Defined Contribution Pension Plan (DC)

The information provided here is intended as a summary of the more important features of The University of Winnipeg Trusteed Pension Plan. The benefits and terms and conditions under which they are provided, are governed by the legal Plan document, and in any dispute the legal Plan document will take precedence over the information provided here. A copy of the Plan text is available on the Pension Home Page.

For general information in connection with the University of Winnipeg Trusteed Pension Plan please go the Pension Plan Home Page

Announcements

November 2021

Desjardins We listened to your investment needs [PDF]

September 2021

Desjardins Announcement [PDF]

Background

The Defined Contribution (DC) Component of the University of Winnipeg Trusteed Pension Plan was established effective January 1, 2000. The purpose of the Defined Contribution Pension Plan is to help you save for retirement. The Plan provides investment options, tax sheltering of assets and investment earnings until retirement.

Effective November 1, 2021 Desjardins replaced Sun Life as the new Plan record keeper.

In addition to the features of this Plan, amounts contributed towards your retirement income are subject to both federal and provincial laws. The information provided here will explain the common guidelines that apply to amounts deposited into a registered pension plan and describe the basic benefits that are payable to you. A copy of the legal Plan text is provided here and, in any dispute, that document will take precedence over the information contained in this summary.

From January 1, 2000 to October 31, 2021 - Sun Life (previously Clarica*) was the Plan record keeper. (*Effective January 1, 2003 the operations of Sun Life Assurance Company of Canada and Clarica Life Insurance Company merged. The new Company that combines the activities of these two organizations is called: ”Sun Life Assurance Company of Canada”, now Sun Life Financial.)

Beneficiary Designation

If you have a Spouse, your Spouse has certain rights to the benefits earned under this Plan at your death, retirement or marriage/relationship breakdown. For the purposes of the Plan, Spouse includes legally married or common-law partners.

Your Spouse, legal or common-law, is entitled to receive any death benefit from the Plan, however, your spouse may waive his/her right to the pre-retirement death benefit by completing the appropriate waiver form and filing it with Human Resources. The waiver may subsequently be jointly revoked. Please note that before the waiver form may be filed, your spouse needs to receive a termination statement setting out the amount payable from the University of Winnipeg Trusteed Pension Plan. Please contact Human Resources if you have any questions or wish to obtain a waiver form.

If you do not have a Spouse, you may designate a beneficiary of your choosing.

Ensure your beneficiary is aware of this Plan and knows where your estate related documents are kept.

Please note:

The Manitoba Pension Benefits Act does not allow pension benefits to be paid to a separated spouse of a plan member unless the following condition has been met:

Married Couples – the marriage has been dissolved through a divorce;
Common-law Couples – the relationship has been terminated as follows:

a) In the case of common-law partners who have registered their common-law relationship under section 13.1 of The Vital Statistics Act, the common-law relationship has been terminated through the registration of the dissolution of the common-law relationship under section 13.2 of the Vital Statistics Act, and

b) In the case of common-law partners who did not register their common-law relationship under section 13.1 of The Vital Statistics Act, the common-law partners have terminated their relationship by living separate and apart for at least three years.

Canada Pension Plan (CPP) and Old Age Security (OAS)

In addition to the University of Winnipeg Trusteed Pension Plan pension you will also receive pension from the Canada Pension Plan (CPP) as well as Old Age Security (OAS). For an estimate of your entitlement from the government plans, please contact Service Canada at 1.800.277.9914 or go to:

CPP Payment Amounts

http://www.servicecanada.gc.ca/eng/services/pensions/cpp/payments/index.shtml

OAS Payment Amounts

http://www.servicecanada.gc.ca/eng/services/pensions/oas/payments/index.shtml

OAS clawback information (minimum and maximum income recovery threshold)

http://www.servicecanada.gc.ca/eng/services/pensions/oas/pension/recovery-tax.shtml

Contributions from December 23, 2012

Full-time member required contributions (made by the Plan member):

Your required contributions are:

6.2% of your Basic Salary up to the Year’s Maximum Contributory Earnings.

Full-time member required contributions (made by the University):

The University's required contributions are:

6.2% of the member’s Basic Salary up to the Year’s Maximum Contributory Earnings.

Less than full-time member required contributions:

The Plan member and the University make required contributions as above but based on the actual salary of the member rather than the Basic Salary.

