When you buy an annuity, you exchange a lump sum of money for a lifetime income. Various optional forms of life annuity allow you to provide continuing payments after your death to a spouse or other beneficiary. Annuities can be purchased from life insurance companies. At McGill, members of the Ï㽶ÊÓƵ Pension Plan who are members of Part A (hybrid segment) can elect to receive any Supplemental Retirement Benefit Value paid as a monthly pension.
As well, members of both the Ï㽶ÊÓƵ Pension Plan and SEU Pension Plan have access to the non-commissioned preferential annuity rates offered by Sun Life Financial.
Types of annuities
- Life only: Pension is paid for your life only. Payments cease at death.
- Life with 5, 10 or 15-year guarantee: If you die before the end of the guarantee period, full payments continue to your beneficiary until the end of the guarantee period. If you live longer than the guarantee period, payments continue until your death.
- Joint & survivor: If you die before your spouse, a chosen percentage of your pension continues to be paid for the lifetime of your spouse.
- Joint & survivor with guarantee: If you die before the end of those chosen guarantee period (5, 10 or 15 years), your full pension continues to be paid to your spouse until the end of the guarantee period. At the end of the guarantee period, a chosen percentage of your pension continues to be paid for the remainder of your spouse's life. If you and your spouse both die during the guarantee period, your full pension is paid to the estate of the last surviving spouse for the remainder of the guarantee period.
Supplemental Retirement Benefit Value (SRBV)Ìý
Members of Part A (hybrid arrangement) who are eligible to receive a Supplemental Retirement Benefit Value (SRBV) under the defined benefit minimum provision of the Pension Plan, may elect to receive this amount as a monthly pension or as a transfer value.
The previous internal annuity option of the MUPP was eliminated for all settlements after December 31, 2010.
Preferential Arrangements
McGill has negotiated preferential rates with Sun Life Financial for non-commissioned annuities for Ï㽶ÊÓƵ Pension Plan. You will find below a table which outlines the monthly payment offered by life insurance companies for single-life annuities (with no guarantee period) based on premiums of $75,000, $100,000, $250,000 and $500,000 of registered funds compared to the equivalent non-commissioned annuities issued by Sun Life Financial.ÌýÌý
Annuity Issuer Ratings - September 30, 2024 provides the credit ratings on the life insurance companies noted below. These tables are updated monthly, are provided for illustration purposes only, and are subject to change without notice.
While every effort has been made to ensure the accuracy of the information provided, the Ï㽶ÊÓƵ Pension Administration Committee and the University are not responsible or any errors or omissions, or for the results obtained from the use of such information. Members are cautioned to seek professional advice from a qualified independent advisor or financial planner.
To request a non-commissioned quote, please contact a Retirement Consultant at Sun Life at 1-888-224-3906 (option 1).
Single Life Annuity - Age 65 - No Guarantee Period - MALE
| Financial Institution | $75,000 | $100,000 | $250,000 | $500,000 |
|---|---|---|---|---|
| BMO Insurance | $422.36 | $567.14 | $1,451.36 | $2,925.07 |
| Canada Life | $404.24 | $544.09 | $1,377.53 | $2,795.46 |
| Desjardins Financial Security | $421.43 | $566.65 | $1,435.24 | $2,907.32 |
| Manulife Investments | $422.27 | $563.72 | $1,430.50 | $2,890.23 |
| Sun Life Assurance Company | $402.07 | $539.39 | $1,380.22 | $2,789.66 |
Single Life Annuity - Age 65 - No Guarantee Period - FEMALE
| Financial Institution | $75,000 | $100,000 | $250,000 | $500,000 |
|---|---|---|---|---|
| BMO Insurance | $394.96 | $530.35 | $1,357.22 | $2,735.34 |
| Canada Life | $373.13 | $502.54 | $1,290.13 | $2,616.45 |
| Desjardins Financial Security | $394.36 | $530.24 | $1,342.73 | $2,719.92 |
| Manulife Investments | $394.40 | $526.51 | $1,336.08 | $2,699.46 |
| Sun Life Assurance Company | $379.30 | $508.98 | $1,302.98 | $2,633.93 |
Source: CANNEX @ September 2024
This information is current as of the date posted and is subject to change without notice.
Sun Life Financial - non commissioned rates (same assumptions)
| Ìý | $75,000 | $100,000 | $250,000 | $500,000 |
| MALE | $420.67 | $564.18 | $1,425.27 | $2,860.42 |
|---|---|---|---|---|
| FEMALE | $396.67 | $532.13 | $1,344.88 | $2,699.46 |
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