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

Indexing: Your CPP are indexed annually, OAS is indexed quarterly CPP payments are based on how much and how long you have contributed Request your CPP contributions & benefit statement from: OAS payments are based on your Canadian residency 2008 CPP/QPPOAS Maximum Monthly $884.58/mth ($10,615/yr) $502.31/mth ($6,027.72/yr) Average $480.86/mth ($5,770/yr) $476.37/mth ($5,716/yr) Government benefits

Benefits of starting early Assumes a 6% rate of return

Insert Slide Title Here Responsibilities 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 Investment Managers 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

Your RRSP limits Lesser of 18% of previous years earnings or $20,000 Pension Adjustment (PA)* Unused RRSP Room (if any) + - $22, $21, $20, * Pension Adjustment (PA) shown on T4. Applies to DCPP contributions.

Registered Retirement Savings Plan (RRSP) Where contributions are directed…. UNBC Registered Pension Plan Employee Compulsory 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 YMPE = Yearly Maximum Pensionable Earnings, $44,900.

Registered Retirement Savings Plan (RRSP) What does this mean to me ? Assumption: Mary earns $65,000 annually. Mary$44,900 x 3%=$1, Mary$ 7,900 x 5%=$ UNBC$44,900 x 8%= $3, UNBC$ 7,900 x 10%=$ Total Benefit= $5,816.00

Registered Retirement Savings Plan (RRSP) When do I own the funds? Mary$44,900 x 3%=$1, Mary$ 7,900 x 5%=$ UNBC$44,900 x 8%= $3, UNBC$ 7,900 x 10%=$ Total Benefit= $5, 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….

Understanding Fees Fees in your plan range High 1.32 % Low 0.42% Fund Management Fee (expressed as a % of fund assets you hold) To view your specific management fees visit Annual Fees $70.00 Fund Management % 0.70% $10,000 Example

Fund Management Fees at Dec. 31, 2007 Fund NameTotal Fund Management Fee PH&N Balanced Pension Fund0.70% Beutel Goodman Balanced Fund0.76% McLean Budden Balanced Growth Fund0.69% McLean Budden Canadian Equity Fund0.69% Beutel Goodman Canadian Equity Fund0.76% Beutel Goodman Small Cap Fund0.76% McLean Budden Canadian Equity Growth Fund0.68% BGI S&P/TSX Composite Index Fund0.48% PH&N Bond Fund0.69%

Fund Management Fees at Dec. 31, 2007 Fund NameTotal Fund Management Fee CI American Value Fund1.32% BGI US Equity Index Fund0.48% McLean Budden US Equity Fund0.74% McLean Budden Global Equity Fund0.70% Sun Life Financial Money Market Fund0.42% SLA 1 YR Guaranteed FundN/A SLA 3 YR Guaranteed FundN/A SLA 5 YR Guaranteed FundN/A

* Assumes a 5.75% real rate of return Investment management fee Annual contributions Years of contributions 2%$5, %$5, %$5, % $157,752 1% $167,568 Total contribution: $100,000 2% $148,588 Ending balance Low Fund Management Fees (FMF) make a difference

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 × ×× × × × × × × × × × × × × × ×

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 $100 From Jan 1998 to Dec 2007 $247 $146 $184 $124 Source: Morningstar Research Inc.

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 Manager Style Sector Foreign Markets 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

Investment Manager approaches Active 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 Passive/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 Fund Management Fees tend to be lower than an Active Fund Manager

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 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

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

Dollar cost averaging MonthAmountPriceUnits purchased 1$250$1025 2$250$1025 3$250$ $250$ $250$ $250$ $250$ $250$ $250$ $250$ $250$ $250$ Total$3,000Avg. price = $ Market Value = $3, Rate of Return = 18.59% Dollar cost averaging

Your guide to choosing funds Complete the questionnaire in the Investment Risk Profiler online Review your fund choices online through Morningstar® Select your funds according to your risk tolerance my money Investment Risk Profiler

Your investment fund choices Asset ClassFund NameRisk Fund Management Style Money Market/ Guaranteed Sun Life Financial 1, 3 & 5 Year Guaranteed Sun Life Financial Money Market Fund Low N/A Fixed Income/Bond PH&N Bond FundLow ModerateActive/GARP Balanced PH&N Balanced Pension Fund McLean Budden Balanced Growth Fund Beutel Goodman Balanced Fund Moderate Active/GARP Active/Growth Active/Value Canadian Equities 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 High Moderate High Active/Value Passive Active/Growth Active/GARP US Equities BGI US Equity Index Fund McLean Budden US Equity Fund CI American Value Fund Moderate High Passive Active/Growth Active/Value Foreign Equities McLean Budden Global EquityModerate HighActive/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 EquityMcLean 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 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% 10% 35% Bonds 45% Starting point 5% 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%

