1. 1 Winter 2014 Final Inspection

2. 2 Purpose of this Seminar York’s expectation for notification What you should expect from York Difficult spousal conversations Financial Planners Government expectation – CPP and OAS What you should expect from the government Other

3. 3 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

4. 4 Retirement Continued Once you have provided your department with notice of retirement please e-mail a copy of it to askpb@yorku.caaskpb@yorku.ca The Pension & Benefits will then mail the Retirement Option Package to your home address approximately three months prior to the retirement

5. 5 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..

6. 6 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

7. 7 Pension Options Single There are four pension options available: Single life with no guarantee$1,479 Single life with a five year guarantee$1,472 Single life with a ten year guarantee$1,455 Single life with a fifteen year guarantee$1,429 There is also the transfer out to a locked-in RRSP option

8. 8 Pension Options - married Employee and Spouse same age Spouse five years older than employee * Requires a J&S waiver * Single life – 0, 5, 10, 15 year guarantee$2,945 - $2,863 *Joint & Survivor (J&S) 50% - 0, 5, 10, 15 year guarantee $2,945 - $2,903 Joint & Survivor (J&S) 60% - 0, 5, 10, 15 year guarantee $2,916 - $2,882 Joint & Survivor (J&S) 75% - 0, 5, 10, 15 year guarantee $2,873 - $2,851 Joint & Survivor (J&S) 100% - 0, 5, 10, 15 year guarantee $2,805 – $2,800 * Single life – 0, 5, 10, 15 year guarantee$2,945 - $2,863 *Joint & Survivor (J&S) 50% - 0, 5, 10, 15 year guarantee $2,945 - $2,901 Joint & Survivor (J&S) 60% - 0, 5, 10, 15 year guarantee $2,923 - $2,886 Joint & Survivor (J&S) 75% - 0, 5, 10, 15 year guarantee $2,890 - $2,865 Joint & Survivor (J&S) 100% - 0, 5, 10, 15 year guarantee $2,838 – $2,830

9. 9 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

10. 10 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 http://www.cibcmellon.com/Contents/en_CA/English/Home/Home.html

11. 11 Increase 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

12. 12 Need to Contact Pension and 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.

13. 13 Difficult Spousal Conversations Retirement Expectations Both are on the same page Together 24/7 Retiring together or at different times Common Ground Finding a system/schedule that makes you both happy Schedules Together or separate? Expectations upon Death of a partner Will things remain the same, or will the remaining partner decide to live differently May help to determine pension option

14. 14 Financial Planner Consultations Meet to put together a plan Project into the future Parents longevity Health concerns Etc. Organize funds 3 stages of Retirement all requiring different amounts of money and possibly funded from different sources Go Go Stage Slow Go Stage No Go Stage Different types of money for different things Example - Unregistered money for capital expenses (new roof, new car etc.)

15. 15 Financial Planner Consultations - What you need to bring Clear understanding of your Retirement plans Do you plan to travel? Do you plan to move? Do you plan to buy property abroad? Etc. Your Monthly Costs Household expenses (if you plan to move you may need to estimate this) Car Food habits Entertainment Habits Medical Expenses Debts (mortgage, credit cards, personal loans, car payments etc.)

16. 16 Financial Planner Consultations - What you need to bring continued Sources of Income RRSP’s Other Investments (non registered) York Pension Information Foreign Income List of Assets (Homes, Cottage, Rental Property, Vehicles etc.)

17. 17 The Governments Expectations CPP and OAS Applications can be submitted up to 11 months ahead of time – but they do suggest at least six months ahead CPP can be submitted on line, but a signature page still needs to be printed and sent to them OAS must be submitted via paper application (available in the Retirement Planning Centre office if required) OAS does have a proactive enrollment now where a paper application will not be required to receive your OAS. Only some people will qualify for this proactive enrollment.

