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Re: Transferring Funds from Sunlife DC plan to College DB plan using an app?



re, 'permanently removed from my estate', explain that to your kids! not a minor consideration...

On 2022-07-28 4:08 p.m., Lyn Bartram wrote:
Exactly .Nicky. We did the math, and I think for someone like me on the cusp of retirement it’s just not worth it. And any money I move out to BCCPP is permanently removed from my estate

Sent from my iPad

On Jul 28, 2022, at 3:09 PM, Nicky Didicher <didicher@sfu.ca> wrote:



I'm still wanting to consult an advisor before deciding, but I don't think the buyback is that attractive for the close-to-retirement people (such as I). It will cost me $50,000 per year for the buyback. If I buy 5 yrs for $250,000, it adds $1,100 per month to my payout pension. That means 17 years before I've gotten back as much as I put in. Yes, I could live a long time past age 82, but I might not. And meanwhile, I could be earning interest on that $250,000 placing it somewhere else.

Nicky

------------------------------------------------------------------------
*From:* Lucas Herrenbrueck <herrenbrueck@sfu.ca>
*Sent:* July 28, 2022 2:55:28 PM
*To:* Gerardo Otero; academic-discussion@sfu.ca
*Subject:* Re: Transferring Funds from Sunlife DC plan to College DB plan using an app?

Hi Gerardo and everyone,


To provide the perspective of someone early(ish) in their career: I strongly prefer leaving my money at Sunlife, i.e. buy 0 years of BCCPP service. Why? If I stay at SFU for decades more, then my pension will be plenty to cover the needs of life. (If I leave next year, then whether I have 1 or 9 years with the BCCPP doesn't matter that much for my eventual retirement.) As we discussed on this group prior to the pension plan decision, pensions have advantages (you won't outlive your savings) and lump sum funds have advantages too (you can access more of your wealth more quickly, eg if you want to fund a house purchase or someone's college education). Why give up that flexibility? For me, I feel like BCCPP buyback is most advantageous for someone fairly close to retirement, actually, but this will depend on the price offered. (Please consult your actual financial advisor.)


Will Sunlife fees continue to be advantageous after the APP ends? (For that matter, are we sure they are now?) I don't know the answer but it will probably involve the process of "shopping"... 😉 If you've been at SFU for a good while and have an appreciable amount in your APP, you might even be able to get financial institutions to /bid/ for the right to manage your money.


Lucas

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*From:* Gerardo Otero <otero@sfu.ca>
*Sent:* July 28, 2022 2:31:39 PM
*To:* academic-discussion@sfu.ca
*Subject:* Re: Transferring Funds from Sunlife DC plan to College DB plan using an app?

Dear Colleagues:


I've found this exchange illuminating but still have a question. Let me first say some of the things I think I understand properly, and then I'll raise my question:


First, whether to buy service years depends primarily on one's stage in the career. For someone like me, very close to retirement, it's probably best to just take your money and manage it at some institution. For someone early in the career, it's probably best to fully move to the BCCPP.


Second, for many years, I've been depositing my RRSP funds in my own banking institution, not at Sunlife. So, at this point, I have similar amounts at both places.


Third, if I leave what I accumulated through SFU at Sunlife, I do understand that the funds will continue to be invested and produce yields, etc. But here's where my question emerges: will the fees for these funds at Sunlife continue to be charged at lower groups rates, as they were for SFU? If not, then it's probably indifferent whether I leave them there or merge them with those from my other institution at which I have a personal investment advisor with whom I can meet in person, etc. I like this relationship but I'm not sure what is more advantageous. Any thoughts on this?


Best, Gerardo



Professor Gerardo Otero
School for International Studies
Simon Fraser University
7200-515 West Hastings Street
Vancouver, BC Canada V6B 5K3
Tel. Off: +1-778-782-4508
Website: http://www.sfu.ca/people/otero.html

------------------------------------------------------------------------
*From:* Dai Heide <dheide@sfu.ca>
*Sent:* July 28, 2022 2:17:21 PM
*To:* Steve DiPaola
*Cc:* Ronda Arab; Anke Kessler; Dylan Cooke; academic-discussion@sfu.ca
*Subject:* Re: Transferring Funds from Sunlife DC plan to College DB plan using an app? Current SunLife accounts (your legacy pension account, your group RRSP) are /not/ frozen. Assuming that your current balances will “never grow” is a recipe for potentially making some very poor financial decisions. Your balances are still invested in whatever funds you instructed them to be invested in, whether that is the SFU Balanced Fund or some other mix of available funds. You are also able still to contribute to them and balances will rise and fall in accordance with your contributions and the gains and losses of your investments. It’s easy enough to figure this out by logging in to your account and noticing your gains or losses over the last ~13 months that you have been a member of the CPP.

