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
Canada
Old Age
Pension Plan
Security
(CPP/QPP)
(OAS)
Maximum
$908.75
$516.96
Average
$501.82
$489.57
2009
Request your CPP/QPP contributions & benefit statement from: www.servicecanada.gc.ca
* Rates above as of April 2009
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
DC Plan contribution limits
Lesser of 18%
of current
years earnings
or $22,000
2008
$21,000
2009
$22,000
2010
indexed
Includes:
• Your contributions
• UNBC’s
contributions
• Additional
voluntary
contributions
DC Pension Plan Contributions are part of your Pension Adjustment,
show up on your T4 slip and affect the amount that you can contribute to your RRSP
RRSP contribution limits
Lesser of 18%
of previous
years earnings
or $21,000
2008
$20,000
2009
$21,000
2010
$22,000
-
Pension
Adjustment
(PA)*
+
For your information about your personal limits visit www.cra.gc.ca
•Pension Adjustment (PA) shown on T4.
Unused
RRSP
Room (if any)
2009 Plan Contributions
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
2009 YMPE = Yearly Maximum Pensionable Earnings = $46,300.
Doing the math
Assumption:
Registered Retirement Savings Plan (RRSP)
Mary earns $65,000 annually.
Mary
Mary
$46,300 x 3%
$18,700 x 5%
=
=
$1,389.00
$ 935.00
UNBC
UNBC
$46,300 x 8%
$18,700 x 10%
=
=
$3,704.00
$1,870.00
Total Benefit
=
$7,898.00
When do you 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
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 $10,000
(January 1999 – December 2008)
$35,000
$30,000
$25,000
$18,000
$18,000
$17,200
$20,000
$17,200
$14,400
$15,000
$14,400
$12,500
$10,000
$5,000
Dec 98
Dec 99
Dec 00
Dec 01
Dec 02
Dec 03
Dec 04
Dec 05
Dec 06
Dec 07
TSX DEX 91-Day T-Bill Index
TSX DEX Universe Bond Index
S&P/TSX Composite Index
Consumer Price Index
Source : Morningstar.ca
Dec 08
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
Your investment options
Asset Class
Fund Name
Risk
Fund
Management
Style
Low
Low
N/A
N/A
Low Moderate
Low Moderate
Passive
Active
Moderate
Moderate
Moderate
Active - Value
Active - Value
Active - Growth
Money Market/
Guaranteed
• Sun Life 1, 3 & 5 Year Guaranteed
• Sun Life Money Market
Fixed
Income/Bond
• BGI Bond Index
• PH&N Bond Fund
Balanced
• Beutel Goodman Balanced
• BonaVista Balanced
• McLean Budden Balanced Growth
Canadian Equities
• BGI S&P/TSX Composite Index
• Beutel Goodman Canadian Equity
• McLean Budden Canadian Equity
• McLean Budden Canadian Equity Growth
• Beutel Goodman Small Cap
Moderate High
Moderate High
Moderate High
Moderate High
High
Passive
Active -Value
Active - Blend
Active - Growth
Active - Value
US Equities
• BGI US Equity Index
• CI American Value
• McLean Budden US Equity
Moderate High
Moderate High
Moderate High
Passive
Active - Value
Active - Growth
Foreign Equities
• McLean Budden Global Equity
Moderate High
Active - GARP
Investment Manager approaches
Active
Passive or 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
BonaVista, Beutel Goodman
McLean Budden, PH&N, CI
BGI
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
CI, BonaVista, Beutel Goodman
McLean Budden
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
McLean Budden Global
