terms of the Income Tax Act, you must commence receiving your York University pension no later than the end of the year in which you reach age 71. Under the terms of the York University Pension Plan, this is the December 1st in the calendar year in which you reach age 71.

11. 11 Calculating your Pension The York Pension Plan is made up of two parts: Part 1: Money Purchase Component Provides you with a benefit based on the accumulated contributions and investment earnings of your account balance. The amount of benefit earned depends on how well the investments in the fund perform and other factors such as your age at retirement, your marital status and the age of your spouse if married,

12. 12 Calculating your Pension Part 2 Minimum Guarantee Benefit Provides you with a benefit based on a formula that takes into account your earnings and service. The amount of benefit you earn is guaranteed and does not depend on how well the investments in the fund perform.

13. 13 What you receive At retirement, you will receive a pension based on the amount provided by your Money Purchase Component Account. If your Minimum Guaranteed Benefit is greater than your Money Purchase Component Account pension, you will also receive a supplementary pension to bring your retirement income up to the amount of the Minimum Guaranteed Benefit.

14. 14 Minimum Guaranteed Benefit Formula (MGP) 1.4% of your final average earnings at retirement up to the average YMPE for those years PLUS 1.9% of your final average earnings at retirement above the average YMPE for those years MULTIPLIED BY Your credited service Final average earnings (commonly referred to as “FAE”) are based on your five years of highest earnings. The years do not have to be consecutive and a year is determined in 12 month blocks from the retirement date back.

15. 15 Calculating your Pension Calculating your Money Purchase Pension The Money Purchase amount is credited with the rate of return in effect as of the last day of the month immediately preceding the date of retirement. For example, retirement of July 1, 2015 adds together the funds in the account at December 31, 2014, including the accumulated rate of return. Monthly contributions from January 1 – June 30 along with the rate of return as of May 31, 2015 is then applied for the period of January to June 30, 2015.

16. 16 Example 1 Member receiving a Supplementary Pension Member retires with $250,000 in their Money Purchase Account The annual pension provided by the Money Purchase Account is calculated to be $18,600 The minimum guaranteed benefit is calculated to be $22,200 annually As the minimum guarantee benefit ($22,000) is greater than the money purchase pension ($18,600), this member receives a supplementary pension for the difference ($22,200-$18,600) This member would receive an annual pension totaling $22,200 determined as follows: Money Purchase Account Pension $18,600 Supplementary Pension (22,200 - 18,600) $ 3,600 Total Pension $ 22,200

17. 17 Example 2 Member not receiving a Supplementary Pension Member retires with $125,000 in their Money Purchase Account The annual pension provided by the Money Purchase Account is calculated to be $11,000 The minimum guaranteed benefit is calculated to be $10,000 annually As the minimum guarantee benefit ($10,000) is less than the money purchase pension ($11,000), this member does not receive a supplementary pension This member would receive an annual pension totaling $11,000

18. 18 Additional Voluntary Contributions or Transferred Pension Contributions At termination or retirement if you have AVC’s or transferred contributions from another pension plan/RRSP you can transfer these amounts out to an RRSP (provided they are not locked in) or they can be used to provide an additional amount of pension.

19. 19 Maximum Pensions The Income Tax Act limits the amount of pension benefit you may earn under the minimum guaranteed provision of the Plan The Canada Revenue Agency maximum annual defined benefit limit (available at cra.gc.ca) multiplied by your credited service and 2% of the average of your three highest years’ earnings with the University, which may be subject to a reduction depending on your age, and continuous service

20. 20 Maximum Pensions the pension provided by your Money Purchase Component Account pension may exceed the Income Tax Act limits. if you have made any additional voluntary contributions, the amount of additional pension these contributions would purchase would not be included in this maximum. if you purchase additional service as a result of transferring an amount from another registered pension plan, this amount would be included in the calculation of the Income Tax Act maximum.

21. 21 Annual Adjustments to Pensions Unlike most money purchase plans, the York University Pension Plan does not transfer your money purchase account balance to an insurance company at retirement for the purchase of an annuity. Instead, your pension is paid from the Trust Fund. Paying your pension from the Trust Fund allows the University to make adjustments to your pension based on the net investment returns of the Trust Fund.

