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
Where will your money come from?
Retirement income
supplement
secondary
primary
CPP/OAS
Home
Other Savings
Personal RRSP
UNBC Defined Contribution Pension Plan
Government benefits
2008
CPP/QPP
OAS
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)
• 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: www.hrsdc.gc.ca
• OAS payments are based on your Canadian residency
Benefits of starting early
Assumes a 6% rate of return
Responsibilities
Insert
Slide Title Here
UNBC
Sun Life
Financial
Investment
Managers
You/member
Sponsor the plan
Record keeping
Funds
Your Account
• Pension Committee
• Plan design
• Selecting Investment
Managers
• Selecting funds
• Selecting the
record keeper
• Monitoring the plan
• Preparing statements
• Developing tools
• Member education
• Tracking your
investments
• Tax receipts
• Performing research
• Creating the fund
• Selecting the stocks
or bonds
• Buying and selling
• 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)*
+
2008 $20,000
2009 $21,000
2010 $22,000
* Pension Adjustment (PA) shown on T4. Applies to DCPP contributions.
Unused
RRSP
Room (if any)
Where contributions are directed….
UNBC
Registered
Registered Retirement Savings
Plan (RRSP)
Pension Plan
Employee
Compulsory
• 3% of earnings up to the YMPE
• 5% above the YMPE
• Additional Voluntary (no match)
• Transfers-in allowed
UNBC
• 8% of earnings up to the YMPE
• 10% above the YMPE
YMPE = Yearly Maximum Pensionable Earnings, $44,900.
What does this mean to me ?
Assumption:
Registered Retirement Savings Plan (RRSP)
Mary earns $65,000 annually.
Mary
Mary
$44,900 x 3%
$ 7,900 x 5%
=
=
$1,263.00
$ 395.00
UNBC
UNBC
$44,900 x 8%
$ 7,900 x 10%
=
=
$3,368.00
$ 790.00
Total Benefit
=
$5,816.00
When do I own the funds?
Vesting
Registered Retirement Savings Plan (RRSP)
• 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 x
take3%
with you.=
Mary
$44,900
$1,263.00
• You always own your contributions.
Mary
$ 7,900 x 5%
=
$ 395.00
Locking
in $44,900 x 8%
UNBC
=
$3,368.00
UNBC
$ 7,900
x 10%
$ 2 790.00
• Once
you have been
contributing
into the =
DCPP for
years, the
funds become locked in which means they are not available for you to
use
until you
retire.
Total
Benefit
=
$5,816.00
What
happensififyou….
you….
What happens
if you…
What
happens
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
Understanding Fees
Fund Management Fee
(expressed as a % of fund assets you hold)
Fees in your plan
range
High
1.32 %
Low
0.42%
Example
$10,000
Fund Management %
0.70%
Annual Fees
$70.00
To view your specific management fees visit www.sunlife.ca/member
Fund Management Fees at
Dec. 31, 2007
Fund Name
Total Fund Management
Fee
PH&N Balanced Pension Fund
0.70%
Beutel Goodman Balanced Fund
0.76%
McLean Budden Balanced Growth Fund
0.69%
McLean Budden Canadian Equity Fund
0.69%
Beutel Goodman Canadian Equity Fund
0.76%
Beutel Goodman Small Cap Fund
0.76%
McLean Budden Canadian Equity Growth Fund
0.68%
BGI S&P/TSX Composite Index Fund
0.48%
PH&N Bond Fund
0.69%
Fund Management Fees at
Dec. 31, 2007
Fund Name
Total Fund Management
Fee
CI American Value Fund
1.32%
BGI US Equity Index Fund
0.48%
McLean Budden US Equity Fund
0.74%
McLean Budden Global Equity Fund
0.70%
Sun Life Financial Money Market Fund
0.42%
SLA 1 YR Guaranteed Fund
N/A
SLA 3 YR Guaranteed Fund
N/A
SLA 5 YR Guaranteed Fund
N/A
Low Fund Management Fees (FMF)
make a difference
Ending balance
2%
$148,588
Investment
management
fee
Annual
contributions
Years of
contributions
2%
$5,000
20
1.5%
$5,000
20
1%
$5,000
20
* Assumes a 5.75% real rate of return
1.5%
$157,752
1%
$167,568
Total contribution:
$100,000
You get it all when you save through
your company plan
Your piggy
bank
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
savings
account
Your personal
RRSPs
UNBC
×
×
×
×
×
×
×
×
×
×




×



Your steps to investing
1. Understand
the basics
• types of funds
• risk vs. returns
• importance of diversification
2. Determine
3. Choose
what type of investor you are
your funds
• refer to the Investment Reports section through your
online account
Understand risk vs. return
Money market
• Federal government debt
• Short term, less than 1 year
Bonds
• Promise to repay debt
• Receives interest
• Various terms to maturity
• Government and corporate
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
$300.00
$250.00
$247
$200.00
$184
$146
$150.00
$124
$100.00
$50.00
1998
1999
2000
2001
2002
2003
2004
2005
2006
Consumer Price Index
DEX 91-Day T-Bill Index
DEX Universe Bond Index
S&P/TSX Composite Index
2007
2008
Source: Morningstar Research Inc.
