Helping you achieve financial wellbeing in retirement!

For members of the McGill University Pension Plan

McGill University –Group Retirement Savings Plans

• Group Registered Retirement Savings Plan (GRSP)• Group Locked‐In Retirement Account (GLIRA)

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Accumulation Plan Types

McGill Group Retirement Savings

Plan and Group Locked-in Retirement

Account (GRSP/GLIRA)

McGill University Pension Plan (MUPP)

• Ongoing and lump-sum contributions and transfers of non-locked in and locked-in funds

• Ongoing contributions and transfers of locked-in and non locked-in funds including RRSP and LIRA

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You have 35-40 years to saveand

25-30 years to spend

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Source: CPM2014 Publ Improvement Scale B

86

87

88

89

90

91

92

93

94

95

96

60 65 70 75 80 85 90

Average Life Exp

ectancy

Male FemaleAge

Maximum Recorded Life Expectancy: 122 years – Jeanne Calment (France)

Projected Life Expectancy6

Are You Saving Enough?7

How much is enough?

Contribution rate required to replicate average

Defined Benefit pension14-16%

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How much will I need?Canadians need around 60% to 70%income replacement in retirement

Final salary

70% Ret. Years

Amount Needed

$50,000 $35,000 20 $700,00025 $875,00030 $1,050,000

$75,000 $52,500 20 $1,050,000

25 $1,312,500

30 $1,575,000

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Assumption: Indexed and Rate of Return = 2.5%

Start Early…small savings over a long period of time can make a difference…

Age at which savingstarted

Monthly contribution

Total amountcontributed

Total value @ 65 (4% average annual return

Total value @ 65 (5% average annual return)

25 $125 $60,000 $147,745 $190,75335 $167 $60,000 $115,906 $138,98745 $250 $60,000 $91,694 $102,75855 $500 $60,000 $73,625 $77,641

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Retirement Income Calculator

Sample – CRA Notice of Assessment

You are responsible for ensuring that the combination of all contributions towards a RRSP, whether in the McGill GRSP or other personal RRSPs do not exceed the CRA maximum limits in any given year.

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Why the McGill GRSP & GLIRA?

Potential to lower investment fees -Management Expense Ratio (“MER”)

Convenience of payroll deductions and “dollar cost averaging”

Immediate tax relief at sourceOption to make lump-sum

contributions or transfer existing sums

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McGill GRSP & GLIRA -FeaturesWithdrawals permitted anytime –

including Homebuyer’s Plan, Lifelong Learning Plan

Spousal RRSPMcGill - Office of Investments has

oversight on investmentsFamiliarity with record keeper and

websiteContributions subject to CRA limits

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Transfers - McGill GRSP & GLIRATransfers permitted on tax free basisDesignated form available on website No fee to accept transfer-in Caution:Fees may be levied by transferring

institution Possible costs associated with

liquidating holdings

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Transfers - RRSP/ LIRA into MUPPDiversification - Investment options of

the MUPP Management Expense Ratio (“MER”)

higher than GRSP/GLIRA but lower than retail offerings

May not access funds prior to retirement/termination

No Home Buyers’ Plan & Lifelong Learning Plan withdrawals permitted

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What is a spousal RRSP?

Way to split income with spouse (or common-law partner)

Shift income from higher tax bracket to spouse in lower tax bracket

Contributor obtains the tax deduction Plan assets belong to spouse Spouse pays taxes on withdrawals (after

two calendar years from year of deposit)

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Spousal RRSP Contributions after age 71RRSP contributions not permitted in

year after you turn age 71 If spouse is age 71 or younger, Spousal

RRSP contributions are permittedSubject to having “Earned Income” in

previous year

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How to join?20

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Sign in: www.mcgill.ca/hr/pensions/mupp/mupp-login

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Step 1: Enter your contribution amount

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Step 2: Verify your contribution amount

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25

Very aggressive

Dynamic

Moderate

Conservative

Cautious

Very cautious

Aggressive

RISK

RETURN

BondsCanadian Equity

International Equity

50%50%

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Or

Glide Path

Equity Funds

Fixed Income Fund

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Step 3: Select your investment options

TD Emerald Low Volatility Canadian Equity Pooled Fund Trust

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TD Emerald US Market Index Fund – C$

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TD Emerald International Equity Index Fund

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Phillips, Hager & North Bond Fund

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Phillips, Hager & North Bond Fund (at June 30/19)33

Glide Path Options

Step 4: Complete Application35

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Auto Re-Allocate Holdings will take your current future allocations and re-allocate your existing assets by pre-populating the same percentage and transferring the appropriate units

Transfers: Complete form37

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Fees Investment Management Fees:

GRSP/GLIRA - Range between 0.20 – 0.30%

MUPP – Range between 0.25 – 1.26%

Record Keeping Fees (2020):

GRSP/GLIRA: $59.76

MUPP: Part A $129.92

MUPP: Part B $62.35

Payment Issuance Fees:

GRSP: $20 per lump-sum withdrawal

MUPP: $20 per payment/transfer

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Where can I get more information?

McGill University Savings Programs Call Centre: Web Site: http://www.mcgill.ca/hr/pensions/mupp/mupp-login

Phone: 1-855-687-2111

MUPP web site: http://www.mcgill.ca/hr/pensions/group-rsp

Independent Investment Advisor

CRA website – search “RRSP”

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