Post on 26-Dec-2015
TMX Group Pension Plan November & December 2013Guy Aubé
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Welcome to TMX Group Pension Plan!
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• As of January 1, 2014, the CDS Plan will be closed.
• You will receive a settlement package that outlines the options around what you can do with your CDS Plan account balance.
• You are entitled to the full account balance of your contributions and the company contributions (DPSP immediate vesting)
• This will be mailed to your home address in January 2014.
Take action!
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• Your CDS Plan assets will not transfer automatically to the TMX Plan. • You have the opportunity to transfer into the voluntary RRSP with TMX
• It is up to you to enrol in the New Plan and provide instructions for your current savings assets and future contributions. If you do not submit your enrollment for the Defined Contribution Pension Plan, you will be automatically enrolled on January 1, 2014 and default to the TDAM Balanced Index Fund. In addition, TMX will begin contributions of 4% of your base salary on your behalf.
• To enrol in the TMX Plan, simply complete the enrolment form and return it to your Payroll department.
Your plan advantage
Sources of retirement income
Canada Pension Plan (CPP)
HomeOther SavingsPersonal RRSPTMX Group Pension Plan
Primary
Secondary
Old Age Security (OAS)Supplementary
Canadians need 65% to 80% pre-retirement income replacement
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Government Benefits
Request your CPP contributions & benefit statement from: www.servicecanada.gc.ca
2013Canada
Pension Plan(CPP)
Old AgeSecurity
(OAS)
Maximum $1,012.50/month$12,150/year
$549.89/month$6,599/year
Average $596.66/month$7,160/year
$515.97/month$6,192/year
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Sponsor the program
• Company contributions• Selecting investment
managers• Selecting funds• Selecting the
record keeper• Monitoring the program• Member education
TMX Group Pension
Record keeping
• Preparing statements• Developing tools• Member education• Tracking your investments• Member inquiries
Sun Life Financial Investment Managers
Funds
• Performing research• Creating the fund• Selecting the stocks
or bonds• Buying and selling
You/member
Your Account
• Making contributions• Understanding investments• Choosing investments• Monitoring savings and
investments• Filing personal information
updates• Paying fund management
fees• Paying withdrawal fees• Seeking advice
Responsibilities
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TMX Group Pension Plan • Participation is manditory• As an existing employee of CDS you will automatically join the plan as of
January 1 2014Participation
• Up to 4% of base salary• Addtitional voluntary contributions permitted up to your maximum
allowable limit as calculated by CRAEmployees contributions
• 4% of base salary• TMX will also match your contribution based on a points schedule (age plus
yrs of service; includes CDS; formula)• Points Schedule % Group match• less than 40 50%• 40 to 60 75%• more than 60 100%
Employer contributions
• 1 free withdrawal per year. $25.00 for each subsequent withdrawal.• You may withdraw additional voluntary contributions onlyWithdrawals
• ImmediateVesting/ Locking in9
Comparing the plans
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CDS TMX Group Inc
Example : Employee 51 years old, $80,000 base salary :
Example : Employee 51 years old , 10 years of service Total Points 61, $80,000 base salary
Employer contribution
3% = $2,4003% over YMPE = $867 (optional)
4% = $3,200TMX Point Matching 100% of 4% = $3,200
Employee contribution
3% = $2,4003% over YMPE = $867 (optional)
4% = $3,200
Total $6,534 (Employee $3,267 CDS $3,267)
$960012% of base salaryEmployee 4% $3,200 TMX 8% $6,400!
Investment Management Fees
Paid by CDSExample: $100,000 account , Zero fees paid by CDS employees (taxable benefit of $300.00)
Paid by you and are deducted monthly.Example: $100,000 , Invested in the TDAM Balance Fund FMF 0.30% . Total yearly FMF Cost to employee : $300.00
Voluntary RRSP
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• This program has been set up to allow you to transfer your CDS assets and take advantage of the competitive management fees of the TMX Group Pension Plan• No ongoing contributions allowed
Benefits of your plan
* Short Term Trading Policy - A 2% fee will be charged when a plan member initiates an inter fund transfer into a fund followed by an inter fund transfer out of the same fund within 30 days.