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 options
Asset Class
Fund Name
Risk
Fund
Management
Style
Low
Low
N/A
N/A
Low Moderate
Low Moderate
Passive
Active
Moderate
Moderate
Moderate
Active - Value
Active - Value
Active - Growth
Money Market/
Guaranteed
• Sun Life 1, 3 & 5 Year Guaranteed
• Sun Life Money Market
Fixed
Income/Bond
• BGI Bond Index
• PH&N Bond Fund
Balanced
• Beutel Goodman Balanced
• BonaVista Balanced
• McLean Budden Balanced Growth
Canadian Equities
• BGI S&P/TSX Composite Index
• Beutel Goodman Canadian Equity
• McLean Budden Canadian Equity
• McLean Budden Canadian Equity Growth
• Beutel Goodman Small Cap
Moderate High
Moderate High
Moderate High
Moderate High
High
Passive
Active -Value
Active - Blend
Active - Growth
Active - Value
US Equities
• BGI US Equity Index
• CI American Value
• McLean Budden US Equity
Moderate High
Moderate High
Moderate High
Passive
Active - Value
Active - Growth
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
• BGI Bond Index 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 Asset Mix
Dec. 31st 2008
Balances
% of
Investment
Dec. 31st 2007
Balances
% of
Investment
Balanced
$9,809,893.97
28.95%
$12,358,144.03
30.75%
Beutel Goodman Balanced Fund
BonaVista Balanced Fund
McLean Budden Bal. Growth Fund
PH&N Balanced Pension Fund
1,071,584.71
7,388,732.80
1,349,576.46
0.00
3.16%
21.80%
3.98%
0.0%
815,189.49
0.00
1,234,922.29
10,308,032.25
2.03%
0.00%
3.07%
25.65%
Canadian Equity
$10,326,454.21
30.47%
$15,545,558.23
38.68%
Beutel Goodman Canadian Equity Fund
Beutel Goodman Small Cap Fund
BGI S&P/TSX Composite Index Fund
McLean Budden Canadian Equity Fund
McLean Budden Cdn Eq Growth Fund
745,642.55
1,657,499.07
1,204,374.07
5,565,262.97
1,153,675.55
2.20%
4.89%
3.55%
16.42%
3.40%
1,002,926.87
2,304,544.48
1,781,376.34
8,534,858.68
1,921,851.86
2.5%
5.73%
4.43%
21.24%
4.78%
Fixed Income
$4,190,081.88
12.36%
$ 3,472,371.60
8.64%
BGI Bond Index Fund
PH&N Bond Fund
309,748.27
3,880,333.61
0.91%
11.45%
0.00
3,472,371.60
0.00%
8.64%
Fund Asset Mix
Dec. 31st 2008
Balances
% of
Investment
Dec. 31st 2007
Balances
% of
Investment
Foreign Equity
$2,875,770.92
8.49%
$ 3,572,203.81
8.89%
BGI US Equity Index Fund
CI American Value Fund
MB Global Equity Fund
MB US Equity Fund
276,836.22
616,557.96
1,830,660.12
151,716.62
0.82%
1.82%
5.40%
0.45%
308,862.97
746,955.02
2,430,889.57
85,496.25
0.77%
1.86%
6.05%
0.21%
Guaranteed/Money Market
$6,686,075.38
19.73%
$ 5,241,977.12
13.04%
SLA 1 YR Guaranteed Fund
SLA 3 YR Guaranteed Fund
SLA 5 YR Guaranteed Fund
Sun Life Money Market Fund
614,264.65
563,966.38
1,076,924.61
4,430,919.74
1.81%
1.66%
3.18%
13.08%
375,439.68
494,678.12
766,575.20
3,605,284.12
0.93%
1.23%
1.91%
8.97%
Total
$33,888,276.36
100.00 %
$40,190,254.79
100.00 %
Fund Performance
Fund
2008
2007
2006
2005
2004
Sun Life Money Market Fund
DEX 91 Day TBill Index
3.6
3.3
4.5
4.4
4.0
4.0
2.6
2.6
2.2
2.3
BGI Bond Index Fund
PH&N Bond Fund
DEX Universe Bond
6.0
3.8
6.4
3.6
3.2
3.7
4.1
4.4
4.1
6.5
7.0
6.5
7.1
7.3
7.2
Beutel Goodman Balanced Fund
Beutel Balanced Benchmark
-10.0
-14.9
0.5
2.6
13.6
12.2
10.1
11.2
10.9
9.3
BonaVista Balanced Fund
BonaVista Balanced Benchmark
