University of Northern BC UNBC Pension Plan May 10, 2016 University of Northern BC

University of Northern BC Agenda Introductions Plan Overview Fund Lineup Plan Governance Initiatives Questions University of Northern BC

University of Northern BC Plan Overview: Defined Contribution Plan Eligibility – On date of hire if a regular employee works more than .51 FTE or after 2 years continuous employment Vesting – Immediate upon enrolment Vesting: when plan member gets access to the employer’s contribution. University of Northern BC

University of Northern BC Plan Overview Locking In: Immediate, upon enrolment Authority: Pension Benefits Standards Act of BC Education New & current member orientation sessions with a Human Resources and a Sun Life representative Online options available on the Sun Life web site Education Workshops Voluntary Contributions – Allowed within CCRA guidelines but employer does not match Locking in means you cannot withdraw until you retire, must be at least 55 years old, there are 4 exceptions: if the amount of pension is below prescribed limits e.g. less than 1/12th of 10% of annual pensionable amount, or physical disability that considerably reduces one’s life expectancy, or you can satisfy CRA you are not a Canadian resident. Voluntary contribution is the only portion you are allowed to withdraw while employed University of Northern BC

Plan Overview Employee Contributions UNBC Contributions UNBC DC Pension Plan Employee Contributions UNBC Contributions 3% of earnings up to the YMPE 5% above the YMPE Additional Voluntary (no match) Transfers-in allowed review 8% of earnings up to the YMPE 10% above the YMPE 2016 YMPE = Yearly Maximum Pensionable Earnings = $54,900

University of Northern BC Funds 20 fund options available through Sun Life: GIC (1, 3 & 5 years) - Money Market(1) Bond Funds (2) - Balanced Funds (3) Diversified Income (1) Canadian Equity (4) - Foreign Equity (6) Plan member responsible for obtaining independent investment advice Default Fund is the Beutel Goodman Balanced Segregated Fund Investment changes can be made at any time Investment changes: there are no fees if done… University of Northern BC

University of Northern BC 2016 Fund Lineup University of Northern BC

University of Northern BC Plan Governance: The UNBC Pension Plan is managed by a Board of Trustees 4 University Appointed Trustees: (VP Finance & Business Operations; Director – Human Resources; Director – Finance & Budgets; External) 4 Employee Representative Trustees (CUPE, Exempt, Directors & Faculty) University of Northern BC

University of Northern BC Member Trustees Catherine King (CUPE Rep) Aaron Leblanc (Director Rep) William Chew (Exempt Rep) Jalil Safaei (Faculty Rep) University of Northern BC

University of Northern BC Governance continued Fund administration is supported by Sun Life Independent investment advice is provided to Trustees by Ellement Consulting Group (formerly Asset Performance Inc.) Governance advice is provided by AON Hewitt University of Northern BC

Investment/Administration Fees Investment management, custodial and member record keeping fees are set by fund managers and Sun Life. Fees range from 0.19% to 1.00%. Administration fees are used to offset any expenses related to compliance with pension legislation, implementation of any changes in pension governance, independent advice, revision of existing pension documents, etc., and are set by the Trustees as part of budget process. Administration fee $4.00 / month per member. University of Northern BC

Initiatives started/completed in 2015 Plan member education sessions continued throughout the year, delivered by Sun Life Open pension orientations to new and continuing members on how to use the Sun Life website. Retirement Planning Seminars Updated Plan Documents per the New Pension Standards Act Addition of 3 new funds to our plan Removed the CI American Value Segregated Fund University of Northern BC

University of Northern BC 2015 UNBC Pension Budget University of Northern BC

University of Northern BC 2016 Initiatives Trustee education for new trustees Maintain admin fee charge of $4 monthly Heighten the members’ awareness of their investment responsibility Continue to educate members on how to use the Sun Life website for their account and information. Sun Life webinars now available University of Northern BC

University of Northern BC Questions? University of Northern BC