Additional Voluntary Contributions

Effective from June 1, 1990, no further additional voluntary contributions may be made into the Plan. Any Plan member who has made additional voluntary contributions prior to June 1, 1990 may receive the full value of such contributions in a lump sum (subject to Manitoba Pension Commission restrictions).

Leave of Absence With Pay

If you are on a leave of absence with pay, you and the University will continue to make required contributions based on your full Basic Salary.

Leave of Absence Without Pay

If you are on a leave of absence without pay, you may if you wish, continue to make contributions to the Plan for up to three years (subject to Canada Revenue Agency restrictions), however, in that case you would have to make your as well as the University required contributions.

Long Term Disability

If you are receiving benefits from the University of Winnipeg Long Term Disability Plan, the University will make your and the University required contributions (effective from January 1, 2000) for as long as you are in receipt of long term disability benefits or until your employment terminates, whichever occurs earlier.

Reduced Appointment

If you are on a Reduced Appointment, you will continue to make contributions based on full Basic Salary, subject to Canada Revenue Agency restrictions on pension accumulation for periods of reduced pay.

Death Benefits

Benefits on death after retirement

A post retirement death benefit may be payable depending on the type of annuity you choose at time of retirement. Your beneficiary will receive information concerning any death benefit after notifying the company making the annuity payments of your death.

Benefits on death before retirement

If you die before retirement, your beneficiary will receive any amount payable from your pension account. A detailed statement including the dollar amounts and the options available will be prepared for your beneficiary. The following is a summary of the settlement options that may be available:

Death Benefit payable to your Spouse:

Transfer

Your Spouse may choose to transfer the death benefit to the registered pension plan of his/her employer, a LIRA (Locked In Retirement Account) with any financial institution authorized to issue LIRAs, or LIF (Life Income Fund). Both the transfer amount and any future investment earnings must be used to purchase a retirement income, and are not available as a cash amount, now or in the future. Direct transfers allow the funds to continue to be tax sheltered.

Effective May 25, 2005, the Manitoba Pension Benefits Act was amended to allow a one-time transfer of up to 50% of the balance in one or more LIFs to a prescribed RRIF (Registered Retirement Income Fund). ‘One-time’ means once in your lifetime, not once per fund.

Annuity Income

Your Spouse may choose to purchase an annuity as described under the ‘Retirement Benefits’ section.

Death Benefits payable to a Beneficiary other than your Spouse:

Cash Payment

Your beneficiary or estate will receive a cash payment equal to the value of your pension account. All cash payments are subject to withholding tax.

Directing Contribution Investments & Default Fund

You have total discretion as to how your contributions are invested. There is a wide selection of investment options for you to choose from that range from conservative (GIC) to aggressive (equities).

If you do not make an active fund selection, your and the University contributions will be credited to the Plan Default fund, which is the Fidelity ClearPath® fund that aligns with your expected retirement year (assuming age 65).

Plan members are strongly encouraged to make an active and informed fund selection based on their Investment Risk Profile and to periodically review their fund selection.

Income Tax Regulations

The Plan and the manner in which it is operated is governed by the Income Tax Act (Canada).

You must include benefits paid out of the Plan in your taxable income unless you have made a tax-sheltered transfer.

Any cash payment out of the Plan is fully taxable in the year in which you receive it. It is subject to withholding tax at the time of withdrawal.

The first $2,000 of annuity income in any year may be eligible to claim as a non-refundable federal tax credit (the Manitoba tax credit is $1,000). Check your current Tax Guide published by the Canada Revenue Agency.
You cannot assign assets under this Plan other than on marriage or relationship breakdown. Benefits from this Plan may not be used as collateral for a loan.

Marriage/Relationship Breakdown

Your pension assets may be subject to division between you and your Spouse in the event of the breakdown of your marriage or common-law relationship. The prerequisite to a division of your pension is the existence of a Court Order or an agreement between the parties to divide family assets, a certified true copy of which must be submitted to the University of Winnipeg Human Resources office.

In accordance with The Pension Benefits Act of Manitoba, the pension credits accumulated by one or both Spouses during the years of marriage or common-law relationship would be split on an equal basis and your former Spouse’s share of the benefit would be transferred out of the Plan.

