What you need to know
We’re planning your retirement party already. No, not because we want you to leave! It just takes time to build up enough savings to retire comfortably. Workday’s retirement savings plan makes it easy to prepare for the future. That means less time worrying about money and more time dreaming about fruity drinks with little umbrellas in them.
Highlights
- There are two parts to your retirement savings plan: the Defined Contribution Pension Plan (DCPP) and the Registered Retirement Savings Plan (RRSP).
- You and Workday both contribute to the DCPP. Only you contribute to the RRSP.
- The total amount of your retirement benefit is determined by the amount of your contributions (and Workday’s for the DCPP) and market performance over time.
- You may contribute between 2% and 9% of your pretax pay to the DCPP and up to $30,780 annually to the RRSP.
- Workday will match 50% of your contributions up to 6% of your salary, up to a maximum of $8,250 per year.
- You’re 100% vested in your contributions and Workday’s matching contributions as soon as they’re deposited into your account.
Free money
You like free money, and we like you! Workday matches 50% of your contributions up to 6% of your salary, up to $8,250 per year. To get your free money, be sure you contribute at least 6% to your DCPP.
Save now, enjoy later
If you’re eligible for the retirement plan, you can enrol as soon as you receive your welcome letter from our retirement plan administrator, Sun Life Financial. There are two parts to the retirement plan: the DCPP and the RRSP.
DCPP stands for Defined Contribution Pension Plan. That means you sacrifice a fixed percentage of your salary as a contribution to your pension so you can have a monthly income when you’re retired. You won’t be able to access funds in your DCPP until retirement.
Your RRSP is a Registered Retirement Savings Plan. You can contribute a fixed percentage of your salary or lump sums to your RRSP. When you retire, you will receive your RRSP as a lump sum. Under some circumstances, you can withdraw contributions from your RRSP before retirement, but you should consult with a financial advisor before deciding to do that.
Sun Life manages the Workday Canada Retirement Savings Plan and invests contributions so your money grows over time. Unless you make another choice, your contributions will be invested in the Fidelity ClearPath Institutional Fund—a strategy to make higher-risk, higher-reward investments when you’re young, and then gradually shift to safer, lower-return investments as you near retirement.
If you have a different investment approach in mind, you can switch to a Built BY Me strategy and invest in higher- or lower-risk funds. To change your investment strategy, log in to your account on the Sun Life website. Remember, it’s always wise to seek professional financial advice when it comes to retirement savings.
Contributing to your retirement savings
The DCPP and RRSP work a little differently. While both you and Workday contribute to your DCPP, only you can add to your RRSP. Contributing at least 2% to either the DCPP or RRSP makes you eligible for Workday’s matching contribution of up to $8,250 per year to your DCPP.
| If you contribute… | Workday contributes… |
|---|---|
| 2% combined to your DCPP or RRSP | 1% to your DCPP |
| 3% combined to your DCPP or RRSP | 1.5% to your DCPP |
| 4% combined to your DCPP or RRSP | 2% to your DCPP |
| 5% combined to your DCPP or RRSP | 2.5% to your DCPP |
| 6% combined to your DCPP or RRSP | 3% to your DCPP |
| > 6% combined to your DCPP or RRSP | 3% to your DCPP |
You can contribute between 2% and 9% of your salary to your DCPP. The government sets the limit on how much you can contribute per year to your RRSP. In 2022, the maximum RRSP contribution is $30,780. Contributions to your RRSP are tax-deductible, and all investment earnings are tax-sheltered.
Le Québec est unique
If you live in Quebec, you must contribute at least 6% to your DCPP to receive the full match from Workday. Workmates in other provinces can divide their 6% between the DCPP and the RRSP.
For additional information, refer to the Retirement Booklet applicable to your province:
For lots more information, check out Sun Life’s Retirement Savings Guide.
New to the whole retirement plan thing?
Don’t worry, we’ve made it really easy to enrol. Here’s how to get started:
- Elect your contribution amount in Workday. After your initial contributions are made, you will receive a Sun Life welcome letter.
- Register for a Sun Life ID and password. You’ll need your Sun Life welcome letter for your account number. *
- Log in and select my financial centre under the my financial future tab.
- Select Enrol from the Requests menu.
- Select Let’s get started!
- Follow the instructions on your screen. Now’s not the time to be a rebel.
- If you have any questions, have a look at Sun Life’s Enrolment Guide.
* You must register with Sun Life within 90 days of enrolment, otherwise your contributions can’t be invested.
Changed your mind?
You can change your contributions at any time. On your Workday homepage, select View Profile. From your profile, select Actions > Benefits > Change Benefits > Change Retirement Savings (Canada). Enter the current date in the effective date field and don’t forget to submit!