-18.3
-15.0
1.1
3.5
14.4
12.0
15.3
12.5
12.9
9.9
McLean Budden Balanced Growth Fund
McLean Budden Balanced Benchmark
-17.5
-16.4
2.1
2.6
13.6
12.5
11.4
12.0
8.5
9.5
Data through 31 Dec 2008
Fund Performance
Fund
2008
2007
2006
2005
2004
BGI S&P/TSX Composite Index Fund
Beutel Goodman Canadian Equity Fund
McLean Budden Canadian Equity Fund
McLean Budden Cdn Eq Growth Fund
S&P/TSX Capped Composite
-32.5
-22.2
-31.9
-38.0
-33.0
9.9
6.3
8.3
11.6
9.8
17.4
16.6
18.3
21.3
17.3
24.0
17.7
21.2
22.9
24.1
14.6
14.3
12.2
11.9
14.5
Beutel Goodman Small Cap Fund
BMO Small Cap Blended (Weighted)
-28.3
-46.6
3.0
2.0
22.3
16.6
11.2
19.7
14.7
14.1
BGI US Equity Index Fund
S&P 500 Index ( Cdn $)
-21.5
-21.2
-10.8
-10.5
15.1
15.3
2.0
2.3
2.5
2.8
CI American Value Fund
McLean Budden US Equity Fund
S&P 500 C$- Bank of Canada
-22.8
-21.6
-21.9
-1.6
-4.8
-10.6
18.7
14.9
15.7
5.2
3.0
1.6
12.2
3.9
3.3
McLean Budden Global Equity Fund
MSCI World C$
-21.8
-25.4
-7.9
-7.1
19.6
20.2
5.7
7.3
5.5
6.9
Data through 31 Dec 2008
Understanding Fees
Fund Management Fee
(expressed as a % of fund assets you hold)
Fees in your plan
range
High
1.64 %
Low
0.41%
Fund Management %
0.70%
Annual Fees
$70.00
Example
$10,000
To view your fees visit www.sunlife.ca/member
Fund Management Fees at
February 28, 2009
Fund Name
Total Fund Management
Fee
Sun Life GICs
None
Sun Life Financial Money Market Fund
0.41%
BGI Bond Index Fund
0.46%
PH&N Bond Fund
0.69%
Beutel Goodman Balanced Fund
0.76%
BonaVista Balanced Fund
1.64%
McLean Budden Balanced Growth Fund
0.68%
Fund Management Fees at
February 28, 2009
Fund Name
Total Fund Management
Fee
BGI S&P/TSX Composite Index Fund (P)
0.48%
McLean Budden Canadian Equity Growth Fund
0.68%
McLean Budden Canadian Equity Fund
0.68%
Beutel Goodman Canadian Equity Fund
0.78%
Beutel Goodman Small Cap Fund
0.78%
CI American Value Fund
1.31%
BGI US Equity Index Fund (P)
0.48%
McLean Budden US Equity Fund
0.74%
McLean Budden Global Equity Fund
0.70%
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
Retirement
Planning
Tools
Plan Member Website
 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
my assets
• Enter any additional assets or
income you have
• You can include pensions from
previous employers
my money retirement planner
my lifestyle
• A lifestyle is suggested based
on your personal information
• You can view information on
other lifestyles
• Select your lifestyle and receive
your personal action plan
my money retirement planner
Your personal action plan
Keeping you involved
Read your personal statements
•
•
•
•
•
•
•
Quarterly (Available Online)
Easy to read
Personal rates of return
Summary of all plans
Transaction history
Plan information
Bulletin board
Keeping you involved
Internet
www.sunlife.ca/member
Customer Care Centre
1-866-733-8612
•
•
•
•
24 hour automated phone
account access
Representatives available every business day (8
am to 8 pm ET)
Account updates
150 languages supported
•
•
•
•
•
Receive up-to-date account balances
View transaction history
Make investment changes
Link directly to investment reports
View online member statements
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)
Questions?