Helping You Make the Most of Your Financial Future
CLAC is pleased to announce that members of its retirement savings plans will soon have new options for managing their retirement funds
CLAC offers members two retirement savings plans:
1. CLAC Group RRSP – You decide how to invest your account, choosing from a variety of professionally managed funds.
2. CLAC Pension Plan – Contributions are made to an account in your name that is invested on your behalf.
The amount you have in the retirement plan(s) depends on how much was contributed and how well your fund(s) performed over time.
Whether you participate in one, both, or neither depends on the terms of your collective agreement. If you’re not sure, just ask your steward or representative.
A common strategy for many investors is to shift their retirement savings to a more conservative investment mix as they approach retirement. Doing so will help protect your savings against large potential market swings close to retirement, which could reduce the amount of money you have available.
While it’s important to hold a variety of investments within your retirement portfolio, investments like stocks (also called equities) typically perform well over the long run but are sensitive to the short term ups and downs of the market. Fixed-income investments such as bonds tend not to grow as much as stocks do over time, but they have a steadier, more predictable growth pattern.
This fall, both the CLAC Group RRSP and CLAC Pension Plan will offer new investment options to help you secure your financial future.
CLAC Group RRSP: Two New Funds to Help You Manage Risk
Starting in October, members in the CLAC Group RRSP will be able to choose to invest their money in two new funds in addition to other funds currently available:*
1. The CLAC Balanced Fund is designed for long term growth. The investments in this fund will be identical to how the CLAC Pension Plan is currently invested.
2. The CLAC Conservative Fund will have a lower ratio of equities and a higher proportion of fixed-income investments compared to the CLAC Balanced Fund. It is designed for members who want to take on less risk with their retirement savings.
*Note that some underused or underperforming funds currently in the CLAC Group RRSP investment fund lineup will be eliminated.
CLAC Pension Plan: Worry-Free Investing
Starting in October, CLAC Pension Plan members age 53 and older will have a portion of their account gradually shifted to a new fund—the CLAC Conservative Fund— to reduce the investment risk of their portfolio as they approach retirement age. This is known as an investment glidepath, and it is designed to help protect your retirement savings against short term market volatility.
Here’s how it works:
• If you’re between ages 53-65, every 3 years, 20 percent of your total account will be moved from the CLAC Balanced Fund to the CLAC Conservative Fund.
• If you are 52 or older, you will have the opportunity to opt out of the glidepath any time before age 65. You can stay opted out until the year in which you turn 71.
• You will also be able to cancel your previous opt-out selection and return to the glidepath any time before age 71, if you wish.
• If you are younger than 53, you will continue to have 100 percent of your money invested in the CLAC Balanced Fund.
You Have Flexibility!
Whether you are a member of the CLAC Group RRSP or CLAC Pension Plan (or both), you will have the choice in how to make the most of your financial future.
• CLAC Group RRSP members continue to have several different investment funds to choose from. You can build your own portfolio and/or adjust your investments over time in the same way as the CLAC Pension Plan glidepath—or any other way you choose!
• As mentioned above, CLAC Pension Plan members can choose to opt out of the glidepath starting at age 52 (to be effective the year they turn 53).
4 Resources Available to Help You
1. Look for full details on the new investment options for both plans in the coming months from the CLAC Retirement Team. Keep your eyes open for home mailings, emails, and myCLAC updates.
2. Visit myCLAC.ca to access your CLAC retirement savings account(s) anytime.
3. Find free resources such as the iAcquaint financial planning tool and Retirement Income Calculator on myCLAC.ca.
4. Questions? Contact the CLAC Retirement Team at 1-800-210-0200 Monday to Friday from 8 a.m. to 8 p.m. ET or by email at email@example.com.