Diversify your investments
• Diversification: holding different types of investments in your portfolio
• Lower your overall risk by: not putting all of your eggs in one basket
Ways you can diversify
Asset Class
Manager
Style
Foreign
Markets
Sector
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
Passive/Index
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
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
Growth
Focuses on stocks that a fund
manager thinks are currently
undervalued in price and will
eventually have their worth
recognized by the market
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
Dollarcost
costaveraging
averaging
Dollar
Month
Amount
Price
Units purchased
1
$250
$10
25
2
$250
$10
25
3
$250
$11
22.72
4
$250
$12
20.83
5
$250
$11
22.72
6
$250
$13
19.23
7
$250
$14
17.86
8
$250
$13
19.23
9
$250
$14
17.86
10
$250
$12
20.83
11
$250
$10
25
12
$250
$14
17.86
Total
$3,000
Avg. price = $11.80
254.14
Market Value = $3,557.96
Rate of Return = 18.59%
my
money
Investment
Risk
Profiler
Your guide to choosing funds
• Complete the questionnaire in the Investment Risk Profiler online
• www.sunlife.ca/member
• Review your fund choices
online through Morningstar®
• Select your funds according to your
risk tolerance
Your investment fund choices
Asset Class
Fund Name
Risk
Fund
Management
Style
Low
Low
N/A
N/A
Low Moderate
Active/GARP
Moderate
Moderate
Moderate
Active/GARP
Active/Growth
Active/Value
Money Market/
Guaranteed
• Sun Life Financial 1, 3 & 5 Year Guaranteed
• Sun Life Financial Money Market Fund
Fixed
Income/Bond
• PH&N Bond Fund
Balanced
• PH&N Balanced Pension Fund
• McLean Budden Balanced Growth Fund
• Beutel Goodman Balanced Fund
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
Moderate High
Moderate High
Moderate High
Active/Value
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
Moderate High
Moderate High
Passive
Active/Growth
Active/Value
Foreign
Equities
• McLean Budden Global Equity
Moderate High
Active/GARP
Building your own asset mix
Example: A score of 36 to 85 points - Moderate
15%
Intl. Equity
Investment
Type
Investment Option
15%
U.S. Equity
• BGI US Equity Index Fund
• McLean Budden US Equity Fund
• CI American Value Fund
15%
International Equity
• McLean 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
10%
Money Market
15%
U.S. Equity
40%
Fixed Income
20%
CDN. Equity
Rebalance often to match your risk
tolerance
Starting point
10%
1 year later
45%
Bonds
45%
45%
Stocks
5%
10%
5%
10%
45%
Starting point
35%
60%
35%
Bonds
45%
45%
Transfer:
10% Cdn Equity to Bonds
5% Cdn Equity to International Equity
45%
60%
Stocks
International Equity
Canadian Equity
Bonds
Fund Performance
Fund
2007
2006
2005
2004
2003
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%
Data through 31 Dec 2007
Fund Performance
Fund
2007
2006
2005
2004
2003
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%
21.31%
22.90%
11.86%
30.75%
9.83%
17.26%
24.12%
14.48%
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 $)
-10.77%
-10.53%
15.06%
15.33%
1.97%
2.29%
2.52%
2.80%
4.38%
5.26%
CI American Value Fund
S&P 500 C$- Bank of Canada
-1.60%
-10.55%
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$- Bank of Canada
-4.80%
-10.55%
14.85%
15.74%
2.95%
1.62%
3.90%
3.26%
