Check out the Pension Plan personalized information Web site and Retirement Planning site at uottawa.hroffice.com, two new Web sites to plan your retirement income. With the new Pension Plan personalized information Web site and the Retirement Planning site, you can access interactive calculation tools and a wealth of information to help you with financial planning for your retirement. Among others, you can calculate your estimated pension from your Pension Plan. You can also prepare a complete, confidential and personalized financial plan for your retirement using the Financial Planner tool, or visit the Learning Centre which includes useful information about financial planning and investments. Important notice! These results are merely estimates based on the information you provide. Incorrect information or assumptions that differ from reality could produce different results and substantially affect the reliability of these figures. You may want to review those assumptions periodically. Example If you assume that your salary will increase more quickly than it actually does or that your investments will earn 7% and they only earn 5%, your financial plan for retirement will differ from actual results. EASY ACCESS TO THE SITES You can access the Pension Plan personalized information Web site and the Retirement Planning site from any computer with an Internet connection and a Web browser such as Internet Explorer or Netscape. The sites have been optimized for Internet Explorer. 1. Type the site address uottawa.hroffice.com into the navigation bar of your web browser. If you wish, you can add this site address to your list of favorite bookmarks. (A direct link can also be found from the Human Resources Service Web site.) 2. Enter your user ID, which is your employee number*. 3. Enter your password. 4. Click the Enter button. YOUR PASSWORD The first time you visit the site, your temporary password will consist of your birthdate in the format YYYYMMDD and the last three digits of your Social Insurance Number (SIN)**. After you log in for the first time, you will be asked to change your password by choosing a series of letters, numbers, or a combination of both. You can also change your password at any time. To do so, simply click Password on the toolbar in the upper right corner of the screen and follow the instructions. The Pension Plan personalized information Web site and the Retirement Planning site maintain separate security. You will therefore be asked to log in again to access the Retirement Planning site. * You must enter your 6-digit employee number, including the zeros (703=000703). **YOUR PASSWORD Example: If your birthdate is February 1, 1950 and your SIN is 123 456 789, your password will be 19500201789. The first time you visit the Retirement Planning site, you will use the same temporary password as for the Pension site. When you modify your password, the new password applies only to the site you are in. If you have trouble entering the sites, contact the site administrator at 1 866 898-7460, Monday to Friday, 8 a.m. to 5 p.m. 2
The sites are innovative, interactive, easy-to-use and accessible 24 hours a day, 7 days a week WHAT YOU LL FIND ON THE PENSION PLAN PERSONALIZED INFORMATION WEB SITE In the upper right corner, click... FRANÇAIS To switch to the French-language version of the site. PASSWORD To change your password at any time. LOGOFF To end the current session in the most secure way. On the vertical navigation bar at the left, click... PRINT VERSION To obtain a printer-friendly version of the page you are viewing. HOME PAGE To go directly to the University s Human Resources site s home page at any time. PERSONALIZED INFORMATION You will find there interactive tools to help you plan your retirement. > Annual statement Allows you to download and view or print your most recent annual pension statement. > Pension projection tool Provides you an estimate of your retirement income, based on assumptions that you select and the most recent information in your file. > Retirement Planning site Helps you prepare a thorough, personalized financial plan for your retirement. 3
By following a few simple steps, the Retirement Planning site helps you create financial plans for retirement. WHAT YOU LL FIND ON THE RETIREMENT PLANNING SITE To obtain a printer-friendly version of the page you are viewing. On the vertical navigation bar at the left, click... GETTING READY FOR RETIREMENT To view a checklist of things to do a few years or a few months before you retire. FREQUENTLY ASKED QUESTIONS (FAQ) To find answers to a variety of questions related to retirement financial planning. GLOSSARY To view definitions of key terms used in the site. RELATED SITES To access useful Web sites such as the Canada Pension Plan (CPP), Quebec Pension Plan (QPP) and Old Age Security sites. EMPLOYER PLANS To access general information about Pension Plans. On the toolbar in the upper right corner, click... HOME To go directly to the site s home page at any time. SITE MAP To view a list of all the topics on the site and quickly access the one you want. COMMENTS To voice your opinion about the site. HELP To access Navigation 101, which provides tips for browsing a Web site, and Getting Around, which outlines the site structure. PASSWORD To change your password at any time. FRANÇAIS To switch to the French-language version of the site. LOGOUT To end the current session in the most secure way. 4
The Learning Centre and Financial Planner tabs give you access to information for a better planning. Click the Learning Centre tab to access information on a variety of topics, including: On the toolbar at the top, click... 3 STEPS TO RETIREMENT PLANNING Find out more about the major steps involved in financial planning for retirement. BASIC INVESTMENT CONCEPTS Learn some basic investment principles and fill out an interactive questionnaire to discover your investor profile. Click the Financial Planner tab to access this interactive simulation tool. By following a few simple steps, you can create financial plans for retirement. You can decide whether financial information about your spouse should be included or excluded from your scenarios. RETIREMENT AND INCOME TAX Get some tips to reduce your income taxes. GETTING READY FOR RETIREMENT View a checklist of things to do a few years or a few months before you retire. Your retirement financial plan allows you to set your retirement income goal, assess your various sources of retirement income (employer pension plans, government plans and personal savings) and work out whether you have enough money to live the retirement of your dreams. The Financial Planner will even suggest an action plan, which is especially useful if you won t achieve your goal. You can also modify the various assumptions and see how the results change. For your convenience, the Financial Planner automatically fills in some information, including what is already entered in the University of Ottawa Pension Plan database. The additional information you enter remains strictly confidential. 5
