Pension Plan FAQs
The information contained on this page is intended as a brief summary of the main provisions of the Pension Plan for Eligible Employees of McMaster University. As it is a summary only, this document is not intended to have legal effect.
Understanding the McMaster Pension Plan as an Active Member
The Hourly Pension Plan and Salaried Pension Plan are defined benefit (DB) pension plans. With DB pension plans, the amount of benefit is defined in the pension plan text and determined by a formula which includes:
- Pensionable Service
- number of years and partial years since you became a member of the pension plan
- this is directly impacted by your hours worked and any leaves of absence that you may take and during which you do not make pension contributions
- Best Average Salary/Earnings
- the average of your highest months of Regular Annual Salary/Earnings while you were a member of the pension plan
- the number of months used in the formula vary by employee group/pension plan
- Average Year’s Maximum Pensionable Earnings (AYMPE) – maximum figure set each calendar year by the Canadian government in accordance with average wage levels
- average of the YMPE’s in effect for the same months used in the Best Average Salary/Earnings
- the number of months used in the formula vary by employee group/pension plan
The formula to calculate your pension benefit varies by employee group and pension plan. Please refer to your employee group’s Pension Highlights documents located under the Hourly Pension Plan and Salaried Pension Plan tabs.
When you reduce your hours of work, it impacts your pension in the following ways:
- Your “Pensionable Service”[1] for the purpose of calculating the amount of your pension will decrease based on your reduced hours (Ex: Full-time workload would receive 1 year of service. If your workload is reduced to 50% of the full-time workload, then you would receive 0.5 years of Pensionable Service during the relevant period)
- If your rate of pay has not decreased, then there will be no impact to your Best Average Salary[2] since your full-time equivalent salary is used in the calculation of your Best Average Salary. Also, the calculation of Best Average Salary takes into account your highest 48 or 60 months (depending on employee group) of full-time equivalent annual salary. If you have already logged 48 or 60 months of Pensionable Service (as applicable, depending on your employee group), then any decrease in salary at the end of your employment will not be taken into account in any event.
- Contributions are calculated on the basis of full-time equivalent salary then pro-rated according to the hours worked, therefore contributions will decrease with the reduced hours.
Note that reducing your hours of work does not affect your “Pensionable Service” for the purpose of determining your “Special Retirement Date”.[3] For the sole purpose of determining a Member’s Special Retirement Date, the “Pensionable Service” of a Member while he/she is a part-time Employee is determined without proration based on hours worked.
[1] Under the Hourly Pension Plan, the term “Credited Service” is used, rather than “Pensionable Service”.
[2] Under the Hourly Pension Plan, the term “Best Average Earnings” is used, rather than “Best Average Salary”.
[3] Under the Hourly Pension Plan, the term “Special Early Retirement Date” is used, rather than “Special Retirement Date”.
Annual Pension Amount Earned in the Plan
Members will receive annual pension statements in December each year, which will provide information about your accrued pension amount as of the Annual Statement date (as at June 30th). The statement shows the annual pension that would be paid as of age 65, assuming you were to leave the University as of the June 30th date. Annual statements are posted on the Pension Portal for most members of the Salaried Pension Plan and will be mailed to all other individuals.
Pension Estimates
Salaried Pension Plan Members can now run their own pension estimates on the Pension Portal in Mosaic (located under Employee Self Service – Pension tile) using the Retirement Modelling tool. On the main page of the portal, there is a User Guide for your reference to assist with any questions. More information on this tool can also be found here.
For those Members who cannot access the Pension Portal, we recommend requesting a pension estimate as close to the time in which you are considering retirement to ensure accuracy of information. There is no charge when requesting a pension estimate.
Commuted Values
We do not provide estimates of commuted values prior to retirement as these numbers are based on actuarial assumptions and interest rates that fluctuate from month to month which can significantly impact the value.
For a description of how Commuted Values are calculated for Salaried Pension Plan members, click here.
