UNBC Retirement Savings Plan Defined Contribution Pension Plan

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

Where will your money come from? Retirement income supplement secondary primary CPP/OAS Home Other Savings Personal RRSP UNBC Defined Contribution Pension Plan

Government benefits Canada Old Age Pension Plan Security (CPP/QPP) (OAS) Maximum $908. 75 $516. 96 Average $501. 82 $489. 57 2009 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

Responsibilities Insert Slide Title Here UNBC Sun Life Financial Investment Managers You/member Sponsor the plan Record keeping Funds Your Account • Pension Committee • Plan design • Selecting Investment Managers • Selecting funds • Selecting the record keeper • Monitoring the plan • Preparing statements • Developing tools • Member education • Tracking your investments • Tax receipts • Performing research • Creating the fund • Selecting the stocks or bonds • Buying and selling • 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 earnings or $22, 000 2008 $21, 000 2009 $22, 000 2010 Includes: • Your contributions • UNBC’s contributions • Additional voluntary contributions indexed DC Pension Plan Contributions are part of your Pension Adjustment, show up on your T 4 slip and affect the amount that you can contribute to your RRSP

RRSP contribution limits Lesser of 18% of previous years earnings or $21, 000 2008 $21, 000 2010 + $20, 000 2009 - Pension Adjustment (PA)* $22, 000 For your information about your personal limits visit www. cra. gc. ca • Pension Adjustment (PA) shown on T 4. Unused RRSP Room (if any)

2009 Plan Contributions UNBC Registered Retirement Savings Plan (RRSP) Pension Plan Employee Compulsory • 3% of earnings up to the YMPE • 5% above the YMPE • Additional Voluntary (no match) • Transfers-in allowed UNBC • 8% of earnings up to the YMPE • 10% above the YMPE 2009 YMPE = Yearly Maximum Pensionable Earnings = $46, 300.

Doing the math Assumption: Registered Retirement Savings Plan (RRSP) Mary earns $65, 000 annually. Mary $46, 300 x 3% $18, 700 x 5% = = $1, 389. 00 $ 935. 00 UNBC $46, 300 x 8% $18, 700 x 10% = = $3, 704. 00 $1, 870. 00 = $7, 898. 00 Total Benefit

When do you own the funds? Vesting Registered Retirement Savings Plan (RRSP) • 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 x 3% you. = Mary $44, 900 take with $1, 263. 00 • You always own your contributions. Mary $ 7, 900 x 5% = $ 395. 00 Locking in $44, 900 x 8% UNBC = $3, 368. 00 UNBC $ 7, 900 x 10% $ years, the • Once you have been contributing into the = DCPP for 2 790. 00 funds become locked in which means they are not available for you to use until you retire. Total Benefit = $5, 816. 00

What happens you…. What happens if you… What happens ifif 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

You get it all when you save through your company plan Your piggy bank 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 × × × Your savings account × × × Your personal RRSPs UNBC × × ×

Your steps to investing 1. Understand the basics • types of funds • risk vs. returns • importance of diversification 2. Determine 3. Choose what type of investor you are your funds • refer to the Investment Reports section through your online account

Understand risk vs. return Money market • Federal government debt • Short term, less than 1 year Bonds • Promise to repay debt • Receives interest • Various terms to maturity • Government and corporate 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) $35, 000 $30, 000 $25, 000 $18, 000 $17, 200 $20, 000 $17, 200 $14, 400 $15, 000 $14, 400 $12, 500 $10, 000 $5, 000 Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 TSX DEX 91 -Day T-Bill Index TSX DEX Universe Bond Index S&P/TSX Composite Index Consumer Price Index Source : Morningstar. ca Dec 08

Diversify your investments • Diversification: holding different types of investments in your portfolio • Lower your overall risk by: not putting all of your eggs in one basket Ways you can diversify Asset Class Manager Style Foreign Markets Sector

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 Risk Fund Management Style Low N/A Low Moderate Passive Active Moderate Active - Value Active - Growth Money Market/ Guaranteed • Sun Life 1, 3 & 5 Year Guaranteed • Sun Life Money Market Fixed Income/Bond • BGI Bond Index • PH&N Bond Fund Balanced • Beutel Goodman Balanced • Bona. Vista Balanced • Mc. Lean Budden Balanced Growth Canadian Equities • BGI S&P/TSX Composite Index • Beutel Goodman Canadian Equity • Mc. Lean Budden Canadian Equity Growth • Beutel Goodman Small Cap Moderate High High Passive Active -Value Active - Blend Active - Growth Active - Value US Equities • BGI US Equity Index • CI American Value • Mc. Lean Budden US Equity Moderate High Passive Active - Value Active - Growth Foreign Equities • Mc. Lean Budden Global Equity Moderate High Active - GARP

Investment Manager approaches Active Passive or Index Objective is to outperform a market index based on research of current market conditions and company prospects Actively buys and sells securities in individual funds 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 Fund Management Fees tend to be lower than an Active Fund Manager Bona. Vista, Beutel Goodman Mc. Lean Budden, PH&N, CI BGI

Investment styles Value Growth Focuses on stocks that a fund manager thinks are currently undervalued in price and will eventually have their worth recognized by the market 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 stock will increase in price as others in the market recognize the true value of the stock If the manager is right, the company’s stock will increase in price as the company achieves business and earnings growth CI, Bona. Vista, Beutel Goodman Mc. Lean 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 Mc. Lean 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. 96 Rate of Return = 18. 59%

my money Investment Risk Profiler 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

