Your Guide to the Scotiabank Pension Plan · 2018-04-09 · Scotiabank Pension Plan for Employees Hired 1/1/16 and Later | Your Guide 1 This document contains both information and

Scotiabank Pension Plan for Employees Hired 1/1/16 and Later | Your Guide 1

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Overview

Participation

Defined Benefit (DB) Component

Defined Contribution (DC) Component

Ending Plan Membership

The Pension Plan— RRSP Relationship

Planning for Retirement

Other Plan Details

Key Words

Your Guide to the Scotiabank Pension PlanFor employees hired in Canada on or after January 1, 2016

Important note about this Guide

Scotiabank Pension Plan for Employees Hired 1/1/16 and Later | Your Guide

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Overview

Participation






Other Plan Details

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What’s inside

OVERVIEW ............................................................................. 4Keysourceofretirementincome ....................................... 4

HowthePlanworks ............................................................. 4

Actinginyourinterests ....................................................... 5

ScotiabankPensionPlan…ataglance ................................ 6

PARTICIPATION ....................................................................... 9Eligibility.............................................................................. 9

Waivingorsuspendingparticipation ................................. 9

Participationduringleavesofabsence .............................. 9

DEFINED BENEFIT (DB) COMPONENT ................................10HowtheDBcomponentworks ......................................... 10

Contributions ..................................................................... 10

CalculationofyourDBpension ........................................ 10

Normalretirement ............................................................. 11

Earlyretirement ................................................................. 12

Postponedretirement ....................................................... 12

DEFINED CONTRIBUTION (DC) COMPONENT ...................13HowtheDCcomponentworks ......................................... 13

Contributions ..................................................................... 13

InvestingyourDCaccount ................................................ 14

Fees ..................................................................................... 15

ENDING PLAN MEMBERSHIP ..............................................16RetirementfromScotiabank ............................................. 16

LeavingScotiabankbeforeretirement ............................. 19

DeathofaPlanmember ................................................... 22

THE PENSION PLAN—RRSP RELATIONSHIP ......................23RRSPcontributionroom .................................................... 23

PensionadjustmentfromDBcomponent ........................ 23

PensionadjustmentfromDCcomponent ........................ 23

PLANNING FOR RETIREMENT .............................................26Scotiabank Pension Plan Annual Report .......................... 26

AnnualstatementfortheDBcomponent ....................... 26

Semi-annualstatementsfortheDCcomponent ............. 26

My Pension Centre and the Pension Estimator ............... 27

OTHER PLAN DETAILS .........................................................28Scotiabank’srighttoamendthePlan .............................. 28

Yourrighttodocuments ................................................... 28

Yourprivacy ....................................................................... 28

Pensioncommittee ............................................................ 28

Securityofyourpension .................................................... 29

ExcessPlanassetsorobligationsunderthe

DBcomponent ................................................................... 29

Contactinformation .......................................................... 29

KEY WORDS .........................................................................30

Throughout this document, certain technical terms are used.

To ensure that you understand them properly, we have defined

them under Key Words on page 30. Defined terms appear in

italics throughout the Guide.

Finding your way around this Guide...

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What’s inside

3

Overview

Participation






Other Plan Details

Key Words

IMPORTANT NOTE

This Guide summarizes the current Scotiabank

Pension Plan (“SPP” or the “Plan”) provisions for

employees hired in Canada on or after January 1,

2016. It is intended to help you better understand

how your pension works and its importance within

your overall retirement planning.

The Guide is not a legal document and the

information it provides has been simplified. It is

not intended as advice. The examples contained

in this Guide are based on various assumptions

and current Plan terms, which are subject to change.

If there are any discrepancies between this Guide

and the official Plan document, the terms of the

Plan document will apply in all cases. You may view

the official Plan document, and other prescribed

documents associated with the Plan, on request

through the HR Call Centre.

This Guide was published in January 2016.


Overview

•Keysourceofretirementincome

•HowthePlanworks

•Actinginyourinterests

•ScotiabankPensionPlan… ataglance

Participation






Other Plan Details

Key Words

Overview

Scotiabank values a total compensation approach to managing all compensation

programs—base pay, incentive pay, benefits and pensions. In particular, the Scotiabank

Pension Plan (“SPP” or the “Plan”) is a key part of your total compensation package

and an important source of your retirement income.

Key source of retirement income

Your Plan provides you with an important source of income when you retire, together with your government benefits and

personal savings.

As part of our Total Rewards strategy, Scotiabank reviews all aspects of our retirement programs on an ongoing basis.

How the Plan works

The Plan for Scotiabank employees hired in Canada on or after January 1, 2016, is a hybrid pension arrangement provided under

the Plan, combining a Bank-paid defined benefit (DB) component and a voluntary defined contribution (DC) component.

•DBcomponent

You are automatically enrolled in the DB pension component on the first of the month following six months of continuous service.

The DB component pays you a lifetime monthly pension (your “DB pension”) that is calculated using a set formula that takes into

account your salary and years of Plan service. You do not contribute to the DB component.

Scotiabank sets aside money in a separate fund to pay all DB pensions under the Plan, even though the pensions may not be

paid out for many years. To determine how much money needs to be set aside today to provide the DB pension you earn while

a member of the Plan, Scotiabank engages an independent third-party actuary to evaluate the Plan’s funding status annually or

as otherwise required by legislation.

Scotiabank manages the pension fund and assumes the investment risk for the DB pension. As a result, your DB pension does

not vary with the investment returns of the pension fund. Scotiabank is required to contribute to the Plan any amount needed

to ensure that the Plan can pay the DB pensions it promises to all members and their beneficiaries.

For the most part, the longer you are a member of the Plan and the higher your salary, the more DB pension you will receive from

the Plan (subject to the maximum earnings under the Plan as explained on page 31 and subject to the maximum pension limit).

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Overview

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•DCcomponent

Enrolment in the DC pension component is voluntary. Under the DC pension component, you contribute a percentage of

your contributory salary and Scotiabank matches your contributions, up to a specified maximum. The contributions you and

Scotiabank make are deposited into an account set up on your behalf (your “DC account”). You are responsible for deciding

how your DC account will be invested by selecting from a group of professionally managed investment funds made available

to you through Manulife, the administrator for the DC component. Your accumulated DC account balance, including any

investment earnings, provides for your retirement income from the DC component.

Overview


•HowthePlanworks



Participation






Other Plan Details

Key Words

Acting in your interests

The Plan must comply with both the Pension Benefits Standards Act, 1985 (Canada) and the Income Tax Act (Canada).

