Variable Benefits

Eligibility

• inactive members of the MUPP who are 55 years or over;

• active and inactive MUPP members who must convert their pension holdings into a retirement income by the end of the year in which they turn age 71;
• former MUPP members (retired or terminated who are aged 55 years or more) who have recently settled their holdings with an external financial institution and whose funds continue to be administered under the Quebec Supplemental Pension Plans Act.

Investment options

You may invest your savings in any combination of the available investment options. There are two methods when selecting investments: (1) you can select to invest in a multi-risk target date fund, “Help me do it approach” where you are pointed toward an easy fund based on your asset allocation profile and you make one decision or (2) you can construct a personalized portfolio using one or a combination of the investment options offered “Let me do it approach”.

Beneficiary

The beneficiary of the VB will be your MUPP beneficiary, subject to the prior rights of your spouse.

Under the Quebec Supplemental Pension Plans Act, the term "spouse" is defined as the person who, on the day preceding your death:

1. is married to or in civil union with you, or
2. has been living in a conjugal relationship with you and you are neither married nor in a civil union, whether the person is of the opposite or the same sex, for a period of not less than three years, or for a period of not less than one year if

• at least one child is born, or to be born, of your union;
• you have adopted jointly at least one child while living together in a conjugal relationship, or;
• one of you has adopted at least one child of the other, while living together in a conjugal relationship.

For the purpose of item (2), the birth or adoption of a child prior to a period of conjugal relationship existing on the day preceding your death may qualify a person as a spouse.

Members are strongly encouraged to consult their legal advisor with respect to any questions regarding their spousal status and beneficiary designation.

Fees

Fund management fees: In the VB, you pay fund management fees (FMFs). We include these fees in the unit price of each fund you’re invested in. FMFs include investment management fees (IMFs) and operating expenses.  The FMFs in the VB range between 0.18% - 1.12% which offer a significant savings relative to similar retail fund offerings which are in the range of 1% - 2.5%.

For illustrative purposes only, the table below provides the estimated fees based on a net rate of return of 5.5% and maximum VB payment stream over a 25-year period: 

Annual member fee: $172.12 - Part A  - until settlement of defined benefit entitlement, then Part B fees $106.79 (as of September 2023) apply. The annual member fee is charged to your account monthly.

Withdrawal fees:  No charge for scheduled withdrawals.  $20 per unscheduled withdrawal (wiring fees apply for scheduled and unscheduled withdrawals by the receiving institution).

Payment Frequency

You can schedule to receive monthly, quarterly, annual in addition to ad‐hoc lump sum payments. All cash withdrawals from your VB account are paid directly to your Canadian bank account through Electronic Fund Transfer (EFT) by Sun Life Financial. All or a portion of your money in the VB account can be transferred out (tax‐deferred) at any time to another eligible registered retirement plan.

• Scheduled payments are made directly to your bank mid‐month.
• Payment instructions remain in effect until you notify Sun Life of any changes.
• To make changes to your payment schedule, contact Sun Life at 1-888-444-2023.
• Before age 71, you can start and stop payments from the VB.

Tax treatment and tax slips

Your VB account is tax‐sheltered and tax‐deferred until withdrawals/payments are made. Taxes are automatically withheld on the full amount. However, you can request that additional tax be withheld at source. You will receive a tax slip reporting withdrawals and income tax paid for the calendar year from Sun Life Financial. You assume any tax liability that will be determined when you file your personal income tax return.

What happens to the VB balance at death?

The death benefit is your VB account balance, which will be payable to your eligible spouse (see beneficiary tab), if you have one, unless they have waived their entitlement. Your eligible spouse may elect to:

• continue to receive scheduled payments in a new account using the eligible spouse’s age;
• transfer part or all of the proceeds to another qualified plan; or,
• withdraw part or all of the proceeds as cash payment subject to tax withholding at source.

If you do not have an eligible spouse or the eligible spouse has waived their entitlement, the balance will be paid to your beneficiary or in the absence of a designated beneficiary, to your estate as a lump sum cash payment, subject to tax withholding at source.