18. 18 Canada Pension Plan (CPP) The CPP was established in 1966 It is based on contributions that employees and employers contribute It is designed to replace 25% of a person’s average pre- retirement employment earnings, up to a maximum amount

19. 19 Canada Pension Plan (CPP) continued… Contributions are taken until you reach the Yearly Maximum Pensionable Earnings (YMPE) set at $52,500 for 2014. Once you have earned that value no further contributions will be deducted from your pay. You can access your contribution history and estimate of your pension at servicecanada.gc.ca Set up an My Service Canada Account Or you can call Service Canada and request a Statement of Contributions or a estimate of your pension

20. 20 Canada Pension Plan (CPP) continued… You can receive your pension anytime between age 60 and age 70. The normal age is 65, and the pension will be adjusted up or down from there. For 2014 the maximum amount you can receive is $1,038.33, and the average amount paid out is $633.46.

21. 21 Canada Pension Plan (CPP) continued… If you have direct deposit set up, the payment is deposited to your account on the third to last banking day of the month. You can receive your payment anywhere in the world CPP is taxable

22. 22 Canada Pension Plan (CPP) continued… Changes to the plan as of January 1, 2012 Between 60 and 65 and in receipt of the CPP benefit and continuing to work – mandatory to continue to contribute Between 65 and 70 and in receipt of the CPP benefit and continuing to work – voluntary to continue to contribute If you continue to contribute while in receipt of the CPP benefit and additional Post Retirement Benefit (PRB) will be calculated (maximum for 2014 $25.96)

23. 23 Old Age Security (OAS) The OAS is financed from the general revenues of the Government of Canada OAS is a monthly benefit paid to Canadian Residents who qualify and who are currently 65 years or older. If you are born after 1958 your qualify age will be 67. Current qualifications to receive OAS Age 65 or older Reside in Canada and be a Canadian citizen or legal resident Resided in Canada for at least 10 years after turning age 18 To Receive OAS outside of Canada you must have resided in Canada for at least 20 years after turning age 18. Note there are social security agreements with many countries which may help you qualify if you do not meet the qualifications.

24. 24 Old Age Security (OAS) continued… You need to apply for OAS six months prior to your 65 th birthday (currently), if you wish to receive it. As of July 1, 2013 you can defer receiving your OAS. You can receive it between the ages of 65 and 70. It will be increased for each month after the age of 65.

25. 25 Old Age Security (OAS) continued… If you immigrated to Canada you will need to provide proof of residency and or date of entry Recently Service Canada has established an agreement with Immigration Canada – if you have lost your immigration paperwork a ISP3210 form can be completed giving consent to Service Canada to access your information through Immigration Canada

26. 26 Old Age Security (OAS) continued… You can receive either a full pension or a partial pension depending on how many years you have spent in Canada over the age of 18 To qualify for a full pension you need to have 40 years in Canada over the age of 18, or meet other rules that can qualify you Partial pension can be paid when you do not meet the qualifications for full pension – it is calculated based a percentage of the time you have been in Canada

27. 27 Old Age Security (OAS) continued… Your OAS payment can be deposited to your bank account directly and is paid at the same time as CPP generally. If you have resided in Canada for 20 years after turning age 18 you can have your OAS paid to you outside of Canada The OAS pension is increased by the CPI (Consumer Price Index) in January, April, July and October OAS is taxable

28. 28 Old Age Security (OAS) continued… There is a Recovery Tax on OAS Recovery Tax Period Income Year Minimum Income Recovery Threshold Maximum Income Recovery Threshold July 2012 – June 2013 2011$67, 668$110,123 July 2013 – June 2014 2012$69,562$112,966 July 2014 – June 2015 2013$70,954$114,793* * Subject to quarterly increases.

29. 29 What you should expect from the Government As long as you get your completed forms to the government within a reasonable period of time, your pension should start at the date you request The values of these pension are increased based on the Consumer Price Index (CPI) If your income is extremely low there are supplements available through the OAS program

30. 30 Contacting the Retirement Planning Centre Call us at 416-736-2100 extension 66228 E-mail retire@yorku.caretire@yorku.ca We are located in 101 Central Square