St. Thomas University

Meeting agenda

• Who we are• What is changing• Plan Overview• Changes to OAS/CPP• Investment Fund review• Services and Support• Simply Speaking Tools• Next Steps

The

Great West LifeAssurance Company

Our organization

Our organization

$201.1* billion in assets under administration serving more than 12 million Canadians…..

Or 1 in 3 Canadians does business with us!

*as at Sep 30, 2011(www.greatwestlife.com Quarterly Results)

What is Changing

Why and How

• Your Pension Committee - – Went through a proposal process and chose GWL

• Decision - – Your Pension is moving from BMO to Great-West Life

• Your Total Assets – Transferred from BMO in a lump sum in October

• Applications:– Each member must complete a Member Application

Plan Overview

Group RPP

What Members contribute

What the University contributes

RRSP - Voluntary Contributions

When do the Contributions vest

EligibilityFull Time Staff/Faculty – Date of EmploymentPart Time Faculty – Upon Reaching “Level 2”

You contribute 6%(5% if salary is < $40,000)

Your employer 7%

Up to Your personal allowable per CRA

Immediately

*RRSP contribution limit is 18% of previous years salary up to a maximum of $22, 970 (for 2012)

CRA T.I.P.S. Automated Services 1-800-267-6999

Can you save more?It’s easier than you think!

Bi-weekly Per pay

Net cost per pay

Less tax at source (30%) *

Annual contribution

1% $15 $10 $5 $400

2% $31 $22 $9 $800

3% $46 $32 $14 $1,200

4% $62 $43 $19 $1,600

5% $77 $54 $23 $2,000

*Tax rates subject to change

Amounts Vary

Salary based on $40,000 per year

Investment management Fees

Assumptions:6% Rate of Return$200 per month contributions (employer and employee contributions)30 year saving period (Age 30-65)Investment Management fee difference – 0.50 % St Thomas University versus 2.0% privately

Monetary Difference - $66,210 (approximately)

Retirement Savings

Reti

rem

ent

Savin

gs

Bala

nce

Changes to OAS/CPP

Changes to OAS

• Changes to commence April 2023- 2029

• Increase in age to 67 before eligible

• If born prior to March 31, 1958 – No change

• Applies to both OAS and GIS

Changes to the Canada Pension Plan

• CPP retirement pension amounts Increase if taken after age 65 (42% more pension at age 70)

• CPP retirement pension amounts Decrease If taken before age 65 (36% less pension at age 60)

• Work Cessation rule changes

• Working while receiving your CPP retirement pension

• Impact of low or zero earning years to your CPP retirement pension amount calculation

Source: www.servicecanada.gc.ca (1-800-277-9914)

Market Update

Asset classes What kind of investor are you?

Canadian Canadian Canadian CanadianYear Equities Year Equities Year Equities Year Equities

1950 51.69% 1966 -7.07% 1982 5.57% 1998 -1.58%1951 25.44% 1967 18.09% 1983 35.49% 1999 31.71%1952 0.01% 1968 22.45% 1984 -2.39% 2000 7.41%1953 2.56% 1969 -0.81% 1985 25.07% 2001 -12.57%1954 39.37% 1970 -3.57% 1986 8.95% 2002 -12.44%1955 27.67% 1971 8.01% 1987 5.88% 2003 26.72%1956 12.68% 1972 27.38% 1988 11.08% 2004 14.48%1957 -20.58% 1973 0.27% 1989 21.37% 2005 24.13%1958 31.25% 1974 -25.93% 1990 -14.80% 2006 17.26%1959 4.59% 1975 18.48% 1991 12.02% 2007 9.83%1960 1.78% 1976 11.02% 1992 -1.43% 2008 -33.00%1961 32.75% 1977 10.71% 1993 32.55% 2009 35.05%1962 -7.09% 1978 29.72% 1994 -0.18% 2010 17.61%1963 15.60% 1979 44.77% 1995 14.53% 2011 -8.71%1964 25.43% 1980 30.13% 1996 28.35%1965 6.68% 1981 -10.25% 1997 14.98%

62 Year Return (2011) 10 Year Returns (2011)Stocks 10.46% Stocks 7.03%Bonds 6.44% Bonds 6.48%

CPI 3.76% CPI 2.13%

Canadian Equities 1950 - 2011

Afghanistan, Iraq,

North Korea

Tech bubble bursts, 911 Terrorist attack Gulf War

Nixon resigns

over Watergate

Launch of

Sputnik

Cuban Missile Crisis House bubble bursts,

Credit Crunch

Canadian EquitiesCanadian Equities

2010

2006

2004 2005

2007 1997 2003

2000 1995 1996

1987 1991 1989

1986 1988 1985

2011 1982 1977 1978 2009

1998 1973 1976 1972 1999

1994 1971 1975 1968 1993

2002 1992 1965 1967 1964 1983

2001 1984 1960 1963 1955 1980

1990 1970 1959 1956 1951 1961

1981 1969 1953 1948 1949 1958

1940 1966 1952 1944 1936 1954

2008 1937 1962 1947 1943 1934 1945

1931 1974 1932 1946 1941 1942 1926 1935 1979 1950

1930 1957 1929 1939 1938 1924 1925 1928 1927 1933

-40 to -30 -30 to -20 -20 to -10 -10 to 0 0 to 10 10 to 20 20 to 30 30 to 40 40 to 50 > 50

Annual Rates of ReturnSource: Canadian Institute of Actuaries (1924 to 1955); Toronto Stock Exchange (1956 to 2011)

What kind of investor are you?

