2025 February Variable Benefit Members e-Newslette

MAKE THE MOST OF YOUR
VARIABLE BENEFIT PENSION

The beauty of a Variable Benefit (VB) pension lies in its incredible flexibility, making it a standout choice for retirees who want to tailor their income to fit their needs and lifestyle. With this flexibility you also have the opportunity to be strategic about how you manage your pension, ensuring it works for you over the long haul.

Here’s how to make the most of it:

Define what matters most to you

Retirement is your time to shine! Whether you dream of exploring new destinations, diving headfirst into hobbies, or spending quality time with loved ones, your VB can help you achieve those goals. Take a moment to revisit your priorities–are they the same as they were five or ten years

ago? Or have they shifted? Use your priorities as a guide for how you spend your retirement income.

Keep an eye on your income

and expenses

Do your spending habits match your expectations? Maybe you’re saving more on transportation than you thought, but medical costs are higher than planned. Retirement is full of surprises–regularly reviewing your income and expenses helps ensure you stay on track. Trim out any expenses that no longer serve you, and focus your spending where it counts.

Take advantage of transfer in options

Good news! You can add to your VB by transferring funds from unlocked Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), Registered Pension Plans (RPPs), and Deferred Profit Sharing Plans (DPSPs). Every little bit counts toward securing your financial future.

Be strategic with withdrawals

It’s tempting to splurge early on–after all, you’ve earned it! But keeping your money in your pension for as long as possible helps you sustain your funds over the long term, especially during a market downturn. A well-thought-out budget that incorporates your income, essential expenses, and goals will help you determine the sweet spot for withdrawals. By pacing yourself, you’ll stretch your retirement savings further and reduce financial stress in later years.

Stick with a low-fee plan

High fees can quietly eat away at your savings, but with SPP’s VB offering a management expense ratio (MER) of less than 1%**, more of your money stays invested and working for you. Over time, this can make a significant difference in your retirement income, allowing you to enjoy the rewards of your careful planning.

**Past performance does not guarantee future results.

The flexibility and benefits of your VB don’t end with retirement–when you stick with SPP you’ll continue to enjoy the same reliable plan and friendly service you trusted while saving for your future. Whether it’s the low fees, strong investment performance, or dedicated support, your pension plan remains a solid foundation for your retirement income. Plus, if your needs or preferences change, you have the option to convert your funds to an SPP annuity at any time, ensuring a guaranteed, predictable income for life.

For more information about SPP’s VB or annuities, check out our guides online at saskpension.com.

SPP's fund performance for 2024

(as of December 31, 2024)

10.6%

Balanced Fund

3.8%

Diversified Income Fund

SPP VB Payment

Here’s what you need to know about managing withdrawals from your VB account:

Minimum withdrawal requirement

CRA (Canada Revenue Agency) requires you to start making minimum withdrawals from your VB account starting the year you turn 72. If you don’t meet this minimum by year-end, the remaining amount is automatically deposited into your bank account in December.

Stay informed

Your annual VB statement clearly shows the required minimum withdrawal amount for the year, so you’ll always know what’s needed.

Payment schedule

You’ll receive your VB payment in your bank account monthly by the 20th. Choose to receive lump sum payments and/or monthly payments throughout the year, for any amount, directly to your bank account.

Withholding tax

CRA requires a withholding tax on pension

income to ensure taxes are paid throughout the year. The amount withheld depends on the type of pension and annual aggregate income received.

Monthly payments are taxed based on the TD1 credits provided
For lump sum payments of $5,000 annually or less, 10% is withheld (5% in Quebec)
For lump sum payments of $5,001 to $15,000, 20% is withheld (10% in Quebec)
For lump sum payments of $15,001 or more, 30% is withheld (15% in Quebec)

Making payment changes

Submit your request to SPP by the 10th of the month prior to the requested payment month. You can find the Payment Schedule Change form on our website, or give our office a call–we’re here to help. If you need to change your payments, you get one free change each calendar year. Each subsequent change or additional lump sum payment is charged a $50 fee.

Enduring Power of Attorney

Consider sending a copy of your Enduring Power of Attorney document to our office to keep your account up-to-date. By having your Enduring Power of Attorney on file, we can ensure your account is managed according to your wishes, should unexpected circumstances arise.

T4A

If you received a payment in 2024, watch for your T4A slip–it’s your key to filing taxes accurately. You can find your T4A slips on MySPP. You’ll also be sent a copy in the mail. This slip details any taxable benefits and taxes withheld in 2024, and it’s important because SPP income is taxable to the person named on the T4A. You must include it when filing your income tax return with CRA.

From left to right: Harlie Messer, Calla McLean, Grace Tan, Shonna McKenzie, Ashara Dana, Cheryl
Andreas,Madison Kosolofski, Kayln Tait, Anne Yamson.

SPP NEWS

From the Board Table

SPP’s Board of Trustees provides diligent oversight in all aspects of the Plan’s financial management. Key priorities include ensuring plan expenses are low so costs ...SPP’s Board of Trustees provides diligent oversight in all aspects of the Plan’s financial management. Key priorities include ensuring plan expenses are low so costs to members are managed effectively, providing robust investment management oversight, and focusing on growth–the larger the pooled assets, the lower the costs to members. In addition, the Board’s priorities include ensuring information technology systems are modern, effective and relevant; SPP is well on the way to redesigning the systems to more effectively serve members. As part of our growth strategy, we’re excited to share how our team is evolving to better serve you.

Evolving Our SPP Team

In 2024, several of our staff achieved key milestones:

Cheryl Andreas has been with SPP for 20 years, and as the Senior Director, Finance and Member Service, she brings her seasoned expertise to serve all aspects of our operations. Congratulations Cheryl!
Shonna McKenzie celebrated a milestone and has been with SPP for 5 years. As the Manager of Finance, Shonna plays a critical role in ensuring diligent and strong financial compliance. Thank you Shonna!
Calla McLean has been with SPP for 10 years. As a Senior Member Service Officer, Calla plays a key role in supervising the member service team and providing effective front-line services to our members. Thank you Calla!

We are thrilled to welcome Harlie Messer, Grace Tan, Madison Kosolofski and Anne Yamson to our team. We would also like to introduce our Manager of Business Development. Welcome to Ashara Dana who joined our team in May of 2024–thank you for providing sound leadership to our business development team to ensure our continued growth.

Ashara Dana holds a master’s degree in Business Administration and Applied Physics. She brings with her over 13 years of experience in various business development and finance roles. She is committed to excellence, ensuring that suitable and quality services are provided to SPP members and prospective members.

We are also pleased to welcome Kayln Tait who joined the SPP team as Senior Financial Investment Officer. Her expertise and skills have added significant value to our finance team.

Kayln Tait holds a Bachelor of Commerce degree in Accounting. She began her journey in accounting as a bookkeeper 7 years ago. Kayln strives to take initiative and looks forward to working with the SPP team to help enhance and further digitize accounting processes.