St. Thomas University

Meeting agenda Who we are What is changing Plan Overview Changes to OAS/CPP Investment Fund review Services and Support Simply Speaking Tools Next Steps

The Great West Life Assurance Company

Our organization

$201.1* billion in assets under administration serving more than 12 million Canadians….. Or 1 in 3 Canadians does business with us! *as at Sep 30, 2011 ( Quarterly Results) Quarterly Results

What is Changing

Why and How Your Pension Committee - –Went through a proposal process and chose GWL Decision - –Your Pension is moving from BMO to Great-West Life Your Total Assets –Transferred from BMO in a lump sum in October Applications: –Each member must complete a Member Application

Plan Overview

Group RPP What Members contribute What the University contributes RRSP - Voluntary Contributions When do the Contributions vest Eligibility Full Time Staff/Faculty – Date of Employment Part Time Faculty – Upon Reaching “Level 2” You contribute 6% (5% if salary is < $40,000) Your employer 7% Up to Your personal allowable per CRA Immediately *RRSP contribution limit is 18% of previous years salary up to a maximum of $22, 970 (for 2012) CRA T.I.P.S. Automated Services

Can you save more? It’s easier than you think! Bi-weekly Per pay Net cost per pay Less tax at source (30%) * Annual contribution 1%$15$10$5$400 2%$31$22$9$800 3%$46$32$14$1,200 4%$62$43$19$1,600 5%$77$54$23$2,000 *Tax rates subject to change Amounts Vary Salary based on $40,000 per year

Investment management Fees Assumptions: 6% Rate of Return $200 per month contributions (employer and employee contributions) 30 year saving period (Age 30-65) Investment Management fee difference – 0.50 % St Thomas University versus 2.0% privately Monetary Difference - $66,210 (approximately) Retirement Savings Retirement Savings Balance

Changes to OAS/CPP

Changes to OAS Changes to commence April Increase in age to 67 before eligible If born prior to March 31, 1958 – No change Applies to both OAS and GIS

Changes to the Canada Pension Plan CPP retirement pension amounts Increase if taken after age 65 (42% more pension at age 70) CPP retirement pension amounts Decrease If taken before age 65 (36% less pension at age 60) Work Cessation rule changes Working while receiving your CPP retirement pension Impact of low or zero earning years to your CPP retirement pension amount calculation Source: ( )

Market Update

Asset classes What kind of investor are you?

Canadian Equities Afghanistan, Iraq, North Korea Tech bubble bursts, 911 Terrorist attack Gulf War Nixon resigns over Watergate Launch of Sputnik Cuban Missile Crisis House bubble bursts, Credit Crunch

Canadian Equities to to to to 00 to 1010 to 2020 to 3030 to 4040 to 50> 50 Annual Rates of Return Source: Canadian Institute of Actuaries (1924 to 1955); Toronto Stock Exchange (1956 to 2011)

What kind of investor are you?

Your investment personality questionnaire should be reviewed on a regular basis or whenever you have a substantial change in your life. 1st Step… Investment Personality Questionnaire How long has it been since you looked at your profile? Have you had a major Life Change? Marriage Children Divorce Death Illness

What kind of investor are you? Investment personality questionnaire Conservative investorModerate investorBalanced investor Advanced investorAggressive investor Fixed income Foreign equity Canadian equity Balanced Asset classes

Build your own…. You choose your own asset mix You monitor your investments You know your investor style You have a well balanced portfolio The “Hands On” approach ? Need help with fund selection? Investment menu and fund reports

The “Hands off” Approach Asset allocation funds Simple yet sophisticated...

Target Risk - 5 different profiles

Target Date Funds Current portfolio line-up 2050 Fund2045 Fund2040 Fund2035 Fund Fund2020 Fund 2015 Fund2010 Fund2030 Fund Asset mix of fund line-up in 2010

Investments

New Investment Platform: Target Risk Funds Target Date Funds Balanced Funds: Beutel Goodman Balanced CC&L Balanced Fixed Income Funds: Beutel Goodman Bond London Capital Bond Index Mortgage Fund Specialty Equity Funds: GWLIM Real Estate Mackenzie Resource Fund Canadian Equity Funds: London Capital Dividend Fund Beutel Goodman Canadian Equity Beutel Goodman Pure Canadian Equity GWLIM Ethics Fund Renaissance Small Cap U.S.Equity Funds: AGF American Growth Equity TDAM U.S. Equity Index Global Equity Funds: Mackenzie Foreign Equity International Equity Funds: Sprucegrove International Equity

Investment Changes- Mapping your funds Previous FundNew Fund Integra ConservativeModerate Profile Integra StrategicBalanced Profile Integra GrowthAdvanced Profile Default Fund – Target Risk Determined based on Estimated Date of Retirement

Previous FundNew Fund Canadian Funds: Integra Canadian Value Growth FundBeutel Goodman Pure Canadian Equity Integra Equity FundBeutel Goodman Canadian Equity Fixed Income Funds: Integra Bond Fund Beutel Goodman Bond Fund International Funds: Integra International Equity FundSprucegrove International Equity U.S. Funds Integra US Value Growth FundAGF American Growth Equity

Balanced Funds: Integra Balanced FundBeutel Goodman Balanced Fund Speciality Funds: Integra Ethical Growth FundGWL Ethics Fund Cash and Equivalents: Integra Short Term Investment FundMoney Market Fund Special GIC 1 Year1 year GIA Special GIC 3 Year3 year GIA Special GIC 5 Year5 year GIA GIC 5 year5 year GIA Previous FundNew Fund

Make a Choice for you You choose where your money is invested in the new plan If you do not Choose Your Investments will automatically be re- invested according to Specific Fund Mapping You make the Choice

Services and support Support from enrolment to retirement years

Services & support Education Sessions Newsletters & Handouts Statements Retirement Illustrations

Your Retirement Guide or YRG For New Members

GRS Access Account balances Change investment instructions Process inter-fund transfers Retirement planning tool On-demand statements Access ID: DEMO Password:ONLINE4U

GRS Access - Smart tools Online articles, videos, calculators, e-magazines Offered in levels to suit you –Getting started –Getting serious –Getting close One stop education and information through home page

Calculators …

Newsletters and Individual Articles - English Services & support

Education

“Getting Started” – New members “Getting Refreshed” – For existing members “ Getting Close” – For those within 10 years of retirement Webex great alternative to a live meeting One on One’s additional service members should attend a group session first members feel that it was a useful exercise

Next Steps

Pick up Enrollment guides Fill out Application - Deadline: Make Investment Choices Book One-on-one Session (if required) Next Steps