December 02, 2019

Fund Changes to Simplified Pension Plans' fund lineup

Sun Life is adding a new fund to Simplified Pension Plans' fund lineup – the Sun Life Guaranteed Daily Interest Account ("GDIA"). The GDIA will replace the Sun Life Financial Money Market Segregated Fund ("Money Market fund") as a low risk investment option.

Why are we replacing Money Market with the GDIA?

  • The after-fee return for the GDIA is generally higher than the after-fee return for the Money Market fund.
  • The GDIA offers a guaranteed return, while the Money Market fund's return depends on the performance of its investments.
  • In certain market conditions, the Money Market fund's returns could be negative, after the impact of fees. The GDIA returns will never be negative.

When will this happen?

  • The GDIA will be available to Simplified Pension Plans' fund lineup on January 10, 2020.
  • On May 4, 2020, we'll move any money plan members have in the Money Market fund into the GDIA. This includes future contributions.
  • We'll remove the Money Market fund from the fund lineup on May 5, 2020. Plan members won't have access to the fund we're removing after 4 p.m. ET on May 1st, 2020, when we process these changes.

Change to maturity process for Milestone funds
The replacement of the Money Market fund with the GDIA will change where a plan member's money moves when Milestone funds mature. At maturity, money will now move to the GDIA (previously Money Market fund). For example, when the Milestone 2020 fund matures on June 30, 2020, the money invested in it will move to the GDIA on that day.

We'll communicate the changes to plan sponsors in the next edition of GRS Matters (December 5, 2019). Also, plan members will receive a communication from Sun Life in their December month-end statement explaining each of the changes above.