7.41%
5.29%
McLean Budden Global Equity Fund
MSCI World C$
-7.85%
-7.08%
19.62%
20.19%
5.67%
7.27%
5.46%
6.85%
8.38%
9.41%
Data through 31 Dec 2007
Fund Asset Mix
Dec. 31st 2007
Balances
% of
Investment
Dec. 31st 2006
Balances
% of
Investment
$12,358,144.03
30.75%
$11,596,625.91
31.19%
815,189.49
1,234,922.29
10,308,032.25
2.03%
3.07%
25.65%
478,042.37
855,795.05
10,262,788.49
1.29%
2.30%
27.61%
$15,545,558.23
38.68%
$11,596,625.91
38.11%
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
1,002,926.87
2,304,544.48
1,781,376.34
8,534,858.68
1,921,851.86
n/a
2.5%
5.73%
4.43%
21.24%
4.78%
n/a
699,495.43
2,068,019.58
1,267,602.16
768,961.53
n/a
9,365,184.33
1.88%
5.56%
3.41%
2.07%
n/a
25.19%
Fixed Income
$ 3,472,371.60
8.64%
3,008,464.95
8.09%
PH&N Bond Fund
3,472,371.60
8.64%
3,008,464.95
8.09%
Balanced
B.G. Balanced Fund
MB Balanced Growth Fund
PH&N balanced Pension Fund
Canadian Equity
Fund Asset Mix
Foreign Equity
BGI US Equity Index Fund
CI American Value Fund
MB Global Equity Fund
MB US Equity Fund
Guaranteed/Money Market
SLA 1 YR Guaranteed Fund
SLA 3 YR Guaranteed Fund
SLA 5 YR Guaranteed Fund
Sun Life Money Market Fund
Total
Dec. 31st 2007
Balances
% of
Investment
Dec. 31st 2006
Balances
% of
Investment
$ 3,572,203.81
8.89%
$ 3,547,279.63
9.54%
308,862.97
746,955.02
2,430,889.57
85,496.25
0.77%
1.86%
6.05%
0.21%
304,685.44
676,244.32
2,523,513.46
42,836.41
0.82%
1.82%
6.79%
0.12%
$ 5,241,977.12
13.04%
$ 4,853,648.21
13.06%
375,439.68
494,678.12
766,575.20
3,605,284.12
0.93%
1.23%
1.91%
8.97%
311,296.45
535,513.10
826,819.01
3,180,019.65
0.84%
1.44%
2.22%
8.55%
$40,190,254.79
100.00 %
$ 37,175,281.73
100.00 %
Saving for
retirement
Getting Started
 Select Resource
Centre
 Click on My Money
Tools
Sign in to
www.sunlife.ca/member
my money retirement planner
my information
•This is the first screen of the
retirement planner
•Some of the information on this
screen is pre-populated
my money Retirement Planner
Your personal action plan
Keeping you involved
Read your personal statements
•
•
•
•
•
Quarterly member statements
Personal rates of return
Transaction history
Plan information
Bulletin board
Keeping you involved
Manage your money on-line
Internet
www.sunlife.ca/member
Education
• Investment Risk Profiler
• Retirement Planner
• Edu-cast
• New personal financial
planning tools
Account Access
• Account balances
• Transfer between funds
• Secure e-mail
• RRSP receipts
• On-line statements
Morningstar
• Investment reports
Keeping you involved
Call 1-866-733-8612 for access to your account or help understanding
your plan
•
•
•
•
•
•
Account balances
Rates of return
Market information
Enrolment assistance
Transfer between funds
Change investment allocation
Phone
1-866-733-8612
Automated
Telephone System
Help is available in 150 languages
Customer Care
Centre
Getting information about your funds
(Morningstar®)
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
Keeping you involved
Do your financial planning online
Withdrawal
calculator

Gains vs.
 Capital
RRSP calculator
vs.
 Mortgage
RRSP calculator
Loan
 RRSP
calculator
Keeping you involved
Do your financial planning online
Annuity calculator
claw-back
OAS
calculator
RRIF 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)
Thank you
Questions?