Changes to auto-transfer and age 71 default income solution

Starting August 1, 2026, plan members will have quicker access to the advantages of Group Choices. This means, the auto-transfer will happen within 10 business days of the plan member leaving.  There’s no action required by them or you. Currently, under your plan we automatically transfer plan member assets to Group Choices 90-days after they leave.

About Sun Life Group Choices

Group Choices is a retirement savings solution that we offer to plan members leaving an employer. It’s designed it to help them continue growing their savings after leaving their workplace plan.

Benefits for all

Providing - quicker auto-transfer benefits both you and plan members.

• For you the plan sponsor, the employee leaving will move out of your plan faster. Sun Life assumes responsibility for supporting them as a Group Choices plan member. For any additional contributions that come in after they leave, we’ll also transfer those into the plan member’s Group Choices account. It’s quick and automatic. There’s no action required by you.
• Plan members benefit by gaining peace of mind during their career transitions, as we’re removing financial decision-making pressures. This lets them focus on other priorities, from retirement lifestyle plans, to securing or adapting to new employment.

The quicker auto-transfer will also enhance their interactions with our Client Solutions Center (CSC). They can focus on their financial roadmap, rather than transactional discussions. With Group Choices, plan members will continue to have access to our licensed consultants* through 360 Plan Advice. And maintain full access to Sun Life One Plan. Plan members will always have the option to leave Group Choices if their needs or preferences change.

The quicker auto-transfer applies to plans that have one or more of the following products:

• Registered Retirement Savings Plans (RRSPs),
• Tax-Free Savings Accounts (TFSAs),
• Locked-in Retirement Accounts (LIRAs),
• Deferred Profit-Sharing Plans (DPSPs).

Due to legislative requirements and other restrictions, we can’t provide quicker auto-transfer to plans that:

• Have a Defined Contribution Pension Plan (DCPP) or non-registered account (even if they have other eligible products),
• Offer company stock and mutual funds (even if they have other eligible products),
• Have custom auto-transfer rules.

We’ll notify existing plan members about this change with a message on mysunlife.ca.

Plan members will no longer receive an Options Package and will be notified by email and regular mail once their assets have been transferred into the Group Choices plan. They’ll continue to have the same flexibility with their assets, and their options will be outlined in our communications. 

Changes to Age 71 default income solution

Starting December 31, 2026, we’re also changing the default income solution for plan members in the year they turn 71. This also applies to plan members who are 71 in 2026. Changing the default income solution provides plan members with greater flexibility, as they can access their savings at any time. In addition, plan members who want guaranteed lifetime income can still purchase an annuity with their savings whenever the time is right.

Currently, when age 71 plan members don't provide investment instructions for their tax-deferred registered savings accounts, we automatically default these funds into a Sun Life annuity. Starting December 31, 2026, the default income solution will change from an annuity to a Sun Life Registered Retirement Income Fund (RIF)/Life Income Fund (LIF), as follows:

• Less than $75,000 in assets. If the plan member has assets of less than $75,000, these will be rolled over to the Sun Life Granite Moderate Retirement Fund in a Group Choices RIF or LIF account. We’ll set required annual withdrawals to the minimum amount. The plan member can change their investment choice and withdrawal amount at any time.
• $75,000 or more in assets. If the plan member has assets of $75,000 or more, these will be transferred to Sun Life MyRetirement Income and held in a RIF or LIF account. We’ll set the maturity age at 95. The plan member can change the maturity age at any time. Sun Life MyRetirement Income is an automated solution that provides plan members with sustainable income until an age of their choosing. This gives them flexibility to withdraw additional savings at any time.

Please note, for 2026 the default investment solution for DCPP will still be an annuity. If you wish to change the DCPP default income solution (if allowed by your province) you’ll need to file plan amendments with regulators directly. Please reach out to your Sun Life Group Retirement Services Representative if you need assistance with this.

Next steps

We’ll send you another GR News in May, with details about your plan amendment. You can learn more about our Group Choices offering here.