Joining the plan
How the plan works
In the defined contribution (DC) pension plan, both you and TELUS Health contribute to a pension account in your name.
You are required to make basic contributions and can choose to make optional contributions. TELUS Health matches 100% of your basic contributions and 50% of your optional contributions. You decide how to invest these contributions by choosing from a list of carefully selected investment options.
When you retire, you will have an account balance that you will use as retirement income. The amount in your account depends on the contributions made and how your investments performed, after fees.
You contribute to the plan (basic and optional)
TELUS Health matches your contributions (100% and 50%)
You choose how to invest contributions
Account balance based on investment performance (net of fees)
Eligibility
Permanent full-time and part-time employees working at least 22.5 hours per week are eligible to join the plan after one year of continuous service. Part-time employees working less than 22.5 hours a week are eligible to join the plan after a two-year waiting period and have worked 700 hours or earned 35% or more of the YMPE in the two consecutive years before joining the plan. Please note that in Quebec, the two-year waiting period does not apply.
There are two options for joining once you’re eligible – active enrolment or default enrolment.
How to enrol
How to enrol
You can join the plan on the first of any month following your eligibility date. Here’s an example of a permanent full-time employee who completed the one-year waiting period and is now eligible to join:
- You were hired on March 15,
- You can join the plan any time on or after April 1 of the following year by going to generationflex.hroffice.com.
After you enrol, basic contributions will begin and you can set your optional contribution level and select your investments.
When your age plus your years of continuous service equal 35 points, you will be automatically enrolled in the pension plan on January 1 of the following year. For example:
- If you are a permanent full-time or part-time employee working at least 22.5 hours per week and have worked with TELUS Health for one year, and
- You turn 34 on May 25,
- You will be automatically enrolled in the plan on January 1 of the following year, unless you opt out during the annual enrolment period.
Keep in mind that the “permanent” eligibility rules still apply for new hires, even if you’re over 35 points when you’re hired.
When you are automatically enrolled in the plan, you and TELUS Health will make basic contributions to your DC account. You can also choose to make optional contributions. You will start seeing payroll deductions on your pay stub for the January 1 – 15 pay period.
If you do not want to participate in the plan, you must opt out each year during annual re‑enrolment. Once you are in the plan you cannot opt out in the future.
If you are not yet a member of the pension plan, and do not want to participate in the plan, you must opt out each year during the annual enrolment period. Once you are in the plan you cannot opt out in the future.
Contributions
You are required to make basic contributions to the plan. TELUS Health matches these contributions at 100%. You can also make optional contributions that TELUS Health matches at 50%.
Basic Contributions
Automatic and based on your earnings
Employee
2% of your earnings up to the YMPE + 4% of your earnings above the YMPE
TELUS Health
100% match
Optional Contributions
Your choice at any time of the year
Employee
Up to 4% of earnings
TELUS Health
50% match
Understanding “earnings”
The contributions you make to the plan are a percentage of your earnings. By default, earnings used to calculate your contributions (basic and optional) include your base pay, plus any bonus and/or commissions.
If you don’t want to include your bonus and/or commissions as part of your earnings for pension purposes, you can register your decision during the annual enrolment period. You can only make this choice once per year – you cannot change your selection part way through the year – and you must re-register your decision each year. Keep in mind that exempting your bonus and/or commission from earnings means you will save less for retirement, which may affect your retirement income goals.
How contributions can change over the year
Your per-pay contributions are calculated according to your earnings during the year, the decisions you make during the annual enrolment period or during the year, and whether or not your year-to-date earnings are below or above the YMPE.
Want to see how contributions can change over the year? Are you more like Chris or Mary?
Chris
Earns less than the YMPE.
Keep in mind…
Because Chris’ combined age and years of service are greater than 35, his membership would automatically begin on January of the following year if he hadn’t already voluntarily enrolled or had opted out during the annual enrolment period.
Meet Chris
| Age: 35 | With TELUS Health: 1 year |
| Earnings: | $45,000 base salary (at January 1) + $5,000 salary increase (on April 1) $5,000 bonus |
| Current YMPE (2023): $66,600 | |
Chris’ basic contributions are 2% of his earnings. He cannot contribute the additional 4% in basic contributions since his earnings throughout the year will not go above the YMPE.
During the annual enrolment period, Chris chooses to maximize his contributions for the year in two ways:
- By choosing the highest 4% optional contributions, and
- By including his bonus in his pensionable earnings.
Chris’ per-pay contributions over the year
The plan calculates whether Chris’ earnings are below or above the YMPE based on the sum of his semi-monthly pays in the year to date*. Throughout the year, Chris’ earnings change, which results in a change to his contributions. Below is a snapshot of how Chris’ contributions change during the year. You can click on each section for a detailed breakdown of how these amounts are calculated.
January 1 to March 31 |
April 1 to December 31 (following April 1 salary increase) |
April 15 bonus payment |
|
|---|---|---|---|
| Chris’ basic and optional contributions | $112.50 | $125.00 | $300.00 from bonus |
| TELUS Health’s basic and optional match | $75.00 | $83.34 | $200.00 from bonus |
| Total per-pay contributions | $187.50 | $208.34 | $500 one-time contribution from bonus |
| Total contributions for the period | $187.50 x 6 pays = $1,125.00 | $208.34 x 18 pays = $3,750.12 | $500 from bonus |
| Breakdown | Breakdown | Breakdown | |
Total annual contributions (Chris and TELUS Health) |
$5,375.12 |
||
*The YMPE changes each year. Go to www.canada.ca for the latest YMPE.
