Voluntary Retirement Savings Plan VRSP Presented by (Advisor name) Date © Sun Life Assurance Company of Canada. All rights reserved.

AGENDA VRSPs in Quebec's retirement landscape What is a VRSP? Opportunities for you

VRSPs in Quebec's retirement landscape

1 2 3 4 FOUR BIG REASONS FOR VRSPs Quebecers' lack of savings Unequal access to workplace retirement plans Companies have limited ability to contribute more to savings Poor financial literacy 2 3 4

VRSP ADVANTAGES Puts workplace savings front and centre throughout Quebec In time, will compel more than 90,000 SMEs to get on board Represents a tangible savings experience for hundreds of thousands of workers

EASY TO UNDERSTAND FOR EMPLOYEES AFFORDABLE (low management fees) VRSP ADVANTAGES EASY TO UNDERSTAND FOR EMPLOYEES AFFORDABLE (low management fees) EASY TO MANAGE FOR YOU!

What is a VRSP?

About VRSPs The VRSP is a simple, low-cost registered savings plan. It is similar to a Defined Contribution Pension Plan except that it allows employees of unrelated employers and self-employed persons to pool their assets and participate in a registered savings product. Employers with 5 or more eligible employees must put a VRSP in place if they do not offer a pension plan (RPP), or an RRSP or TFSA with payroll deduction to all eligible employees. Employers must automatically enrol eligible employees who do not have access to one of these other plans.

About VRSPs Employees are eligible if they: ATTENTION About VRSPs Employees are eligible if they: perform work in Quebec (allowing for exceptions), are age 18 or over, have at least 1 year of uninterrupted service, work full-time or part-time (including contract and temporary employment). Employers in federally regulated industries (e.g., banks, telecommunications, interprovincial transportation), as well as employers and self-employed workers in the three territories, are subject to the Pooled Registered Pension Plans Act (PRPP). PRPPs are a new type of defined contribution pension plan gradually being implemented in Canada.

ATTENTION Employers in federally regulated industries (e.g., banks, telecommunications, interprovincial transportation), as well as employers and self-employed workers in the three territories, are subject to the Pooled Registered Pension Plans Act (PRPP). PRPPs are a new type of defined contribution pension plan gradually being implemented in Canada. Employers may need to take action if they have a plan in place that does not cover all their employees who are 18 or above and have at least 1 year of service. An employer with fewer than 5 eligible employees may set up a VRSP voluntarily. If employers who initially had 5 or more employees subsquently end up with fewer than 5 eligible employees, they must continue to offer the VRSP to new eligible employees and, every two years, to employees who opted out of the plan or set their contribution rate to 0%, unless all eligible employees have decided to opt out. VRSP legislation applies only if the employer has an establishment in Quebec. If not, the law does not apply. NB: this is not about having a head office in Quebec, only an establishment in Quebec. Voluntary enrolment: available to self-employed workers, employees whose employer does not offer a VRSP, employees with less than one year of uninterrupted service. Plan may limit enrolment of self-employed workers and employees whose employer does not offer a VRSP to Quebec residents only. An employer may enter into an agreement with a professional order, association or other group that will subscribe to a VRSP with an administrator.

VRSPs: AVAILABLE SINCE JULY 1, 2014 Deadline depends on employer's number of eligible employees: Number of eligible employees Deadline for offering a VRSP 20 or more as at June 30, 2016 December 31, 2016 10 to 19 as at June 30, 2017 December 31, 2017 5 to 9 To be determined, but not before January 1, 2018

VRSP FEATURES MEMBERSHIP - Automatic enrolment for eligible employees - Ability to opt out within 60 days after notice sent by administrator CONTRIBUTIONS – YOUR EMPLOYEE - Employee contributions through payroll deductions not locked in - Lump sum contributions not locked in - Transfers in of locked-in or not locked-in monies (e.g., RRSP or LIRA) are allowed - Default contribution rate based on gross salary 2% - July 1, 2014 to December 31, 2017 3% - January 1, 2018 to December 31, 2018 4% - starting January 1, 2019 - Contribution rate may be changed to 0% after contributing for 12 months. Exceptions apply if: The employer contributes to the plan (not a matching contribution), or The employee reaches his/her annual contribution limit, or The employee makes an additional contribution to the plan which is equal to or greater than the contributions he/she would have made in a 12-month period.

