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Winter 2014

Final Inspection

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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

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Retirement

• Retirement can occur any time following your 55th birthday

• Retirement occurs on the 1st 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

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Retirement Continued• Once you have provided your department with notice of retirement

please e-mail a copy of it to askpb@yorku.ca

• The Pension & Benefits will then mail the Retirement Option Package to your home address approximately three months prior to the retirement

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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 20th of the month we are able to process for the first (1st) of the month

When the 1st is a holiday or falls on the weekend your banking institution most often will deposit the funds on the first banking day after the 1st.

• .

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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

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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

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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

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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

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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

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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

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Need to Contact Pension and Benefits?

• E-mail askpb@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.

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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

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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.)

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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.)

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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.)

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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.

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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

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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

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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.

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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

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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)

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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.

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Old Age Security (OAS) continued…

• You need to apply for OAS six months prior to your 65th 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.

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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

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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

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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

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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.

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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

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Contacting the Retirement Planning Centre

• Call us at 416-736-2100 extension 66228

• E-mail retire@yorku.ca

• We are located in 101 Central Square