22. 22 Annual Adjustments to Pensions Every January 1st the Moving Average Five-Year Fund Return minus 6% will be applied to your pension. The reason for subtracting 6% is that when you first retire, the actuarial factors used to calculate the money purchase pension assumes the Pension Fund will earn 6% annually throughout your retirement.

23. 23 Annual Adjustments to Pensions Formula - (1+A) / (1+B) “A” is the Moving Average Five-Year Fund Return at the commencement of each Pension Year, and “B” is 6%. This calculated amount will be tracked to the next January 1st when the same calculation will be applied using the new moving average five-year fund rate. When this calculated amount is greater than the pension you are receiving, we in- crease your pension. When the calculated amount is less than the pension you are receiving, your pension remains the same.

24. 24 Annual Adjustments to Pensions

25. 25 Receiving your Pension Payment How you receive your pension – known as the form of payment – will depend on whether you have a spouse at retirement and which option you choose.

26. 26 Receiving your Pension Payment Normal Form of Pension If you do not have an eligible spouse at retirement, the normal form for paying your benefit is a pension paid for your lifetime only. Payments will cease upon your death and no death benefit will be paid to your beneficiary. If you have an eligible spouse at retirement, the normal form for paying your benefit is one that pays you a pension for your lifetime and a 50% spousal pension upon your death to your eligible spouse.

27. 27 Receiving your Pension Payment Optional Forms of Pension Instead of a normal form, you may elect an optional form of pension. For each of these options, either a reduction or an increase will be made to your pension to ensure that the optional form remains actuarially equivalent to the normal form.

28. 28 Receiving your Pension Payment If you are single or married with a spousal waiver: Life Only: This option provides a pension for your lifetime only. Life Guaranteed Five, ten or fifteen Years: You may elect a life pension that guarantees payments are made for a minimum number of years, five years, 10 years, or 15 years. In the event that you die within the guaranteed period, your beneficiary/beneficiaries will receive the commuted value of the balance of the payments in cash less applicable taxes.

29. 29 Receiving Your Pension Payment If you are married Joint-and-Survivor: This form of pension provides a lifetime pension for you. Upon your death, a percentage of your pension – such as 60%, 75%, or 100%, for example – will continue to your spouse. You may also combine this form of pension with a guaranteed period of five, 10 or 15 years. The Ontario Pension Benefits Act requires that a spousal pension of at least 60% must be paid to your surviving eligible spouse upon your death. If you elect an optional form of pension that pays less than 60% to your surviving spouse, you and your spouse must sign a Waiver of Pre-retirement Death Benefit form waiving the right to the 60% minimum.

30. 30 Receiving your Pension Payment Integration with Government Benefits: If you retire before becoming eligible to receive Old Age Security and unreduced Canada Pension Plan benefits, you may elect to receive an increased amount of pension from the York University Pension Plan until you are eligible to receive government benefits at age 65. Once you turn age 65, your University pension will be reduced.

31. 31 Receiving your Pension Payment Portability: You don’t have to receive a retirement pension from the York University Pension Plan. Instead, you may transfer the balance in your Money Purchase Component Account, plus the commuted value of any supplementary pension you may be entitled to receive, to a locked-in retirement account (LIRA) or a Life Income Fund (LIF). Taking this option may affect your ability to receive post-retirement benefits. This option is not available on or after your Normal Retirement Date.

32. 32 Death After Retirement If you die after you retire, benefits will be paid to your eligible spouse, designated beneficiary/beneficiaries, joint annuitant, or estate, as applicable, according to the form of pension you selected when you retired.

33. 33 Death Before Retirement Your eligible surviving Spouse Balance in your Money Purchase Account at your Date of Death plus the commuted value of any supplementary pension you may have accrued after January 1, 1987 as a lump sum payment, as cash subject to withholding taxes, or as a direct transfer to a registered retirement arrangement, such as an RRSP; or an immediate or deferred life annuity, with an optional guarantee of five, ten or fifteen years. If you do not have an eligible spouse, or your spouse has waived their right to your pension, your beneficiary(ies) would receive the benefit as a lump sum cash payment subject to withholding taxes.

