Fund changes in the Sun Life Financial Voluntary Retirement Savings Plan (VRSP)
Maturity of the Sun Life 2020 Target Date Segregated Fund
Sun Life Global Investments (SLGI) has announced the maturity process for the Sun Life 2020 Target Date Segregated Fund (“Sun Life 2020 Fund”).
When a target date fund reaches the year in its name, it will have reached its final, most conservative investment mix. The investment mix seeks to provide income and moderate long-term growth of capital for investors beginning to withdraw money.
The Sun Life 2020 fund’s asset mix will stop evolving in July 2020. It will become identical to the Sun Life Retirement fund. SLGI will automatically merge the maturing Sun Life fund into the Sun Life Retirement fund on July 8, 2020.
We will direct future contributions to the Sun Life Retirement fund for anyone invested in the Sun Life 2020 fund. Sun Life will set up an automatic process to achieve this.
The fund merger does not have any tax implications for money held in the VRSP.
Sun Life adds new 2055 and 2060 funds to VRSP
SLGI has added the 2055 and 2060 funds to the Sun Life Target Date series. Effective July 15, 2020, Sun Life will add 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.
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.
Sun Life will file an amendment with Retraite Quebec. We will post the new plan text on the VRSP website – sunlife.com/VRSP in mid-July.
How will these changes impact plan sponsors and employees?
There is no action to take. Sun Life will communicate the changes to all VRSP members in May.
Please contact your Sun Life Group Retirement Services representative.