Fund Sun Life Money Market Fund DEX 91 Day Cda Tbill 4.52% 4.43% 4.02% 3.98% 2.62% 2.58% 2.19% 2.30% 2.97% 2.91% PH&N Bond Fund Fund DEX Universe Bond 3.18% 3.68% 4.40% 4.06% 7.00% 6.46% 7.32% 7.15% 7.32% 6.69% Beutel Goodman Balanced Fund Beutel Balanced Benchmark 0.54% 2.61% 13.63% 12.23% 10.05% 11.24% 10.90% 9.34% 16.15% 14.65% McLean Budden Balanced Growth Fund McLean Budden Balanced Benchmark 2.09% 2.55% 13.63% 12.50% 11.36% 12.02% 8.45% 9.47% 14.43% 13.68% PH&N Balanced Pension Fund PH&N Balanced Pension Trust Benchmark 0.25% 3.42% 12.39% 12.56% 10.00% 12.27% 10.16% 9.30% 14.54% 13.82% Beutel Goodman Canadian Equity Fund S&P/TSX Composite 6.28% 9.83% 16.58% 17.26% 17.67% 24.13% 14.32% 14.48% 28.30% 26.72% BGI S&P/TSX Composite Index Fund S&P/TSX Capped Composite (BGI) 9.92% 9.83% 17.40% 17.26% 24.02% 24.13% 14.58% 14.48% 26.66% 26.72% Fund Performance Data through 31 Dec 2007

Fund McLean Budden Canadian Equity Fund BMO/TSX Composite Capped 10% 8.34% 9.83% 18.26% 17.26% 21.19% 24.12% 12.15% 14.48% 25.30% 26.72% McLean Budden Canadian Equity Growth Fund BMO/TSX Composite Capped 10% 11.62% 9.83% 21.31% 17.26% 22.90% 24.12% 11.86% 14.48% 30.75% 26.72% Beutel Goodman Small Cap Fund BMO Small Cap Blended (Weighted) 2.97% 2.01% 22.33% 16.64% 11.16% 19.68% 14.69% 14.12% 38.19% 42.74% BGI US Equity Index Fund S&P 500 Index ( Cdn $) % % 15.06% 15.33% 1.97% 2.29% 2.52% 2.80% 4.38% 5.26% CI American Value Fund S&P 500 C$- Bank of Canada -1.60% % 18.68% 15.74% 5.24% 1.62% 12.15% 3.26% 4.76% 5.29% McLean Budden US Equity Fund S&P 500 C$- Bank of Canada -4.80% % 14.85% 15.74% 2.95% 1.62% 3.90% 3.26% 7.41% 5.29% McLean Budden Global Equity Fund MSCI World C$ -7.85% -7.08% 19.62% 20.19% 5.67% 7.27% 5.46% 6.85% 8.38% 9.41% Fund Performance Data through 31 Dec 2007

Dec. 31 st 2007 Balances % of Investment Dec. 31 st 2006 Balances % of Investment Balanced$12,358, %$11,596, % B.G. Balanced Fund MB Balanced Growth Fund PH&N balanced Pension Fund 815, ,234, ,308, % 3.07% 25.65% 478, , ,262, % 2.30% 27.61% Canadian Equity$15,545, %$11,596, % B.G. Canadian Equity Fund B.G. Small Cap Fund BGI S&P/TSX Composite Index Fund MB Canadian Equity Fund MC Canadian Equity Growth Fund PH&N Canadian Equity Plus Pension Fund 1,002, ,304, ,781, ,534, ,921, n/a 2.5% 5.73% 4.43% 21.24% 4.78% n/a 699, ,068, ,267, , n/a 9,365, % 5.56% 3.41% 2.07% n/a 25.19% Fixed Income $ 3,472, % 3,008, % PH&N Bond Fund 3,472, % 3,008, % Fund Asset Mix

Dec. 31 st 2007 Balances % of Investment Dec. 31 st 2006 Balances % of Investment Foreign Equity$ 3,572, %$ 3,547, % BGI US Equity Index Fund CI American Value Fund MB Global Equity Fund MB US Equity Fund 308, , ,430, , % 1.86% 6.05% 0.21% 304, , ,523, , % 1.82% 6.79% 0.12% Guaranteed/Money Market$ 5,241, % $ 4,853, % SLA 1 YR Guaranteed Fund SLA 3 YR Guaranteed Fund SLA 5 YR Guaranteed Fund Sun Life Money Market Fund 375, , , ,605, % 1.23% 1.91% 8.97% 311, , , ,180, % 1.44% 2.22% 8.55% Total$40,190, %$ 37,175, % Fund Asset Mix

Saving for retirement

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Your personal action plan my money Retirement Planner

Keeping you involved Read your personal statements Quarterly member statements Personal rates of return Transaction history Plan information Bulletin board

Keeping you involved Education Internet Account AccessMorningstar Investment Risk Profiler Retirement Planner Edu-cast New personal financial planning tools Account balances Transfer between funds Secure RRSP receipts On-line statements Investment reports Manage your money on-line

Keeping you involved Call for access to your account or help understanding your plan Automated Telephone System Phone Customer Care Centre Account balances Rates of return Market information Enrolment assistance Transfer between funds Change investment allocation Help is available in 150 languages

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 Loan calculator Do your financial planning online

Keeping you involved Do your financial planning online OAS claw-back calculator 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)

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