34. 34 Death Before Retirement Dependent Children’s Benefit If you die before retirement and are survived by children under the age of 18, those children will be eligible for a benefit up to a combined maximum of $300 per month. This amount would be based on the amount of you annual earnings at retirement Additional Voluntary Contributions Your designated beneficiary will also receive a refund of any additional voluntary contributions, plus credited interest that you made to the plan. If you have an eligible spouse they may elect to have that amount increase their monthly pension should they have chosen that option.

35. 35 Retirement Process YUFA collective agreement indicates retirement is to occur January 1 or July 1 and nine months notice is to be provided Non-academic we suggest providing six months notice Once you have notified your department please provide us with a copy of the notice (email is fine) so we can include you in our queue Approximately three months prior to your retirement date we will mail the retirement option package to your home address

36. 36 Retirement Process Once you have the package please review it and contact us if you have any questions If you return all the forms to us by the 20 th of the month prior to your retirement date we will process the forms and your first pension payment will be direct deposited within the first five business days of the month. All other payments will occur on the first of the month. When the first falls on a weekend or is a bank holiday your pension payment will be deposited on the next day that your financial institution is open

37. 37 Post Retirement Benefits If you are eligible for post retirement benefits (i.e. are retiring immediately following your employment and you had benefits the day before you retired) the post retirement enrollment form will be in the retirement package that we send to you If documents are received 90 days or more after your chosen retirement date you will be considered deferred and post retirement benefits will not be available When submitting claims to Sun Life you need to change the first digit of your employee number from “1” to “9”

38. 38 Post Retirement Benefits Post retirement benefits available if electing a pension and you retire direct from being employed with the University: YUFA/YUFAE/Osgoode CPM YUSA CUPE 1356, CUPE 1356-1, IUOE CUPE 3903 unit 2 (specific criteria must be met) OPSEU (YUELI) Post retirement benefits available if transferring funds out of the plan direct from being employed with the University: YUFA/YUFAE/Osgoode

39. 39 Post Retirement Benefits Ontario Drug Benefit Program (ODB) If you are age 65 or over and have a valid OHIP card you will be automatically enrolled in the Ontario Drug Benefit Program (ODB). The ODB program pays a portion of prescription drugs. You pay $100 deductible per year and then up to a maximum of $6.11 per prescription thereafter. Sun Life will not pay for prescriptions that should be going through the ODB program.

40. 40 Post Retirement Benefits YUFA/YUFAE/ Osgoode CPMYUSACUPE 1356, CUPE 1356-1, IUOE, CUPE 3903 unit 2, OPSEU Premium$18 single/mth $34 family/mth None Deductible$130 per person/year None MaximumUnlimited $1,500 - $1,650 per calendar year depending on affiliation Out of Country Lifetime Maximum $20,000 per person $10,000 per person See above

41. 41 Post Retirement Benefits YUFA/YUFAE/ Osgoode CPMYUSA Dental Maximum1,250 per calendar year per person $800 per calendar year per person $1,000 per calendar year per person Extended Health co-insurance 80% Hospital Room Maximum Semi/private room 100% 120 day per stay maximum Vision CoverageNone$100 per calendar year per individual Eye exams included in $100 $100 per calendar year per individual Eye exams included in $100

42. 42 Post Retirement Benefits Residing outside of Canada Retirees are covered for all benefit entitlements under the policy as if they were still residents of Canada with OHIP. Where a retiree does not have OHIP it is not the intention for the plan to replace OHIP, only to cover extended benefits as though OHIP were in place.

43. 43 Post Retirement Benefits Survivor Benefits YUFA/YUFAE/ Osgoode CPMYUSACUPE 1356, CUPE 1356-1, IUOE Pays current premium for 24 months After 24 months then pays actual premium Pays actual premium No premium but coverage reduces to $750 per calendar year. Coverage is for five years following the death of the retiree and then coverage ceases.

