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UNBC Retirement Savings Plan
Defined Contribution Pension Plan (DCPP)
why save? Getting started
my plan Your plan advantage
my investments Investment review Choosing your funds
my account Get involved
Saving for Retirement
How much money do you need for retirement?
Canadians need 65% to 80% pre-retirement income replacement
Retirement income
CPP/OAS
Home
Other Savings
Personal RRSP
UNBC Defined Contribution Pension Plan
primary
Where will your money come from?
supplement
secondary
Government benefits
2009Canada
Pension Plan
(CPP/QPP)
Old Age
Security
(OAS)
Maximum $908.75 $516.96
Average $501.82 $489.57
Request your CPP/QPP contributions & benefit statement from: www.servicecanada.gc.ca* Rates above as of April 2009
Benefits of starting early
Assumes a 6% rate of return
Insert Slide Title HereResponsibilities
Sponsor the plan
• Pension Committee• Plan design • Selecting Investment
Managers• Selecting funds• Selecting the
record keeper• Monitoring the plan
UNBC
Record keeping
• Preparing statements• Developing tools• Member education• Tracking your
investments• Tax receipts
Sun Life Financial
InvestmentManagers
Funds
• Performing research• Creating the fund• Selecting the stocks
or bonds• Buying and selling
You/member
Your Account
• Making contributions• Understanding
investments• Choosing investments• Monitoring savings and
investments• Filing personal
information updates• RRSP limits• Paying investment
management fees • Paying
withdrawal fees
DC Plan contribution limits
Lesser of 18%of current
years earningsor $22,000
indexed2010
$22,0002009
$21,0002008
DC Pension Plan Contributions are part of your Pension Adjustment, show up on your T4 slip and affect the amount that you can contribute to your RRSP
Includes:• Your contributions• UNBC’s contributions• Additional voluntary contributions
RRSP contribution limits
Lesser of 18%of previous
years earningsor $21,000
PensionAdjustment
(PA)*
UnusedRRSP
Room (if any)+-
$22,0002010
$21,0002009
$20,0002008
•Pension Adjustment (PA) shown on T4.
For your information about your personal limits visit www.cra.gc.ca
Registered Retirement Savings Plan (RRSP)
2009 Plan Contributions
UNBC Registered Pension Plan
EmployeeCompulsory
UNBC
• 3% of earnings up to the YMPE• 5% above the YMPE• Additional Voluntary (no match)• Transfers-in allowed
• 8% of earnings up to the YMPE• 10% above the YMPE
2009 YMPE = Yearly Maximum Pensionable Earnings = $46,300.
Registered Retirement Savings Plan (RRSP)
Doing the math
Assumption:
Mary earns $65,000 annually.
Mary $46,300 x 3% = $1,389.00Mary $18,700 x 5% = $ 935.00
UNBC $46,300 x 8% = $3,704.00UNBC $18,700 x 10% = $1,870.00
Total Benefit = $7,898.00
Registered Retirement Savings Plan (RRSP)
When do you own the funds?
Mary $44,900 x 3% = $1,263.00Mary $ 7,900 x 5% = $ 395.00
UNBC $44,900 x 8% = $3,368.00UNBC $ 7,900 x 10% = $ 790.00
Total Benefit = $5,816.00
Vesting
• Vesting refers to when you own the University contributions. You are vested after 2 years of continuous service with the University.• If you leave UNBC prior to 2 years of continuous service, contributions are not yours to take with you.• You always own your contributions.
Locking in
• Once you have been contributing into the DCPP for 2 years, the funds become locked in which means they are not available for you to use until you retire.
What happens if you…
Leave UNBC• Transfer your DCPP to:
• Locked in account with Sun Life Financial - CHOICES
• Locked in account at another financial institution
• A new employer (if permitted)
Retire from UNBC• Transfer your DCPP to:
• A LIF (Life Income Fund) with Sun Life Financial - CHOICES
• A LIF at another financial institution
• Purchase an annuity
What happens if you….What happens if you….
