Effective July 15, 2020, Sun Life added the following funds to the VRSP:

  • Sun Life 2055 Target Date Segregated Fund
  • Sun Life 2060 Target Date Segregated Fund.

Investment managers periodically add new longer-dated funds to their target date series. These match the time horizons of younger employees. Employees expecting to retire around the year 2055 or 2060 may benefit from these new funds.

What’s next?

Our records show that some of your employees were enrolled into the 2050 fund by default. Now that 2055 and 2060 funds are available under the VRSP plan, this may no longer be the best fund for them.

On November 25, 2020, any money that these employees have invested in the Sun Life 2050 Target Date Segregated Fund will automatically move to the Target Date with the maturity date prior to their 65th birthday. Any future contributions will also be directed to this fund.

With this change, your employees’ investments may get more aggressive than they have become used to, but is also expected to give them a higher rate of return over time and match their normal retirement date.

If an employee wishes to stay in the Sun Life 2050 Target Date Segregated Fund, they can change their investments and update their investment direction online before November 25, 2020.

Sun Life will communicate the changes to all concerned VRSP members at the end of September.

As a result of these changes, we encourage your employees to review their invest allocation to ensure it continues to meet their investment objectives, risk level and time horizon.

There are no additional fees associated with this transaction. Information about applicable fees is available for members on mysunlife.ca, under Account Fees menu.

Your employees won’t have access to the fund we're removing between 4 p.m. ET on November 25, 2020, and 8 a.m. ET on November 26, 2020, while we process this change. They can still view and change their other investments online during this time.

About the Sun Life Target Date Segregated Funds

The Sun Life Target Date series provides employees with built-in, well-monitored diversification. The funds are easy to understand so employees can feel comfortable about their investment decisions. The asset mix becomes more conservative as the funds get closer to their maturity date. These funds are the default funds for the VRSP.

Questions?

Please contact your Sun Life Group Retirement Services representative.