1. Putting Financial Advice in the Picture Leaving a Job Advisor Name: Company:

2. Leaving a job  Job changes are common  Can be traumatic and life-changing  View it as an opportunity, not a setback  Career and financial decisions to be made  Seek advice

3. Issues to consider when leaving a job  Termination and severance  Employment Insurance  Group insurance plans  Pension & other workplace savings plans  Stock options  Changing careers

4. Why are you leaving?  Lay off (adverse economic conditions)  Dismissal with cause  Constructive dismissal  New job

5. Termination - How much notice?  Standard minimum notice varies by province  One month per year of service  Employer often will offer lump sum in lieu of notice  If quitting, employee must give proper notice  We can help advise you on matters of termination, and refer to you a lawyer if necessary.

6. Severance – Two types of payout  Termination Pay  Lump sum in lieu of income during termination period  Based on legislated minimum period plus additional amount offered by (or negotiated with) employer

7. Severance – Two types of payout  Severance Pay  Separate payment based on seniority, years of service and loss of benefits  No minimum severance payment amounts except for Ontario and employers governed by federal legislation

8. Severance – Two types of payout  Retiring allowance  Allows money to be rolled over to an RRSP  No withholding tax payable

9. Severance - Tax issues  30% withholding tax payable (amounts over $15,000)  Additional tax may be payable  Find ways to defer payment

10. Severance – Negotiate the terms?  If amount seems low, seek expert advice  Receive payments in two different years  Stay on the payroll and continue benefits  RRSP rollover might be possible  Career transition service

11. Can you collect Employment Insurance?  Eligible if you lose job for no fault of your own  Ineligible if you resign  55% of average weekly salary, up to $500 a week  Maximum benefit period 19 to 50 weeks

12. EI – How to apply  File an application at Service Canada in person or online  Social Insurance Number  Official Record of Employment document  Personal identification

13. Group insurance – What’s next?  Most plans provide life insurance, disability insurance, medical/dental coverage  Benefits usually continue during statutory notice period  Ability to convert to individual coverage  Consider replacing what is not converted

14. Group insurance - Life  Benefit usually based on one to three times salary  You cannot increase insured amount  $200,000 maximum; term length may be limited  No medical required if you convert  Usual factors determine what it costs  Spouse but not dependents

15. Group insurance - Disability  Conversion may be available  It is crucial to replace this coverage  Consider critical illness insurance too

16. Group insurance – Medical/dental  Group insurers normally will not extend coverage, or offer conversion  Private insurance is available, but can be expensive  Three-month waiting period at new job

17. Pensions & other workplace savings plans  Pension plans (defined-benefit and defined contribution)  Group RRSPs  Deferred profit sharing plans  The jungle of pension rules

18. Registered pension plans  Defined benefit (DB) plans  Amount determined by actuarial calculation  Defined contribution (DC) plans  Value of all contributions plus income earned

19. RPPs – Options upon departure  New employer’s pension plan  LIRA  LIF  LRIF  Annuity  Pension payments

20. Vesting and Commuted value  Vesting  Waiting period to qualify for pension  Usually 2 years’ membership in plan  Commuted value  What your pension is worth at specific point in point  DB plan: actuarial calculation  DC plan: market value of employee and employer contributions combined

21. Group RRSPs – Options upon departure  Cash  Group RRSP at new job  Individual RRSP  RRIF  Annuity

22. DPSPs – Options upon departure  Cash  Another DPSP  Pension plan  RRSP  RRIF  Annuity

23. Employer Stock Options  Only vested options available  Deadline to exercise (e.g. 60 days)

24. Stock options - tax implications  Capital gains tax payable when shares sold  Tax deferral may be available  $100,000 deferral cap for publicly traded companies  Special mechanism means gains from an options- origin sale taxed like other capital gains

25. Stock options - What happens when you exercise  Exercised options reported on T4 slip  File deferral election form  T1212 must be filed for each tax year the deferral is maintained

26. Changing Careers  Financial planning  Career counselling  Government resources  Lifelong Learning Plan (www.cra-arc.gc.ca)  Career Counselling & Skills Assistance (http://www.jobsectc.gc.ca)  Economic Action Plan (http://www.hrsdc.gc.ca)

27. Summary Leaving a job is a lot of work- We can help!

28. Our Team (Insert Bio) (Insert Team Bio)

29. Thank You

30. Important Information This publication is intended as a general source of information and should not be considered as estate, tax planning, personal investment or tax advice, nor should it be construed as being specific to an individual’s investment objectives, financial situation or particular needs. The information contained herein has been compiled from sources believed to be reliable however, information can change without notice and Dynamic Funds ® does not accept any responsibility for any loss or damage that results from any information contained herein. © 2013 1832 Asset Management L.P. – All rights reserved. Reproduction in whole or in part of this content without the written consent of the copyright owner is forbidden. Snapshots TM and Dynamic Funds ® are trademarks of their owner used under license.