What kind of investor are you?

Your investment personality questionnaire should be reviewed on a regular basis or whenever you have a substantial change in your life.

1st Step…

Investment Personality Questionnaire

• How long has it been since you looked at your profile?

• Have you had a major Life Change?• Marriage• Children• Divorce• Death• Illness

What kind of investor are you?

Investment personality questionnaireConservative investor Moderate investor Balanced investor

Advanced investor Aggressive investor

Fixed income

Foreign equity

Canadian equity

Balanced

Asset classes

Build your own….• You choose your own asset mix• You monitor your investments• You know your investor style• You have a well balanced portfolio

The “Hands On” approach ?

Need help with fund selection?Investment menu and fund reports

The “Hands off” Approach

Asset allocation fundsSimple yet sophisticated...

Target Risk - 5 different profiles

Target Date Funds

Current portfolio line-up

2050 Fund 2045 Fund

2040 Fund

2035 Fund

2030 2025Fund 2020 Fund

2015 Fund 2010 Fund

2030 Fund

Asset mix of fund line-up in 2010

Investments

New Investment Platform:Target Risk Funds

Target Date Funds

Balanced Funds:•Beutel Goodman Balanced•CC&L Balanced

Fixed Income Funds: •Beutel Goodman Bond•London Capital Bond Index•Mortgage Fund

Specialty Equity Funds:

•GWLIM Real Estate•Mackenzie Resource Fund

Canadian Equity Funds:• London Capital Dividend Fund • Beutel Goodman Canadian Equity• Beutel Goodman Pure Canadian

Equity• GWLIM Ethics Fund • Renaissance Small Cap

U.S.Equity Funds:•AGF American Growth Equity•TDAM U.S. Equity Index

Global Equity Funds:•Mackenzie Foreign Equity

International Equity Funds:•Sprucegrove International Equity

Investment Changes - Mapping your funds

Previous Fund New FundIntegra Conservative Moderate ProfileIntegra Strategic Balanced ProfileIntegra Growth Advanced Profile

Default Fund – Target Risk

Determined based on Estimated Date of

Retirement

Previous Fund New FundCanadian Funds:

Integra Canadian Value Growth Fund Beutel Goodman Pure Canadian EquityIntegra Equity Fund Beutel Goodman Canadian Equity

Fixed Income Funds:Integra Bond Fund Beutel Goodman Bond Fund

International Funds:Integra International Equity Fund Sprucegrove International Equity

U.S. FundsIntegra US Value Growth Fund AGF American Growth Equity

Balanced Funds:Integra Balanced Fund Beutel Goodman Balanced Fund

Speciality Funds:Integra Ethical Growth Fund GWL Ethics Fund

Cash and Equivalents:Integra Short Term Investment Fund Money Market FundSpecial GIC 1 Year 1 year GIASpecial GIC 3 Year 3 year GIASpecial GIC 5 Year 5 year GIAGIC 5 year 5 year GIA

Previous Fund New Fund

Make a Choice for you

You choose where your money is invested in the new plan

If you do not Choose

Your Investments will automatically be re- invested according to Specific Fund Mapping

You make the Choice

Services and support

Support from enrolment to retirement years

Services & support

1-800-724-3402

www.grsaccess.com

Education Sessions Newsletters & Handouts

StatementsRetirement Illustrations

Your Retirement Guide or YRG

For New Members

GRS Access

• Account balances

• Change investment instructions

• Process inter-fund transfers

• Retirement planning tool

• On-demand statements

•http://www.grsaccess.com/

Access ID: DEMO Password:ONLINE4U

GRS Access - Smart tools

• Online articles, videos, calculators, e-magazines

• Offered in levels to suit you – Getting started– Getting serious– Getting close

• One stop education and information through home page

Calculators …

Calculators …

Newsletters and Individual Articles - English

Services & support

Education

Education

“Getting Started” – New members

“Getting Refreshed” – For existing members

“ Getting Close” – For those within 10 years of retirement

Webexgreat alternative to a live meeting

One on One’s additional servicemembers should attend a group session firstmembers feel that it was a useful exercise

Next Steps

• Pick up Enrollment guides

• Fill out Application - Deadline:

• Make Investment Choices

• Book One-on-one Session (if required)

Next Steps