Note: Effective January 1, 2024, a new maximum pensionable earnings threshold under the Canada Pension Plan & Quebec Pension Plan named the Year’s Additional Maximum Pensionable Earnings (YAMPE) will be introduced. At that point, the increased contribution rate under the Pension Plan will apply starting at the YAMPE, rather than the YMPE.
Once you become a member of the pension plan, you cannot opt out in the future and must contribute the required basic contributions. You may change your optional contributions at any time.
Mary
Earns more than the YMPE.
Meet Mary
| Age: 51 | With TELUS Health: 10 years |
| Earnings: | $100,000 base salary (at January 1) + $3,000 salary increase (on April 1) $10,000 bonus |
| Current YMPE (2023): $66,600 | |
Mary’s earnings are above the YMPE, so her basic contributions will be 2% of her earnings until the sum of her semi-monthly pays go above the YMPE. Once she reaches this point, she will contribute 4% for the remainder of the year.
During the annual enrolment period, Mary chooses to maximize her contributions for the year in two ways:
- By choosing the highest 4% optional contributions, and
- By including her bonus in her pensionable earnings.
Mary’s per-pay contributions over the year
The plan calculates whether Mary’s earnings are below or above the YMPE based on the sum of her semi-monthly pays in the year to date*. Throughout the year, Mary’s earnings change, which results in a change to her contributions. Below is a snapshot of how Mary’s contributions change during the year. You can click on each section for a detailed breakdown of how these amounts are calculated.
January 1 to March 31 |
April 1 to July 15 (following April 1 salary increase) |
April 15 bonus payment |
July 31 pay (earnings approach YMPE) |
August 15 to December 31 (earnings above YMPE) |
|
|---|---|---|---|---|---|
| Mary’s basic and optional contributions | $250.00 | $257.50 | $600.00 from bonus | $312.17 | $343.34 |
| TELUS Health’s basic and optional match | $166.67 | $171.66 | $400.00 from bonus | $226.33 | $257.50 |
| Total per-pay contributions | $416.67 | $429.16 | $1,000 one-time contribution from bonus | $538.50 | $600.84 |
| Total contributions for period | $416.67 x 6 pays = $2,500.02 | $429.16 x 7 pays = $3,004.12 | $1,000 from bonus | $538.50 x 1 pays = $538.50 | $600.84 x 10 pays = $6,008.40 |
| Breakdown | Breakdown | Breakdown | Breakdown | Breakdown | |
Total annual contributions (Mary and TELUS Health) |
$13,051.04 |
||||
*The YMPE changes each year. Go to www.canada.ca for the latest YMPE.
Note: Effective January 1, 2024, a new maximum pensionable earnings threshold under the Canada Pension Plan & Quebec Pension Plan named the Year’s Additional Maximum Pensionable Earnings (YAMPE) will be introduced. At that point, the increased contribution rate under the Pension Plan will apply starting at the YAMPE, rather than the YMPE.
Once you become a member of the pension plan, you cannot opt out in the future and must contribute the required basic contributions. You may change your optional contributions at any time.
Choosing your investments
An important aspect of the DC plan is deciding how to invest the contributions made to your account.
You choose from a suite of carefully selected and professionally managed funds based on your savings goals. You can change investments at any time as your needs change.
To select and manage your investment choices, visit generationflex.hroffice.com.
There are two ways to select your investments:
Lifecycle portfolios – for those new to investing or who prefer a hands-off approach
Lifecycle portfolios are designed for investors who don’t have a lot of investment knowledge and don’t want to actively monitor their investments. Your account will be invested in the fund with the “target date” closest to your 65th birthday. Lifecycle portfolios automatically adjust your investments so they gradually move from a more aggressive portfolio to a more conservative one as you get closer to retirement.
Self-directed investment options – for those who want to actively manage their investments
You can select from a variety of individual – or à la carte – funds. This provides greater control for investors, but does require some knowledge and time devoted to investing. Before choosing this option, you should complete the Investor Profile Questionnaire to determine which mix of funds are best for you based on your risk profile. It is your responsibility to actively monitor your funds’ performance and rebalance your asset mix over time to match potential changes in your risk profile.
Please note that you can only choose one of these two options – e.g., you cannot have funds in both a Lifecyle portfolio and self-directed investment options.
Choosing a beneficiary
When you enrol in the plan, you will be required to choose a beneficiary or beneficiaries.
It’s important to keep your beneficiary up to date because he or she will receive the value of your DC account balance in the event of your death. You will need to print, sign and return a beneficiary designation form. If TELUS Health doesn’t receive a signed copy of your beneficiary designation form, your designation will not be valid.
If you have a spouse, he or she is automatically your primary beneficiary. Even if you name someone else as your beneficiary, such as a child, your spouse will remain your primary beneficiary. Whomever else you name as a beneficiary will be your contingent beneficiary and would receive the value of your DC account balance only if your spouse is not alive at the time of your death.
If you do not choose a beneficiary, and do not have a spouse when you die, your DC account balance will be paid to your estate and will be subject to tax.
Managing your pension