Your investment options Asset Class Fund Name Risk Fund Management Style Low N/A Low Moderate Passive Active Moderate Active - Value Active - Growth Money Market/ Guaranteed • Sun Life 1, 3 & 5 Year Guaranteed • Sun Life Money Market Fixed Income/Bond • BGI Bond Index • PH&N Bond Fund Balanced • Beutel Goodman Balanced • Bona. Vista Balanced • Mc. Lean Budden Balanced Growth Canadian Equities • BGI S&P/TSX Composite Index • Beutel Goodman Canadian Equity • Mc. Lean Budden Canadian Equity Growth • Beutel Goodman Small Cap Moderate High High Passive Active -Value Active - Blend Active - Growth Active - Value US Equities • BGI US Equity Index • CI American Value • Mc. Lean Budden US Equity Moderate High Passive Active - Value Active - Growth Foreign Equities • Mc. Lean Budden Global Equity Moderate High Active - GARP

Building your own asset mix Example: A score of 36 to 85 points - Moderate Investment Type 15% U. S. Equity • BGI US Equity Index Fund • Mc. Lean Budden US Equity Fund • CI American Value Fund 15% Intl. Equity Investment Option International Equity • Mc. Lean Budden Global Equity 20% Canadian Equity • Beutel Goodman Small Cap Fund • Beutel Goodman Canadian Equity Fund • BGI S&P/TSX Composite Index Fund • Mc. Lean Budden Canadian Equity Growth Fund • Mc. Lean 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 10% Money Market 15% U. S. Equity 40% Fixed Income 20% CDN. Equity

Rebalance often to match your risk tolerance Starting point 10% 1 year later 5% 10% 45% Bonds 45% Stocks Starting point 35% 60% 10% 5% 35% Bonds 45% Transfer: 10% Cdn Equity to Bonds 5% Cdn Equity to International Equity 45% 60% Stocks International Equity Canadian Equity Bonds

Fund Asset Mix Dec. 31 st 2008 Balances % of Investment Dec. 31 st 2007 Balances % of Investment Balanced $9, 809, 893. 97 28. 95% $12, 358, 144. 03 30. 75% Beutel Goodman Balanced Fund Bona. Vista Balanced Fund Mc. Lean 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 Mc. Lean Budden Canadian Equity Fund Mc. Lean 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. 31 st 2008 Balances % of Investment Dec. 31 st 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 Performance Fund 2008 2007 2006 2005 2004 Sun Life Money Market Fund DEX 91 Day TBill Index 3. 6 3. 3 4. 5 4. 4 4. 0 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 Bona. Vista Balanced Fund Bona. Vista Balanced Benchmark -18. 3 -15. 0 1. 1 3. 5 14. 4 12. 0 15. 3 12. 5 12. 9 9. 9 Mc. Lean Budden Balanced Growth Fund -17. 5 Mc. Lean Budden Balanced Benchmark -16. 4 2. 1 2. 6 13. 6 12. 5 11. 4 12. 0 8. 5 9. 5 Data through 31 Dec 2008

Fund Performance Fund 2008 2007 2006 2005 2004 BGI S&P/TSX Composite Index Fund Beutel Goodman Canadian Equity Fund Mc. Lean 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 22. 3 16. 6 11. 2 19. 7 14. 1 BGI US Equity Index Fund S&P 500 Index ( Cdn $) -21. 5 -21. 2 -10. 8 -10. 5 15. 1 15. 3 2. 0 2. 3 2. 5 2. 8 CI American Value Fund Mc. Lean Budden US Equity Fund S&P 500 C$- 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 Mc. Lean 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 Data through 31 Dec 2008

Understanding Fees Fund Management Fee (expressed as a % of fund assets you hold) Fees in your plan range High 1. 64 % Low 0. 41% Fund Management % 0. 70% Annual Fees $70. 00 Example $10, 000 To view your fees visit www. sunlife. ca/member

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% Bona. Vista Balanced Fund 1. 64% Mc. Lean 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% Mc. Lean Budden Canadian Equity Growth Fund 0. 68% Mc. Lean 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% Mc. Lean Budden US Equity Fund 0. 74% Mc. Lean Budden Global Equity Fund 0. 70%

Low Fund Management Fees (FMF) make a difference Ending balance 2% $148, 588 Investment management fee Annual contributions $5, 000 20 1. 5% $5, 000 20 1% $167, 568 Years of contributions 2% 1. 5% $157, 752 * Assumes a 5. 75% real rate of return Total contribution: $100, 000

Retirement Planning Tools

Plan Member Website § Select Resource Centre § Click on My Money Tools Sign in to www. sunlife. ca/member

my money retirement planner 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

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 Internet www. sunlife. ca/member Customer Care Centre 1 -866 -733 -8612 • • 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

Getting information about your funds (Morningstar®) 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

Keeping you involved Do your financial planning online Withdrawal calculator Gains vs. Capitalcalculator RRSP Mortgage vs. RRSP calculator RRSP Loan calculator

Keeping you involved Do your financial planning online Annuity calculator OAS claw-back calculator RRIF 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 Beneficiary) (ie.

Questions?