And just as Scotiabank’s corporate governance policies protect our shareholders’ interests, a clearly defined structure is in place

to help protect your interests as a Plan member. In this way, Scotiabank practices good Plan governance that goes beyond

minimum regulatory compliance.

Part of good governance is our commitment to provide information and tools such as this Guide to help you understand how

the Plan fits within the context of your overall retirement income and savings.

You can find more information about governance and the information and tools available to you in Planning for Retirement

on page 26.


Overview

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Overview


•HowthePlanworks



Participation






Other Plan Details

Key Words

Scotiabank Pension Plan...at a glance

Key plan features Defined Benefit (DB) component Defined Contribution (DC) component

Participation • Enrolmentisautomaticaftersixmonthsofcontinuous service.

• Maywaiveorsuspendparticipation,beginorresumeparticipation on January 1 of any year.

• Enrolmentisvoluntary.

• MustbeenrolledintheDBcomponent.

Eligibility • Regularfull-timeandpart-timeemployeeshiredonor after January 1, 2016.

• Casualandcontractemployeesarenoteligibletojoin the Plan.

• SameastheDBcomponent.

Your contributions • Youdonotcontribute. • Youmaymaketax-deductible contributions:

– 1% to 4% of your contributory salary, in whole

percentages, up to a specified maximum salary

that is adjusted each year in order to take into

account various limits under the Income Tax Act (Canada) ($152,750 per year or $5,875 per pay

period in 2016).

– You may change, stop or resume contributions

at any time.

– If you waive or suspend DB participation, you

may not contribute to the DC component.

Scotiabank’s contributions

• Scotiabankcontributestheamountneededtoensurethat the Plan can pay the DB pensions it promises to all members and their beneficiaries.

• 100%matchofyourcontributions.

• Earningsonwhichmatchingcontributionsaremadeare capped per pay period (maximum of $5,875 in 2016, adjusted each year).

Pension formula • 1%xhighest average salary (HAS) x years of Plan service.

• Notapplicable.

Investments • Scotiabankmakesallinvestmentdecisionsforthe DB pension fund and assumes the risk.

• YoudecidehowthemoneyinyourDCaccountisinvested by selecting from a group of investment funds made available to you and you assume the risk.


Overview

Scotiabank Pension Plan...at a glance (continued)

Key plan features Defined Benefit (DB) component Defined Contribution (DC) component6

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Vesting • VestingisimmediateuponenrolmentintheDB component of the Plan and means you are entitled to the DB pension you have earned when you leave Scotiabank.

• VestingisimmediateuponenrolmentintheDC component of the Plan and means you are entitled to your DC account balance when you leave Scotiabank.

Withdrawals • Notapplicable. • Notapplicable.

Retirement • Normalretirement(age65):

– Eligible for an unreduced DB pension for your Plan service to your normal retirement date.

• Earlyretirement(fromage55uptoage65):

– Eligible for an actuarially reduced pension for your Plan service to your early retirement date.

• Postponedretirement(afternormalretirementtoage 71):

– Continue to earn DB pension.

– Must begin receiving pension by December 1 of the calendar year you reach age 71.

• Normalretirement(age65):

– Eligible to transfer your DC account balance out of the Plan to a locked-in registered retirement savings arrangement, another registered pension plan or to buy an annuity.

• Earlyretirement(fromage55uptoage65):

– Same options as at normal retirement.

• Postponedretirement(afternormalretirementtoage 71):

– You may contribute to your DC account until the end of the month preceding your postponed retirement date.

– Same options as at normal retirement.

– Must transfer out your DC account balance no later than the end of the calendar year you reach age 71.

Leaving Scotiabank before age 551

• Youhavetwooptions:

– Defer the start date of your DB pension until you are eligible to retire; or

– Transfer the commuted value of the deferred pension to a locked-in registered retirement savings arrangement, another registered pension plan or to a Canadian insurance company to buy a deferred annuity.

• YoumusttransferyourDCaccountbalancetoalocked-in registered retirement savings arrangement, another registered pension plan or to a Canadian insurance company to buy a deferred annuity.

1 See page 19 for a definition of the difference between termination of employment and retirement.

Overview


•HowthePlanworks



Participation






Other Plan Details

Key Words


Overview

Scotiabank Pension Plan...at a glance (continued)

Key plan features Defined Benefit (DB) component Defined Contribution (DC) component6

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Protecting your survivors

• Survivorbenefitsarepayabletoyourspouse or designated beneficiary(ies) upon your death, if you die prior to retirement or leaving Scotiabank.

• Ifyoudieafterretirement,survivorbenefitsmaybepayable to your spouse or designated beneficiary(ies) depending on the form of pension benefit you chose at retirement.

• IfyoudiepriortoleavingScotiabank,yourspouse, if applicable, may transfer your DC account balance on a locked-in basis. Or, your designated beneficiary(ies) would be entitled to a lump-sum payment of your DC account balance if you have no spouse.

• Ifyoudieafterretirement,survivorbenefitsmaybepayable to your spouse or designated beneficiary(ies) depending on the payment option you chose when you retired.

Overview


•HowthePlanworks



Participation






Other Plan Details

Key Words


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Overview

Participation

•Eligibility

•Waivingorsuspendingparticipation

•Participationduringleavesofabsence






Other Plan Details

Key Words

Participation

Eligibility

Participation in the Plan is optional.

Regular full-time and regular part-time employees are eligible to participate in the Plan after six months of continuous service.2

2 Your continuous service as a contract employee immediately prior to becoming a regular employee is included in determining eligibility.

Once you satisfy the eligibility requirements:

•YouwillautomaticallybeenrolledintheDBcomponentofthePlan.

•YoucanchoosetoenrolinandcontributetotheDCcomponentofthePlan,assoonasyouareenrolledintheDBcomponent

or at any time after that date.

If you are a casual or contract employee, you are not eligible to participate in the Plan.

Waiving or suspending participation

You can choose not to participate in the DB component by completing the Waiver of Pensionable Service Form, found on HR

Passport > HR Forms Library. You will not earn Plan service in the DB component if you waive participation before you are

automatically enrolled, or if you choose to suspend your participation after your Plan membership has already begun. In addition,

you will not be allowed to contribute to the DC component during any period that you are not participating in the DB component.

If you waive or suspend participation and you later decide you want to participate in the Plan, you can join on January 1 of any year.

Participation during leaves of absence

•DBcomponent

In most situations, your participation in the DB component continues (unless you have suspended participation) when you are

on a leave of absence approved by Scotiabank, including unpaid leaves such as disability, maternity and parental leave.

