1. Questions and answers that apply to all members and plan arrangements

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1 THE UBC FACULTY PENSION PLAN INTRODUCES SUN LIFE FINANCIAL FREQUENTLY ASKED QUESTIONS In this FAQ you will find the answers to some of the most common questions you may have about the relationship with Sun Life Financial and what it means to you and your Plan. The document is divided into sections: 1. Questions and answers that apply to all members and plan arrangements 2. Questions and answers that apply to all except Variable Payment Life Annuity (VPLA) members 3. Questions and answers that apply to each of the individual plans and arrangements 1

2 SECTION 1: Applicable to all members and plan arrangements What is changing? Sun Life Financial has been selected as the new recordkeeper and custodian for the Faculty Pension Plan (FPP), effective June The FPP will move to a co-administration model administered by the UBC Pension Administration Office and Sun Life Financial. The assets of the FPP, currently held at CIBC Mellon, are moving to Sun Life Financial. The Pension Administration Office will continue to provide member services from its location at the UBC Vancouver Campus. Why Sun Life Financial? A number of Canadian recordkeeping platforms were reviewed to ensure we continue to provide the highest level of service, tools and technology for plan members. Sun Life Financial was selected after a comprehensive review. The review committee selected Sun Life Financial for its depth of knowledge, service excellence, tools and technology. You may be familiar with Sun Life Financial, as they currently administer the Plan s guaranteed investment option and two of the Plan s retirement income options, RRIF-Type and LIF-Type Payments. They also deliver the group health and dental benefits for UBC faculty and staff. Why make a change at all? Although the FPP recordkeeping system is still doing its job, it has fallen behind current outsourced systems in terms of member and plan sponsor tools and services, accessibility and flexibility. In order to bring the FPP s in-house systems up-to-date and maintain them in the future, the accumulated cost would be more than if the FPP outsourced its systems. An independent audit of the operations and administration of the FPP also concluded that the risk would be reduced significantly using an outsourced system. In addition, the relationship with Sun Life Financial as both recordkeeper and custodian provides a more cost-effective and efficient solution than maintaining separate custodian and recordkeeper relationships. Does the transfer of my assets have any tax implications? No, there are no tax implications. Will my fund(s) be transferred to the same fund(s)? Yes. The investment options available in the FPP will remain the same at Sun Life Financial; your assets will remain invested as they were prior to the change to Sun Life Financial. After the asset transfer is completed, the assets will be held in Segregated Funds with Sun Life Financial. The term segregated refers to a special arrangement, whereby the assets held in a segregated fund are kept separate from the assets of the insurance company. This arrangement provides an extra layer of protection for unit holders (plan members), as the insurance company s creditors cannot lay claim to segregated fund assets. Please note that part of the UBC FPP Balanced Fund is not held in a segregated fund, but is held in trust and the UBC Short Term Investment Fund is not segregated. What member services will the UBC Pension Administration Office provide? The Pension Administration Office will continue to assist you with: One-on-one meetings with our member services team New member and retirement workshops General FPP inquiries and Plan information Where can I go for more information about the FPP? For more information about the UBC Faculty Pension Plan, visit the Plan s website at pensions.ubc.ca/faculty. 2 UBC FREQUENTLY ASKED QUESTIONS

3 SECTION 2: Applicable to all except VPLA Will my fees change when the FPP moves to Sun Life Financial? The Fund Management Fees (FMFs) charged to the FPP include Investment Management Fees and administration fees. The Investment Management Fees will remain the same. The administration fees are estimated to increase by 3 to 4 basis points (3-4 bps). One basis point is equal to 1/100th of 1% or 0.01%. It s important to note that the estimated cost of updating current in-house systems would have been higher than this fee increase. Once the FPP changes to daily valuation of its investment funds, a short-term trading policy will apply to reduce the cost of short-term trading to all investors: a 2% fee will be charged to your account when you initiate an interfund transfer into a fund followed by an interfund transfer out of the same fund within 30 days. This is known as short-term trading. Other than the short-term trading fees for interfund transfers, there are no fees for buying, selling or switching funds. Note: this fee does not apply to guaranteed investments or the UBC FPP Short Term Investment Fund. You can view your fee information on mysunlife.ca/ubcfpp. Select my financial centre > Accounts > Account fees. How do I register for online access? You may have already registered for access to mysunlife.ca through the UBC group health and dental benefits plan. The pension and benefits plans are now together in one location at Sun Life Financial, so if you have an access ID and password for the group health and dental benefits plan, you do not need to register again. You can use the same access ID and password to manage both the FPP and the group health and dental benefits plan. If you have not already registered on mysunlife.ca, use your Sun Life Financial account number to do so. Active and Deferred FPP members will receive this in the mail in June Supplemental Arrangement and Employee Benefits Plan members, please refer to your May 2015 letter from the UBC Pension Administration Office, RRIF/LIF-Type Payments members should refer to their statement from Sun Life Financial for this account number. Click on Don t have an Access ID? Register now in the box at the right hand side of the screen. Click on Register-retirement plan (you will need your account number see your letter from Sun Life Financial). Enter the required information and follow the prompts to complete your registration. Outside of North America, you may need to contact Sun Life Financial s Customer Care Centre to register for an access ID. Customer Care Centre Representatives are available by collect call at (country code) any business day from 5 a.m. to 5 p.m. PT. Haven t been online lately? If you have registered but not visited mysunlife.ca recently (within the last 18 months), you will need to reset your password. You can do this by selecting the I forgot my password link at mysunlife.ca/ubcfpp, or by calling Sun Life Financial s Customer Care Centre at (1-844-UBC-3131). How do I find information at mysunlife.ca/ubcfpp? See the online roadmap, available at mysunlife.ca/ubcfpp. UBC FREQUENTLY ASKED QUESTIONS 3

