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Hi again,
Still wondering about an answer:
So the short version of my question: What happens to the existing SFU DCPP fund if the switch to DB wins the referendum? (Not my money in the fund, but the operation and investment in the fund itself).
Does it remain a managed fund?
If not, are those of us with funds in the DCPP, who do not want to buy years of service, obliged to continue to invest them in SunLife products or can we shift to a different investment firm (keeping it in a RRSP or equivalent registered vehicle)?
That is, what is the nature of the contract with SunLife for the DCPP?
Thanks for any insight anyone might be able to provide. I would like to know the implications of this major financial decision before making that decision, and the constraints I may well find myself up against.
I should note that I am generally supportive of DB pensions. However, I do think that SFUFA has an obligation to inform us of the implications of the decision we are being asked to make.
Cheers,
Lisa
Lisa Shapiro
email: lshapiro@sfu.ca
Associate Dean, Faculty of Arts and Social Sciences
o. 778.782.9982
Professor of Philosophy
f. 778.782.3033
Simon Fraser University
Burnaby, BC V5A 1S6
Apologies if I missed this information. Currently, the SFU DCPP is a managed fund with a set of faculty trustees. While its performance isn’t off the charts, it is respectable — it has been structured to avoid deep losses, though at a cost of realizing more
modest gains. It seems that part of the argument in favour of moving to the DB plan is that those with existing investments in the DCPP can leave their funds there, thereby hedging risk of market investment (with the DB), and getting the benefits of compound
interest by leaving investments as they stand. It seems that a part of that calculation should be whether the DCPP will continued to be a managed fund, or those who choose to leave their money with SunLife will need to figure out how to invest those funds
themselves. (Maybe some people already do that, but for long term investments, I am not a micromanager.)
Thanks,
Lisa
Lisa Shapiro
email: lshapiro@sfu.ca
Associate Dean, Faculty of Arts and Social Sciences
o. 778.782.9982
Professor of Philosophy
f. 778.782.3033
Simon Fraser University
Burnaby, BC V5A 1S6
The costs on the current, updated FAQs are from 2018, not from 2014. Please see item 11 of the attached FAQs or consult the full web page of information here
Dr. Ronda Arab
Associate Professor of English
Simon Fraser University
Dear All,
My major concern:
a) Transition costs
In 2014, they were announced to be $40,000,000. Now, a consulting company has estimated them to be only $10,000,000, to be absorbed by us within 3 years by taking an additional 1% from our salary (this
is not the actual response from the Fund though!) and - please correct me if I am wrong - by excluding the opt-out for anybody. There is no guarantee that it is exactly this lower number, just estimates. And if we say "yes", and then the actual number number
turns out to be much higher, after the vote?
b)
Buy-back costs
Again,
there is only the estimate based on the old data from 2014. What are the exact costs now or what they will be in future (formula?).
c)
Joint fees
I
could not find anywhere how much it would cost, to include the spouse. Just mentioning that there are additional costs.
During
the last presentation in Vancouver, SFUFA representatives promised to try to get the updated numbers *before* the vote. This did not happen. Instead, there was a calculator provided to explain the transition only.
My
apologies, if I missed this info though.
Regarding
medical benefits: I hope it is possible to re-negotiate with administration those measly $15,000 instead of making it an argument that new plan is better because of better medical benefits, which we do need indeed. Also, our plan with Pacific Blue Cross is
not that great. My husband was enrolled in Sun Life and Standard Life earlier where they had much higher allowances for naturopath doctors, acupuncturists, chiropractors etc. with about the same fees. May be it is time to address this issue?
Regards,
Natalia
Kouzniak
<Pension-FAQs.pdf>
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