The pension plan requires that employees make mandatory pension contributions set out in the plan rules and based on their employee group. Please refer to your employee group’s Pension Highlights documents located under the Hourly Pension Plan and Salaried Pension Plan tabs to see the contribution formula for your employee group.
The University’s contributions to the pension plans are not directly related to employee contributions. The level of contributions needed to pay for members’ benefits will vary depending on a number of economic and demographic factors (e.g., interest rates, investment returns on plan assets, longevity, etc.) and depends on the plan’s funded status, as set out in actuarial valuation reports prepared on a periodic basis. Recent actuarial valuation reports have revealed that the plans are fully funded, which means there is sufficient assets to cover all present and future pension obligations. For further details, please refer to the Hourly Pension Plan and Salaried Pension Plan tabs and click on “Actuarial Valuations”.
If you are a member of a registered pension plan, your PA represents Canada Customs & Revenue Agency’s estimate of the value of your pension earned in the calendar year. The PA reported on your T4 in Box 52 reduces your RRSP contribution room for the following year.
For more information on Pension Adjustments, please refer to Canada.ca at: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/about-pension-adjustment.html
Transferring in funds from another Pension Plan
If you are interested in potentially transferring your pension entitlements from your previous employer to McMaster University, you will first need to be eligible and have joined the McMaster University Salaried Pension Plan. Please speak to your contact at time of hire if you are unsure whether you’re eligible to join the pension plan. Secondly, the funds must still be with your former plan and you mustn’t have been transferred them out at any point.
To proceed with the transfer-in request, please follow the steps below:
- You as the Plan member will need to complete the Pension Transfer from Other Employer Plans form.
- Your former plan will need to complete Transfer of Past Service from a Previous Pension Plan form.
- Email both completed forms to pension@mcmaster.ca.
- Once we receive the completed forms, we will obtain a costing from our Actuaries of how much your previous service would cost to transfer to McMaster University.
- Once you review the cost, you will notify us whether you’d like to proceed with the transfer or not.
- If you would like to proceed, you will need to forward the letter summarizing the costs to your former plan so they can arrange to send McMaster University the payment.
- Once we receive the funds, this will be deposited into the pension fund and we will apply the transferred-in service to your account, which will increase your pensionable service in the Plan and may impact your Earliest Unreduced Retirement Date.
McMaster can accept funds from any Canadian pension plan, but money will be locked-in and will be administered in accordance with Ontario pension legislation. You must confirm with your former employer that they are willing to transfer funds under these conditions.
No, we cannot accept transfers from pension plans outside of Canada.
Marriage Breakdown
If your separation date is post-2012, then you need to go through the Family Valuation Process, which is provincially regulated by the Financial Services Regulatory Authority of Ontario (FSRA). The steps to do this are as follows:
- Complete the Application for Family Law Value Family Law Form 1 and provide the necessary documents that are listed in Part G. Follow the link to access the form (it is the first form listed under “Family Law – To be completed by members and/or spouses”): Application for Family Law Value Family Law Form FL-1 (fsrao.ca)
- Follow the link to find the specific McMaster Pension Plan Information needed to complete FSRA Forms. You are a member of the Salaried Pension Plan. https://hr.mcmaster.ca/app/uploads/2019/01/MacFamilyLawFormPlanInfo-1-40.pdf
- Cost: there is a $600 fee for this request. With the completed submission, please include a cheque in the amount of $600 made payable to “McMaster University” (note the reason for the cheque as family law valuation).
- Delivery: the completed forms and supporting documents can be scanned and then mailed to the following address: McMaster University, Attn: Retirement Plans team, Human Resources, Campus Services Building, Room 202, 1280 Main St W Hamilton ON L8S 4L8
If your separation date is pre-2012, please email the pension@mcmaster.ca inbox with your inquiry.
Terminating Employment
A member of the Retirement Plans team will reach out to you after your employment ends when your pension options are available. These take time to prepare as HR will need to wait for the termination to be processed through the system and for the last payroll to go through before the team can review and calculate your options.
Please ensure you keep your current mailing address up to date. If you would like your pension options emailed to you, please ensure you provide a personal email address that we can contact you at. You can email this to pension@mcmaster.ca.