VRSP FEATURES CONTRIBUTIONS - YOU AS THE EMPLOYER Employer contributions not mandatory but allowed Employer contributions are locked in Contributions not subject to payroll taxes INVESTMENT OPTIONS - YOUR ADMINISTRATOR Default option: Sun Life Target Date Segregated Funds with the maturity date just prior to the member’s 65th birthday (lifecycle fund) Other funds available for employees not wishing to stay in the default Sun Life Assurance 1, 2, 3, 4 and 5-Year Guaranteed Funds Sun Life Target Date Segregated Funds* Sun Life BlackRock Canadian Bond Index Segregated Fund Sun Life BlackRock Canadian Equity Index Segregated Fund Sun Life BlackRock Global Equity Index Segregated Fund *If the member’s planned retirement age is not 65, he or she may select the Sun Life Target Date Segregated Fund with the maturity date closest to the planned retirement date. The member may choose only one Sun Life Target Date Segregated Fund.

VRSP FEATURES WITHDRAWALS AND TRANSFERS - YOUR EMPLOYEE Withdrawals and transfers of not locked-in assets are permitted at any time -Transfer of locked-in assets to a prescribed pension plan is permitted when the employee terminates employment or reaches age 55. Withdrawals of locked-in assets are also permitted in special circumstances (e.g., disability, non- resident for 2 years)

EMPLOYER ROLES AND RESPONSIBILITIES Choose your VRSP administrator Notify employees in writing of your intention to offer a plan at least 30 days before signing with a VRSP administrator Enrol all eligible employees in the plan Notify plan administrator of employees wishing to opt out Remit employee contributions to the administrator Oversight: Commission des normes du travail

EMPLOYEE ROLES AND RESPONSIBILITIES Employee opt-out: within 60 days after notice from administrator Select investment option among those available (otherwise default fund) Select contribution rate (otherwise default rate)

APPLICABLE FEES FOR YOUR EMPLOYEES Investment options and asset-based fees: Sun Life Assurance 1, 2, 3, 4 and 5-Year Guaranteed Funds – N/A Sun Life Target Date Segregated Funds – 1.25% Sun Life BlackRock Canadian Bond Index Segregated Fund - 1.437% Sun Life BlackRock Canadian Equity Index Segregated Fund - 1.437% Sun Life BlackRock Global Equity Index Segregated Fund - 1.446% Other service fees, including: Partial withdrawal fee: $25.00 per withdrawal Transfer fee: $25.00 per partial asset transfer to another financial institution* Full withdrawal/transfer fee: $50.00 charge will apply for full withdrawals or transfers to other financial institutions* Transfer of benefits between spouses: $100.00 shared equally between the spouses unless they have agreed otherwise between themselves Statement for purposes of relationship breakdown: $150.00 shared equally between the spouses unless they have agreed otherwise between themselves For a full list of applicable fees, refer to the Sun Life Financial VRSP Plan Text located on the contracts page at www.sunlife.ca/VRSP * Note: There are no transfer fees within the Sun Life Financial group of companies

SUN LIFE FINANCIAL'S VRSP Easy to implement with help from our advisors and the VRSP-focused resources of our Sun Life Financial Small Business Centre Simple to manage and understand - our specialized team handles the administrative work Attractive investment options Depend on Canada's leader in retirement plan solutions! 1 1 Benefits Canada, 2013 - Sun Life Financial Group Retirement Services' share of assets under management among the 10 largest defined contribution pension plans in Canada.

Opportunities for you

What are the benefits for you? Quick and easy to implement with our Sun Life Financial Small Business Centre that's focused on serving you Administration done for you Information and education for your employees on VRSPs and retirement savings Your contributions are tax deductible and there are no payroll taxes if you choose to contribute to the plan Excellent way to attract and retain talent Boosts staff loyalty (less turnover)

What are the benefits for your employees? Easy access to an affordable workplace savings plan Simple, low-cost investment solutions Flexible contribution and investment options Employee contributions are tax deductible up to their RRSP limits Investment earnings are tax deferred until the benefits are paid Better retirement planning and ultimately better retirement outcomes Access to online training and financial planning resources on our plan member services website at mysunlife.ca Access to world-class Customer Care Centre for all their questions If desired, workplace training and education done by an advisor

FOR MORE INFORMATION sunlife.ca/VRSP VRSP-focused Sun Life Financial Small Business Centre 1-855-362-3086 RVER@sunlife.com Read VRSP articles in Les Affaires Join the conversation at LinkedIn - RVER (French only)

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