PENSION PLANS

1. PENSION PLANS IMI Brokerage Company Eileen Blythe (CLU, CHFC) Phone: 1-604-206-7988 Email: eblythe@imibrokerage.com Web Site: www.imibrokerage.com Oneida Makinaw Phone: 1-780-585-3133 Email: omakinaw@imibrokerage.com Website:www.imibrokerage.com

2. PENSION PLANS • Your pension plan is a Provincial Plan, regulated and supervised by the Provincial Office of Alberta Finance

3. PENSION PLANSYour pension plan is called a Defined Contribution Plan a pension plan that defines the amount of employer and employee contributions to the fund determine on an individual amount basis. This type of plan is also known as a Money Purchase Pension Plan, since the money in the account will be used to purchase a life annuity.

4. PENSION PLANS • The income you will receive on retirement is calculated at the date of retirement, and is based on accumulated contributions and accumulated investment earnings.

5. PENSION PLAN • Your contributions in your plan is 4.0% of your earnings. • The Employer matches

6. VOLUNTARY CONTRIBUTIONS • Voluntary contributions are an excellent way to save additional money. • They are not locked-in • You can contribute up to 18% of your income • For example if you contribute 4%, your employer contributes 4% that is 8% you can contribute up to 10% voluntary for a total of 18% providing you are not contributing to RSP

7. LOCKED-IN RETIREMENT ACCOUNT (LIRA)Locking-in means that the money payable to a member of a plan can be used ONLY to provide retirement income, even if you leave the plan. Therefore, you can transfer your accumulated pension funds to a LIRA until retirement. You cannot withdraw funds from a LIRA.

8. PENSION THERE ARE TWO MAIN ADVANTAGES TO HAVING PENSION BENEFITS LOCKED-IN. You will have a regular income at retirement. Creditors cannot seize locked-in pension benefits.

9. LIFE ANNUITY • It is a Life Income payable to you until you die. • It is the same amount monthly or annual for the duration of your life. There are 2 options:

10. LIFE ANNUITY 1. Life income payable to you until death 2. Joint & Last survivor payable until last death

11. DEATH BENEFITS • Pension starts - the death benefit payable to spouse is one of the options we just discussed. • No spouse – payable in cash to the beneficiary.

12. LOCKED-IN RETIREMENT ACCOUNTS INVESTMENTS There are basically the types of investments with GWL • Guaranteed Investment Certificates 1, 3 and 5 years • Segregated Funds • Mutual Funds

13. INVESTMENT OPTIONS • Target Date Asset Allocation Funds • Target Risk Asset Allocation Funds • 1 - 5 year guaranteed investments • Choosing your own

14. Target Date Funds - The lifecycle solution • Professionally managed and well-diversified investment funds designed to follow your investment lifecycle Target Date Funds adjust as you progress toward retirement

15. Fixed Income Fixed Income Fixed Income Fixed Income Fixed Income Equity Equity Equity Equity Equity Target Date Funds The asset mixes of target date funds change to become more conservative as you get closer to retirement 20 yrs from retirement 15 yrs from retirement 10 yrs from retirement 5 yrs from retirement At retirement Asset mixes shown for illustrative purposes only

16. Target date fund advantages • A diversified portfolio managed by professionals • Rebalance your investments over time • Helps simplify your retirement investing decisions • Changes with you over time • Easy to use

17. Target Risk Asset Allocation Funds Advanced Aggressive Conservative Moderate Balanced Equity: 25%Fixed income: 75% Equity: 40%Fixed income: 60% Equity: 60%Fixed Income: 40% Equity: 80%Fixed income: 20% Equity: 100% Continuum Target Risk Portfolios

18. Investment Personality Questionnaire • Tool takes financial and retirement goals into consideration • 14 questions help identify your investment personality • 5 Personality types

19. Selecting your own investment mix Conservative investor Moderate investor Balanced investor Advanced investor Aggressive investor Fixed income Foreign equity Canadian equity Balanced Special equity

20. Target Risk Asset Allocation Funds • Experts choose • One simple solution that matches your personality • Maximize expected long-term return within your risk style • Rebalanced to match your investment personality You should review your investor risk tolerance at least every couple of years to ensure you’re still invested appropriately

21. OTHER INVESTMENT OPTIONS • Create your own mix of investments • Includes 1 - 5 year Guaranteed Interest Accounts • Investments can be changed at any time If no election made – your contributions will be invested in the plan investment default

22. Target Risk Asset Allocation Funds Advanced Aggressive Conservative Moderate Balanced Equity: 25%Fixed income: 75% Equity: 40%Fixed income: 60% Equity: 60%Fixed Income: 40% Equity: 80%Fixed income: 20% Equity: 100% Continuum Target Risk Portfolios

23. Where can I access the Investment personality questionnaire? • Sign in to www.grsaccess.com and launch the Plan your retirement tool • Use the Investment personality questionnaire brochure

24. PENSION • See your plan administrator, Crystal Samson, for an application and investment fund book. • It is your responsibility to make sure the application is signed and return to Crystal.

25. BENEFICIARY The most important part of the application is making sure you have named a beneficiary. Your legal spouse is beneficiary, no exceptions, if you are now common-in-law and still legally married perhaps consider legal separation or divorce. Should you have no spouse (legal or common-law) beneficiary can be your children. If children are under age 18 you can name a trustee.

26. LEAVING A JOB AND INVESTMENT OPTIONS • The value of a pension may be transferred to: • Another pension plan willing to accept the funds • A Locked-In Retirement Account (LIRA) • A life income fund • A life annuity

27. Changes to the Provincial Pension Act • May 2008, the following changes were made:

28. HARDSHIP RULE • Must be terminated from employment • Must have no other income • Must have received option statement from Great West Life • Maximum allowed in one year is $27,650.00 • Should you do this, you will have no income for retirement

29. 50% UNLOCKING RULE • Must be 55 or older One time option to take up to 50% of your pension in cash. • Must be terminated from pension plan, do not have to be terminated from employment. • Should you do this, you will have 50% less income when you need it most – when you retire

30. SMALL BALANCE RULE • Upon using the 50% unlocking rule, if there is less than $27,650 remaining, you may take the balance or save it until later.

31. MEDICAL DISABILITY • pension plan money can be used for medical disability • Your doctor must provide medical evidence for this to happen. • You must be terminated from employment. • Again you will reduce or deplete your retirement income

32. STATEMENT OF OPTIONS • Employee terminated from employment • OR employee is age 55 – terminated from pension plan and not terminated from employment • Great West Life receives termination notice • Sends Statement of Options to employee’s mailing address (big white envelope) • Employee phones IMI Brokerage to make an appointment to discuss statement of Options

33. Why is YOUR Pension Important • When the age of 65 is reached all you will have for income is OAS and GIS • It will be difficult to live on that income alone ~ approximately $1300.00 per month • THEREFORE: • keep your pension plan funds to increase your retirement income

34. RETIREMENTS AND ESTATE PLANNINGIt is very important you have certain things in place:You want to make sure your hard earned money and assets go to the people you want.One of the most important items to have in place is a WILL.Other documentation like a health directive and a Power of Attorney should be in place.

35. QUESTIONS