•DCcomponent

When you take an authorized paid leave of absence, you can choose to:

− Continue contributing to the DC component (in which case, you will continue to receive matching employer contributions); or

− Suspend your contributions (in which case, matching employer contributions will also be suspended).

If you are on leave without pay or on leave with reduced pay, you will continue to be eligible to contribute to your DC account

during your leave, based on your salary at the time your leave started, subject to the restrictions of the Income Tax Act (Canada).

The usual payroll deduction process will not apply during such leaves of absence; you will receive information about continuing

contributions and choose your contribution rate when your leave starts.


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Overview

Participation


•HowtheDBcomponentworks

•Contributions

•CalculationofyourDBpension

•Normalretirement

•Earlyretirement

•Postponedretirement





Other Plan Details

Key Words


How the DB component works

The defined benefit (DB) component pays you a lifetime DB pension based on a set formula that takes into account your salary and

years of Plan service. Your benefits are “defined” in advance by the formula. Your DB pension does not vary with any investment

earnings.

Scotiabank sets aside money in a separate pension fund to pay all DB pensions under the Plan, even though the pensions may not be

paid out for many years. Scotiabank is responsible for overseeing how the money is invested on behalf of all members and assumes

all investment risk. Your DB pension does not vary with the investment returns of the pension fund.

For the most part, the longer you are a member of the Plan and the higher your salary, the more DB pension you will receive from

the Plan (subject to the maximum earnings under the Plan as explained on page 31 and subject to the maximum pension limit).

Contributions

You do not contribute to the DB component. Scotiabank pays the cost of the DB pension that members earn under the Plan.

Scotiabank contributes to the pension fund the amount needed to ensure that the Plan can pay the DB pension it promises to

all members and their beneficiaries. To determine how much money needs to be set aside today to provide the promised benefits,

Scotiabank engages an independent third-party actuary to evaluate the Plan’s funded status annually or as otherwise required

by legislation.

Calculation of your DB pension

The amount of DB pension you earn in the Plan is based on the following formula:

1% x highest average salary (HAS) x years of Plan service

The DB pension formula takes into account the following factors:

•Highestaveragesalary(HAS):

Your HAS is the average of your salary, for the 60 consecutive calendar months during which your salary was at its highest.

If your continuous service is less than 60 months, your HAS is simply the average of your salary during your continuous service.


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• Salary:

For most Plan members, salary means your annual base salary, and for certain employees, salary includes compensation you may

receive under a Bank compensation plan where the terms of that plan provide that the compensation paid thereunder is included

in calculation of your salary. For certain commission-based employees, salary may include other eligible earnings.

Salary, for the purpose of calculating your HAS, is limited by the maximum earnings specified under the Plan each year.

In 2016, this maximum is $152,750 annually and will be increased in line with increases in the average industrial wage

(or other applicable measure set out under the Income Tax Act (Canada)).

For part-time employees, your annual salary is calculated as if you worked on a full-time basis. However, your Plan service

under the DB component is calculated on a part-time basis.

•Maximumpensionlimit:

In addition, the Income Tax Act (Canada) limits the overall amount of pension that can be earned per year of Plan service.

For example, the maximum annual pension per year of Plan service if you terminate employment or retire in 2016 is $2,890.

The maximum annual pension per year of Plan service is scheduled to increase each year, in line with increases in the average

industrial wage.

Overview

Participation



•Contributions


•Normalretirement

•Earlyretirement






Other Plan Details

Key Words

Normal retirement

Your normal retirement date under the Plan is the first of the month

coinciding with or immediately following the date you reach age 65.

If you retire at your normal retirement date, you are entitled to an

unreduced DB pension calculated according to the pension formula,

using your HAS and your Plan service to your normal retirement date.

EXAMPLE

Sydney is planning to retire at the normal retirement age of 65.

•YearsofPlan service: 20.

•Highest average salary (HAS): $60,000.

Sydney’s Annual DB Pension

1% x $60,000 x 20 years $12,000

AnnualDBpension: $12,000

Each month, Sydney will receive $1,000, less applicable withholdings.

What does it mean to retire under the Plan?

If you terminate employment from Scotiabank when you are age 55 or older, you are considered to be “retiring” under the Plan, whether or not you immediately begin receiving a monthly pension. If you leave before that age, you are not yet eligible

to retire (see Leaving Scotiabank before retirement

on page 19).

To “retire early” means you are “retiring” before your normal retirement date. Once you reach your normal retirement date, no early retirement reductions will be applied to your DB pension.



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Overview

Participation



•Contributions


•Normalretirement

•Earlyretirement






Other Plan Details

Key Words

Early retirement

You can choose to retire as early as age 55. If you retire early, you are entitled to a lifetime DB pension calculated using the same

DB pension formula as for normal retirement, which is then reduced to account for the earlier start date.

Your DB pension will be an actuarially reduced pension to reflect the expectation that it will be paid for a longer period of time

compared to a pension that starts on your normal retirement date.

EXAMPLE

Kai is retiring early, at age 57.

•YearsofPlan service: 25.

•Highest average salary (HAS): $80,000.

Kai’s Annual DB Pension

1% x $80,000 x 25 years $20,000

minus

Early retirement reduction:Actuarial reduction* for the period

between actual retirement age and

normal retirement age (65) is: ($7,400)

ReducedannualDBpension: $12,600

* An actuarial reduction is based on rates and assumptions applicable at the time of the calculation, so the result can vary over time.

Each month, Kai will receive $1,050, less applicable withholdings.

You may obtain estimates of your future pension using the Pension Estimator explained on page 27.

Postponed retirement

If you continue to work for Scotiabank after age 65 (the normal retirement age under the Plan) you will continue to earn

Plan service in the DB component of the Plan.

When you retire from Scotiabank, your DB pension will be calculated according to the pension formula, using your HAS and

your Plan service to your postponed retirement date.

The Income Tax Act (Canada) and the Plan require, however, that you begin receiving your DB pension by December 1 of the year

in which you reach age 71. If you continue to work for Scotiabank after this date, you will not earn additional pension after your

DB pension payments begin.


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Overview

Participation



•HowtheDCcomponentworks

•Contributions

•InvestingyourDCaccount

•Fees




Other Plan Details

Key Words


How the DC component works

The defined contribution (DC) component provides you with retirement income that depends on the contributions paid into the

account set up on your behalf under the Plan (your “DC account”) and any investment returns earned on those contributions.

The contribution rate is “defined” in advance.

Your DC account under the Plan receives all contributions that are deposited on your behalf, both the contributions from you and

from Scotiabank. You decide how the combined contributions are invested by selecting from a group of investment funds made

available to you through Manulife, the administrator for the DC component. Because you make the investment decisions for your

DC account, you assume the risk. The amount of pension benefit available to you at retirement will be directly related to the

investment performance of the fund(s) in which you choose to invest.