No fees to transfer between
funds*
Free guidance and support
Company contributions
Low management
fees
Instant tax savings
Convenient payroll
deduction
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How do your fees compare?
Fixed Income
Balanced
Canadian Equity
1.38%
2.16%
2.31%
Average Retail Fees*
Highest fees in Your
Plan**
0.29%
0.60%
0.60%
US Equity
Global Equity
2.36% 0.52%
2.64% 1.12%
*As at June 28, 2013, Source: BMO fund facts, TD Asset Management, Scotiabank, RBC, CIBC Investorpos**Fund Management Fees as at November 1, 2013
International Equity 2.43% 1.05%
Target Date 2.21% 0.77%
Investment basics
Understanding risk versus reward
Rew
ard
RiskLow High
Low
Hig
h
Bond (Fixed Income) Funds
Money Market Funds
Guaranteed Funds
Balanced
For illustrative purposes only
Canadian, US, Global &International Equities
Target Date Funds
Growth of $10,000 – September 2003 – September 2013
$11,964
$12,323
$16,629
$22,331
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Sep
03
Sep
04
Sep
05
Sep
06
Sep
07
Sep
08
Sep
09
Sep
10
Sep
11
Sep
12
Sep
13
$5,000
$10,000
$15,000
$20,000
$25,000
Consumer Price Index DEX 91 Day T-Bill Index
DEX Universe Bond Index S&P/TSX Composite Index
Why diversify?
• Different investments often perform differently at any given time based on economic conditions
• Lower overall risk – with exposure to higher returns of more volatile asset classes
• Built in safety – help to avoid panic selling when markets are lower
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Choosing your Investment Approach
Built FOR Me Built BY MeChoose a single Target Date Fund
Structured to coincide with a key life event, such as retirement
Asset mix automatically changes as you get closer to your target date, reducing risk over time
Pick a fund closest to your target date (investment time horizon)
Build your portfolio using different investment funds
Match your investment risk profile with a suggested asset mix
Rebalance periodically to maintain your target asset allocation
Revisit your risk tolerance periodically- it can change over time
Review at least annually
Built FOR me or Built BY me
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Built FOR me Selection of one-stop, pre-designed portfoliosSun Life Financial GraniteTM Target date Funds
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Sun Life Financial Granite Funds
• Simplifies investment decision making process• 9 new “End-date” funds focus on investment horizon – Retirement Fund,
2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050• Asset mix automatically changes each quarter• Equity exposure decreases as fund matures• Each fund holds equal Canadian and Foreign equity exposure• The series offers a unique blend of institutional funds, covering a broad
range of asset classes, geographies, investment styles and currencies
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Sun Life Financial GraniteTM Target Date Funds
Allocations for illustrative purposes onlySource: Morningstar 2013
Risk %
Retu
rn
Year indicates target year for retirement
Granite Retirement Fund
Granite 2015
Granite 2025
Granite 2020
Granite 2030
Granite 2035
Granite 2040
Granite 2045
Granite 2050
Cash
U.S. Equity
Canadian Equity
Fixed Income
International Equity
Other
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FMF*
Sun Life Financial GraniteTM 2015 Fund 0.60%
Sun Life Financial GraniteTM 2020 Fund 0.66%Sun Life Financial GraniteTM 2025 Fund 0.71%Sun Life Financial GraniteTM 2030 Fund 0.77%Sun Life Financial GraniteTM 2035 Fund 0.77%Sun Life Financial GraniteTM 2040 Fund 0.77%Sun Life Financial GraniteTM 2045 Fund 0.77%Sun Life Financial GraniteTM 2050 Fund 0.77%Sun Life Financial GraniteTM Retirement Fund 0.65%
*Fund Management Fees as at November 1, 201323
Sun Life Financial GraniteTM Target date Funds
Built BY me A range of funds that you can choose from to build
your own portfolioYou are responsible for the percentage mix you
allocate to each asset classUse the suggested asset mix from the Asset
allocation tool