You get it all when you save through your company plan
Your piggy bank
Your savings account
Your personal RRSPs
UNBC
Lower investment management fees
Access to institutional fund managers
University contributions
Regular payroll contributions
Tax deductible & tax sheltered investment earnings
Immediate tax relief on your contributions
×
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Your steps to investing
1. Understand the basics•types of funds•risk vs. returns•importance of diversification
2. Determine what type of investor you are
3. Choose your funds •refer to the Investment Reports section through your online account
Understand risk vs. return
Bonds• Promise to repay debt
• Receives interest
• Various terms to maturity
• Government and corporate
Money market• Federal government debt
• Short term, less than 1 year
Balanced• Mix of cash, bond and equities
• Automatic diversification
Equities• Ownership in company
• Share in company profits
• Canadian or foreign
Growth of $10,000(January 1999 – December 2008)
$17,200
$18,000
$14,400
Source : Morningstar.ca
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08
TSX DEX 91-Day T-Bill Index TSX DEX Universe Bond Index
S&P/TSX Composite Index Consumer Price Index
$17,200
$18,000
$14,400
$12,500
• Diversification: holding different types of investments in your portfolio• Lower your overall risk by: not putting all of your eggs in one basket
Diversify your investments
Asset Class
ManagerStyle
Sector
ForeignMarkets
Ways you can diversify
Think about investing outside of Canada
• Canada Revenue Agency now allows 100 % foreign content in your registered accounts
• Canada represents only 2-3% of the world stock market
• Some foreign markets have historically outperformed Canada over the long-term
• Consider investing outside of Canada as one way to diversify
Your investment options
Asset Class Fund Name RiskFund
Management Style
Money Market/
Guaranteed
• Sun Life 1, 3 & 5 Year Guaranteed• Sun Life Money Market
Low
Low
N/A
N/A
Fixed Income/Bond
• BGI Bond Index• PH&N Bond Fund
Low Moderate
Low Moderate
Passive
Active
Balanced • Beutel Goodman Balanced• BonaVista Balanced• McLean Budden Balanced Growth
Moderate
Moderate
Moderate
Active - Value
Active - Value
Active - Growth
Canadian Equities • BGI S&P/TSX Composite Index • Beutel Goodman Canadian Equity• McLean Budden Canadian Equity• McLean Budden Canadian Equity Growth• Beutel Goodman Small Cap
Moderate High
Moderate High
Moderate High
Moderate High
High
Passive
Active -Value
Active - Blend
Active - Growth
Active - Value
US Equities • BGI US Equity Index• CI American Value• McLean Budden US Equity
Moderate High
Moderate High
Moderate High
Passive
Active - Value
Active - Growth
Foreign Equities • McLean Budden Global Equity Moderate High Active - GARP
Investment Manager approaches
Active
Objective is to outperform a market index based on research of current market conditions and
company prospectsActively buys and sells securities
in individual funds
Passive or Index
Simply buys and sells assets to match characteristics of an index, fund
performance should be similar to the index, i.e. S&P TSX
Fund Manager applies an Investment “style” to their approach
BonaVista, Beutel GoodmanMcLean Budden, PH&N, CI
Fund Management Fees tend to be lower than an Active Fund Manager
BGI
Investment styles
Value
Focuses on stocks that a fund manager thinks are currently