Useful documents. Have your bank and investment statements handy before you create your plan. FOLLOW THESE STEPS TO CREATE YOUR RETIREMENT FINANCIAL PLAN You must follow the steps in the order given in the box on the right of the screen. A red checkmark will automatically appear beside each step you have completed. You can go back to any previous step by clicking it. Click the? icon at any time to view additional information about how the Financial Planner works. For your convenience, some information has already been entered. In most cases, you can change this information if necessary. Note that the information you provide is saved whenever you click the Next or Submit button at the bottom of a page. Ready to create your plan? Click the Start button at the bottom of the first page. PLAN IDENTIFICATION First you must name your plan. Then you must indicate if you wish to include financial information about your spouse in your planning. If this isn t your first visit, you can retrieve one of the plans you saved during a previous session. PERSONAL INFORMATION Some of your personal information from the University of Ottawa Pension Plan database will be displayed automatically. Please review this information and update it if necessary. Note, however, that the changes made on the Retirement Planning site will not modify the original information stored in the Pension Plan database. If you believe that the data is incorrect, please contact the University s Human Resources Service. You will also be asked to indicate your planned retirement age or date. You can also change the default assumption with regard to annual salary increases. When the Financial Planner performs its calculations, it increases your salary by the indicated rate for each year until the time you plan to retire. For example, if your salary is $50,000 in a given year and the increase rate is 3%, the Financial Planner will calculate your salary to be $51,500 in the following year, then $53,045 in the next year, and so on. 6
Financial experts usually say that, at retirement, you will need 60% to 80% of your annual pre-retirement salary in order to maintain your lifestyle. RETIREMENT INCOME GOAL Financial experts usually say that, at retirement, you will need 60% to 80% of your annual pre-retirement salary in order to maintain your lifestyle. By default, the Financial Planner chooses a salary replacement percentage of 70%. You can change this percentage if you wish. SOURCES OF RETIREMENT INCOME The Financial Planner allows you to estimate your combined retirement income from government pension plans, employer pension plans and your personal savings, including RRSPs. By default, amounts are displayed in today s dollars. If you prefer, you can display them in future dollars by clicking the appropriate radio button. > Government plans: You can include or exclude the expected Old Age Security benefits and the expected benefits from the Canada Pension Plan (CPP) for residents of provinces other than Quebec or the Quebec Pension Plan (QPP) for Quebec residents. > Employer plans: The Financial Planner automatically generates certain information from the University of Ottawa Pension Plan database. The Employer Plans section shows the estimated annual pension you will receive at the retirement age or on the date you choose. If you have accrued pension benefits in another employer s plan, you can include these by clicking the Add a Pension button. What is the difference between today s dollars and future dollars? Suppose you are to receive $100 five years from now. That s 100 future dollars. But five years from now, $100 won t go as far as it does today because the cost of living keeps rising. Depending on the inflation rate, your 100 future dollars might only buy what $95 would buy today. In that case, your 100 future dollars would be equivalent to 95 today s dollars. Using one measure versus the other is a matter of personal preference: Do you think of money in terms of purchasing power (today s dollars) or in terms of specific sums (future dollars)? For your spouse s pension plan, enter the information as required for a defined contribution plan or a defined benefit plan. > Personal savings: You must enter each of your personal investments (for example RRSPs, mutual funds, bank accounts and stocks) by clicking the Add an Investment button. Provide the required information from your most recent investment statements or from the issuing financial institution. Once your investments have been entered, they will be displayed in table form and can be changed or deleted as necessary. WILL YOU REACH YOUR GOAL? Based on the information you have supplied in the preceding steps, the Financial Planner will perform the calculations and display the results of your plan. At this point, you will know whether or not you would reach your retirement income goal. The following information will be displayed: the date and age at which you plan to retire, your retirement income goal, and the combined income from employer pension plans, government plans (Old Age Security and CPP/QPP) and your personal savings. If you won t reach your goal, the shortfall is displayed. Once again you can choose the way the results are displayed (today s dollars or future dollars). Important notice! These results are merely estimates based on the information you provide. Incorrect information or assumptions that differ from reality could produce different results and substantially affect the reliability of these figures. You may want to review those assumptions periodically. Example If you assume that your salary will increase more quickly than it actually does or that your investments will earn 7% and they only earn 5%, your financial plan for retirement will differ from actual results. 7
All the personal information you enter and the information generated by the Pension Projection tool and the Financial Planner is strictly confidential. Click the Details button to see additional information, including a graph showing total income from all sources and the shortfall, if any, for each age during retirement. ACTION PLAN In the event that you won t reach your goal, the action plan shows the shortfall and provides suggestions about how you can make it up between now and when you retire. At this point, you can also modify various assumptions in your plan and see how the results change. If you meet your retirement income goal, the action plan encourages you to stay on track until your retirement. When you have completed your financial plan for retirement, it will be saved and you can retrieve it on your next visit. Don t forget to review it from time to time as your financial situation changes. Please continue to explore the site on your own. Remember to log out when you are done. SITE SECURITY AND CONFIDENTIALITY This site is secure and the information it contains is encrypted. All the personal information you enter and the information generated by the Pension Projection tool and the Financial Planner is strictly confidential. The database that contains this information is managed independently by the consulting firm Morneau Sobeco. Your employer does not at any time have access to the information you enter into your retirement financial plan. To maintain security, once you have finished your session, exit by clicking Logoff or Logout on the toolbar. Don t wait! Visit uottawa.hroffice.com and create your personal financial plan for retirement! Communication and graphic design: Morneau Sobeco November 2005 8