Whether or not SunLife will require those plans ultimately to be closed is a different question, one I have heard different answers to. It is clear from the foregoing that if you choose to move money out of one of your current accounts in order to buy service in the CPP, then you must move /all/ the money from that account. But if you are choosing not to buy service from the CPP, then your account remains as described above unless and until SunLife decides to close all legacy accounts and requires you to put your money elsewhere.

DH


***************
Dr. Dai Heide
Senior Lecturer
Dept. of Philosophy
Simon Fraser University

On Jul 28, 2022, at 2:05 PM, Steve DiPaola <sdipaola@sfu.ca <mailto:sdipaola@sfu.ca>> wrote:

Question for the group.

If you are not doing any fund transfers ( buy backs - even if you are) and simply want to understand the current state/amount of your SFU retirement plan. My understanding is, it is the combination of: your current frozen Sunlife amount ( now closed will never grow) plus your CPP amount which is based on and will grow  on years at SFU. That said there are huge questions about if the amounts can be calculated correctly now and other issues :

- How long will this money sitting in your SunLife account be maintained by SFU (is there guarantees the amount and service center will stay). - I was told that the  CPP calculator (estimator) is not accurate but will it be one day - is it now? - Sun Life and CPP have very different policies on many things like how your spouse is treated, issue if you die, ...
          These are hard to reconcile.
- There is now clear tool or place to get accurate answers as Sunlife/CPP sites/call center reps are given different answers to us all  about the same policy or deferring answer and saying look elsewhere. - We were told this was all in flux because of bargaining/final amounts/etc , so just wait till SFU  clean it up including this like tg CPP calculator - When is that?


So is this still in flux - that even without buybacks - is there a clear way to know the current  details / amounts of your retirement benefits.

Am I wrong - can we have a clear way to know. Would love a new info page or workshop. Or your best guess.

-  Steve DiPaola, PhD    -  -
 - Prof: Sch of Interactive Arts & Technology (SIAT);
 - Past Director: Cognitive Science Program;
 - - Simon Fraser University - - -
    research site: ivizlab.sfu.ca <http://ivizlab.org/>
    art work site: www.dipaola.org/art/ <http://www.dipaola.org/art/>
    our book on: AI and Cognitive Virtual Characters <http://www.igi-global.com/book/integrating-cognitive-architectures-into-virtual/146983> At Simon Fraser University, we live and work on the unceded traditional territories of the Coast Salish peoples of the xʷməθkwəy̓əm (Musqueam), Skwxwú7mesh (Squamish), and Səl̓ílwətaɬ (Tsleil-Waututh) and in SFU Surrey, Katzie, Kwantlen, Kwikwetlem (kʷikʷəƛ̓əm), Qayqayt, Musqueam (xʷməθkʷəy̓əm), Tsawassen, and numerous Stó:lō Nations.



On Thu, Jul 28, 2022 at 11:31 AM Ronda Arab <ronda_arab@sfu.ca <mailto:ronda_arab@sfu.ca>> wrote:

    One more thing that might be useful to people:


    If you are transferring RRSP funds from Sun Life to the College
    Pension Plan (as opposed to DCP funds), you have to fill out a
    T2033. Sun Life sent one to me, and I've attached it here.


    Since the T2033 is a CRA form, I assume you have to use it to
    transfer RRSP funds from any financial institution you have them
    in, not just Sun Life.


    Best,

    Ronda


    Dr. Ronda Arab

    Associate Professor of English

    Simon Fraser University


    pronouns: she/her



    ------------------------------------------------------------------------
    *From:* Anke Kessler <akessler@sfu.ca <mailto:akessler@sfu.ca>>
    *Sent:* 27 July 2022 13:01
    *To:* Dylan Cooke
    *Cc:* academic-discussion@sfu.ca <mailto:academic-discussion@sfu.ca>
    *Subject:* Re: Transferring Funds from Sunlife DC plan to College
    DB plan using an app?
    Dylan, thanks for the detailed info, very helpful.

    Note everyone that Dylan is doing a full buyback.

    For partial buyback, I was told from multiple independent sources

    1. You *must* close your SFU DCPP account.

    2. You do*not* need the form T2151

    Cheers,

    A



    *Anke Kessler (she/her)*
    Professor and Chair | Department of Economics
    Simon Fraser University | West Mall Complex
    8888 University Dr.. Burnaby, B.C. V5A 1S6
    T: +1-778-782-3443 | http://www.sfu.ca/~akessler/
    <http://www.sfu.ca/~akessler/>
    <sfu-horizontal.png>
    /Located on territories of the Tsleil Waututh (səl̓ilw̓ətaʔɬ),
    Kwikwetlem (kʷikʷəƛ̓əm), Squamish (Sḵwx̱wú7mesh Úxwumixw) and
    Musqueam (xʷməθkʷəy̓əm) Nations./



    On Jul 25, 2022, at 4:32 PM, Dylan Cooke <dfcooke@sfu.ca
    <mailto:dfcooke@sfu.ca>> wrote:

    Hi All,

    I started this process a few weeks ago.  Below is some of what
    I've been told by Sun Life, BCCPP, CRA, and a financial
    advisor.  Please check important details with your own
    tax/financial advisor!  Based on my specific circumstances, my
    advisor recommended maximizing my purchase of service.