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Investment risk profiler
Assess your personal risk tolerance by completing the investment risk profiler
Investment risk profiler
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Built BY meAsset Class Fund FMF* Risk
Guaranteed • SLA 1,3 & 5 Year Guaranteed N/A Low
Fixed Income • TDAM Canadian Bond Index 0.29% Low - Moderate
Balanced • Beutel Goodman Balanced• TDAM Canadian Balanced Index
0.60%0.30% Moderate
Canadian Equity• Beutel Goodman Canadian Equity• CC&L Group Canadian Q Growth• TDAM Canadian Equity Index
0.60%0.58%0.30%
Moderate – High
U.S. Equity • SLF MFS MB US Equity• TDAM US Market Index
0.52%0.31% Moderate – High
International / Global Equity
• MFS MB International Equity• TDAM International Equity Index• CC&L Q Group Global Equity• MFS MB Global Equity• TDAM Global Equity Index
1.05%0.59%1.12%1.01%0.61%
Moderate – High
*Fund Management Fees as at November 1, 2013 27
Rates of return as at September 30, 2013
Funds 1 Yr 3 Yr 5 Yr 10 Yr
TDAM Canadian Bond Index -1.45% 3.47% 5.46% 5.10%
Beutel Goodman BalancedTDAM Canadian Balanced Index
13.64%8.86%
8.17%6.06%
7.79%5.92%
7.56%6.33%
Beutel Goodman Canadian EquityCC&L Group Canadian Q GrowthTDAM Canadian Equity Index
20.69%17.23%
7.10%
9.28%8.91%4.05%
8.83%7.48%4.80%
9.90%11.61%
8.35%SLF MFS MB US EquityTDAM US Market Index
27.08%24.17%
14.59%15.89%
8.00%8.87%
4.96%4.28%
MFS MB International EquityTDAM International Equity IndexCC&L Q Group Global EquityMFS MB Global EquityTDAM Global Equity Index
28.40%29.32%31.79%32.99%26.70%
10.58%8.64%
14.91%16.20%12.54%
8.37%5.75%9.51%
10.89%7.49%
7.64%5.15%6.44%8.68%4.70%
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RebalanceTarget Asset Mix Current Asset Mix Back to target asset
mix
Rebalancing strategy Sell Equities
Buy Bonds
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I want something that’s easy to pick
I want someone else to rebalance my investments automaticallyI want to choose my investments based on when I need my moneyI want to choose my investments based on my personal investment riskI like choosing my own funds and fund managers
I want to monitor and rebalance my own portfolio
Built FOR Me Target Date Built BY Me
Built FOR me or Built BY me…?
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Monitoring with Morningstar®
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Quicktake & Investment Reports
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Your Sun Life tools
mysunlife.ca
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Asset allocation tool
The Asset allocation tool is used to determine your tolerance to risk. Select the Asset allocation hyperlink to begin
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Retirement Planner
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Tools
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Next steps
Next Steps Enrol in the TMX Group Pension Plan
• Complete your enrolment form• Return your form to the Payroll Department
TMX Group Pension Plan• Once your enrolment is completed:
• Complete the Asset Allocation tool on line • Complete the on-line Retirement Planner
Your CDS assets • To take advantage of the low fees in TMX Group Pension Plan complete
the asset transfer form • Review your Benefit Options provided by Sun Life Financial
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Take action- Register for an Access ID
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Stay connected
mysunlife.ca
1-866-733-8612 Mobile
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Statements
Your ongoing account Monitor your account & funds on a regular basis
• Check your statements• Revisit your risk tolerance• Rebalance your funds according to your risk tolerance• Review your information with a Financial Planner
Notify Sun Life Financial of changes• Address changes• Beneficiary changes
Stay involved with your plan through either:• Sun Life Financial member website@ www.mysunlife.ca• my Sun Life Mobile • Customer Care Centre @ 1-866-733-8612
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Thank you!