Group Savings Plan information during the strike
We hope you are doing as well as possible during what is certainly a stressful and uncertain time.
We’ve had a number of questions from ATA members and School Board employees about their Group Savings Plans and other Voluntary Benefits - and what will happen during the strike. Here are some FAQ to help put your mind at ease. We’re here to support you!
What happens with payroll deductions (to my Group RRSP)?
This will work just like it tends to in the summer for most teachers - your payroll deduction will stop automatically along with your payroll. You shouldn’t have to do anything to stop this, and it will start up again automatically once your payroll returns.
What about automatic contributions from my bank?
In most cases, these have been set up through your online banking (as a recurring “bill payment” — for example to your TFSA). You will need to go into your own online banking portal to pause those.
What do I need to know about withdrawing savings?
For your Group TFSA, this is exactly what you built it for — this is why we talked about building an Emergency Fund. There’s no cost to withdraw for the first two withdrawals in a calendar year (after that there’s a $25 / withdrawal charge), and no tax implications. You can even put that money back in later — your limit never goes away.
For your RRSP, there are things to consider when deciding if this is the right choice. Any income you take out will be added to your taxable income. You’ll also pay a withholding tax applied when you take it out as follows:
Amount withdrawn in a tax year: Up to $5,000: 10% $5,000.01 to $15,000: 20% Over $15,000: 30%
As well, with the RRSP, you “lose” that contribution room — you can’t re-contribute those amounts. That said, if you’re in dire straits due to a prolonged strike, and your income has been significantly affected, the tax issue may be less important to you, and this might be a course of action to consider.
Of course, with both the TFSA and the RRSP, you’ll be giving up the compound interest these investments would earn. So it’s important once all of this settles to start back on rebuilding these savings!
If, I do need to withdraw, how do I do that?
All withdrawals are handled through Canada Life so that they can do proper identity verification. To do this, you will need your Policy and Certificate Number. These can be found on your Canada Life statement, or through your online Canada Life account.
Details on where to find this on your online account are below: You can reach Canada Life directly at 1-800-724-3402, press 1 for English and then listen to the prompts. Once you are speaking to someone, let them know you wish to withdraw funds from your RRSP/TFSA and they will confirm your identity. You will advise them of your Policy and Certificate number, the amount you want to withdraw, and have your banking information ready to provide. That way they can arrange to have your funds direct deposited. Canada Life will process your withdrawal and you should receive the funds within 3-5 business days.
Where do I find my online information?
To access your plan, go to https://my.canadalife.com/sign-in. You should have an email and password from when you set up the plan - there is a “Forget Password” if you don’t remember yours. To get your policy information, look for the link that says Plan Details on the left hand side. This will list your Policy and Certificate number so that you can contact Canada Life.
If you’re having difficulty in accessing this information, please contact our office (780-463-6128) and we will happily assist you.
What about things like insurance premiums?
Unfortunately, insurance company systems generally aren’t set up for rare situations like strike actions - so providers aren’t able to pause premiums. Most life insurance coverage will offer a 30-day grace period if a premium isn’t paid. During this time you can pay a missed premium and the insurance will continue as normal.
After that point it will often be considered a Policy Lapse — meaning that it won’t pay out. You can sometimes have a lapsed policy reinstated, but this can involve re-qualifying (from a health perspective) and paying past due premiums. So it really should only be considered as a last resort.
Again, if your circumstances are truly dire, insurance policies do generally have a provision allowing you to cancel them - and then you’d need to apply for new coverage once the strike is over.
Alberta’s teaching community is strong, and we’re proud to stand beside you. Please reach out if we can offer any assistance or guidance, we’re only a call or email away.