Your retirement benefit is determined by your DC account balance, which is made up of the accumulated contributions from you

and Scotiabank and the investment returns earned on those contributions. The amount of retirement income you can obtain is based

on the balance in your DC account at retirement, as well as the price of annuities available from insurance companies at the time of

retirement, if you buy an annuity with your DC account balance.

Participation in the DC component is optional, but if you wish to enrol, you must be actively participating in the DB component.

Contributions

Your contributions

You can contribute between 1% and 4% of your contributory salary in whole percentages to your DC account through payroll

deduction. Your contributions are tax-deductible and the annual total appears on your T4 slip or Relevé 1 for income tax purposes.

To ensure that contributions do not exceed the maximum permitted by the Income Tax Act (Canada), your contributions to the

DC component are limited to a maximum per bi-weekly pay period. In 2016, the maximum earnings on which contributions will

be calculated and deducted is $152,750 annually or $5,875 per pay period. It will be adjusted in line with increases in the average

industrial wage and will also take into account the annual limits imposed under the Income Tax Act (Canada) or the DB benefit

you accrue during the year.

Scotiabank’s contributions

Scotiabank will fully match your contributions, up to the same maximum per pay period. Scotiabank’s contributions do not constitute

taxable income and any growth in your DC account is on a tax-deferred basis.

Changing your contribution decision

You can start, change, suspend or resume your contributions at any time by visiting the Manulife website at www.manulife.ca/GRO.

Withdrawals not permitted

While you are employed with Scotiabank, you cannot withdraw any portion of your DC account.

http://www.manulife.ca/GRO



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Overview

Participation




•Contributions


•Fees




Other Plan Details

Key Words

Investing your DC account

You are responsible for investing your DC account by selecting from a

range of professionally managed investment options offered through

Manulife. Your contributions are deducted from each pay and deposited,

along with Scotiabank’s matching contributions, shortly after they are

deducted. Manulife invests the money according to your instructions

as soon as the money is received.

• Ifyoudonotmakeaninvestmentselection

If you do not make a selection from the investment options offered

through Manulife, your DC account will be invested in the default

option selected by Scotiabank. However, you are strongly encouraged

to actively decide how to invest your account. The default option is the

same for all Plan members and may not be appropriate to your personal

situation. Your DC account may provide you with a significant portion

of your retirement savings.

To learn more about the default option, please refer to the materials

you received from Manulife.

• Trackingyourinvestmentsandchangingyourinvestmentchoices

You can check your account information and/or change your investment

choices at any time by visiting www.manulife.ca/GRO or by calling

Manulife toll free at 1-888-727-7766, from Monday to Friday between

8 a.m. and 8 p.m. Eastern Time.

Your DC investments—a shared responsibility

Although Scotiabank provides the Plan to help you reach your financial goals for retirement, you are responsible for the savings that you accumulate under the DC component.

Scotiabank takes great care in selecting the organization that serves as the administrator for the Plan and in choosing the investment options to be offered. Scotiabank also reviews and evaluates the performance of the fund managers on a regular and ongoing basis and makes changes when necessary.

As with any investment, you reap the rewards if investment returns are positive and bear any loss if investment returns are negative. Some of the funds offered under the DC component may represent more risk than others. You must be certain that you are comfortable with the level of risk you assume based on the allocation of your DC account assets among the various investment options.

You may wish to discuss your investments with a financial planner.



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Overview

Participation




•Contributions


•Fees




Other Plan Details

Key Words

Fees

You pay two types of fees under the DC component:

• Investmentmanagementfees:These fees are paid to the investment managers of each investment fund for the services

they provide. The fees differ per fund and are based on a percentage of the money you have in the particular fund. The fee is

deducted from the fund before unit values are calculated. For more information about investment management fees that may

apply to investment funds offered under the DC component, please contact Manulife at 1-888-727-7766, from Monday to Friday

between 8 a.m. and 8 p.m. Eastern Time.

•Administrationfees: Monthly administration fees will be charged to your account to cover administration expenses as well

as several services offered by Manulife, such as providing your semi-annual statements. For more information about administration

fees that may be charged to your account, please contact Manulife at 1-888-727-7766, from Monday to Friday between 8 a.m.

and 8 p.m. Eastern Time.

Scotiabank Pension Plan for Employees Hired 1/1/16 and Later | Your Guide 16

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Overview

Participation




•RetirementfromScotiabank

•LeavingScotiabankbeforeretirement

•DeathofaPlanmember



Other Plan Details

Key Words


Retirement from Scotiabank

•DBandDCcomponentsworkingtogether

The DB and DC components each provide income for you during your retirement. The ways in which you access this income

can differ, depending on the decisions you make at retirement. When you retire from Scotiabank, you will receive a Statement

of Benefits on Retirement that will explain your options and the deadline for making your decision.

•DBcomponent

You must be at least age 55 to retire from Scotiabank. At retirement, your benefit from the DB component will be paid as a

lifetime monthly pension.

The pension payment options available to you depend on your marital status at retirement. You can choose from DB pension

payment options that will allow you to provide different amounts to your beneficiary(ies) or spouse. If you leave more to your

beneficiary(ies) or spouse than is provided by the lifetime only pension, the monthly DB pension amount you receive during

your lifetime will be reduced accordingly.

− If you do not have a spousewhenyouretire: You can choose from four DB pension payment options:

Lifetime only pension

• ProvidesamonthlyDBpensionforyourlifetime.

• Intheeventofyourdeath,nobenefitswillbepayableto your designated beneficiary(ies).

Largest monthly payment;no guarantee period.

Smallest monthly payment;longest guarantee period.

Lifetimepension,guaranteed 5 years

• Providesareduced3 monthly DB pension for your lifetime.

• Ifyoudiebeforereceiving60monthlypayments,thebalance of the 60 monthly payments will be paid to your designated beneficiary(ies).







3 The reduction is applied to provide for the added cost of providing the guarantee period.



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− If you have a spousewhenyouretire: Your pension will be calculated to be the actuarial equivalent of a lifetime only

pension. You can choose from three pension payment options:

Joint and 60% survivor pension

• ProvidesamonthlyDBpensionforyourlifetime.

• 60%ofthatamountwillcontinuetoyourspouse after your death.

Largest monthly payment;smallest survivor benefit for spouse.

Smallest monthly payment;most generous survivor benefit for spouse.







