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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

Retirement income

CPP/OAS

Home

Other Savings

Personal RRSP

UNBC Defined Contribution Pension Plan

primary

Where will your money come from?

supplement

secondary

Government benefits

2009Canada

Pension Plan

(CPP/QPP)

Old Age

Security

(OAS)

Maximum $908.75 $516.96

Average $501.82 $489.57

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

Insert Slide Title HereResponsibilities

Sponsor the plan

• Pension Committee• Plan design • Selecting Investment

Managers• Selecting funds• Selecting the

record keeper• Monitoring the plan

UNBC

Record keeping

• Preparing statements• Developing tools• Member education• Tracking your

investments• Tax receipts

Sun Life Financial

InvestmentManagers

Funds

• Performing research• Creating the fund• Selecting the stocks

or bonds• Buying and selling

You/member

Your Account

• 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 earningsor $22,000

indexed2010

$22,0002009

$21,0002008

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

Includes:• Your contributions• UNBC’s contributions• Additional voluntary contributions

RRSP contribution limits

Lesser of 18%of previous

years earningsor $21,000

PensionAdjustment

(PA)*

UnusedRRSP

Room (if any)+-

$22,0002010

$21,0002009

$20,0002008

•Pension Adjustment (PA) shown on T4.

For your information about your personal limits visit www.cra.gc.ca

Registered Retirement Savings Plan (RRSP)

2009 Plan Contributions

UNBC Registered Pension Plan

EmployeeCompulsory

UNBC

• 3% of earnings up to the YMPE• 5% above the YMPE• Additional Voluntary (no match)• Transfers-in allowed

• 8% of earnings up to the YMPE• 10% above the YMPE

2009 YMPE = Yearly Maximum Pensionable Earnings = $46,300.

Registered Retirement Savings Plan (RRSP)

Doing the math

Assumption:

Mary earns $65,000 annually.

Mary $46,300 x 3% = $1,389.00Mary $18,700 x 5% = $ 935.00

UNBC $46,300 x 8% = $3,704.00UNBC $18,700 x 10% = $1,870.00

Total Benefit = $7,898.00

Registered Retirement Savings Plan (RRSP)

When do you own the funds?

Mary $44,900 x 3% = $1,263.00Mary $ 7,900 x 5% = $ 395.00

UNBC $44,900 x 8% = $3,368.00UNBC $ 7,900 x 10% = $ 790.00

Total Benefit = $5,816.00

Vesting

• 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 take with you.• You always own your contributions.

Locking in

• Once you have been contributing into the DCPP for 2 years, the funds become locked in which means they are not available for you to use until you retire.

What happens if you…

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

What happens if you….What happens if you….

You get it all when you save through your company plan

Your piggy bank

Your savings account

Your personal RRSPs

UNBC

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

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Your steps to investing

1. Understand the basics•types of funds•risk vs. returns•importance of diversification

2. Determine what type of investor you are

3. Choose your funds •refer to the Investment Reports section through your online account

Understand risk vs. return

Bonds• Promise to repay debt

• Receives interest

• Various terms to maturity

• Government and corporate

Money market• Federal government debt

• Short term, less than 1 year

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)

$17,200

$18,000

$14,400

Source : Morningstar.ca

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

Dec 98 Dec 99 Dec 00 Dec 01 Dec 02 Dec 03 Dec 04 Dec 05 Dec 06 Dec 07 Dec 08

TSX DEX 91-Day T-Bill Index TSX DEX Universe Bond Index

S&P/TSX Composite Index Consumer Price Index

$17,200

$18,000

$14,400

$12,500

• Diversification: holding different types of investments in your portfolio• Lower your overall risk by: not putting all of your eggs in one basket

Diversify your investments

Asset Class

ManagerStyle

Sector

ForeignMarkets

Ways you can diversify

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 RiskFund

Management Style

Money Market/

Guaranteed

• Sun Life 1, 3 & 5 Year Guaranteed• Sun Life Money Market

Low

Low

N/A

N/A

Fixed Income/Bond

• BGI Bond Index• PH&N Bond Fund

Low Moderate

Low Moderate

Passive

Active

Balanced • Beutel Goodman Balanced• BonaVista Balanced• McLean Budden Balanced Growth

Moderate

Moderate

Moderate

Active - Value

Active - Value

Active - 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

Objective is to outperform a market index based on research of current market conditions and

company prospectsActively buys and sells securities

in individual funds

Passive or Index

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

BonaVista, Beutel GoodmanMcLean Budden, PH&N, CI

Fund Management Fees tend to be lower than an Active Fund Manager

BGI

Investment styles

Value

Focuses on stocks that a fund manager thinks are currently

undervalued in price and will eventually have their worth recognized by the market

Growth

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 stockwill increase in price as others

in the market recognize the true value of the stock

CI, BonaVista, Beutel Goodman

If the manager is right, the company’sstock will increase in price as thecompany achieves business and

earnings growth

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

Dollar cost averaging

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 = $3,557.96Rate of Return = 18.59%

Dollar cost averaging

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

my money Investment Risk Profiler

Your investment options

Asset Class Fund Name RiskFund

Management Style

Money Market/

Guaranteed

• Sun Life 1, 3 & 5 Year Guaranteed• Sun Life Money Market

Low

Low

N/A

N/A

Fixed Income/Bond

• BGI Bond Index• PH&N Bond Fund

Low Moderate

Low Moderate

Passive

Active

Balanced • Beutel Goodman Balanced• BonaVista Balanced• McLean Budden Balanced Growth

Moderate

Moderate

Moderate

Active - Value

Active - Value

Active - 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

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

Example: A score of 36 to 85 points - Moderate

15%U.S. Equity

20%CDN. Equity

40%Fixed Income

10%Money Market

15%Intl. Equity

Building your own asset mix

Rebalance often to match your risk tolerance

10%

International Equity

Canadian Equity

Bonds

45%Bonds 45%

Stocks

45% 45%

10%

35%Bonds

45%

Starting point5%

35% 60%

1 year later

Transfer:10% Cdn Equity to Bonds

5% Cdn Equity to International Equity

60%Stocks

5%

45%

10%

Starting point

45%

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 Asset Mix

Fund 2008 2007 2006 2005 2004Sun 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

Fund Performance

Data through 31 Dec 2008

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

Fund Performance

Data through 31 Dec 2008

Understanding Fees

Fees in your plan range

High

1.64 %

Low

0.41%

Fund Management Fee(expressed as a % of fund assets you hold)

To view your fees visit www.sunlife.ca/member

Annual Fees

$70.00

Fund Management %

0.70% $10,000

Example

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%

* Assumes a 5.75% real rate of return

Investment management

fee

Annual contributions

Years of contributions

2% $5,000 20

1.5% $5,000 20

1% $5,000 20

1.5%$157,752

1%$167,568

Total contribution: $100,000

2%$148,588

Ending balance

Low Fund Management Fees (FMF) make a difference

RetirementPlanningTools

Select Resource Centre

Click on My Money Tools

Plan Member Website

Sign in to www.sunlife.ca/member

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

my money retirement planner

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

• 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

Internetwww.sunlife.ca/member

Customer Care Centre1-866-733-8612

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

Getting information about your funds (Morningstar®)

Keeping you involved

Withdrawal calculator

Capital Gains vs.RRSP calculator

Mortgage vs. RRSP calculator

RRSP Loancalculator

Do your financial planning online

Keeping you involved

Do your financial planning online

OAS claw-backcalculator

RRIF calculator

Annuity 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?