    Best,
    Dylan
-- Dylan Cooke, PhD, Assistant Professor
    Dept. of Biomedical Physiology and Kinesiology
    Simon Fraser University
    8888 University Drive, Burnaby, BC, Canada V5A 1S6
    778.782.7667 | dfcooke@sfu.ca <mailto:dfcooke@sfu.ca>

    First to Steve's question:  Can you buy fewer years than the
    statement of cost lists?
    Yes.  This is a maximum number of years.  I have to buy somewhat
    less than the maximum because I'm limited by my RRSP
    contribution room (see below).

    RRSP room limits for cash purchase of years of service
    My understanding is that there are no tax consequences of using
    RRSP or Sun Life DCP $ to buy years of service. If you want to
    maximize your purchase amount and your DCP + RRSP balances total
    less than that cost of buying maximum years of service, then you
    can also use cash to do this, but how much cash you can use is
    limited by your RRSP contribution room.  To find your
    contribution room, log into your CRA account > tax returns >
    2021 notice of assessment, then look for "available contribution
    room for 2022".  I was told by BCCPP and the CRA that this was
    the maximum amount of cash that could be used for service
    purchase.  Apparently if you contribute cash over your RRSP
    limit, the CRA can reject the purchase.  You should eventually
    receive a tax slip from BCCPP for any cash used to purchase
    years of service (it's perhaps equivalent to an RRSP contribution).

    Submitting forms
    Both BCCPP and Sunlife said that digital signatures on forms are
    fine.
    I submitted forms to BCCPP through their website,
    https://myaccount.pensionsbc.ca/
    <https://myaccount.pensionsbc.ca/>  > mail icon (envelope in
    circle) left of your name at top right.
    I submitted forms to Sun Life using their app.  For Sun Life I
    think you can only submit images and not PDFs.  You can either
    take photos with your phone or on a computer, open the PDF in
    acrobat > file >export to > image.

    Which forms?
    This was confusing at first.
    I called BCCPP and was told that Sun Life would ask me to have
    BCCPP fill out a form but that that wasn't possible.  Then I
    called Sun Life and indeed they wanted form T2151 filled out
    before they sent a cheque.  After some more back and forth,
    BCCPP said they could fill out T2151 after receiving the cheque
    from Sun Life and Sun Life said they could send the cheque
    /before/ receiving the form.  I hope the messaging by agents is
    clearer now...
    So I ended up filling out and sending form T2151 (supplied by
    Sun Life) and the entire statement of cost document (which
includes the "Invoice" form and the "RRSP/RPP Transfer" form). I sent all of that to both BCCPP and Sun Life.  Not sure if this
    was overkill.

    Dollar amount to enter on BCCPP RRSP/RPP Transfer form
    If your Sun Life RPP is invested, the value varies daily, so the
exact number you enter on the Transfer form is not important. Just specify that you want the whole balance transferred (if
    that's what you want).

    Latency for Sun Life cheque
    I submitted forms on July 8 and was told that the check should
    be sent to BCCPP by about July 28.  BCCPP said that their system
    will show the cheque received after 1-2 weeks.  BCCPP encouraged
    me to check that they received $ from Sun Life.  After BCCPP
    gets all $ from Sun Life and you, they begin a process with CRA
    verifying that the amount is allowed - this takes many weeks, so
    don't delay starting the process.

    Contacting BCCPP and Sun Life
    I've had pretty short wait times each time I've called BCCPP and
    Sun Life
    BCCPP:  1-888-440-0111 x1(member of CPP) x4 (buy back), then
enter your "person ID #" (from your statement of cost)  8-4:30p M-F PT
    Sun Life:  1-866-733-8612 x1 x3.   8a-8p ET
    You can also message BCCPP the same place where you submit
    documents (see above).  Latency for written response is 1-2 days
    in my experience.


    On 2022-07-25 2:20 p.m., Steve Kates wrote:
    Hello colleagues.

    I just spoke to a Sunlife representative and she told me that
    if we do nothing, SFUs arrangement with Sunlife continues until
    we retire or leave SFU.

    Anke, I was careful to specify our situation but this sounds
    like different advice than what you received.

    Comments?

    Also - will the College pension allow us to buy fewer years
    than what they specify in their communications to us, or do we
    have to buy exactly the amount they state? Does anyone know?

    who would be a good person to talk to at the college pension
    plan to answer this question?

    Thanks. Take care, everyone.

    Steve




--
Ralph Mistlberger, PhD	
Department of Psychology
Simon Fraser University
Burnaby BC Canada V5A 1S6