DBpensionamount:Once you retire from the Plan, your monthly DB pension payment is fixed. If you take early retirement

and your DB pension is reduced, that reduction will apply for as long as you receive your DB pension payments.

Tax:Your DB pension payments are subject to income tax.

4 The reduction from the joint and 60% survivor pension is applied to provide for the added cost of the higher survivor pension.

Overview

Participation









Other Plan Details

Key Words



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•DCcomponent

You are entitled to transfer out your DC account balance whenever your employment with Scotiabank ends. However, if you

are eligible to retire when you leave Scotiabank, you are permitted to start using the money to provide retirement income.

You have a few options for using your DC account balance at age 55 or older. You can choose to:

1. Transfer it to another registered pension plan (such as the plan of a new employer), including a pooled registered pension plan

(PRPP), provided that the plan will accept the transfer;

2. Transfer it to a locked-in registered retirement savings arrangement and continue investing the money until you are ready to

use the funds for income (subject to tax law—see below); or

3. Use it to buy an immediate or deferred annuity, which is a lifetime benefit—just like a DB pension—purchased from a Canadian

insurance company.

You can also choose a combination of options 2 and 3 by transferring part of the balance and buying an annuity with the

remainder.

Consent: If you have a spouse or a common-law partner, a transfer under option 2 above may be made only with their consent.

Tax:You are required under the Income Tax Act (Canada) to start using your Plan benefits for retirement income by the end

of the calendar year in which you reach age 71. Any money you withdraw as retirement income is subject to income tax.

Timelimit:If you do not make a decision within 90 days of receiving your Statement of Benefits on Retirement, your Plan

membership will end and Scotiabank may purchase an annuity on your behalf with your DC account balance.

Overview

Participation









Other Plan Details

Key Words


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Overview

Participation









Other Plan Details

Key Words

Leaving Scotiabank before retirement

When you terminate employment from Scotiabank, you will receive a Statement of Benefits on Termination that will explain your

options and the deadline for making your decision.

•DBcomponent

When you enrol in the Plan, the DB pension you earn is immediately vested, which means you are entitled to the DB pension

you have earned if you leave Scotiabank before you are eligible to retire.

Your DB pension is locked in, which means it must be used to provide you with retirement income. You can choose to:

− Defer the start of your DB pension from the Plan until age 55 or older (a “deferred pension”).

Your DB pension stays in the Plan and later, at an eligible retirement age, you receive DB pension payments. If you start these

payments before age 65, they will be reduced due to the early start date.

Your DB pension payments will be calculated according to the pension formula, using your HAS and your Plan service on the

date you terminate your employment with Scotiabank.

OR

− Transfer the lump-sum commuted value of your deferred DB pension out of the Plan. This choice essentially converts

your lifetime pension benefit to a DC-type lump sum.

You have the following options for transferring the commuted value of your deferred DB pension if you are younger than

age 55 when your employment ends:

• Transferittoanotherregisteredpensionplan(suchastheplanofa

new employer), including a pooled registered pension

plan (PRPP), provided that the plan will accept the transfer;

• Transferittoalocked-in registered retirement savings arrangement

and continue investing the money until you are ready to use the

funds for income, which cannot be earlier than age 55 (withdrawals

are subject to tax law—see following page); or

• TransferittoaCanadianinsurancecompanytopurchasea

deferred annuity.

If you choose to defer your DB pension, you will no longer have the option to transfer the commuted value.

Also, if you leave Scotiabank before becoming eligible to retire and you do not make a selection within 90 days from the date

of your termination option package, your DB pension will be deferred and you will no longer have the option to transfer the

commuted value of your DB pension.

Keepinmind:

The assumptions and methods used by an insurance

company that offers a deferred or immediate annuity

may differ from those used to calculate your Plan

benefit under the rules of the Plan. As a result,

the transferred lump sum may not be sufficient to

purchase an annuity that would provide the same

amount of annual pension that you would receive

from the Plan.



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•DCcomponent

You are entitled to transfer out your DC account balance whenever your employment with Scotiabank ends. However, your

DC account is locked in, which means you must use the money for retirement income starting at age 55 or older. You cannot

take the balance in cash.

You have the following options for transferring your DC account balance if you are younger than age 55 when your

employment ends:

1. Transfer it to another registered pension plan (such as the plan of a new employer), including a pooled registered pension

plan (PRPP), provided that the plan will accept the transfer;

2. Transfer it to a locked-in registered retirement savings arrangement and continue investing the money until you are ready

to use the funds for income, which cannot be earlier than age 55 (withdrawals are subject to tax law—see below); or

3. Use it to buy a deferred annuity, which is a lifetime benefit—just like a DB pension—purchased from a Canadian

insurance company.

You can also choose a combination of options 2 and 3 by transferring part of the balance and buying an annuity with

the remainder.

Tax:You are required under the Income Tax Act (Canada) to start using your Plan benefits for retirement income by the

end of the calendar year in which you reach age 71. Any money you withdraw as retirement income is subject to income tax.

Timelimit:If you do not make a decision within 90 days of receiving your Statement of Benefits on Termination, your

Plan membership will end and Scotiabank may purchase a deferred annuity on your behalf with your DC account balance.

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Other Plan Details

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Keepinmind:

− Once you transfer the commuted value of your DB pension out of the Plan, you will not receive any future DB pension from the Plan.

If you transfer the commuted value of your DB pension to a locked-in registered retirement savings arrangement, you will be responsible

for managing the investment of the assets.

− The Income Tax Act (Canada) limits the amount that can be transferred on a tax-sheltered basis to registered retirement savings

arrangements. If the commuted value of your earned DB pension is greater than this maximum transfer value, the amount above

the limit must be paid to you in cash, less withholding tax.

− The Pension Benefits Standards Act, 1985 (Canada) exempts certain small benefits from the locking-in rules explained on the

previous page. If the commuted value of your earned DB pension combined with the value of your DC account is less than 20%

of the YMPE in the year you leave Scotiabank, or such other limit set out in applicable legislation, your Plan benefits will be paid

to you in cash, including interest, if applicable, and less withholding tax.

− After your termination of employment, if you become a non-resident of Canada and have lived outside Canada for at least two

calendar years, you may elect to receive your Plan benefits from one or both components of the Plan as a lump sum, subject to

applicable legislation, and less applicable withholding tax.

− You may want to consult with a financial planner before you make your decision.


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Other Plan Details

Key Words

Death of a Plan member

•DBcomponent

If you die while you are an active Plan member,5 your surviving spouse

will be entitled to the commuted value of the deferred DB pension

you earned to the date of your death. This benefit is payable as an

immediate lifetime pension or as a lump-sum transfer on a locked-in

basis to an eligible retirement arrangement.