undervalued in price and will eventually have their worth recognized by the market
Growth
Believes that the single most important thing driving stock prices
is rapidly rising corporate earnings -- and that's what they
look for
If the manager is right, the stockwill increase in price as others
in the market recognize the true value of the stock
CI, BonaVista, Beutel Goodman
If the manager is right, the company’sstock will increase in price as thecompany achieves business and
earnings growth
McLean Budden
Investment styles
GARP
Growth at a reasonable price- looks for stocks of growth
companies that they can buy for a reasonable price
This is a combination of value and growth investing
McLean Budden Global
Dollar cost averaging
Month Amount Price Units purchased
1 $250 $10 25
2 $250 $10 25
3 $250 $11 22.72
4 $250 $12 20.83
5 $250 $11 22.72
6 $250 $13 19.23
7 $250 $14 17.86
8 $250 $13 19.23
9 $250 $14 17.86
10 $250 $12 20.83
11 $250 $10 25
12 $250 $14 17.86
Total $3,000 Avg. price = $11.80 254.14
Market Value = $3,557.96Rate of Return = 18.59%
Dollar cost averaging
Your guide to choosing funds
• Complete the questionnaire in the Investment Risk Profiler online• www.sunlife.ca/member
• Review your fund choices
online through Morningstar®
• Select your funds according to your
risk tolerance
my money Investment Risk Profiler
Your investment options
Asset Class Fund Name RiskFund
Management Style
Money Market/
Guaranteed
• Sun Life 1, 3 & 5 Year Guaranteed• Sun Life Money Market
Low
Low
N/A
N/A
Fixed Income/Bond
• BGI Bond Index• PH&N Bond Fund
Low Moderate
Low Moderate
Passive
Active
Balanced • Beutel Goodman Balanced• BonaVista Balanced• McLean Budden Balanced Growth
Moderate
Moderate
Moderate
Active - Value
Active - Value
Active - Growth
Canadian Equities • BGI S&P/TSX Composite Index • Beutel Goodman Canadian Equity• McLean Budden Canadian Equity• McLean Budden Canadian Equity Growth• Beutel Goodman Small Cap
Moderate High
Moderate High
Moderate High
Moderate High
High
Passive
Active -Value
Active - Blend
Active - Growth
Active - Value
US Equities • BGI US Equity Index• CI American Value• McLean Budden US Equity
Moderate High
Moderate High
Moderate High
Passive
Active - Value
Active - Growth
Foreign Equities • McLean Budden Global Equity Moderate High Active - GARP
Investment
Type
Investment Option
15% U.S. Equity • BGI US Equity Index Fund• McLean Budden US Equity Fund• CI American Value Fund
15% International Equity • McLean Budden Global Equity
20% Canadian Equity • Beutel Goodman Small Cap Fund• Beutel Goodman Canadian Equity Fund• BGI S&P/TSX Composite Index Fund• McLean Budden Canadian Equity Growth Fund• McLean Budden Canadian Equity Fund
40% Bond/
Fixed Income
• PH&N Bond Fund• BGI Bond Index Fund
10% Guaranteed/
Money Market
• Sun Life Financial Money Market Fund • Sun Life Financial 1,3 & 5 year Guaranteed Fund
Example: A score of 36 to 85 points - Moderate
15%U.S. Equity
20%CDN. Equity
40%Fixed Income
10%Money Market
15%Intl. Equity
Building your own asset mix
Rebalance often to match your risk tolerance
10%
International Equity
Canadian Equity
Bonds
45%Bonds 45%
Stocks
45% 45%
10%
35%Bonds
45%
Starting point5%
35% 60%
1 year later
Transfer:10% Cdn Equity to Bonds
5% Cdn Equity to International Equity
60%Stocks
5%
45%
10%
Starting point
45%
Dec. 31st 2008 Balances
% of Investment