You will have a few options at termination (this applies to those members who have not reached their ‘Special Retirement Date’ and those who are under age 55 when they leave McMaster):
- Transfer your commuted value (lump sum value) out of the Plan.
- Depending on the value, a portion of this may have to be transferred to a locked-in account with another financial institution where you cannot touch the money until age 55; or, it may be unlocked, in which case you can transfer a portion to a non-locked in Registered Retirement Savings Vehicle (RRSP).
- A portion of that lump sum will be paid in cash, less withholding tax.
- Note that you will not know your value until you leave McMaster and at that time you will know whether the money would be locked-in or not.
- Transfer the full lump sum value to another Defined Benefit Pension Plan
- Leave your pension with McMaster University and start collecting the unreduced pension at age 65, or anytime between age 55 and 65 if you want to take a reduced pension (this option would not be available if your pension is considered a ‘small benefit’ under pension legislation, which you will find out when you receive your options).
Please refer to your employee group’s Plan Highlights documents located under the Hourly Pension Plan and Salaried Pension Plan tabs under ‘Plan Highlights’ for specific details regarding the termination options for your situation.
Once you have made your termination election, and if you transfer your pension value out of the Plan (into a vehicle other than another registered pension plan), you may be issued a “Pension Adjustment Reversal” (“PAR”). Revenue Canada introduced the PAR for pension plan members transferring their pension entitlement out of a registered pension plan after 1996. A PAR restores lost RRSP contribution room and is the amount by which your PA’s exceed the value of your pension earned over that period.
No PAR is calculated if you retire from the pension plan.
For more information on Pension Adjustment Reversals, please refer to Canada.ca at: https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/pension-adjustment-reversal.html
Retiring from McMaster University
Please go to the “Planning for Retirement” webpage for further details on the retirement process. Another great resource to review is the How Do I Prepare for Retirement document.
Yes, for all employee groups except for those hired into Unifor on or after May 1, 2010. For employees hired into Unifor on or after May 1, 2010, you must also attain age 60 before retiring on your Special Retirement Date. The Special Retirement Date is the date at which a member can retire with an unreduced pension and will not have any further reductions to the pension amount that they have earned at their date of retirement.
Retirement options are presented to employees who have reached their ‘Special Retirement Date’ or those who have reached age 55 when they leave McMaster. The options will vary by employee group. However, most employees will be presented with pension options where they can select the form of pension that is best for their situation. In all cases, the pension is payable for the member’s lifetime. The option selected will determine how much is payable to a beneficiary or spouse upon the member’s death, if any.
Please refer to your employee group’s Plan Highlights documents located under the Hourly Pension Plan and Salaried Pension Plan tabs under ‘Plan Highlights’ for specific details regarding the retirement options for your situation.
Salaried Pension Plan Members can now run their own pension estimates to assist in their retirement planning and help to estimate their pension amount at their desired retirement date.
To access the Pension Portal, go to Mosaic – Employee Self Service and click on the Pension tile. On the home page, click on ‘Retirement Modelling’. The default estimate that appears is for age 65 (this may take a minute to load). You can click on the Assumptions under the chart to see that it does not project any earnings increases but uses your full-time equivalent status to project service. In the Calculation Details drop down, it shows how much service you would accrue if you stayed until your age 65 date. To run customized estimates, you can refer to the right side under ‘Assumptions’ and pick a Retirement Date and click through the tabs to adjust the assumptions (i.e. earnings increase, full-time equivalent status, etc.).
On the main page of the Pension Portal, there is a User Guide for your reference to assist with any questions.
For those Members who cannot access the Pension Portal, we recommend requesting a pension estimate as close to the time in which you are considering retirement to ensure accuracy of information. There is no charge when requesting a pension estimate. Please complete the Pension Estimate Request Form if you fall into this category.
