1. SFU Academic Pension Plan Debbie Wilson Plan Administrator September 25, 2014

2. Basic Structure Of Plan Plan type: defined contribution, or money purchase Contributions made by SFU: 10% of basic salary, less a CPP offset to a maximum of $419.40 per year For a $150,000 salary, SFU contributes $14,580.60 per year Plan members are permitted to make contributions, on a voluntary basis; these contributions are tax deductible Each plan member has an account at Sun Life to which their contributions are directed each pay period

3. Investment of Contributions Each plan member is responsible for determining how their contributions will be invested Board of Trustees have selected 9 investment options, which are regularly monitored GIC’s, money market, bond, equity, balanced funds If a plan member does not make an active decision about investment of their funds, the balanced fund is the default option There is no restriction on the number of funds that you can choose You can change your investment choice at any time

4. Options on Retirement Options depend on when the contributions were made – contributions made before 1993 are more flexible; they were made before pension legislation was enacted in BC Pre 1993 contributions and investment income can be transferred to a Registered Retirement Income Fund (RRIF) or can be taken in cash (less withholding tax) Post 1992 contributions and investment income are locked-in; they must be used to provide a lifetime income. They can be transferred to an insurance company to provide you with an annuity, or they can be transferred to a Life Income Fund (LIF)

5. RRIF and LIF Money must start to be withdrawn in the year after you set up the account There is a minimum amount that must be withdrawn, based on your age The LIF has a maximum withdrawal amount that can not be exceeded each year, based on your age For the LIF you can choose the withdrawal amount between the minimum and the maximum, and this choice can change every year You select the frequency of payments (monthly, quarterly, etc) On your death, the remaining money is paid to your beneficiary

6. Payout Schedule AgeMinimum for RRIF and LIF Maximum for LIF Only 623.57%6.9% 654.0%7.2% 684.55%7.6% 717.38%8.1% 757.85%9.1% 808.75%11.5% 8811.96%20.0% At age 65 with an account of $500,000, you need to withdraw between $20,000 and $36,000 At age 71 with an account of $500,000, you need to withdraw between $36,900 and $40,500

7. Life Annuity You exchange your funds in return for a monthly income for your lifetime (and your spouse’s lifetime, if elected) You can select an annuity that has a guarantee period, that provides income to your spouse on your death, that is indexed to inflation For a given amount of money, the insurance company will determine the amount of monthly income based on your age, and based on interest rates at the time of purchase Once purchased, you can not change any of the details