The information contained on this page is intended as a brief summary of the main provisions of the Group RRSP for Eligible Employees of McMaster University. As it is a summary only, this document is not intended to have legal effect.
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The date of deposit into your Group RRSP is based on the date the funds are received at Desjardins and is not the date of your payroll deduction. Funds are remitted to Desjardins on a monthly basis, by the end of each month.
Desjardins will send two statements annually. The statements are sent out at the end of July and December and each statement will show contributions and account information for the preceding six months.
A contribution receipt for the previous year’s contributions will sent out approximately three weeks after year end (e.g., three weeks after December 31st). For any contributions made within the first 60 days of the year, a separate contribution receipt will be sent out for the first 60 days of the year. These receipts are typically sent out the third week of March. Contributions are based on the date the funds are received and deposited into your account at Desjardins.
On the homepage of the Group Plan Member site , click “Rate of Return”. Alternatively, you can click “Financial Statements” and create customized reports based on specific time periods.
If you completed a paper enrolment form, you will be defaulted into the BlackRock LifePath Index Fund based on retirement at age 65. It is a fully managed fund that is rebalanced, and asset allocated automatically to become more conservative as you near retirement. Profits are reinvested back into the fund to promote growth.
If you were preapproved to enroll online for the Group RRSP and you do not register online and complete the enrollment process, any funds directed to your account will sit in a temporary non-interest bearing, non- registered account until you complete the registration and enrollment process. You will not receive a tax receipt for any contributions until this process is completed. If you do not complete the enrollment process within 90 days of your funds being directed to your account, Desjardins may return the funds back to McMaster.
If you completed a paper enrolment form, your contributions will have been invested in the default fund- BlackRock LifePath Fund. However, you can change your investments on the Group Plan Member site>My Account>My Investments>Investment Options or you can call the Desjardins Customer Contact Centre at 1800-968-3587 for assistance.
The default fund is based on a retirement age of 65. For example, if you will be 65 years in 2047, your investment will be in the BlackRock LifePath 2045 Index Fund.
Ask yourself if you have:
1) the time to analyze and monitor your investments,
2) the understanding of the different investment types and their risks and
3) if you want to select your own investments. If you said “no” to any ONE of these, then the BlackRock LifePath investment may be appropriate for you.
Benefits include:
1) employer contributions (100% match to employee mandatory contributions)
2) professionally managed investment portfolios and
3) Low fees (compared to what you would pay individually at another financial institution
Like any investment, there’s always the possibility of a downturn in your returns. To manage your risk, complete the Investor Profile Questionnaire to gauge your risk tolerance and see what type of investor you are. Based on your investor profile, you’ll be given guidance on what is appropriate for you.
Please contact the Destination Team at 1-800-968-3587. They are non-commissioned, licensed advisors who will work with you to create a retirement plan.
You can contribute to your RRSP until you turn 71. When you turn 71, you must convert your RRSP to a RRIF and make the minimum withdrawals. For more information, click https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-retirement-income-fund-rrif.html
Your money continues to stay invested where they were prior to working part-time. At any time, you can change your investment selections on the Group Plan Member site or by calling the Desjardins Customer Contact Centre at 1-800-968-3587.
Withdrawal of mandatory employee and employer contributions and any investment earnings is not permitted while employed by McMaster. The employee will be able to withdraw their funds when their employment with McMaster ends.
Voluntary contributions can be made either directly to Desjardins or via payroll deductions. Voluntary contributions can be withdrawn by the employee at any time, subject to payment of applicable fees.
You must convert your RRSP to a RRIF no later than December 31st of the year you turn 71.
If you’re in the BlackRock LifePath Index Fund, your RRSP will convert to the BlackRock Retirement Index Fund. If you self-selected your funds, your investments will remain the same when it converts to a RRIF. Depending on your risk tolerance and investment goals, you may want to change your investments to be more conservative.
Yes, contributions over the required amount are called “voluntary” contributions and are not matched by McMaster. Be careful not to exceed your RRSP contribution limits because there are penalties for exceeding your RRSP limit. You can change your contribution amounts on the Group Plan Member site or by calling the Desjardins Customer Contact Centre at 1-800-968-3587.
You will be taxed only on the amount of your withdrawal. Please call the Desjardins Customer Contact Centre at 1-800-968-3587 to get a more accurate estimation of your taxes.
The RRSP limit is 18% of your prior year’s income+ unused contribution. Please refer to your Notice of Assessment from the Canada Revenue Agency to see your exact RRSP limit.
We are not aware of RRSP plans you have outside of your group plan so you will not be given notice that you’ve over contributed. The penalty for over-contributions is 1% per month on your unused contributions that exceed your RRSP deduction limit by more than $2,000. Please contact the Canada Revenue Agency for more information.
You can see your RRSP limit on your Notice of Assessment. Please go to the Canada Revenue Agency website and logon to your account to view your Notice of Assessment.
You can find retirement planning information on the Group Plan Member site>Wellness Centre.
Please refer to the Government of Canada website: https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html
Each individual has their own RRSP limit as stated in their Notice of Assessment from the CRA.
Your remaining balance will continue to earn investment income. Please be aware that there could be taxes (withholding and/or income taxes) on the amount withdrawn. Please contact the Canada Revenue Agency or the Desjardins Customer Contact Centre at 1-800-968-3587 for more details as well as any taxes payable.
The BlackRock LifePath Index fund is designed to become more conservative in its investment approach as you near retirement. The fund is professionally managed and its asset mix is continually evaluated for performance and value. This is done automatically for you as you’ll see more of your investments moving from equity to fixed income types as you get closer to retirement. For more information, please see the Group Plan Member site>My Account>Investment Options
You can make investment changes on the Group Plan Member site or by calling the Desjardins Customer Contact Centre at 1-800-968-3587. Any investment changes done before 2 pm will be effective same day. After 2 pm, the change will be done next business day. You can make a maximum of 2 investment changes per month with no fees after which there may be additional fees.
Yes, please complete the Investor Profile Questionnaire on the Group Plan Member site before you make any changes. The questionnaire will determine what type of investor you are and gauge how comfortable you are with risk. Based on your profile, you’ll be given investment guidance that would be most appropriate for you.
If you have questions about your investment plan or its options, please consult the Desjardins Customer Contact Centre at 1-800-968-3587 (Monday to Friday, 8 am to 8 pm ET), and selecting option 1. Please note that they provide guidance only and if you wish to seek advice (e.g., financial planning strategies), it is recommended you contact a Personal Financial Advisor.
The Destination Team is available for those approaching retirement in the next 5 years. They will assist you in seeing what your retirement options are based on the financial information you provide. The Customer Contact Centre (1-800-968-3587) can also assist with questions about your plan, changing contributions/investments and account transfers among other topics.
McMaster offers financial guidance, including Retirement Planning through the Employee and Family Assistance Program (EFAP). It is completely confidential. You can contact EFAP 24/7, as follows: by phone (1-833-366-4544), web or mobile app (Telus-Health-EFAP-Brochure-1.pdf (mcmaster.ca)