Dec. 31st 2007 Balances
% of Investment
Balanced $9,809,893.97 28.95% $12,358,144.03 30.75%
Beutel Goodman Balanced Fund
BonaVista Balanced Fund
McLean Budden Bal. Growth Fund
PH&N Balanced Pension Fund
1,071,584.71
7,388,732.80
1,349,576.46
0.00
3.16%
21.80%
3.98%
0.0%
815,189.49
0.00
1,234,922.29
10,308,032.25
2.03%
0.00%
3.07%
25.65%
Canadian Equity $10,326,454.21 30.47% $15,545,558.23 38.68%
Beutel Goodman Canadian Equity Fund
Beutel Goodman Small Cap Fund
BGI S&P/TSX Composite Index Fund
McLean Budden Canadian Equity Fund
McLean Budden Cdn Eq Growth Fund
745,642.55
1,657,499.07
1,204,374.07
5,565,262.97
1,153,675.55
2.20%
4.89%
3.55%
16.42%
3.40%
1,002,926.87
2,304,544.48
1,781,376.34
8,534,858.68
1,921,851.86
2.5%
5.73%
4.43%
21.24%
4.78%
Fixed Income $4,190,081.88 12.36% $ 3,472,371.60 8.64%
BGI Bond Index Fund
PH&N Bond Fund
309,748.27
3,880,333.61
0.91%
11.45%
0.00
3,472,371.60
0.00%
8.64%
Fund Asset Mix
Dec. 31st 2008 Balances
% of Investment
Dec. 31st 2007 Balances
% of Investment
Foreign Equity $2,875,770.92 8.49% $ 3,572,203.81 8.89%
BGI US Equity Index Fund
CI American Value Fund
MB Global Equity Fund
MB US Equity Fund
276,836.22
616,557.96
1,830,660.12
151,716.62
0.82%
1.82%
5.40%
0.45%
308,862.97
746,955.02
2,430,889.57
85,496.25
0.77%
1.86%
6.05%
0.21%
Guaranteed/Money Market $6,686,075.38 19.73% $ 5,241,977.12 13.04%
SLA 1 YR Guaranteed Fund
SLA 3 YR Guaranteed Fund
SLA 5 YR Guaranteed Fund
Sun Life Money Market Fund
614,264.65
563,966.38
1,076,924.61
4,430,919.74
1.81%
1.66%
3.18%
13.08%
375,439.68
494,678.12
766,575.20
3,605,284.12
0.93%
1.23%
1.91%
8.97%
Total $33,888,276.36 100.00 % $40,190,254.79 100.00 %
Fund Asset Mix
Fund 2008 2007 2006 2005 2004Sun Life Money Market Fund
DEX 91 Day TBill Index
3.6
3.3
4.5
4.4
4.0
4.0
2.6
2.6
2.2
2.3
BGI Bond Index Fund
PH&N Bond Fund
DEX Universe Bond
6.0
3.8
6.4
3.6
3.2
3.7
4.1
4.4
4.1
6.5
7.0
6.5
7.1
7.3
7.2
Beutel Goodman Balanced Fund
Beutel Balanced Benchmark
-10.0
-14.9
0.5
2.6
13.6
12.2
10.1
11.2
10.9
9.3
BonaVista Balanced Fund
BonaVista Balanced Benchmark
-18.3
-15.0
1.1
3.5
14.4
12.0
15.3
12.5
12.9
9.9
McLean Budden Balanced Growth Fund
McLean Budden Balanced Benchmark
-17.5
-16.4
2.1
2.6
13.6
12.5
11.4
12.0
8.5
9.5
Fund Performance
Data through 31 Dec 2008
Fund 2008 2007 2006 2005 2004
BGI S&P/TSX Composite Index Fund
Beutel Goodman Canadian Equity Fund
McLean Budden Canadian Equity Fund
McLean Budden Cdn Eq Growth Fund
S&P/TSX Capped Composite
-32.5
-22.2
-31.9
-38.0
-33.0
9.9
6.3
8.3
11.6
9.8
17.4
16.6
18.3
21.3
17.3
24.0
17.7
21.2
22.9
24.1
14.6
14.3
12.2
11.9
14.5
Beutel Goodman Small Cap Fund
BMO Small Cap Blended (Weighted)
-28.3
-46.6
3.0
2.0
22.3
16.6
11.2
19.7
14.7
14.1
BGI US Equity Index Fund
S&P 500 Index ( Cdn $)
-21.5
-21.2
-10.8
-10.5
15.1
15.3
2.0
2.3
2.5
2.8
CI American Value Fund
McLean Budden US Equity Fund
S&P 500 C$- Bank of Canada
-22.8
-21.6
-21.9
-1.6
-4.8
-10.6
18.7
14.9
15.7
5.2
3.0
1.6
12.2
3.9
3.3
McLean Budden Global Equity Fund
MSCI World C$
-21.8
-25.4
-7.9
-7.1
19.6
20.2
5.7
7.3
5.5
6.9
Fund Performance
Data through 31 Dec 2008
Understanding Fees
Fees in your plan range
High
1.64 %
Low
0.41%
Fund Management Fee(expressed as a % of fund assets you hold)
To view your fees visit www.sunlife.ca/member
Annual Fees
$70.00
Fund Management %
0.70% $10,000
Example
Fund Management Fees at February 28, 2009
Fund Name Total Fund Management
