McGill University Pension Plan My Account Users Guide

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1 McGill University Pension Plan My Account Users Guide Accessing your online pension account is easy. Simply follow these steps: Go to: - click on My Account Sign in using your McGill identification number and the personal identification number (PIN) provided by the Pension Plan. Forgot your PIN? Scroll down the page to Lost PIN. Enter the required information and a new PIN will be sent to you via . At this point, you can access your account simply by clicking on the Continue button. Reviewing your pension status You re in! A new web page will appear showing you a snapshot of your pension holdings at the most recent valuation date. On this page you ll find valuable information and tools, including: 1. Your member data Your beneficiary If you have a spouse at the time of your death, he or she is entitled by law to all death benefits, regardless of any conflicting or prior beneficiary designations you have made. To change your beneficiary, print, complete, sign & return the form available at At the top of the page, you ll see your name, mailing address and pension account number. Immediately below that, is the member data section, which shows the information currently on file for you such as your name, date of birth, normal retirement date, spousal information and beneficiary designation. Check this information carefully. To update or correct your information, contact the HR Service Centre immediately at HRHR (4747). 1

2 2. Investment allocation information Below your member data, you ll find a summary of where your pension funds are invested. Breakdowns show the percentage of your holdings allocated to each pool (Balanced, Equity, Fixed, SRI and Money Market) for your current (ongoing) contributions, your Employee and University (accumulated) contribution account as well as an Additional Voluntary Contribution (AVCs) account, if applicable. All instructions for changes in investment distribution received by month-end will be processed at the valuation date for the following month-end. To change your investment distribution login to Minerva for Faculty & Staff Employee Benefits McGill University Pension Plan Investment Distribution or use the form which is available on our website. 3. Accumulation Fund holdings The next section summarizes the holdings in your: Employee contribution account; University contribution account, and Additional Voluntary Contribution (AVC) account, if applicable. All figures shown on the pension web site are as of the valuation date specified. Valuation Date: The pension fund assets are valued monthly, on the last business day of each month. Unit values The unit values used to place a value on your pension account holdings are shown in the box entitled Unit Values Applied. Units are valued on a market-value basis calculated as of the last business day of each month with a one-month lag. For each account you ll see details on the contributions that have been allocated to each pool, the units held (the units purchased with the contributions since you joined the pension plan), and the value of those units at the valuation date indicated. 4. A hot button that will take you to an annuity calculator At the top of the page, beside your name, you ll see a red button labeled Click here for annuity rates. Clicking on this button will take you to an annuity calculator where you can get pension estimates. The internal annuity option is only available to members of the Plan who joined or were eligible to join prior to January 1, Want an estimate of the monthly pension that a lump sum of $10,000 would buy at age 65? The annuity calculator will let you experiment with different amounts and retirement dates. 2

3 How to get an annuity estimate Now you re ready to get an annuity estimate. To access the pension calculator, go to the top of the page (once you have signed in!) and hit the red button entitled Click here for annuity rates. You ll bop to a new web page where you ll find the pension calculator. Calculating your pension amount is an easy three-step process. If you are considering retirement, we suggest that you contact Pension Administration as early as possible. We will provide you with a retirement information package, which includes information on your pension account holdings and all of the required option and transfer forms. Step 1. Getting the dates right In the center of your screen, you ll see the following box which is used for entering dates of birth and your proposed retirement or settlement date. Your date of birth and your spouse s (if you have one) will already be entered in that box. The retirement/settlement date shown will be your 65 th birthday (if you are over 65, the current date is used). If you are considering retirement, we also suggest that you attend one of our monthly Retirement and/or Settlement Option Information Sessions. For more information on these sessions and to register, please go to: If the data reflects the right ages and retirement date, simply hit the Calculate button. A new web page will appear with an annuity rate table showing the monthly pension for a lump sum payment of $10,000 at age 65. 3

4 You can avoid the manual calculation and calculate the value based on your current holdings and the interest rate assumption of your choice by skipping directly to Step. 2. Using the annuity rate table If you scroll to the bottom of the page, you will be able to input a lump-sum amount, the settlement date and the interest rate assumption of your choice. Then, press Calculate. Step 2. What amount should I use? Use the amount reported as Total Value Accumulation Fund as your lump sum amount to obtain an annuity estimate under the McGill University Pension Plan. Should you be entitled to a supplement arising from the defined benefit minimum provision of the Pension Plan, this amount will be reported to you separately. In such cases, the amount of the supplement once confirmed to you can be added to the lump sum amount being used for estimate purposes. Step 3. What interest rate assumption should I use? The first two columns will default to the current and the following month's interest rate. These are actual rates which would apply for members electing to "buy" an internal annuity from McGill. You may also enter the interest rate of your choice (between 3.0% and 6.7%) based on what you believe will be the interest rate in effect at the time you settle your holdings. You may choose from any of the annuity options that appear. If you have a spouse, you are required by law to elect a joint and survivor annuity that provides continuing payments of at least 60% for the lifetime of your spouse after your death, unless your spouse waives this right. 4

5 Want to use a different settlement date or interest rate assumption? If you want to obtain estimates using various settlement dates or a different lump-sum amount, simply use the calculator again. The calculator is available 24-hours a day, 7 days a week. External Annuity Options In addition to the option of purchasing an annuity through the McGill University Pension Plan, you may purchase an annuity through a Canadian life-insurance company. To assist you in your search for the best annuity option, you may access monthly quotes, based on the purchase of a single-life annuity at age 65 using premiums of $100,000, $250,000 and $500,000 as issued through Canadian life-insurance companies ( 5

6 Source: February 26, 2010 (does not include McGill University). This information is current as of the date posted and is subject to change without notice. These rates include a brokerage commission. Importance of Shopping Around. The tables above illustrate the importance of shopping around. For example, purchasing an annuity on February 26, 2010, for a male, age 65 with a premium of $500,000 from Canada Life would provide a monthly payment amount of $3, vs. a payment of $3, from an annuity purchased through the McGill University Pension Plan. Using the same criteria for a female, an annuity from Manulife Investments would provide a monthly payment amount of $3, vs. a payment of $3, from an annuity purchased through the McGill University Pension Plan. That s a difference of $ PER MONTH for males and $ PER MONTH for females for as long as you live. 6