The requirement to share pension benefits applies to both required as well as Additional Voluntary Contributions. The mandatory pension sharing provisions may be waived by the parties as long as the requirements of the MB Pension Benefits Act are satisfied. For more information please contact the Human Resources office.

Your former Spouse may transfer the assets to the registered pension plan of his/her employer, a LIRA (Locked In Retirement Account) with any financial institution authorized to issue LIRAs, or a LIF (Life Income Fund).

Member Statement

Twice each year, Desjardins produces an account statement showing the contributions made by you and the University into the Plan since the last statement and the total value accumulated to your credit.

You can access your detailed account information anytime through the member website or by contacting Desjardins.

Pension Adjustment

The amount that you can contribute to a Registered Retirement Savings Plan (RRSP) on a tax-deductible basis will be directly affected by any amount contributed by you and the University to this Plan or any other registered pension plan.

The total of contributions made by you and the University under this Plan is reported to the Canada Revenue Agency each year on your T4 slip. This figure is called your ‘Pension Adjustment’ (PA) and is for tax reporting purposes only. The amount that you can contribute to an RRSP next year is reduced by your PA calculated for this year.

The Canada Revenue Agency will advise you of your RRSP contribution room for each taxation year on your Notice of Assessment.

Personal Information

The personal information requested of you is required in order to efficiently administer your benefits under the Plan.

Desjardins Privacy Policy

Retirement Benefits

You can request a pre-retirement package which will outline the steps necessary to begin receiving retirement income from this Plan.

Normal Pension Commencement Date:

The Normal Pension Commencement Date for an Academic Plan member is September 1, next following or coincident with the member's 65th birthday if NPCD was attained prior to May 31, 2010, and first of the month coincident with or next following the member's 65th birthday if NPCD was attained after May 31, 2010.

The Normal Pension Commencement Date for a Non-Academic Plan member is first of the month coincident with or next following the member's 65th birthday.

Early Pension Commencement:

You may start receiving retirement income from this Plan at any time within the 10 year period preceding your Normal Pension Commencement Date.

Postponed Pension Commencement:

In accordance with Canada Revenue Agency regulations, you may elect to postpone receiving your retirement income beyond your Normal Pension Commencement Date, but no later than December 31st of the year in which you reach age 71. Since payments must start by the end of the year, effectively this means that pension participation ceases on November 30 of the year in which you attain age 71.

Retirement Options

There are a number of different forms of retirement benefits available to you under the Plan. Provincial legislation has established guidelines on the types of retirement income you may choose.

Annuity Income Option

An annuity is a contract to receive a series of payments that you buy with all or part of your account. Monthly payments are the most common, and have been used in the following descriptions. However, payments may be quarterly, semi-annually or annually.

a) Joint & Survivor Life Annuity

If at the time of pension commencement you have a Spouse, Manitoba pension legislation requires that you elect a joint & survivor life annuity which will reduce to no less than 60% upon your or your Spouse's death and will continue in the reduced amount for the life of the survivor. Rather than electing this mandatory option, you may elect a joint annuity that will be payable in a level amount for as long as you or your Spouse are alive. There are also a number of choices you can make to add a guaranteed period to the annuity.

If you want to elect another income option, you and your Spouse must file a written waiver before your pension begins.

b) Single Life Annuity

A single life annuity is an equal amount paid to you monthly for your entire lifetime; there are no survivor provisions for your Spouse. You may select a varying guaranteed period.

If you do not have a Spouse, your normal form of pension will be payable for your lifetime with 60 payments guaranteed. This means payments will continue for as long as you live. If you die before having received 60 monthly payments, and if your beneficiary is the estate, the value will be paid in a lump sum. If your beneficiary is an individual; the remaining payments may be continued or the value of the remaining guaranteed payments may be paid in a lump sum.

Transfer

You may choose to transfer the value of your account to the registered pension plan of your new employer, a LIRA (Locked In Retirement Account) with any financial institution authorized to issue LIRAs, or LIF (Life Income Fund). Both the transfer amount and any future investment earnings must be used to purchase a retirement income and are not available as a cash amount, now or in the future. Direct transfers allow the funds to continue to be tax sheltered.

Life Income Fund

You may choose to purchase a Life Income Fund (LIF) with the value of your pension account from Sun Life or another financial carrier.

