Click to edit Master title style Group Financial Services Building Employee Loyalty Proposal For: Merit Contractor’s Association of Manitoba Matt Nishi, Sales Consultant May 27, 2010

2 Proposal for Merit Contractor’s Association of Manitoba Why Group Savings Plans are Important A Little Bit About Us Plan Options How RBC is Different Our Recommendation to You What Your Employees Get How We Minimize Plan Administration

3May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Why Group Savings Plans are Important The cost of replacing an employee ranges from 29% to 46% of the person's annual salary* Organizations that have managed to find, keep and engage good employees have better business results^ Employee anxiety in volatile markets impacts productivity Employee loyalty is a growing concern in today’s marketplace Why do employees go elsewhere? 53%: better compensation and benefits* 35%: dissatisfaction with potential career development* 32%: ready for a new experience* *Source: Retaining Talent: A benchmarking study, by Paul R. Bernthal PhD and Richard S. Wellins, Ph.D., Development Dimensions International Inc. ^ 2007 Mercer What’ Working™ Survey

4May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Why Group Savings Plans are Important What is important to employees Importance to Employees* Having appropriate health insurance83% Needing to save for retirement76% Having more flexible, or generous, paid-time-off policies67% Having financial security if a wage earner can no longer work due to a disability or serious illness 62% Having a financial plan for achieving major financial goals60% When nearing retirement, having advice about how to invest your retirement money and how to make it last as long as needed 53% Having financial security in the event of a premature death51% Having flexible workplace arrangements to better balance work and personal life47% Having to provide for long-term care needs of either yourself or a spouse40% Finding a trusted source to provide financial advice39% Having enough money for your children’s college education33% Need to work in retirement29% Having access to mental health or emotional well-being counseling22% *Prudential Life Insurance Company of America Study of Employee Benefits – 2007 and beyond: Top two scores on a 7 point scale

5May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Personalized Financial Advice

6May 27, 2010Proposal for Merit Contractor’s Association of Manitoba RBC Asset Management Inc. More than 1.2 million investors Over $90 billion in assets under management Over 90% of assets performing above average on a five-year basis Over 95% of the funds holding management expense ratios below the industry average Has a repeatable investment approach, ensuring a consistent security selection process A Little Bit About Us

7May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Dedicated support structure for plan set-up and ongoing management Administers more that 4,000 registered and non-registered group savings plans Manages more than $2 billion in assets invested in those plans Services over 150,000 plan members Utilizes RBC retail expertise for employees 1,100 bank branches and other locations 400 investment retirement planners 1,000 financial planners 9,000 qualified mutual fund salespeople Group Financial Services A Little Bit About Us

8May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Group Savings Plan Options Royal Choices Group Retirement Savings Plan (Group RSP) Royal Choices Group Investment Account (GIA) Deferred Profit Sharing Plan (DPSP) Service Delivery Options

9May 27, 2010Proposal for Merit Contractor’s Association of Manitoba How RBC Is Different Most of our plans are available with no administration fee reducing how much it costs you to offer benefits to your employees Service and support – With no administration fee Each of your employees meets with a qualified investment professional who helps make sure their investments match their individual circumstances One-on-one personalized financial advice Award winning investment options for your employees Named “Best Overall Fund Group” in Canada by Lipper in Canada for two consecutive years Group banking packages Offer a variety of great incentives such as more attractive interest rates, discounts and waived fees on banking services

10May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Our Recommendation to You

11May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Implement a Group RSP By implementing a Group Savings Plan, you can provide your employees with a convenient way to save for their retirement that: Provides complete portability Offers a range of investments with advice Uses investment professionals to help simplify how your employees save Allows assets to be consolidated Provide an employer matching contribution To increase the benefit of your program and number of employees who participate Flexibility to implement a plan, tailored to meet your specific organizational needs Eligibility requirements Employer matching program Plan restrictions Spousal account option Our Recommendation to You

12May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Regular RRSP Monthly Salary $3,000 Income Tax 700 Take Home Pay$2,300 RRSP Contribution 100 Net Take Home Pay$2,200 Group RRSP Monthly Salary $3,000 GRRSP Contribution 100 Taxable Income $2,900 Income Tax 660 Take Home Pay $2,240 You only pay $60 to make that $100 contribution! Note: Minimum annual taxable income to receive savings from an RRSP contribution is $7,256 What Your Employees Get Tax Efficiency

13May 27, 2010Proposal for Merit Contractor’s Association of Manitoba What your Employees Get Award Winning Investment Options Best Overall Fund Group in Canada for two consecutive years 2007 and 2008* and “Best Bond Fund Family” in 2009 Best risk-adjusted performance over 3 years.* Among the top-performing fund families in Canada, with over 85% of assets performing above-average on a five-year basis. RBC Funds, offered by RBC Asset Management Inc., provide your employees with award winning investment options *Lipper Inc. (a Reuters company). As of December 31, 2007.

14May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Web Submission: encrypted sponsor site for contribution remittance ADP or Ceridian Payroll: direct link which submits contributions directly to your RBC plan.* Spreadsheet formatted Excel spreadsheet submitted via encrypted * Some ADP or Ceridian payroll systems may not be available for direct contributions. How We Minimize Your Plan Administration Our contribution remittance options are easy to establish and administer

15May 27, 2010Proposal for Merit Contractor’s Association of Manitoba Sponsor fees Group RSP & Group Investment Accounts (GIA): No annual administration fee Deferred Profit Sharing Plan (DPSP): Annual administration fee for less than 25 employees: $ Annual administration fee for more than 25 employees: $300 Plan member fees No Fees “per member account” at RBC branch Competitive fees are charged on investments Over 95% of RBC Funds hold management expense ratios below the industry average No Administration Fees

16 Thank you for your time!

17May 27, 2010Proposal for Merit Contractor’s Association of Manitoba RBC Funds are offered by RBC Asset Management Inc. and sold by Royal Mutual Funds Inc. Royal Mutual Funds Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company and RBC Asset Management Inc. are separate corporate entities which are affiliated. Royal Mutual Funds Inc., RBC Dominion Securities Inc. and RBC Direct Investing Inc. are member companies under RBC Investments. Monies held by *RBC Dominion Securities Inc. or RBC Direct Investing Inc. in their respective securities accounts are not insured by Canada Deposit Insurance Corporation or by any other government deposit insurer. Unless otherwise indicated, securities sold through the member companies are not insured by Canada Deposit Insurance Corporation or any other government deposit insurer, and are not guaranteed by Royal Bank of Canada and subject to market fluctuations. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Read the prospectus before investing. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec. * Member CIPF ® Registered trademark of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2007