A group retirement savings plan for small business has never been easier…

Agenda  Understanding your needs  Business concerns  Retaining employees  FutureStep TM  Product details  Product options  Service and support  Next steps

Unique small-business concerns  Attracting employees  Competing with large firms  When you lose a key person, you feel it  Knowledge-based small businesses  ‘Day one’ employees  How to create effective retention strategies

Important features  Low cost  Little time or effort to run  High employee value and impact  Easy to understand  You’re an expert in your business…not group retirement savings

Retirement savings plans play a big role in attracting and retaining employees  Did having an employer sponsored retirement savings plan, influence your decision to join and/or stay with your current employer? Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)

Employees reluctant to leave because of the company retirement savings plan  Do you agree with the following statement? “I would be reluctant to leave my employer because of the retirement savings plan offered as part of my compensation package.” Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)  Reluctance increases as retirement approaches

Manulife has a solution… FutureStep!

Product details  FutureStep is an innovative and flexible group retirement savings plan  Enhances employee appreciation and loyalty  Helps you gain a competitive edge  Conveys your concern for employees' life after work  Contributes to employees’ financial security

Plan options  Registered Retirement Savings Plan (RRSP)  Offered by an employer to his/her employees as a way to save for the future.  Both employers and employees can contribute to the plan and attain certain tax advantages.  Deferred Profit Sharing Plan (DPSP)  Reward good company performance, in the form of profit sharing  Only an employer can contribute to the plan  Registered as a trust arrangement with the Canada Revenue Agency (CRA) DPSP option can only be purchased along with the group RRSP and is not a stand-alone offering

You can get started with as little as…  Two eligible* employees  Contributions of $10,000** annually (cash flow) as a group  No cost to you***, unless you choose to contribute on employees’ behalf *eligibility criteria is per FutureStep plan **If the combined cashflow for your RRSP and DPSP plans is less than $20, in a year, you will be charged a $750 administration trustee fee. *** if your cashflow falls below a minimum, you may could be charged an administration fee.

Contribution Options  All contributions are submitted electronically online  You choose who contributes to the plan:  Company only  Company + employee  Employee only

 You may choose different rules for different employees:  Management  Non management  Either way, you will have:  One contribution file  One set of online reports Employee Eligibility Options

 Manulife issues contracts for your immediate review  You choose a plan design(s) that suits you:  Eligibility  Contribution formula  Definition of earnings Plan Design Options

 Employees may set up spousal RRSP accounts*  Two types of RRSP withdrawal restrictions:  Allowed while employed  Not allowed while employed  Excludes Home Buyers’ Plan, Lifelong Learning Plan and employee voluntary contributions Spousal Account & Withdrawal Options * Not available for the DPSP option

Investment Fund Line-up  Employees choose their investments  Competitive investment management fees (IMF)  One fund line-up  Managed by Manulife  Monitored by i-Watch ®  Covered by Certified Diversified ® Warranty Program

 Range of choices for all types of investors  No touch - Retirement Date  Low touch - Asset Allocation  High touch - Selection of ‘build your own’ funds  Default fund  Primary: Retirement Date  Secondary (if date of birth is missing): Moderate Asset Allocation Fund  Guaranteed Investment Options  1, 3, 5 year terms Investment Fund Line-up

Target Date Manulife Retirement Date suite of funds (2020 – 2055) – 1.80% Manulife Retirement Income Fund (2000) – 1.80% Asset Allocation Manulife Asset Allocation suite of funds (2001 – 2005) – 1.75% Fixed Income Manulife Daily High Interest (3191) – 1.35% MLI Canadian Money Market (3132)– 1.45% MLI PH&N Bond Fund (4271) – 1.70% MLI MFC Global Pooled Canadian Bond Index (4191) – 1.47%Balanced MLI Leith Wheeler Diversified Pooled (5301) – 1.75% MLI Fidelity Canadian Asset Allocation (5141) – 2.10% Canadian Large Cap Equity MLI Jarislowsky Fraser Canadian Equity (7241) – 1.70% MLI Scheer Rowlett Canadian Equity Fund (7601) – 1.80% MLI Greystone Canadian Equity Fund (7481) – 1.70% MLI MFC Global Pooled Canadian Index (7132) – 1.48% Canadian Small Cap Equity MLI MMF Growth Opportunities (7122) – 1.90% US Equity MLI U.S. Diversified Growth Equity (Wellington) (8196) – 1.95% MLI MFC Global Pooled US Equity Index (8131) – 1.48% International Equity MLI International Equity (Templeton) (8192) – 2.05% MLI BlackRock International Equity Index Fund (8321) – 1.60% Global Equity MLI Trimark Fund (8181) – 2.00% MLI MFS MB Global Equity Fund (8161) – 1. 75% Investment Fund Line-up

18 Lower Investment management fees (IMFs)  Take advantage of your group’s purchasing power Potential fee savings for a $5,000 investment over 20 years = $1,353

Easy and Convenient Plan Set-up  Online application is quick and convenient  Client Relationship Manager  Dedicated, proactive support for small-business employers  Invited to a webcast to get you started  Plan administration guide

Ongoing Support  Client Relationship Manager support continues  Plan Sponsor Call Centre  Secure sponsor website  Newsletter and other resources  Online contributions and access to statements  Pre-authorized debit

Launching to Employees  Three options [your name here if you will do in person employee meetings]  Online multi-media presentation  Financial Education Specialists  Monday to Friday, 9 a.m. to 5 p.m. ET

Employee Enrolment Support  Enrolment package with booklet  Award winning  Easy to use  Plain language  Supports selecting investments

Ongoing Member Support  Annual statement  Secure website  Steps Retirement Program ®  Online and phone transactions  Paper transactions not recommended  Member Call Centre  Monday to Friday from 8 a.m. to 8 p.m. ET

Why FutureStep? For you  A low-cost, high-value way to attract and retain employees  Quick to set-up, easy to manage  Top-quality product; very competitive price for your employees For your employees  Low fees so retirement savings grow faster  First-class services and support  Access to financial advice [include if you will be providing this service]

Next Steps  [fill in your next steps here]

Questions