If you do not have a spouse at the time of your death, your designated

beneficiary(ies) will be entitled to the commuted value of the deferred

DB pension you earned to the date of your death, payable as a lump

sum. If you have not designated a beneficiary, the commuted value will

be payable to your estate.

•DCcomponent

If you die while you are an active Plan member, your surviving spouse

will receive the balance of your DC account as a locked-in lump-sum

transfer to:

1. Another registered pension plan (such as the plan of a your spouse’s employer), provided that the plan will accept the transfer;

2. A locked-in registered retirement savings arrangement; or

3. A Canadian insurance company to buy an immediate or deferred annuity.

If you do not have a spouse at the time of your death, your designated beneficiary(ies) will receive a lump-sum payment of your

DC account balance. If you have not designated a beneficiary, the lump sum will be payable to your estate.

5 If your death occurs while you are in receipt of benefits under a Scotiabank short-term or long-term disability plan or while you are on an authorized leave, you will be considered to be an active Plan member for the purpose of determining death benefits under the Plan.

What about death after a pension has started?

In the event of your death after your retirement

date, any continuing pension to your spouse or other

death benefits will be determined based on the form

of pension you elected at retirement. For example,

if you selected a joint and survivor pension and you

are survived by your spouse, your spouse will receive

a pension (at the percentage you selected) for the

rest of your spouse’s lifetime. As another example,

if you bought an annuity with your DC account

balance, the terms of that annuity purchase would

specify the percentage of your pension that would

continue to your spouse, if any.

Tell your spouse and/or beneficiary(ies) about your Scotiabank Pension Plan.

Be sure to inform your spouse and/or beneficiary(ies) and your executor about your Plan pension, and where to locate the information

necessary to contact Scotiabank. Taking this step will help ensure that Plan benefits are paid in a timely manner.


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Overview

Participation





•RRSPcontributionroom

•PensionadjustmentfromDBcomponent

•PensionadjustmentfromDCcomponent


Other Plan Details

Key Words

The Pension Plan—RRSP Relationship

Registered retirement savings plan (RRSP) contribution room

It is important to keep track of your RRSP contributions. The Income Tax Act (Canada) limits how much you can save on a

tax-deferred basis, including in your RRSPs. Your limit is typically shown on the Notice of Assessment (Form T1028) that you

receive each year after you file your income tax return.

An important factor in determining your RRSP contribution room is your pension adjustment (PA). See below for definitions.

ThemaximumyoucancontributetoanRRSPis:

18% of your previous year’s earned income,6 up to a fixed dollar limit ($25,370 in 2016)

6 The definition of earned income for tax purposes is different than the definition of salary under the Plan.

minus

your previous year’s pension adjustment (PA)

plus

any unused RRSP contribution room you have carried forward from previous years

The PA generated from the DB and DC components of the Plan in the previous year and the contributions you make to an RRSP

in previous years (including to the RRSP under the ESOP) will factor into the maximum you can contribute to an RRSP in the current

year. See the example on page 24.

Pension adjustment from the DB component

The pension adjustment or PA generated from the DB component is the deemed value of DB pension you earn in a year and is

determined in accordance with the Income Tax Act (Canada). In general terms, the prescribed government formula to calculate

your PA is equal to the DB pension you earned for the year, multiplied by nine, minus $600. More detailed rules may apply in

special situations. See the example on page 24.

Pension adjustment from the DC component

The PA generated from the DC component is equal to the total contributions made by you and Scotiabank to the DC component in

that year. This is added to the PA generated by the DB component, and the total PA amount is deducted from your available RRSP

contribution maximum. See the example on page 24.


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Overview

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• RRSPcontributionroom

• PensionadjustmentfromDBcomponent

• PensionadjustmentfromDCcomponent


Other Plan Details

Key Words

• CalculationofPAundertheDBcomponent

The following are simplified examples for illustrative purposes only.

EXAMPLE

Dale’s salary in 2016 is $70,000.

DBpensionearnedin2016forPApurposes:= 1% x $70,000

=$700

PA under the DB component for 2016

= 9 x DB pension earned in 2016 minus $600

= 9 x $700 minus $600

= $6,300 minus $600

= $5,700

• CalculationofPAundertheDCcomponent

EXAMPLE

Dale’s contributory salary in 2016 is $70,000.

DCcontributionsin2016:Dale’s contributions = 4% x $70,000 = $2,800

Scotiabank’s matching contributions = 4% x $70,000 = $2,800

PA under the DC component for 2016

= Dale’s DC contributions during 2016 + Scotiabank’s DC contributions

during 2016

= $2,800 + $2,800

= $5,600

Total 2016 PA for the Plan

Total PA = DB PA + DC PA

= $5,700 + $5,600

= $11,300



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•CalculationofRRSPcontributionroom

EXAMPLE

How can Dale determine his available RRSP room for 2017 if his total 2016 earned income for tax purposes is $72,500?

If Dale has no unused RRSP contribution room from previous years, his RRSP contribution room for 2017 would be calculated as follows:

2017RRSPcontributionroom:= 18% x 2016 earned income for tax purposes minus 2016 total PA

= 18% x $72,500 minus $11,300

= $13,050 minus $11,300

= $1,750

If Dale had unused RRSP contribution room from previous years, that amount would be added to the $1,750 indicated to establish

his total RRSP contribution room.

NotethatScotiabankwillapplythelimitssetoutundertheIncome Tax Act (Canada) when determining the total PA under

the Plan as required by the Income Tax Act (Canada). Available RRSP contribution room, after application of the limits set out

under the Income Tax Act (Canada) will be shown in the Notice of Assessment (Form T1028) provided by the Canada Revenue

Agency each year.

Important:You are responsible for ensuring that your RRSP contributions (including RRSP contributions under the ESOP) do not

exceed your RRSP limit. You are also responsible for providing Scotiabank and Manulife with up-to-date contact information.

Overview

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•RRSPcontributionroom

•PensionadjustmentfromDBcomponent

•PensionadjustmentfromDCcomponent


Other Plan Details

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Overview

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•Scotiabank Pension Plan Annual Report

•AnnualstatementfortheDBcomponent

•Semi-annualstatementsfortheDCcomponent

•My Pension Centre and the Pension Estimator

Other Plan Details

Key Words


In addition to this Guide, Scotiabank provides you with several key pension planning tools

described below. While Scotiabank provides these tools, decisions about participation and

other options are your responsibility.

