1 Winter 2014 Until We Meet Again

2 Purpose of this Seminar Termination Benefits Pre Retirement Death Benefits Retirement Single Married Guarantee Periods York University Retirement Association (YURA)

3 Termination Benefits Your department needs to provide Human Resources with an Employee Transaction Form (ETF) indicating the termination date If there are any unused vacation days they should be included on this ETF

4 Termination Benefits Continued Once the termination has occurred the Pension & Benefits has 30 days to provide a termination package For those over age 55 pension options are included in the package For those under age 55 there may be a number of options available

5 Termination Options Cash only option available: if the annual pension is less than 2% of the Year’s Maximum Pensionable Earnings (YMPE) in the year of termination of employment or the commuted value of the former member’s pension is less than 20% of the YMPE in the year of termination of employment YMPE for 2014 is $52,500 2% of the YMPE = $87.50 per month in pension

6 Termination Options Continued For all others (under age 55): Transfer funds out to a locked-in RRSP – there may be a portion of the funds available in cash less tax if: You contributed to the pension plan prior to 1987 You exceed the maximum transfer value (set out by CRA) Leave funds in the pension plan until a later date

7 Pre Retirement Death Options In the event of your death while in active employment: If you are single your beneficiary(ies) will receive cash less tax If you are married your surviving spouse will have the option of taking a monthly pension or transferring the funds to a RRSP Please inform your beneficiary(ies)/spouse that the Pension & Benefits office needs to be informed of your death as soon as possible following the death We will require a copy of the death certificate before any entitlements can be processed

8 Retirement Retirement can occur any time following your 55 th birthday Retirement occurs on the 1 st 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

9 Retirement Continued Once you have provided your department with notice of retirement please a copy of it to The Pension & Benefits will then mail the Retirement Option Package to your home address approximately three months prior to the retirement

10 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 20 th of the month we are able to process for the first (1 st ) of the month When the 1 st is a holiday or falls on the weekend your banking institution most often will deposit the funds on the first banking day after the 1 st.

11 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

12 Pension Options If you are retiring prior to age 65 there are the regular pension options along with two integrated options The integrated options do not appear on the Retirement Planner The integrated options provide a higher pension to age 65 and then reduce to account for receipt of CPP and OAS Two integrated options are: 1.provides no guarantee 2.is guaranteed to age 65

13 Pension Options - Single There are four pension options available: Single life with no guarantee Single life with a five year guarantee Single life with a ten year guarantee Single life with a fifteen year guarantee There is also the transfer out to a locked-in RRSP option

14 Pension Options - married There are 22 different options If retiring prior to age 65 there are the two integrated options and also the transfer out to a locked-in RRSP option * J & S waiver required * Single life – no guarantee (gtee)J & S 60% - 10 years gtee * Single life – 5 years gteeJ & S 60% - 15 years gtee * Single life – 10 years gteeJ & S 75% - no gtee * Single life – 15 years gteeJ & S 75% - 5 years gtee * Joint & Survivor (J&S) 50% - no gteeJ & S 75% - 10 years gtee * J & S 50% - 5 years gteeJ & S 75% - 15 years gtee * J & S 50% - 10 years gteeJ & S 100% - no gtee * J & S 50% - 15 years gteeJ & S 100% - 5 years gtee J & S 60% - no gteeJ & S 100% - 10 years gtee J & S 60% - 5 years gteeJ & S 100% - 15 years gtee

15 Single Examples October 1 retirement – elected Single life – no guarantee Pension is paid as long as you are alive Assume you pass away six weeks after retirement – no further payments are made October 1 retirement – elected Single life – 10 year guarantee Pension is paid as long as you are alive Assume you pass away six weeks after retirement – the commuted value of the remaining payments is paid to your beneficiary(ies) in cash less tax

16 Married Examples May 1 retirement – elected J & S 60% - no guarantee Pension is paid as long as you are alive Assume you pass away six weeks after retirement – pension is immediately reduced to 60% and paid to your surviving spouse as long as they are alive Pension ceases at surviving spouse’s death

17 Married Examples Continued May 1 retirement – elected J & S 75% - 15 year guarantee Pension is paid as long as you are alive Assume you pass away six weeks after retirement – pension continues at 100% for the next 14 years and 11 months and paid to your surviving spouse Once the 15 year guarantee period has expired the pension then reduces to 75% to your surviving spouse If you and then your surviving spouse were to pass away during the 15 year guarantee period the remaining payments would be commuted and paid in cash less tax to your surviving spouse’s beneficiary(ies)

18 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

19 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

20 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 Effective January 1, 2015 onward any retirements will have the moving five-year average applied to their 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

21 Retirement Planner Government legislation dictates pension statements are to be completed by June 30 The Planner is updated with the previous years data as soon as the Pension & Benefits office completes the year end updates The link is: If you have not yet tried the Planner put your nine digit employee number in the applicable box then click on forgot your password. The password will be ed 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.

22 Retirement Planner

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24 YU Link

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26 YU Link

27 Need to contact Pension & Benefits? Call extension (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 ed to