Depending on your employee group, the pension options presented to you may include a guaranteed period. This period is the length of time in which your pension is guaranteed to be paid at 100% regardless of whether the member passes away earlier than this period. If the member is still alive when the guaranteed period ends, there is no change in pension payments for the member as their pension is still payable for their lifetime. There are multiple scenarios that can occur surrounding this guaranteed period and these are outlined below.
Members without an eligible spouse at retirement who elected an option with a guaranteed period
- If the member passes away before the guaranteed period ends, the named beneficiary will receive the remaining monthly pension payments until the end of the guaranteed period (at which time the payments will end); or will receive the commuted value of the remaining payments in cash, less withholding taxes. After the guaranteed period ends, there is nothing further payable.
- If the member passes away after the guaranteed period ends, there is no benefit payable to the beneficiary at the time of death.
Members with an eligible spouse at retirement who elected an option with a guaranteed period (84 months)
Note this option is only available to the Salaried Pension Plan Members (not the Hourly Pension Plan Members). There are two main options for members with a spouse and this will impact the treatment of the guaranteed period.
Joint and Survivor Pension
The member receives a pension payable for their lifetime. Upon the member’s death, the pension is payable to their spouse for their spouse’s lifetime (the amount payable depends on the option elected at retirement).
- If the member passes away before the guaranteed period ends, the spouse will continue to receive the same monthly amount as the member was receiving for the remainder of the guaranteed period. When the guaranteed period ends, the spouse will receive the reduced amount, if applicable, based on the option elected by the member at retirement. *If the spouse predeceased the member in this scenario, the remainder of the guaranteed payments would be payable in a lump sum to the member’s estate
- If the member passes away after the guaranteed period ends, the spouse will receive the reduced pension amount, if applicable, based on the option elected by the member at retirement *If the spouse predeceased the member in this scenario, then pension payments cease at time of the member’s death
Joint and Survivor Pension Reducing on First Death
The member receives a pension payable for their lifetime. Upon the member OR the spouse’s death, the pension amount would reduce in accordance with the option elected at retirement.
- If the member or spouse passes away before the guaranteed period ends, the surviving spouse will continue to receive the same monthly amount as the member was receiving for the remainder of the guaranteed period. When the guaranteed period ends, the surviving spouse will receive the reduced amount based on the option elected by the member at retirement. *If both the spouse and the member pass away before the guaranteed period ends, the remainder of the guaranteed payments would be payable in a lump sum to the last surviving spouse’s estate
- If the member or spouse passes away after the guaranteed period ends, the surviving spouse will receive the reduced pension amount based on the option elected by the member at retirement
Retiree Information
This section is for retirees currently receiving a monthly pension from one of McMaster University’s pension plans.
Retirees of the Hourly Pension Plan and Salaried Pension Plans may be eligible for pensioner increases each calendar year depending on a few factors.
Any pension in pay prior to July 1st may receive an increase to their pension amount on the following January 1st (this applies to survivor pension in pay as well). Those who retire after July 1st, would not be eligible for a pension increase until the following January 1st.
Pension increases are dependent on the pension plan fund performance and on the Consumer Price Index (CPI) in the 12 months preceding June 30. Details of how this is calculated can be found in the Pension Highlights document in your applicable employee group (click on the Hourly Pension Plan or Salaried Pension Plan tab, then on the ‘Pension Highlights’ drop-down menu)
The latest pensioner increase amounts are announced in December each year and can be found here:
Yes, the Government of Ontario passed legislation which requires that all retired and former members of Ontario registered pension plans be provided with pension statements on a biennial basis. The first pension statements were issued in December 2018 for the period from July 1, 2017 to June 30, 2018. Therefore, retirees will receive statements in December every two years after that (2020, 2022, 2024 etc.).
If you have not received a pension statement and you believe you should have, please contact the Employee Contact Centre by phone at 905-525-9140 extension 22247 or via email at hr.mcmaster@mcmaster.ca.