Fee
Sun Life GICs None
Sun Life Financial Money Market Fund 0.41%
BGI Bond Index Fund 0.46%
PH&N Bond Fund 0.69%
Beutel Goodman Balanced Fund 0.76%
BonaVista Balanced Fund 1.64%
McLean Budden Balanced Growth Fund 0.68%
Fund Management Fees at February 28, 2009
Fund Name Total Fund Management
Fee
BGI S&P/TSX Composite Index Fund (P) 0.48%
McLean Budden Canadian Equity Growth Fund 0.68%
McLean Budden Canadian Equity Fund 0.68%
Beutel Goodman Canadian Equity Fund 0.78%
Beutel Goodman Small Cap Fund 0.78%
CI American Value Fund 1.31%
BGI US Equity Index Fund (P) 0.48%
McLean Budden US Equity Fund 0.74%
McLean Budden Global Equity Fund 0.70%
* Assumes a 5.75% real rate of return
Investment management
fee
Annual contributions
Years of contributions
2% $5,000 20
1.5% $5,000 20
1% $5,000 20
1.5%$157,752
1%$167,568
Total contribution: $100,000
2%$148,588
Ending balance
Low Fund Management Fees (FMF) make a difference
RetirementPlanningTools
Select Resource Centre
Click on My Money Tools
Plan Member Website
Sign in to www.sunlife.ca/member
my information•This is the first screen of the retirement planner
•Some of the information on this screen is pre-populated
my money retirement planner
my assets•Enter any additional assets or income you have
•You can include pensions from previous employers
my money retirement planner
my lifestyle•A lifestyle is suggested based
on your personal information
•You can view information on other lifestyles
•Select your lifestyle and receive your personal action plan
my money retirement planner
Your personal action plan
my money retirement planner
Keeping you involved
Read your personal statements
• Quarterly (Available Online)• Easy to read• Personal rates of return• Summary of all plans• Transaction history• Plan information• Bulletin board
Keeping you involved
• 24 hour automated phone account access
• Representatives available every business day (8 am to 8 pm ET)
• Account updates• 150 languages supported
• Receive up-to-date account balances• View transaction history• Make investment changes• Link directly to investment reports• View online member statements
Internetwww.sunlife.ca/member
Customer Care Centre1-866-733-8612
Investment Information• Capital market performance• Individual fund performance• Investment style, fund and manager updates
Portfolio X-Ray• Analyze different combinations of funds as a single portfolio; including the
effect of asset allocation changes to the portfolio
Fund Compare• Compare and analyze funds in your plan with the full list of available funds
Performance Reports• Generate investment performance reports for your plan’s funds
Getting information about your funds (Morningstar®)
Keeping you involved
Withdrawal calculator
Capital Gains vs.RRSP calculator
Mortgage vs. RRSP calculator
RRSP Loancalculator
Do your financial planning online
Keeping you involved
Do your financial planning online
OAS claw-backcalculator
RRIF calculator
Annuity calculator
Your action plan
1. Use the Investment risk profiler to determine your recommended portfolio allocation
2. Use the Retirement planner to evaluate if your current contributions will meet your retirement goals
3. Review your current portfolio
4. Update your future investment instructions as required
5. Update your existing portfolio as required
6. Update any personal information that is out of date (ie. Beneficiary)
Questions?