4 SECTION 3: 3.1 Active and Deferred Faculty Pension Plan members Daily fund valuation: you no longer have to wait until the end of the month to make changes to your plan account. Pension and group benefits information through the same dedicated sign-in page (mysunlife.ca/ubcfpp), and the same toll-free number, (1-844-UBC-3131), using a single access ID and password. Online investment changes and enhanced tools and calculators. Online quarterly statements of account with the option to opt out of paper copies. Online Personal Rate of Return. What will happen to my existing FPP account balance? Your account balance will transfer to Sun Life Financial automatically in June What if I want to change my investments? You may change your investment options prior to the transfer to Sun Life Financial by following the current process. Any changes sent to the UBC Pension Administration Office between May 26, 2015 and June 25, 2015 will be provided to Sun Life Financial to process by June 29, After the FPP transfers to Sun Life Financial, you will be able to make changes to your account either online or by phone: To change your investments online, sign in to mysunlife.ca/ubcfpp, then select my financial centre > Requests > Change investments and follow the prompts. To change your investments by phone, dial (1-844-UBC-3131). A custom sign-in page (mysunlife.ca/ubcfpp) for online access to your account Assistance registering or navigating mysunlife.ca/ubcfpp, as well as password resets Account balances, Personal Rates of Return, and statements Investment changes Guaranteed investment maturity instructions Forms Lump sum withdrawals Transfers-in from external registered plans Address changes (for deferred members only; active members continue to make address changes through the UBC Faculty/Staff Self-Service Centre at 4 UBC FREQUENTLY ASKED QUESTIONS

5 3.2 RRIF/LIF-Type Payment members Daily fund valuation: you no longer have to wait until the end of the month to make changes to your plan account. Pension and group benefits information through the same dedicated sign-in page (mysunlife.ca/ubcfpp), and the same toll-free number, (1-844-UBC-3131), using a single access ID and password. Online investment changes and enhanced tools and calculators. Online quarterly statements of account with the option to opt out of paper copies. Online Personal Rate of Return. What will happen to my existing RRIF/LIF-Type Payment Account balance? If you are currently in receipt of RRIF/LIF-Type payments, you already have online access to your accounts on mysunlife.ca. What if I want to change my investments? You may change your investment options prior to the transfer to Sun Life Financial by following the current process. Any changes sent to the UBC Pension Administration Office between May 26, 2015 and June 25, 2015 will be provided to Sun Life Financial to process by June 29, After the FPP transfers to Sun Life Financial, you will be able to make changes to your account either online or by phone: To change your investments online, sign in to mysunlife.ca/ubcfpp, then select my financial centre > Requests > Change investments and follow the prompts. To change your investments by phone, dial (1-844-UBC-3131). A custom sign-in page (mysunlife.ca/ubcfpp) for online access to your account Bank account changes Payment inquiries and payment instruction changes Assistance registering or navigating mysunlife.ca/ubcfpp, as well as password resets Account balances, Personal Rates of Return, and statements Investment changes Guaranteed investment maturity instructions Forms Lump sum withdrawals Transfers-in from external registered plans Address changes UBC FREQUENTLY ASKED QUESTIONS 5

6 3.3 Variable Payment Life Annuity (VPLA) members Pension and group benefits information is available through the same toll-free number, (1-844-UBC-3131). Bank account changes Payment inquiries Tax change requests Address changes 6 UBC FREQUENTLY ASKED QUESTIONS

7 3.4 Employee Benefit Plan (EBP) members Pension and group benefits information through the same dedicated sign-in page (mysunlife.ca/ubcfpp), and the same toll-free number, (1-844-UBC-3131), using a single access ID and password. Online investment changes and enhanced tools and calculators. Online quarterly statements of account with the option to opt out of paper copies. Online Personal Rate of Return. What will happen to my existing EBP account balance? Your account balance will transfer to Sun Life Financial automatically in May What if I want to change my investments? You may change your investment options prior to the transfer to Sun Life Financial by following the current process through Industrial Alliance. After the Employee Benefit Plan transfers to Sun Life Financial, you will be able to make changes to your account either online or by phone: To change your investments online, sign in to mysunlife.ca/ubcfpp, then select my financial centre > Requests > Change investments and follow the prompts. To change your investments by phone, dial (1-844-UBC-3131). A custom sign-in page (mysunlife.ca/ubcfpp) for online access to your account Bank account changes Payment inquiries Assistance registering or navigating mysunlife.ca/ubcfpp, as well as password resets Account balances, Personal Rates of Return, and statements Forms Investment changes Address changes (for deferred members only; active members continue to make address changes through the UBC Faculty/Staff Self-Service Centre at UBC FREQUENTLY ASKED QUESTIONS 7

8 3.5 Supplemental Arrangement members Pension and group benefits information through the same dedicated sign-in page (mysunlife.ca/ubcfpp), and the same toll-free number, (1-844-UBC-3131), using a single access ID and password. Enhanced tools and calculators. Online quarterly statements of account with the option to opt out of paper copies. Online Personal Rate of Return. What will happen to my existing Supplemental Arrangement account balance? Your account balance will transfer to Sun Life Financial automatically in May A custom sign-in page (mysunlife.ca/ubcfpp) for online access to your account Bank account changes Assistance registering or navigating mysunlife.ca/ubcfpp, as well as password resets Account balances, Personal Rates of Return, and statements Forms Address changes (for deferred members only; active members continue to make address changes through the UBC Faculty/Staff Self-Service Centre at Payment inquiries 8 UBC FREQUENTLY ASKED QUESTIONS Group Retirement Services are provided by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies. Sun Life Assurance Company of Canada, /15-kg-jc

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