Retirees should complete the Retiree Address Change Form and email the completed form to hr.mcmaster@mcmaster.ca and copy pension@mcmaster.ca so that we can update your address on Mosaic, CIBC, and Sun Life, if applicable. Otherwise, you can mail a copy to McMaster University, Attn: Retirement Plans Team, Human Resources, Campus Services Building, Room 202, 1280 Main St W Hamilton ON L8S 4L8
To update your banking information with CIBC Mellon, please complete the Direct Deposit Request Form and email it to pension@mcmaster.ca. Otherwise, you can mail a copy to McMaster University, Attn: Retirement Plans Team, Human Resources, Campus Services Building, Room 202, 1280 Main St W Hamilton ON L8S 4L8. The Retirement Plans team will send the updated banking information to CIBC Mellon.
Please complete the current calendar year’s tax forms and email them to pension@mcmaster.ca. If you live outside of Canada and have foreign tax, please email us and we will provide more information.
Upon receipt, we will send the updated forms to CIBC Mellon so they can update your taxes.
Your tax slip for your pension income will be mailed by the trustee CIBC Mellon to your home address on file.
If you have any further questions, you can reach out to CIBC Mellon directly at 1-800-565-0479 from Monday to Friday between 8:30am – 6pm.
Depending on the option you elected at retirement, you may not be able to change your beneficiary.
Members who retired with an eligible spouse
Members who retired with an eligible spouse are not able to update their beneficiary once retired.
If the member passes away, the pension will be payable to their eligible spouse at retirement. If the spouse predeceased the member, then nothing* further will be payable.
*The exception will be if the member and spouse both pass away within the guaranteed period, then the amount owing will be paid to the last surviving spouse’s estate (i.e. if the spouse predeceases the member, then the member passes away within the guaranteed period, the amount owing is payable to the member’s estate. If the member passes away during the guaranteed period, the spouse receives payments in the guaranteed period and passes away before the guaranteed period ends, then the remaining guaranteed payments are payable to the spouse’s estate).
If you have questions regarding a divorce after retirement, please contact the Retirement Plans team at pension@mcmaster.ca as there are many steps required before being able to remove a spouse after retirement, if at all and this would involve Family Law Value calculations and court documents.
Members who retired without an eligible spouse
Members who retired without an eligible spouse are able to update their beneficiary only if their guaranteed period has not ended. Otherwise, once the guaranteed period ends, nothing would be payable upon the retiree’s death and therefore no beneficiary update is required.
To update your beneficiary, please complete the Designation of Beneficiary (Pension Plan) Form and email this to pension@mcmaster.ca. Otherwise, you can mail a copy to McMaster University, Attn: Retirement Plans Team, Human Resources, Campus Services Building, Room 202, 1280 Main St W Hamilton ON L8S 4L8
For those eligible for Retiree Life Insurance, please complete the Retiree Life Insurance Beneficiary Appointment Letter and email this to hr.mcmaster@mcmaster.ca and copy pension@mcmaster.ca. Otherwise, you can mail a copy to McMaster University, Attn: Retirement Plans Team, Human Resources, Campus Services Building, Room 202, 1280 Main St W Hamilton ON L8S 4L8
Further information regarding Sun Life coverage and claims information can be found on the Sun Life Benefit Information for Retirees page.
To continue to be eligible for extended health and dental post-retirement benefits, you must be covered under a provincial health care plan (OHIP or equivalent). Therefore, you are still eligible if you move to another province within Canada.
If you move outside of Canada and are no longer covered under your provincial healthcare plan, then you would not be eligible to continue post-retirement benefits.
If your spouse passes away, please contact the Employee Contact Centre by phone at 905-525-9140 extension 22247 or via email at hr.mcmaster@mcmaster.ca.
If you’re receiving benefits from Sun Life, we will remove your spouse from your coverage. If you have retiree life insurance, you may want to consider updating your Life Insurance beneficiary if this was previously allocated to your spouse. Please refer to the FAQ above.
We will add your spouse’s date of death to your pension file. There would only be an impact to your pension amount if you chose the Joint and Survivor – First Death option at retirement. This option means that your pension amount will decrease when either the retiree or spouse passes away. We would need to calculate your new decreased pension amount and, in this case, it is important to contact us in a timely manner to avoid overpayments.