A LIF converts retirement savings into regular income payments. You are able to adjust how much income you receive, how often you receive it and how it's invested. At age 80, the remaining savings must be used to purchase a life annuity.

A LIF restricts the maximum amount a person can withdraw in a year, in addition to a minimum payment requirement.

Shortened Life Expectancy

Effective from July 1, 2011 a Plan member with a terminal illness or disability resulting in a shortened life expectancy as stipulated in the MB Pension Benefits Act (Act), and subject to satisfying all the relevant provisions of the Act, shall have the right to elect to cease accruing pension benefits under the Plan and receive his/her accrued pension entitlement by way of a lump sum payment.

A Plan member who has elected to receive his/her accrued pension entitlement from the Plan under the Shortened Life Expectancy provision, will cease to be an Active member of the Plan and will make no further contributions into the Plan.

Termination Benefits

If you terminate your employment with the University of Winnipeg for reasons other than retirement or death, Desjardins will prepare a detailed statement for you which will include dollar amounts and options available. You will then be asked to decide what should be done with your funds.

Locking

Once assets are locked-in, pension legislation requires these assets be used to provide a retirement income payable to you for your entire lifetime. Locked-in assets are not available in cash.

Your and the University required contributions are locked-in unless your total termination benefit is less than 4% of the Canada Pension Plan Year's Maximum Pensionable Earnings in the year of termination (20% after May 31, 2010).

Vesting

Once assets are vested, they belong to you. You are always “vested” in your required contributions. Contributions made by The University of Winnipeg on your behalf are also vested immediately under the terms of the Plan.

Years of membership, if any, in the University of Winnipeg Pension Plan Defined Benefit component, will be included as years of membership under the Defined Contribution component of the Plan for the purposes of vesting and locking-in of benefits.

The following is a summary of the options that may be available:

Termination Options Available For Amounts That Are Locked-In:

Transfer

You may transfer the value of your vested assets to a LIRA (Locked In Retirement Account) with any financial institution that is authorized to issue LIRAs, the registered pension plan of your new employer, or a LIF (Life Income Fund). Both the transfer amount and any future investment earnings must be used to purchase a retirement income, and are not available as a cash amount, now or in the future. Direct transfers allow the funds to continue to be tax sheltered.

Deferred Annuity Income

You may purchase an annuity from Desjardins or another financial carrier. The 'Benefits On Retirement' section will provide you with more information on annuities.

Note: If you are within 10 years of your Normal Pension Commencement Date, you may choose any of the options available under the 'Benefits On Retirement' section.

Desjardins Contact

Questions? Contact Desjardins or the University of Winnipeg Human Resources Office.

Fully understanding every aspect of this Plan is almost impossible. We realize, and expect, that from time to time you will have questions.

There are two easy ways to connect with Desjardins.

Call Desjardins from anywhere in Canada or U.S. toll-free at 1-800-968-3587. This number will direct you to a representative who is available to assist you every business day from 7:00 A.M. to 7:00 P.M.

Visit the Plan Member website anytime.

For contact information for the University of Winnipeg Human Resources please go to the bottom of this page.

Frequently Asked Questions

What is a defined contribution pension plan?

Contributions made by or for you to a defined contribution registered pension plan are deposited directly to your account. At retirement, the accumulated contributions and investment earnings are used to purchase a retirement income.

Does this Plan affect my RRSP contributions?

Yes. The total of contributions made by you and the University under this plan will be reported to the Canada Revenue Agency each year on your T4 slip. This figure is called your ‘Pension Adjustment’ (PA) and is for tax reporting purposes only. The amount that you can contribute to an RRSP next year is reduced by your PA calculated for this year.

Canada Revenue Agency will advise you of your RRSP contribution room for each taxation year on your Notice of Assessment.

What is my RRSP contribution room?

The maximum tax-deductible RRSP contribution is set by the Canada Revenue Agency each year. Your ‘Notice of Assessment’ sent by the CRA after reviewing your personal income tax filing will include the exact amount. You may also call the Canada Revenue Agency directly at 1.800.267.3100 for this information.

Are my pension assets protected from creditors if I declare personal bankruptcy?

Your assets would likely be protected under the provincial pension laws; however, we can never guarantee full protection. Once your assets have been paid to you, the protection no longer applies. If you have any questions about your financial status, you should obtain legal advice.