Dofasco Retirement Services

 Liuna Station is investing in the new King George Ballroom.

ATTENTION: DOFASCO EMPLOYEES 

Significant pension and benefit changes have just been announced.  Due to the magnitude of these changes, you need to get the facts and how these changes may affect your situation.  There is no charge for an initial one on one professional assessment of your financial position and retirement scenarios.  Call us today to arrange your meeting.

 

MVA(Market Value Adjustment)History

• 1984 – 1988
• 1989 – 1993
• 1994 – 1998
• 1999 – 2003
• 2004 – 2008
• 2009 – 2012

CIC Financial specializes in helping Dofasco employees with their financial planning because we have unique knowledge and experience with all aspects of the Dofasco Pension plans. We’ve helped numerous Dofasco employees receive practical advice and information regarding their financial goals. All of the following specialized services are provided at no charge to all Dofasco clients.

Pre-Retirement

• Special focus on maximizing your MVA, SRIP and annuity factors
• Organizing your Savings and RRSP’s for future income
• Budgeting and debt reduction
• Tax planning including new income splitting rules
• Income tax review of prior years for retroactive refund requests
• Insure you have up to date wills and Powers of Attorney including Power of Attorney for Personal Care (Living Will)

Retirement Date

  Happy Retirement!

 Dave L, signing off September 2011.

Happy Retirement!

Norm B. signing off, June 2009.

• Personal consultation in home or office
• Attend sign off meeting at the Dofasco Fund Office
• Coordinate SRIP startup and income tax deductionsProvide directions for fund transfers
• All forms prepared in advance for smooth income transition from payroll to pension
• All CPP and Government forms will be prepared for you

Post-Retirement

• Income Tax Return prepared annually
• Private Christmas function: December 2012
• Quarterly updates and online access to your plans
• Old Age Security (OAS) application
• Personal reviews in home or office
• Monitor tax and investment issues

What happens after I’m gone? Who will look after my family? We will look after:

• All government forms including Survivor’s pension and death benefits
• Dofasco benefits, SRIP pension and life insurance forms
• Transfers of Savings and Income Plans to your family
• All private life insurance plans
• Personal and Estate tax returns

Fund 1

For most retirees hired before 1980, this fund will provide the largest portion of your retirement income. Also known as the regular profit sharing plan, this source of funds can be used to provide income in several forms. When interest rates are high you could elect to purchase an annuity from an insurance company. There are certain advantages and disadvantages to this option. Alternatively, you could take this amount in cash, in full or part, but there are significant tax consequences to this option which need to be reviewed carefully. Finally, you could transfer this fund to a regular Registered Retirement Savings Plan (RRSP) if you do not require income immediately. However for most retirees, FUND 1 will be transferred to a Registered Retirement Income Fund (RRIF) and income will begin within a short time after their sign off date.

Fund 2

Options regarding FUND 2 are similar to FUND 1 but the “cash” option is not allowed in whole or in part. In addition there are restrictions as to the amounts allowed to be withdrawn. The provincial government regulates these amounts and the guidelines can be found at the following link:

FUND 2 INCOME

The Plan

Amounts accumulated within “THE PLAN” can be used at any time, even prior to retirement for income or lump sum purposes. Normally this portion should be invested the same as FUND 1 in order to avoid tax problems.

Group RSP

Same options as Fund 1.

5 & 10 Weeks

Dofasco retirees are entitled to transfer their unused portion of the 5 & 10 week amounts to a regular RSP or taken in cash or time. If taken in cash regular income tax is taken at source. You may be eligible to rollover these funds on a tax-free basis as a special “one time” retiring allowance. This amount does not affect your regular RRSP contribution room.

SRIP

The SRIP (Supplemental Retirement Income Plan) may pay you a monthly pension before age 65 as a bridge benefit until you are eligible for Old Age Security (OAS). In addition you may also qualify for a lifetime SRIP pension based on your final average earnings and years of service. The calculation for this pension is complex and involves several factors such as your age, years of service, final average earnings, interest rates / annuity factors and the MVA (market value adjustment). You can get an estimate through the Dofasco intranet, or contact the fund office.

CPP & OAS

The Canada Pension Plan (CPP) will allow you to begin your retirement pension as early as age 60. Old Age Security (OAS) payments will begin at age 65. Neither of these government pensions will reduce your SRIP Pension.

Pension/Fund Cost Factors

 

AGE	COST FACTOR	AGE	COST FACTOR
48	$16.672	57	$14.401
49	$16.368	58	$14.137
50	$16.105	59	$13.864
51	$15.585	60	$13.617
52	$15.572	61	$13.353
53	$15.346	62	$13.086
54	$15.155	63	$12.783
55	$14.913	64	$12.418
56	$14.619	65	$12.187

  **The cost factor reflects the purchase of $1 of pension income for a lifetime (with a minimum of at least 5 years payment)

How to use the Cost Factor: