Your Benefits
| Ways to save money | Prescription Drugs
Paramedical Services
Dental Care
Wellness Dollars
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| Ideas for cutting your tax bill | Health Care Spending Account (HCSA)
HPE Retirement and Savings Program
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| Planning ahead |
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| Thinking about what you already have |
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| Understand what you really need |
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| My spouse also has a drug card. Can I give both to the pharmacist? | Most pharmacists have access to the major insurance companies’ online payment systems, so you likely can give both cards and receive maximum reimbursement at the point of sale. When it’s a smaller pharmacy, there may be a problem. If so, you can always send in paper claims with your receipts. |
| What’s a dispensing fee? | A dispensing fee is the amount that a pharmacist charges to fill your prescription. It also includes the cost of maintaining a database of your prescriptions to ensure that there are no adverse drug interactions, the time it takes to advise you on how to take your medication, as well as additional services such as home delivery, e-mail reminders or late-hour opening. These dispensing fees may range from $4 per prescription right up to $16. The Hewlett Packard Enterprise plan will provide reimbursement of dispensing fees up to $8, so it’s wise to shop around. If you need the premium services, you may be willing to pay the higher cost. If not, you may want to find a lower-cost pharmacy. |
| My prescription said one thing but the pharmacist gave me a different drug. When I asked, she said it was a generic drug, which is what our plan covers. Is this right? | Probably. Generic drugs have the same medicinal ingredients as brand name drugs and must meet the same manufacturing standards. The only difference is some of the binding agents … and the price. Our plan contains a formulary, which includes generic drugs. The formulary includes approximately 85% of the drugs most commonly prescribed in Canada. Furthermore, it’s changing all the time as new drugs come onto the market. By using your drug card, your pharmacist can automatically access that database to ensure that you’ve got the most up-to-date information. As for your prescription, note that you can still order the brand name drug, but you’ll be responsible for the difference in cost between the brand name and formulary drug. |
| How many refills of my prescription can I purchase at one time? | If your medication is considered a maintenance drug – a medication for a continuing therapy – you can purchase up to a three-month supply at one time. You may refill your prescription after two-thirds of the time has elapsed since you filled your last prescription.
If your medication is considered an acute drug – a medication for an acute illness – you can purchase only a one-month supply at one time. |
| My daughter is away at university. I would like to give her a Manulife benefit card to use when purchasing her medications. How do I get another card for her? | You can print a duplicate card directly from the Manulife Web site. Log on using your Plan Contract Number (105411 for health and dental and 105412 for your HCSA), your Plan Member/Certificate Number and your Password. Look under “Plan Documents” and click on “Benefit Card”. Select the benefit card and a PDF will open with your information. |
| Is my Manulife benefit card like a credit card? | No. Your Manulife benefit card is not like a credit card. Your benefit card allows your pharmacist to find out if the drug is eligible for coverage under the Hewlett Packard Enterprise plan. If eligible, the pharmacist can receive payment of the covered amount directly from Manulife. This means that you would be responsible for only your share of your drug costs. |
| I am in the most expensive medical option yet it doesn’t fully cover the cost of my prescription glasses. Why are the maximums so low? | Vision coverage was never meant to cover the entire cost of your prescription eyewear – it was meant to offset some of the costs of basic prescription glasses. We recognize that some people prefer more expensive frames or high index lenses; that’s their choice, but they will be responsible for the additional cost. |
| I understood that I had 80% reimbursement for massage therapy, but I was reimbursed less than that. Manulife said something about reasonable and customary? What’s that? | Reasonable and customary means that Manulife will provide reimbursement for what it knows to be the typically charged cost for a particular service. Manulife monitors the cost of different medical and dental services across the country, and is also aware of regional differences. If you were not reimbursed for the full 80%, it’s very likely that your massage therapist is charging above market rates. You may want to check with other massage therapists, or you may want to bring it to your own therapist’s attention. It’s up to you who you choose as your therapist, but you will only be reimbursed up to the reasonable and customary amount. |
| If I go to visit a paramedical practitioner, how can I be sure that they are properly licensed or accredited so that Manulife will process my claim? | All paramedical practitioners must be licensed by the appropriate licensing body of the province in which they are practising. To confirm that your practitioner is licensed, you can check with the appropriate licensing or regulatory body in your province to ensure that your paramedical practitioner is a member in good standing and would therefore be considered for reimbursement by Manulife.
Alternatively, you can contact Manulife at 1-844-546-6488, Monday to Friday, 8:00 a.m. to 8:00 p.m. (Eastern Time). You will need your Group Plan Number (105411), your Plan Member/Certificate Number and your Password. |
| What’s the difference between a formulary and a non-formulary drug? | A formulary is a list of commonly prescribed drugs that are eligible for higher levels of reimbursement within the Hewlett Packard Enterprise plan. This list includes approximately 85% of the drugs that are most commonly prescribed in Canada-generic drugs and brand name drugs that are as effective as other drugs in the market but available at a lower cost.
The reimbursement levels depend on whether your prescribed drug is on the formulary and the medical option you choose. Those employees enrolled in option 3 have 80% reimbursement on formulary drugs and 50% reimbursement on non-formulary drugs. Those in option 4 have 90% reimbursement on formulary drugs and 60% on non-formulary drugs. Talk to your doctor about drugs on the formulary that may be just as effective as the non-formulary drug you may be using. |
| How do I submit a claim so that it’s first paid out of the plan and any amount outstanding is paid from my HCSA? | When you complete your claim form, note the box at the bottom of Section 1, where it says to “Check here to use your Health Care Spending Account (HCSA) to reimburse any unpaid portion of this claim”. You’ll also need to insert the HCSA Contract Number (105412) in the box on the left. |
| If I carry a Health Care Spending Account balance forward to the next year, and then leave Hewlett Packard Enterprise during that year, will I lose that money? | Yes. If there is a balance in your HCSA when you leave Hewlett Packard Enterprise, that balance will be forfeited. However, you will have 90 days from the date you leave in which to submit any outstanding claims, but only claims incurred before your last day at work. |
| Can I add to the HCSA during the year? | In order to be tax effective, the total annual amount to be deposited into an HCSA must be set in advance of the plan year, during the annual enrollment period. Further, you can’t direct your own money to the account – the Canada Revenue Agency allows only employer contributions to be directed to an HCSA.
Nevertheless, if you experienced a life event, such as a marriage/divorce or birth/adoption of a child, you may make changes to your coverage to respond to your changing needs. If you find that you have some unused flex dollars once you’ve re-enrolled, you may allocate these unused flex dollars to your HCSA. |
| How do I know what will be reimbursed from the Health Care Spending Account (HCSA)? | The Canada Revenue Agency determines what can and cannot be reimbursed from a Health Care Spending Account, and while this information is available on the agency’s Web site, it might be quicker to call Manulife for the answer. They can be reached at 1-844-546-6488. |
| Why do I have money in my HCSA? | You would see a balance in your HCSA if you directed excess flex credits to your account. Also, in the past, if you had completed the Wellness Report Survey at enrollment, you would have seen an extra $150 deposited in your HCSA. This program is currently on hold. |
| What happens if I don’t enroll during the annual enrollment period? | If you don’t enroll, your coverage will remain unchanged; however, if you have unused flex dollars, they will be paid out as taxable cash over the course of the year. Your RRSP contribution room limit will be set to zero so any contributions that should be directed to your RRSP accounts will be directed to a non-registered account. Further, investment gains will not be tax sheltered. |
| I’ve forgotten my PIN. What can I do now? | Go to the log-in page, key in your eight-digit employee ID and click on “I Forgot My PIN”. A replacement will be sent to you by e-mail within 15 minutes. If there is no e-mail address on file, the replacement PIN will be mailed to your home. |
| What if I don’t manage to make my life event change within the 60 days? | We understand that life events can often be stressful times, which is why we give you 60 days to make any necessary changes. If you don’t register the change and make your benefits plan changes, you’ll need to wait until the next annual enrollment period and make the changes then. |
| My partner and I will be celebrating 12 months as a common law couple and I’d like to have him covered under the Hewlett Packard Enterprise plan. What do I need to do? | Congratulations. Twelve months as a common-law couple means that your partner is also deemed to be your spouse under the benefits plan. You’ll need to mark this occasion by registering your partner on HPE Benefits Enrollment Tool, and you’ll need to do it within 30 days of your 12-month anniversary and adjust your coverage.
You can find more information on life events by reviewing the Making Changes to Your Benefits section. Not only will you learn what you need do to ensure that your partner is covered, you’ll also get ideas on what to think about as you make your benefits decisions. |
| I’ve enrolled, but now I’ve changed my mind. Can I change my coverage? | If the enrollment period is still open, you can. Just log on and make your changes. Don’t forget to click on “Submit” before you log out. If you don’t, your changes will not be accepted. If you change your mind after the enrollment period is over, you’ll need to wait until the next annual enrollment, unless you experience a life event. Take your time when you complete your enrollment. Make sure you make the right choices for you and your family. |
| I’ve got questions about enrollment. Who do I call? | You can call the Hewlett Packard Enterprise Benefits Centre, at 1-844-546-6488, from Monday to Friday, 8:30 a.m. to 8:00 p.m. (Eastern Time). |
| Why do I have to pay for life insurance through payroll deductions? Why can’t I use flex credits? | Using payroll deductions is more tax effective. If the benefit is paid using flex credits, the price tags would become a taxable benefit. |
| Why can’t I use flex dollars to pay for my long-term disability coverage? | By paying for your long-term disability (LTD) coverage with payroll deductions rather than flex dollars, you are ensuring that any LTD benefits you receive will be tax free. When you consider that any LTD benefits you may receive are a percentage of your earnings, would you want to pay income tax on top of that? |
| Why can’t I waive long-term disability coverage? | Hewlett Packard Enterprise wants to ensure that every employee has a degree of protection from financial adversity. While few of us expect to be disabled, the fact is one Canadian in three can expect to be disabled through illness or injury at one point in their lives. |
| Why can’t I opt out of long-term disability coverage? It’s very expensive. | Long-term disability coverage is expensive; however, Hewlett Packard Enterprise provides you with enough flex credits to pay for Option 1. You can use these flex credits for other benefits but you must pay for your LTD coverage with payroll deductions. This means that any LTD benefit you may receive is tax free.
It’s important to note that LTD coverage is a very valuable benefit. Imagine if you were unable to work – how would you manage your fixed expenses? Hewlett Packard Enterprise wants to ensure that every employee has some degree of financial protection for the unexpected. And while you may be healthy now, studies show that one in three Canadians can expect to be off work due to illness or disability at some point in their lives. Hewlett Packard Enterprise offers you a number of different LTD options, allowing you to choose the coverage that’s right for you. |
| As a new employee, am I only allowed to choose Dental option 1 and then have to work my way up to option 3 in a couple of years? I really need that coverage now. | As a new employee, you can choose option 3 now – you don’t have to wait two years. If you are a new employee or if you’re making changes due to a life event, you can choose whichever medical and dental option you want. It’s only at annual enrollment that what we call the “staircase rule” comes into effect. This rule means you can move up or down only one medical or dental option during annual enrollment. |
What happens if I am hired after January 1st of the current plan year? |
If you are hired after the start of the plan year (1/1/20xx), your Taxable Benefits amount would be prorated by the remaining pay periods after your hire date. This amount will appear on your RL-1 or through a communicated letter providing by the HPE Benefits Centre. |
| What is a Taxable Benefit? | As a rule under tax law, all benefits derived from employment, whether it is an allowance or the provision of a benefit is taxable unless it is expressly excluded from the calculation of the employee’s income. So a taxable benefit is an employee benefit that must be taxed based on its value.
Canada and Quebec have similar rules regarding taxable benefit although they can sometime differ. As such employer paid medical and dental care is considered a taxable benefit in Quebec but not under the federal rules. This particular Quebec taxable benefit for health and dental (hereinafter “QCTB”) may apply to a flexible health plan. |
| What happens if I am hired after January 1st of the current plan year? | If you are hired after the start of the plan year (1/1/20xx) your Taxable Benefits amount would be prorated by the remaining pay periods after your hire date. This amount will appear on your RL-1 or through a communicated letter providing by the HPE Benefits Centre. |
| Do I have to enroll in the Medical and Dental plan? | Not necessarily, however if you are a Quebec resident and are eligible to a private plan, you must join that plan and provide coverage for your spouse and children. You could also choose to join your spouses’ plan as dependent. In Quebec, everyone must be covered by prescription drug insurance and only those persons who are not eligible for a private plan may register for the Public Prescription Drug Insurance Plan. |
| How do I request a duplicate tax slip? | Duplicate tax slip request can be made by contacting People Care. |
| What if I retired or plan on retiring this year? | Taxable benefit amount will be prorated based on the pay periods that you have enjoyed coverage. Retirees may be issued taxable benefit tax slips when certain retiree coverage remains employer paid during retirement. |
| What if I am on Benefit Continuance or Salary Continuance? | Depending on the particulars of your situation, you may still have a Taxable Benefit reported even if no remuneration is paid. |
| What if I am on LTD? | When on LTD, premiums are waived from the insurer and benefits will be non-taxable if premiums are employee paid; however flex credits cannot be used to cover the cost of LTD premiums. |
| How is my Taxable Benefit amount calculated? | Your taxable benefit amount is based on the estimated cost of your benefits, minus what you pay for them – your payroll deductions.
The estimated cost of your benefits is made up of:
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| When does the Quebec Taxable Benefit plan year start/end? | The taxable benefit amount is reported for the period from Jan 1, 20xx through December 31 20xx. |
| Where would I find the Quebec Taxable Benefit amount that is reported towards my Medical and Dental coverage? | That depends on whether or not you work in Quebec.
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| How is my Medical/Dental Quebec Taxable Benefit amount determined? | Your Quebec Taxable Benefit amount is based on the value of the employer paid premium related to your coverage in the manner provided for by sections 37.0.1.1 and the following of the Quebec Taxation Act, CQLR c I-3. |
| What if I moved in/out of Quebec mid-year? | If you move in/out of Quebec mid-year, your Taxable Benefit will be calculated based on the pay periods while living or working in Quebec based on the applicable Quebec rules. |
| What happens if I change my coverage mid-year (qualified life event)? | If you have a qualified life event mid-year, your Taxable Benefit amount will be prorated based on the remaining pay periods the change to your coverage was made. This will only apply to changes in option or category for Medical and or Dental. |
| What happens if I opt out of Medical/Dental coverage? | If you opt out of Medical and or Dental prior to the start of the new plan year you may not have a QCTB reported at the end of the year. Please refer to the Quebec Taxable Benefit table to determine the rates. |
| What happens if I terminate mid-year? | If you end your employment or are terminated, the Quebec Taxable Benefit reported for that plan year is prorated by the number of pay period you were employed. This amount will appear on your RL-1 or through a communicated letter providing by the HPE Benefits Centre. |
| Does the Quebec Taxable Benefit apply to me If I work and live in QC, or work in QC and live in ON? | The Quebec Taxable Benefit applies where Quebec taxation rules apply that is mainly where an employee reports for work at an establishment located in Quebec. The fact that someone is living in Ontario will not exempt the employer from applying Quebec taxable benefit rules. The person living in Ontario may be entitled to an adjustment on his tax report but it is the employee’s responsibility to enquire about it. |
| If you marry or celebrate the 12-month anniversary of your common-law relationship | You must register your new spouse within 60 days of your marriage or one-year common-law anniversary on HPE Benefits Connect. If you miss the date, you’ll have to wait until the next annual enrollment and your spouse may be required to provide proof of good health.
Before you start, decide if you want:
You may also want to change your beneficiary designations for your employee life and accident coverage. Your spouse is automatically the beneficiary of your Hewlett Packard Enterprise defined contribution plan account and your defined benefit plan, if applicable; however, you may want to update all of your Hewlett Packard Enterprise Retirement and Savings Program accounts. |
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| If you divorce or end your common-40 law relationship | You must remove your ex-spouse within 60 days of your divorce or the end of your common-law relationship on HPE Benefits Connect. Your ex-spouse is not eligible for coverage under the Hewlett Packard Enterprise plans.
Don’t forget to:
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| If you go on maternity and/or parental leave | You continue to be covered by the plan throughout your maternity and/or parental leave. This includes your flexible benefits as well as employer contributions to your Hewlett Packard Enterprise Retirement and Savings Program. The employer contributions will continue at the contribution level and earnings in effect at the start of your leave.
Upon commencing your maternity and/or parental leave you will receive communication from Aon Hewitt regarding Direct Billing for your premium payments while you are on leave. Providing your banking information will allow your coverage to continue without interruption. |
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| If you have a baby or adopt a child | You must register your new child on HPE Benefits Connect within 60 days of the child’s birth or adoption. If you miss the date, you’ll have to wait until the next annual enrollment and your child will not have coverage until the first of the year following the annual enrollment period.
Consider that:
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| If your dependent child leaves school | If your child over age 21 is no longer in school, he or she is no longer eligible for Hewlett Packard Enterprise benefits. You must remove your child from your benefits coverage on HPE Benefits Connect within 60 days of them leaving school.
Each year, employees who have dependent children in full-time attendance at a post-secondary institution (ages 21 to 25 in all provinces except Quebec, and ages 21 to 26 in Quebec) will need to confirm their eligibility. You will be notified and you’ll need to confirm your child’s attendance by the deadline. If you miss the deadline, your child’s coverage will be removed. Disabled dependents are eligible beyond the maximum age, assuming their coverage is approved by Manulife. |
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| When your dependent child reaches age 26 | Dependent children in full-time attendance at a post-secondary institution can continue to be covered until age 26. You must remove your child within 60 days of his or her birthday on HPE Benefits Connect.
If your child was disabled, either physically or mentally, before age 18 and is incapable of financial self-support, he or she will continue to be covered for benefits as long as the child:
Please note that Manulife may require medical information on your child’s disability. |
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| If your dependent child marries or enters into a common-law relationship | If your dependent child marries or enters into a common-law relationship, he or she is no longer eligible for Hewlett Packard Enterprise benefits, even if he or she is living with you. You must remove your child within 60 days of the marriage or beginning of the relationship on HPE Benefits Connect.
Hewlett Packard Enterprise may choose to do full dependent solicitation in the future. It is an employee’s responsibility to end coverage when the dependent is no longer eligible. |
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| If you become disabled | Hewlett Packard Enterprise’s short-term disability (STD) plan provides you with replacement income for up to 26 weeks of continuous absence, based on your years of service. Hewlett Packard Enterprise pays the full cost of this benefit.
If your disability continues and the carrier approves your eligibility for long-term disability benefits, you will continue to be covered by the Hewlett Packard Enterprise plan based on the options that were in place on your last day at work. This includes medical and dental coverage, life and accident coverage (including optional coverage). Note that you cannot make changes to your Hewlett Packard Enterprise Flexible Benefits Program coverage while you are on LTD. Employer contributions to your Hewlett Packard Enterprise Retirement and Savings Program will continue at the contribution level and earnings in effect at the start of your leave. |
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| When you return from disability leave | When you return from a disability leave, you may want to make changes to your benefits coverage, if you missed the Annual Enrollment open period from the past year. You’ll need to make those changes within 60 days of your return and, if you increase your life insurance coverage, you will need to provide evidence of insurability. Remember, you may move up or down one option with each enrollment. | |||||||||||||||
| If you leave Hewlett Packard Enterprise | When you leave Hewlett Packard Enterprise, your coverage ends. Any medical and dental claims must be received by Manulife within 90 days of your last day at work. | |||||||||||||||
| If you leave Hewlett Packard Enterprise as part of a workforce reduction initiative | If your departure is the result of a workforce reduction initiative, your benefits coverage will be outlined in your separation agreement letter. | |||||||||||||||
| If you retire | As you’re approaching retirement, you may want to check out the HPE portal’s Retiree Benefit site. It contains a wealth of information. For further information, please review page 13 of the Retirement & Savings Program Highlights. If you have a defined benefit component, it is especially important you access the Retirement Checklist.
When you are within one to two months of your anticipated retirement date, contact Sun Life and speak to a representative for a listing of your retirement income options. You will likely have a number of choices in how your retirement income may be paid and you may want to consider consulting with a financial advisor or other trusted professional. Note that when you retire, your coverage ends. Any medical and dental claims must be received by Manulife within 90 days of your last day at work. Depending on when you started with Hewlett Packard Enterprise (or a legacy organization), you may be entitled to post-retirement benefits. Go to the Retiree Benefit site for more information. |
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| If you move | Update your address information in Workday. |
Your Retirement
| How accurate are the retirement projections I receive in the myFiTage tool? | The projections you receive should be fairly accurate; however, your actual benefit will differ due to reasons such as earnings being different from assumed, and your Company Retirement Account benefit will also depend on your actual investment return. |
| When running retirement projections, should I use “current” or “future” dollars? | This depends on whether you would like to reflect the impact of inflation in your projections. The “current dollars” view shows what your projected benefit is worth in today’s dollars, discounting for inflation to reflect that a dollar received several years from now is not worth as much as a dollar received today. The “future dollars” view shows your actual projected benefit, without discounting for inflation. |
| Why do the retirement projection numbers I receive from the Sun Life retirement tool differ from the myFiTage tool? | The annuity rates used by the Sun Life planner differ from the myFiTage tool. The higher the annuity rates, the higher the values. The myFiTage tool uses fairly conservative annuity rates, and of course these rates change over time. |
| How do I access the HPE myFiTage tool? | Access myFiTage here. |
| Why is the balance in my DCPP account updated monthly, but not my RRSP or NREG account? | Due to privacy legislation, Sun Life is not permitted to provide that data to our pension consultants. |
| What is the difference between the Sun Life retirement planner and the myFiTage tool? | The most significant difference is that the myFiTage tool has all of the rules of the defined benefit pension plans built into it, and the Sun Life tool does not. Therefore, if you have a DB pension component, you definitely need to use the myFiTage tool. The myFiTage tool also allows you to assume a different investment mix during retirement as opposed to the investment mix you have when you are saving for retirement. The myFiTage tool also allows you to enter more specific information to calculate your OAS and CPP benefits in retirement. |
| Why do employees lose access to the myFiTage tool upon termination? | The tool assumes continuous service, so if an employee was to leave HPE, and still had access to the tool, defined benefit pension plan projections in the future would not be accurate. |
| Are the annual retirement projections in gross or net dollars? | The retirement projections are in gross dollars meaning they are before tax. |
| Why is the Quick Pension Estimate feature only available to employees nearing retirement age 55? | The Quick Pension Estimate provides a month-by-month estimate of your defined benefit pension over the next two years. Because employees are no longer earning credited service towards the defined benefit pension, the pension you have earned to-date should not change significantly from one month to the next. However, for employees who are eligible for retirement, the monthly pension and lump sum value may be more subject to change each month, due to the impact of early retirement factors, and the Quick Pension Estimate reflects these changes. |
| How do I set up a spousal RRSP account and indicate how much of my contributions I wish to direct? | To setup a Spousal RRSP account, access the Sun Life site, select “my money tools” in the drop down menu in the “my financial future” section, then select “Requests” in the top menu bar, and then “Enrol”. Then select Spousal Registered Retirement Savings Plan (RRSPS), and complete all of the required steps. The percentage you are asked to enter is the percentage of your total per pay contribution that you wish to contribute to the RRSPS. For example, if your normal per pay employee RRSP contribution amount is $100.00, and you enter 50%, then $50.00 will be directed to your RRSP, and $50.00 will be directed to the spousal RRSP.
After you complete the demographic data for your spouse, they will receive a Welcome Letter from Sun Life that will advise the spouse they need to submit a hard copy enrollment form. The spouse will also receive information to setup their own access to the Sun Life site, and their Spousal RRSP account. The employee does not have access to the Spousal RRSP account when they log into the Sun Life site. |
| How do I set up or create an RRSP account? | To setup, or create an RRSP account, access the Sun Life site, select “my money tools” in the drop down menu in the “my financial future” section, then select “Requests” in the top menu bar, and then “Enroll”. |
| What if Sun Life becomes insolvent? | As you know, HPE uses Sun Life’s investment funds within the DC pension program. Assuris is the organization that protects Canadian policyholders in the event that their life insurance company should fail. Assuris insures up to $100,000 in funds held in individual Guaranteed Investment Accounts (GIAs). In addition, the Canada Deposit Insurance Corporation (CDIC) protects eligible assets, such as Guaranteed Investment Certificates (GICs) in your DC account up to $100,000. The CDIC protection is coverage that members need to apply for as they approach $100,000 in GIAs. Therefore, the total protection available to you is $200,000, as long as your application to CDIC is made, accepted and processed.
Neither Assuris nor CDIC cover DC investments in equities, mutual funds or money market funds. However, please note that retirement savings held in market-based investments are held in segregated (separate) funds and are not included in Sun Life’s corporate assets nor are they affected by Sun Life’s financial results. It is interesting to note that insurance company failures in Canada are highly unlikely due to the close monitoring of this industry by the federal government through the Office of the Superintendent of Financial Institutions (OSFI), and through Sun Life’s own stringent requirements to have sufficient assets to pay policy-holders. |
| Is my DB pension safe? | Laws and good corporate governance are in place to help protect your DB pension. The pension fund assets are held in a separate trust account that cannot be accessed by the Company or its creditors at any time.
When there is a funding deficit, the Company is required by law to make special annual contributions to eliminate the deficit within a five-year period. Regular plan valuations will help determine the funded status and the level of special contributions the Company is required to make to the pension fund. The Ontario government currently has a program, the Pension Benefits Guarantee Fund, which provides the province’s pensioners with up to $1,000 per month in the event a plan fails to provide its full benefit upon an employer’s insolvency. |
| Why are my employee contributions being directed to a defined contribution pension plan account (DCPP) with Sun Life? | There can be two reasons for this happening.
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| What happens to the pension fund if HPE is bought or becomes insolvent? | The DB program is established for the purpose of providing benefits specified in the plan and is held in a separate trust account that cannot be accessed by the Company, future owners or its creditors at any time. |
| Why would Hewlett Packard Enterprise decide to discontinue a specific fund selection offered through Sun Life Financial within the Retirement and Savings Program? | The Pension Committee regularly monitors the investment options offered under the Retirement and Savings Program administered by Sun Life Financial. From time to time, the Pension Committee may determine that a fund should be discontinued from the line-up available through Sun Life Financial for any number of reasons. In general, before a fund is removed from the line-up, there will be a period of time during which the fund is closely monitored to determine whether the issues or concerns with the fund can be resolved. A fund will only be discontinued if there are sufficient reasons that warrant its removal such as concerns over a change within the fund manager’s organizational structure, a change in the investment personnel, a change with the investment process or any other factor which may lead to a strong likelihood that the future performance of the fund will be negatively impacted over the long term. |
| What is a Notional Account? | A Notional Account was previously used to track employee or employer contributions that had exceeded the yearly income tax act limits. No actual money is held by Sun Life. They simply act as a record keeper to track any investment gains or losses. When an employee leaves HPE, the “notional” account has to be paid through the payroll system, and is subject to tax, CPP and EI deductions. Therefore, an employee cannot transfer the balance of their notional account to an RRSP account. |
| Why are only certain investment options available through the retirement program at Sun Life Financial? | Members have access to a set list of investment options through the Hewlett Packard Enterprise Retirement and Savings Program at Sun Life Financial. This is common practice for this type of savings program. In the last few years, there has been a trend in the marketplace to reduce the number of options available to a more manageable number. This is to help ensure that sufficient information and education can be provided on each investment option so that the average plan member can make informed investment decisions.
The Pension Committee has selected a fund line-up, which they deem as most appropriate and suitable for the diverse needs of the general membership. The Pension Committee monitors these funds on an ongoing basis to ensure that they continue to remain suitable and that there continues to be a sufficient range of options for the general membership to build a diversified portfolio. The current fund line-up includes representation from the most popular types of investments available, including fixed income funds and equity funds from Canada and abroad. A series of target date funds, which rebalance its asset mix as the member approaches retirement, is also available for members who wish to take a less active role in managing their investment portfolio. The fund selection available addresses a variety of investment styles without over-complicating the decisions that plan members need to make. |
| What is the difference between an “institutional” fund vs. a “retail” fund? | Institutional and pooled funds are only available to institutional investors (like Hewlett Packard Enterprise). These funds can only be accessed if you are a member of a group retirement program (i.e., they are not distributed to individual investors). A key benefit of investing in institutional or pooled funds is the lower investment management fees typically associated with them because they are offered at the group level. In other words, this is similar to getting a group discount since multiple individual accounts are pooled together. Also, there is typically no minimum individual asset size requirement for members to invest in these funds due to the pooling of individual member accounts.
In contrast to an institutional or pooled fund, you may hear the terminology “retail” fund, which is available to all individual investors. Although they may invest in similar stocks and bonds, these funds typically carry higher investment management fees since they are not offered as part of a group arrangement. |
| How do I change my investment choices for my retirement accounts (RRSP, DCPP, NREG)? | To change your investment choices, access the Sun Life site, select the account for which you wish to change your investments, and then select “Change my investments” in the “Common actions” section. |
| How do I change my RRSP contribution percentage? | To change your RRSP contribution percentage, go to Sun Life. |
| Is my DC pension safe? | The value of your DC pension depends largely on how your investments perform. With a DC program, there are no guarantees that your returns will always be positive. However, you can help to minimize the investment risk of a DC program by ensuring that your investments are appropriately diversified based on your risk tolerance. It is strongly recommended that you consult with a qualified financial advisor and/or make use of the tools available to you through Sun Life Financial to help you match your investment strategy to your risk tolerance and retirement income needs.
Government programs also protect certain accounts in the event that a financial institution should fail. For example, if you hold Guaranteed Investment Certificates (GICs) in your DC account, the Canada Deposit Insurance Corporation (CDIC) insures eligible assets up to $100,000. In the event that Sun Life fails, Assuris protects funds held in a Guaranteed Investment Account (similar to a bank’s GIC, but for insurance companies). Certain limits apply. Neither CDIC nor Assuris cover DC investments in mutual funds or money market funds. |
| Why don’t I get a tax credit with my contributions to the Group RRSP? | You don’t get a tax credit for your contributions to the Group RRSP because you never paid tax in the first place. Your RRSP contributions are deducted before tax is calculated and deducted from your pay. |
| How are funds selected for the Hewlett Packard Enterprise Retirement and Savings Program at Sun Life Financial? | HPE has engaged a third party consultant to help with the selection of the investment options. Once it is determined which types of investment options are to be offered, funds that fulfill the mandate’s requirements are reviewed. Factors considered in the selection of the investment options include the stability of the organization and investment team, along with the consistency and transparency of the investment process. Although past performance is considered, this is not necessarily an indication of future performance. Therefore, the selection of investment options focuses on the fund managers’ potential to provide long-term future outperformance relative to the funds’ respective benchmarks. |
| What is HPE’s role in sponsoring the Retirement and Savings Program available through Sun Life Financial? | HPE helps its employees save for retirement by offering the Hewlett Packard Enterprise Retirement and Savings Program through Sun Life Financial. A Pension Committee is in place to monitor the operations of the Hewlett Packard Enterprise Retirement and Savings Program, including a regular review of the investment line-up to ensure it continues to be appropriate for the plan members. In addition to monitoring the investment options, the Pension Committee is also responsible for the selection and monitoring of the plan record keeper (Sun Life Financial).
As a plan sponsor, the Pension Committee, on behalf of HPE, has a duty to make decisions with respect to the overall needs of the general membership. |
| Why are my employee contributions being directed to a non-registered account (NREG) with Sun Life? | Your employee contributions are being directed to a NREG account with Sun Life because you have either entered zero RRSP Contribution Room limit on the Sun Life site, or your year to date RRSP contributions have exceeded the limit you entered on the tool. |
| Hewlett Packard Enterprise sponsors four separate registered pension plans. How do I determine what specific pension plan I am a member of? | Access the myFiTage tool hosted on the Sun Life site, and on the landing page in the second paragraph, you will find the name of your specific pension plan. |
| How do I change my RRSP contribution room limit? | To change your RRSP contribution room limit, go to Sun Life. |
| How do I determine if I have a Defined Benefit (DB) pension component in my pension plan | You can determine this by accessing the myFiTage on the Sun Life site. In the myFiTage, on the main page, if in the “Where do you want to go today” section, you see the option, “View my DB Pension Statement”, you have a DB component. If you do not see this option, you do not have a DB component. |
| Will I still receive the company matching contributions up to a maximum of 5%, if I have zero RRSP Contribution Room limit? | Yes, you will still receive the matching contributions into your defined contribution pension plan account. |
| What about accidental death and dismemberment insurance? | Your accident insurance (or AD&D) remains in place until you retire or turn 70 (whichever comes first). |
| I have benefits in the defined benefit component of the pension plan. My pension has always been projected to age 65; however, I’m still at work and am not ready to retire. How does my delayed retirement affect my pension benefits? | Assuming that your income remains unchanged or increases, your defined benefit monthly pension may grow as your final average earnings increase. |
| If I continue to work past age 65, can I continue to use the myFiTage tool to project my pension benefits? | No, as it was created to project benefits up to age 65. You can still access the tool to review your annual pension statement and the annual Report to Members. |
| I believe that the lump-sum value of our pension is based on the interest rates and the number of years we have until age 65. Now that I’m 65, does that change? | There are many factors that go into the calculation of a commuted value. In fact, it is hard to predict how the commuted lump-sum value of your pension will change over time. Nevertheless, even though your monthly pension may increase as your earnings increase, the actuarial factors used when calculating the lump-sum amount will decrease as you get older. |
| I am turning 65. How will this affect my benefit coverage? | Your long-term disability coverage ends six months before your 65th birthday. LTD premium deductions to your pay also end at that time. You are still eligible for short-term disability should the need arise. |
| What about life insurance? | Your basic life insurance coverage will be reduced by 50% at 12 midnight on your 65th birthday. Any optional coverage you may have will remain unchanged.
At age 70 (or when you retire), your coverage will end. That includes your basic, optional and spousal coverage. Nevertheless, you can convert your coverage through Hewlett Packard Enterprise life insurance carrier without having to provide proof of your good health. |