Scotiabank Pension Plan Annual Report

Once a year, Scotiabank publishes and posts on HR Passport the Scotiabank Pension Plan Annual Report, which details the

overall management of the Plan as well as the funded position of the DB component.

Annual statement for the DB component

Each year that you are an active Plan member, a personalized DB pension statement is provided to you that shows your individual

data, along with an estimate of your DB pension under the Plan.

Statements are issued by the end of April each year and summarize your DB pension estimated as of October 31 of the previous year.

If you have questions about the personal information—or any other information—on your pension statement, please contact the

HR Call Centre.

Semi-annual statements for the DC component

Manulife provides you with semi-annual statements showing your personal

information, your account balance and your investment options under the

DC component.

If you have questions about any information on your semi-annual

statement, please contact Manulife by visiting www.manulife.ca/GRO or

by calling Manulife toll-free at 1-888-727-7766, from Monday to Friday

between 8 a.m. and 8 p.m. Eastern Time.

Review your statements carefully.

It is important for you to review your pension

statements when you receive them. First, each

statement is a valuable financial planning tool.

And second, no one can check the accuracy of the

personal data on your statement better than you can.



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Overview

Participation






•Scotiabank Pension Plan Annual Report

•AnnualstatementfortheDBcomponent

•Semi-annualstatementsfortheDCcomponent

•My Pension Centre and the Pension Estimator

Other Plan Details

Key Words

My Pension Centre and the Pension Estimator

My Pension Centre is your source for consolidated information about the

Plan. On the site, you can view and print your historical annual pension

statements for the DB component, link to Manulife resources, read the

Scotiabank Pension Plan Annual Report and access articles, forms

and links to other helpful sites.

You can also access the Pension Estimator (HR Passport > About Me >

My Pension Centre > Pension Estimator) to get an estimate of how much

pension you will receive from the DB component at different retirement

dates. The Pension Estimator allows you to develop “what-if” scenarios

based on data we have on file and different assumptions you make about

your future employment. It will project estimated DB pension amounts into

the future to provide you with information for planning purposes.

You can access My Pension Centre by going to HR Passport > About Me

> My Pension Centre.

Keepinmind:

The Pension Estimator and other tools are helpful.

However, the estimates are based on various

assumptions that may change over time. Before

making a final retirement decision, please contact the

HR Call Centre for a more comprehensive estimate of

your expected DB pension income.


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Overview

Participation






Other Plan Details

•Scotiabank’srighttoamendthePlan

•Yourrighttodocuments

•Yourprivacy

•Pensioncommittee

•Securityofyourpension

•ExcessPlanassetsorobligationsundertheDBcomponent

•Contactinformation

Key Words

Other Plan Details

Scotiabank’s right to amend the Plan

Scotiabank currently intends to maintain the Plan indefinitely, but reserves the right to amend or terminate the Plan, either in

whole or in part.

If the Plan is amended, Scotiabank must provide you and your spouse with written notice and an explanation of any applicable

amendment.

Your right to documents

You are entitled to receive a written description of the Plan—this Guide fulfills that requirement—as well as an annual pension

statement for the DB component and semi-annual statements for the DC component, outlining your membership and benefits

under the Plan. If you have a spouse, your spouse has rights to your Plan benefits, so your spouse is also entitled to receive

these documents.

You, your spouse or your authorized agent has the right to examine any other documents outlined in the Pension Benefits Standards Act, 1985 (Canada) at Scotiabank’s head office, or request copies of such documents.

Your privacy

To administer the Plan, Scotiabank must collect certain types of information from you. This information must also be shared

with the other organizations that help Scotiabank administer the Plan. Your personal information will be treated as private

and confidential and will be used only for the purpose for which it has been collected.

Pension committee

Pension regulations require Scotiabank to establish a pension committee if a majority of Plan members requests one. If established,

a pension committee must have Plan member representation and pensioner representation (if a majority of pensioners requests it).

Among other things, a pension committee acts to promote awareness and understanding of the Plan among current members

and new hires. Pension regulations describe the procedures for the election of Plan member and pensioner representatives to

the committee.

At the time this Guide was published, Scotiabank did not have a pension committee, as defined in the regulations.


Other Plan Details

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Overview

Participation






Other Plan Details

•Scotiabank’srighttoamendthePlan

•Yourrighttodocuments

•Yourprivacy

•Pensioncommittee

•Securityofyourpension

•ExcessPlanassetsorobligationsundertheDBcomponent

•Contactinformation

Key Words

Security of your pension

The Plan’s assets are held in a trust, separate and apart from the assets of Scotiabank. This means that no creditor of Scotiabank

will have access to the Plan assets (including the contract with Manulife under which the DC accounts are invested).

Your DB pension and your DC account are also safe from creditors. These assets cannot be subject to garnishment, until you

begin receiving your Plan benefits as retirement income or until you transfer the commuted value of your Plan benefits out of

the Plan. You cannot use your DB pension or DC account for collateral on a loan or mortgage. However, in the event of a marital

breakdown—whether legal or common law—your Plan benefits under the DB and DC components may be counted as part of

the family property and could be subject to division under family property legislation, or subject to an order for support payments

under applicable legislation.

Excess Plan assets or obligations under the DB component

Plan funding of the DB component can be affected by investment returns and/or changes in the number of Plan members. If the

Plan’s assets relating to the DB component exceed what is needed to pay Plan DB benefits, all or part of the excess funds may be

used to pay Scotiabank’s contributions to the DB and DC components of the Plan. Excess funds may also be returned to Scotiabank,

subject to any required regulatory approvals.

If the DB component of the Plan is terminated with an excess of assets over obligations, any funds left over—after all DB benefits

under the Plan have been provided for—will be returned to Scotiabank, subject to any required regulatory approvals. If the Plan is

terminated with an excess of DB obligations over assets relating to the DB component, DB benefits may be reduced in the manner

permitted by law.

Scotiabank does not anticipate terminating the Plan; however, certain pension regulations require that we inform you of this

possibility. Any decision by Scotiabank to terminate the Plan would include notification to the Plan members, along with following

the requirements of applicable legislation.

Contact information

If you have questions about this Guide or your Plan benefits, please contact the HR Call Centre at:

•Tel: 1-888-888-8089.

•GTA: 416-701-7209 (in the Greater Toronto Area).

•TTY/TTD: 1-877-726-8429.

•Email: [email protected].

•Fax: 1-888-837-0455.

mailto:[email protected]


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Overview

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Other Plan Details

Key Words

Key Words

Actuariallyreducedpension:A monthly pension that is reduced to take into account the longer payout period as a result of early retirement. An actuarially reduced pension is

based on a number of assumptions and reflects the cost to pay your pension over the longer timeframe starting from your early retirement date.