44. 44 Post Retirement Benefits Cost of Survivor Benefits – Health, Dental and Vision – if applicable Rates are subject to change every May 1st Cost per month YUFA/YUFAEOsgoodeCPMYUSA Single124.96111.10114.40124.30 Family291.89295.90245.30260.70

45. 45 Post Retirement Benefits Claims Procedure YUFA, YUFAE, Osgoode, CPM and YUSA Same claim forms used as an active employee. CUPE 1356, CUPE 1356-1, CUPE 3903 unit 2, YUELI and IUOE Healthcare Spending Account claim forms are available on our website or in our office. Dental claims can not be submitted electronically. Change first digit of Employee Number to a 9 from a 1 (i.e. 100200300 to 900200300) For claim information contact Sun Life at 1-800-361-6212. May register online to access personal benefit information: https://www.sunnet.sunlife.com/member/signin/index.aspx?

46. 46 Group Life Insurance/Voluntary Accidental Death and Dismemberment Insurance (VADD) (if applicable Group Life Insurance coverage changes at age 65 (reduces from three times your salary to one times your salary) Coverage for both end at termination, retirement or age 71 whichever is earliest. You can convert either it to an individual policy however this is extremely expensive so we advise you to contact an insurance company and purchase a life insurance policy as soon as possible instead of waiting until retirement

47. 47 How do I plan for retirement? Attend seminars Access your annual pension statement on the Retirement Planner Run your own pension estimates on the Retirement Planner Decide if you want to contribute additional funds to either the York plan, an RRSP or Tax Free Savings Account Seek Financial Advice from a Financial Planner – create a Financial Plan

48. 48 After Retirement from York YURA – York University Retirees Association – everyone is welcome to join ARFL – Association of Retired Faculty and Librarians CIBC Mellon – financial institution that pays the monthly pension http://www.cibcmellon.com/Contents/en_CA/English/Home /Home.html

49. 49 Retirement Planner Access to the Planner is made available around May in the year following your enrollment into the pension plan. The link is: http://www.yorku.ca/hr/services/employees/yurp.htmlhttp://www.yorku.ca/hr/services/employees/yurp.html To sign into the Planner for the first time click on forgot your password link and input your 9 digit employee number, and click submit. The password will be emailed to you. Go back into the Planner type your employee number in the applicable box and then type your password in the applicable box. You can not copy and paste the password. You have to type it and it is case sensitive.

50. 50 Retirement Planner

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52. 52 Sun Life Member Website Sun Life has a member website which provides you access to items such as: benefit coverage information set up direct deposit for benefit reimbursement submit some claims electronically Drug coverage information, etc., https://www.sunnet.sunlife.com/signin/mysunlife/home.wca https://www.sunnet.sunlife.com/signin/mysunlife/home.wca ?

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55. 55 Please follow the instructions carefully and keep your receipts for 12 months as Sun Life may ask for them. If you do not provide them in the time period provided your ability to submit claims electronically will be disabled. Sun Life will not reinstate this feature.

56. 56 Sun Life features Click to edit text

57. 57 CIBC Melon Contact them directly to: Update your home address (contact us as well) Change banking information Access/make changes to government tax forms

58. 58 Pension & Benefits Website http://www.yorku.ca/hr/services/employees/benefits.html Some of the helpful information found here: Links to Benefits Booklets and information – active and retiree Link to Retirement Planner Link to HR Self Serve Forms Pension Plan Booklet P&B Times Link to Sun Life Member Website

59. 59 HR Self Serve

60. 60 Self Service information

61. 61 HR Self Serve To update personal information, home address, phone numbers as well as email address go to: Please provide us with an email address so we can communicate with you more effectively and efficiently.

62. 62 HR Self Serve For benefits information, list of dependents and beneficiaries click as follows:

63. 63 Contact Pension & Benefits E-mail askpb@yorku.caaskpb@yorku.ca Call 416-736-2100 extension 27572 (askpb) – the phone line is open from 8:30 am to 4:30 pm Monday to Friday. For Fridays in June, July and August the phone line closes at 3:30 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.