Academic & Administrative Pension and Benefit Plans Realize. It starts with you. Annual General Meeting for Members of the Academic and Administrative Pension and Benefit Plans (For Defined Contribution Plan Members) May 13, 2015

Academic and Administrative Pension and Benefit Plans Program Welcome and Introductions: Darlene Marchuk, Director, Pension & Benefits (Human Resources) Pension Plan Overview and Annual Update: Larry Miller, Chair, Academic and Administrative Benefits Committee (AABC) and Co-Chair, Joint Pension Investment Committee (JPIC) Faculty of Science (Mathematics and Statistics)

Academic and Administrative Pension and Benefit Plans Program (cont’d) Feature Presentation: Where There’s A Will … There’s a Way Jennie Aldworth (Blue Whale Financial Solutions) Sun Life Presentation: Your Defined Contribution Pension Plan Charleen Turner & Paul Litt, Group Retirement Services

Academic and Administrative Pension and Benefit Plans Outline AABC Committee Update AABC & JPIC Committee Work Academic & Administrative Defined Contribution (DC) Highlights Pension Plan Provisions Other Retirement Information Working Beyond Age 65 Benefits Resources

Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 approved the 2014 pension plan budget for each component of the plan; reviewed the funding valuation extrapolation for the DB Component and assessed the valuation assumptions used in the valuation reporting (ie mortality tables, discount rate, etc.)

Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 (cont’d) recommended the Board of Governors approve a plan amendment allowing members of the administrative, professional and technical (APT) employees’ bargaining unit with a probationary or term appointment of six months (reduced from eight months) be required to join the plan. reviewed the semi-annual reports (from Aon Hewitt and Sun Life Financial) for the DC Component of the Plan

Academic and Administrative Pension and Benefit Plans AABC Committee Work in 2014 (cont’d) met with Sun Life Financial (Group Benefits), to assess benefit plan costs, review member utilization and obtain information on benefit trends assessed the current platform of investment options for the DC Component of the Plan reviewed “Designed for Savings 2014”, the Sun Life benchmark report on Capital Accumulations Plans (CAPs) in Canada

Academic and Administrative Pension and Benefit Plans JPIC Committee Work in 2014 met with the Master Trust Investment managers to review their investment performance; had various portfolio managers provide observations and updates in the investment landscape; recommended the Board of Governors approve the 2014 Statement of Investment Policies and Goals; following approval of the Master Trust Asset Mix Benchmarks, recommended rebalancing of investment portfolios (including adding emerging market asset class)

Academic and Administrative Pension and Benefit Plans Defined Contribution (DC) Highlights established as of January 1, 2000 eligible new hires become members of the Pension Plan for Academic and Administrative Employees of the University of Regina Defined Contribution Component each Component of the Plan has its own Statement of Investment Policies and Goals (SIP&Gs)

Academic and Administrative Pension and Benefit Plans DC Highlights (cont’d) 962 active members at December 31, 2014 assets in the Plan = $113.5 million contribution levels 7.5% up to the Maximum Pensionable Earnings Limit (for 2015 is $140,944.50) 2015 maximum contribution per month is $ matched by the Employer

Academic and Administrative Pension and Benefit Plans DC Highlights (cont’d) your Defined Contribution benefit total of Employee and Employee account balances average rate of return for 2014 was 10.7% (net of fees) U of R Levy reduced as of November 2013 now $60 per year ($5/month) plus.06 percent of each member’s total assets levy covers administrative and consulting expenses

Academic and Administrative Pension and Benefit Plans DC Highlights (cont’d) Sun Life Financial service provider since July 2011 With Sun Life, members have: investment flexibility increased options two approaches (Pre-Built / Build Your Own) daily account valuation in plan advice group options at retirement (Prescribed Retirement Income Fund) planning tools and resources one access ID and password (retirement and benefits)

Academic and Administrative Pension and Benefit Plans Pension Plan Provisions On termination: (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

Academic and Administrative Pension and Benefit Plans Pension Plan Provisions On retirement: same as for options on termination Sun Life Financial Options Group Retirement Income Plan Annuity Outside of Sun Life Financial other Prescribed Retirement Income Plan (PRIF) other pension plan (if permitted) annuity with another provider Note: transfer fees if leaving Sun Life Financial

Academic and Administrative Pension and Benefit Plans Other Retirement Information Age limit for registered pension plans and Registered Retirement Savings Plans (RRSPs): You must begin making withdrawals by the end of the year you turn 71 (ie transfer funds to a RIF, PRIF, annuity, etc.) Assess your tax position – (ie income splitting between spouses) Government Programs Canada Pension Plan Old Age Security

Academic and Administrative Pension and Benefit Plans Working Beyond 65 Pension plan contributions and benefits accruals: in accordance with the Income Tax Act permitted until the end of the year the member turns 71 Benefits continuing beyond Normal Retirement Date include: Life insurance Dental Extended Health and Health Spending Account Enhanced sick leave (additional 90 days for a total of 180 days) Long Term Disability ceases on Normal Retirement Date

Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance Benefit Costs (2014) Dental: approx $900 per member (relatively unchanged from last year) Extended Health Care: (excluding Health Spending Account): approx $1,324 per member Salary Continuance (Long Term Disability) Increased to 1.47% of payroll (32% increase from previous rate of 1.112%)

Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance Information Available on Human Resources Website: benefits and pension information is available at: (select employee group and either benefits or pension) contacting HR: Pension & Benefits

Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance All benefits cease on date of retirement Sun Life “My Choices” Life Insurance must be under age 65 and make application to convert within 31 days of retirement / termination from the plan Dental and Extended Health Care Benefits must be under age 74 and make application to convert within 60 days of retirement/ termination from the plan converted to an individual Sun Life Plan (Option: Standard or Enhanced)

Academic and Administrative Pension and Benefit Plans Benefits: Dental, Health, Life Insurance cont’d Other Options (generally require medical evidence) Through a professional association Canadian Association of University Teachers (CAUT) Other service providers: SK Blue Cross, Group Medical, etc.

Academic and Administrative Pension and Benefit Plans Resources: Sun Life Financial: bulletins, on-line newsletters, etc on-line tools Customer Care Centre Financial Services Consultant (In Plan Advice) Consult a Financial Advisor Certified Financial Planners website (provides CFA list of members in good standing)

Academic and Administrative Pension and Benefit Plans Questions ???????