Annuity:A policy contract that provides income payments at regular intervals (typically monthly), usually for a specified period or for the lifetime of the person

who receives the payments (the “annuitant”). Income payments may begin immediately upon retirement or may be deferred to a future date.

Averageindustrialwage:This is the average hourly rate of pay of employees in the workforce in Canada, excluding farm employees, as determined by Statistics Canada.

Beneficiary:Your beneficiary(ies) is(are) the person(s) you designate to receive any payments that may be payable under the Plan in the event of your death

before retirement, or to receive the balance of guaranteed payments in the event of your death after retirement before the expiry of any

applicable guarantee period, if you do not have a spouse.

If you do not designate a beneficiary, your estate will be your default beneficiary.

Regardless of any beneficiary designation, if you die before retirement, any death benefits under the Scotiabank Pension Plan will be paid to

your spouse in accordance with applicable pension legislation.

Commutedvalue:The lump-sum amount needed in today’s dollars to give you the DB pension payable at retirement, based on assumptions prescribed by

pension regulations.

Continuousservice:Your uninterrupted employment with Scotiabank, as shown on the employment records of Scotiabank, and as calculated from the first day

of the month coinciding with or immediately following your most recent date of hire to the end of the month:

• Thatimmediatelyprecedesyournormal,earlyorpostponedretirementdate;or

• InwhichyoudieorotherwiseterminateemploymentwithScotiabank.

Contributorysalary:Your earnings used to calculate your contributions to the DC component of the Plan. For full-time service, it is the actual salary you receive,

subject to the maximum earnings limit. For periods of absence when you are receiving disability benefits or while you are on an authorized

leave with full to reduced pay, contributory salary will be determined at the date your absence started and in accordance with applicable limits

under the Income Tax Act (Canada). For part-time service, it is the actual basic hourly pay you receive. For certain commission-based

employees, contributory salary includes other eligible earnings received.

In all cases, your annual contributory salary is limited by the maximum earnings specified under the Plan each year.

ESOP:Scotiabank’s Employee Share Ownership Plan.


Key Words

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Highestaveragesalary(HAS):The average of your salary, for the 60 consecutive calendar months during which your salary was at its highest. If your continuous service is

less than 60 months, your HAS is simply the average of your salary during your continuous service.

Lockedin:Pension benefits that are locked in generally cannot be accessed other than to provide you with retirement income. Your DB pension earned

under the Plan and your DC account balance are immediately locked in. Locking in is required under pension legislation.

In particular, you typically cannot cash out your DB pension or your DC account once it is locked in. Under certain circumstances, your benefits

under the Plan may be unlocked—for example, if you have a small benefit or if you are not residing in Canada for the period of time prescribed

in pension legislation (see the box on page 21).

Locked-inregisteredretirementsavingsarrangement:This term refers to a locked-in RRSP offered by financial institutions to which, in certain situations, you can choose to transfer the commuted

value of your DB pension when you leave Scotiabank—for example, if you end your employment before becoming eligible to retire. You can

also transfer your DC account to this type of arrangement. Although the amount transferred in either case belongs to you, the money is

intended to provide you with a lifetime income and cannot be used by you until you reach retirement age. As a result, the money is locked in.

Maximumearnings:To ensure that contributions to the DC component combined with the pension earned under the DB component do not exceed the maximum

permitted by the Income Tax Act (Canada), contributions to the DC component are limited to a maximum per bi weekly pay period. In 2016,

the maximum is $5,875 per pay period ($152,750 per year). The maximum earnings will be indexed in line with increases in the average

industrial wage.

Maximumpensionlimit:The Income Tax Act (Canada) limits the overall amount of pension that can be earned under a registered pension plan per year of pensionable

service (called Plan service in the DB component). The maximum annual DB pension permitted per year of pensionable service if you terminate or

retire in 2016 is $2,890. This limit is scheduled to increase in 2017 and later years, in line with increases in the average industrial wage.

Normalretirementdate:A date established under the Plan at which you are eligible for an unreduced DB pension calculated according to the Plan formula. Your normal

retirement date under the Plan is the first of the month coinciding with or immediately following the date you reach age 65.

Planbenefits:This is a term used to refer to all the benefits that may be payable to a Plan member from the Plan, whether those benefits are from the DB

component or the DC component.

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Key Words

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Planservice:The number of years and months you participate in the DB component

of the Plan.

If you work part-time, the table to the right will help you convert your

part-time service to full-time equivalent service.

Part-time hours per week Full-time equivalent service

30.0 but less than 37.5 90%




Less than 7.5 10%

Salary:For most Plan members, salary is defined as your annual base salary,

and for certain employees, salary includes compensation you may

receive under a Bank compensation plan where the terms of that plan

provide that the compensation paid thereunder is included in calculation of your salary. For certain commission-based employees, salary may

include other eligible earnings.

For part-time employees, your annual salary is calculated as if you worked on a full-time basis. However, your Plan service under the DB

component is calculated on a part-time basis as described above.

Under the DB component, salary for the purpose of determining HAS is subject to the maximum earnings specified under the Plan.

Spouse:The person who, immediately preceding the date as of which a determination is required:

1) Was legally married to you or was a party to a void marriage with you; or

2) Lived with you in a conjugal relationship for at least one year.

If at any single point of determination, you have both a spouse as defined in (1) above and a spouse as defined in (2) above, the term spouse

will mean the spouse as defined in (2) above.

Tax-deductible:The contributions you make to a registered pension plan reduce the amount of income tax you pay. When you make these contributions

through payroll deduction, you benefit from the tax reduction immediately. In contrast, you cannot claim a tax deduction for the contributions

that Scotiabank makes to your DC account; however, the contributions and any investment earnings on those contributions are tax-deferred.

Tax-deferred:Any growth realized on the money that you and Scotiabank contribute to the DC component is free from immediate taxation while it remains

in the account. The taxes are not eliminated, but are deferred. In other words, you pay taxes only when you draw the money out of your

account, to use as retirement income.

Year’sMaximumPensionableEarnings(YMPE):The earnings ceiling used by the government to determine what you and Scotiabank contribute to the Canada/Québec Pension Plan (CPP/QPP)

and what CPP/QPP benefits you receive. The government increases this amount every year, according to the increase in the average industrial

wage in Canada. The 2016 YMPE is $54,900.

Overview

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Other Plan Details

Key Words

Documents

Your Guide to the Scotiabank Pension Plan · 2018-04-09 · Scotiabank Pension Plan for Employees Hired 1/1/16 and Later | Your Guide 1 This document contains both information and