In the event of your passing, the executor or surviving spouse should contact McMaster University’s Employee Contact Centre by phone at 905-525-9140 extension 22247 or via email at hr.mcmaster@mcmaster.ca to notify us. We will need the following information:
1) Member’s name and Employee ID (if known)
2) Date of death
2) Confirmation of who the person is that notified us about the death. If it is not the executor or surviving spouse, the contact should provide this information, if known
3) Confirmation of where we can send correspondence (both email and mail) and what the preferred method would be to receive the correspondence
4) Confirmation of the member’s spousal status at date of death, if known by the contact
Upon receipt of this information, a member of the Retirement Plans team will review and advise on next steps.
Group RRSP FAQs
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.
Expandable List
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.
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.
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.
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
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.
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.
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.
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.
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)
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.
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.
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. Voluntary contributions can be made either directly to Desjardins on the Group Plan Member site or via McMaster payroll deductions by completing the Voluntary Contribution Form.
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.
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 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.
You can find retirement planning information on the Group Plan Member site>Wellness Centre.
You can contribute to your RRSP until you turn 71. In December of the year you turn 71, you will be terminated from the McMaster Group RRSP and Desjardins will mail you an Benefits Options package.
McMaster remits contribution data to Desjardins at the end of each month. Desjardins will receive your last contribution at the end of the month in which your last payroll date falls, and at the same time they will be notified of your termination. It will take approximately 30 days after that for Desjardins to mail you your Termination Statement.
Desjardins will post the Termination Statement on the member website as soon as it’s available (and also mail a copy to you). You can view this by going to My Statements and documents – Forms and Documents – Benefits Statement
You must convert your RRSP to a RRIF no later than December 31st of the year you turn 71. For more information, click https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-retirement-income-fund-rrif.html
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.
Post-Retirement Benefits Frequently Asked Questions
Expandable List
Benefit plans are specific to each employee group for both active and retiree members. Differences between active and retiree plans vary based on the employee group. Benefit booklets which outline coverage in retiree plans are posted on the Human Resources website to help you understand your entitlements as a retiree.
Post-retirement benefits are administered through Sun Life Financial. Claims can be submitted via. the My Sun Life website or through paper claims. Details on this process can be found here.
To be eligible for health and dental benefits you must be enrolled in your provincial health care plan. Provincial health care plans have specific eligibility criteria should you choose to live outside of Canada.[1] Once you are no longer eligible for health and dental benefits there is no opportunity to reinstate benefits should you become re-eligible for your provincial health care plan in the future. Therefore, you should give careful consideration to potential loss of retiree health and dental benefits before you choose to live outside of Canada for all or part of the year during your retirement.
There is no impact to the life insurance benefit should you choose to live outside of Canada upon retirement.
[1] The Ontario Health Insurance Plan (OHIP) currently states “if you plan to be outside Canada for more than seven months in any 12-month period you can keep your OHIP coverage for up to two years if you: have a valid health card; make Ontario your primary home; will be in Ontario for at least 153 days a year in each of the two years immediately before you leave the country.” This eligibility criteria is subject to change and therefore it is up to the member to confirm eligibility criteria with the provincial health care plan.
If you retire prior to age 65 (collect immediate pension), you are eligible to keep your lump sum coverage or the basic coverage of 175% of salary by paying the full premium which is based on factors such as age, gender, and smoking vs. non-smoking. However, your coverage will reduce to $5,000 as of the date you elect or age 65, whichever is earlier. (Survivor Income Benefit and Optional Life coverage cease at retirement)
If you retire at age 65 (your Normal Retirement Date), you may be eligible for a Term Insurance Policy of $5,000. If you wish to convert your current insurance to a private insurance plan, you must apply within 31 days of your retirement date. Please contact Human Resources Services at extension 222-HR (x 22247) if you wish to proceed with this option. (Note: You can convert your current insurance up to a maximum of $200,000, without a medical examination, however you would be subject to payment of premiums set by Sun Life for outside of a Group Plan)