2. P ENSION S EMINAR FOR NON - TEACHING PENSION PLAN MEMBERS Presented by Betty Bolton Retiree Representative for Retirement Committee 1

3. D ISCLAIMER This presentation highlights important features of the Non-teaching Pension Plan. It does not, however, replace the official Plan documents which legally govern the Plan. In the event of inconsistencies between the Pension Seminar Notes and the Plan documents, the Plan documents govern Pension application. If you require additional information in terms of retirement planning, we suggest you seek advice from a professional financial advisor. 2

4. I NTRODUCTION CONTD. Committee Members: For the Board:For the Union: Michelle Daycock Tom MacDonald Gail DowlerStan Marshall Chris NicollsBruce Richardson Kimberley WakilIrene Schoemaker For the Retirees Betty Bolton 3

5. I NTRODUCTION CONTD. Professional Organizations - Aon Hewitt - RBC Dexia - Barkman and Tanaka - Lawson Lundell and Lawson - Investment Companies Aberdeen – global equities Fidelity Investments Pyramis Trusts – Canadian equities and bonds Greystone Managed Investments – Real Estate and Mortgages 4

6. What do I need to know? 5

7. G ENERAL P ENSION PLAN BACKGROUND Our Pension Plan is a defined benefit Pension Plan Written contract by which the employer and employees are required to make monetary contributions with a view to provide employees with retirement income. The amount of your pension is set in advance according to a precise formula. The amount of the contributions is determined by the actuary who carries out the Plan’s actuarial valuation. You know in advance the amount of your retirement pension In general, the amount corresponds to a percentage times the years of pensionable service times the average of the highest three consecutive years’ earnings. 6

8. G ENERAL PENSION PLAN BACKGROUND The Plan began in May, 1955 and has been amended from time to time since then. The Plan Text was re- written, almost in its entirety, in 1996 to conform to the Pension Benefits Standards Act (British Columbia) and the Income Tax Act (Canada). As a result, you will find references to post December 31, 1996 and pre January 1, 1997 throughout the Plan Text and in pension calculations. The last amendment occurred in January, 2011. A summary of the Plan Text is contained in the pamphlet found on the Pension website entitled “The Retirement Plan for Non-teaching Employees”. 7

9. G ENERAL PENSION PLAN BACKGROUND Effective January 1, 1987, participation in the Plan became compulsory for all new employees: You were eligible to join the Plan if you are employed by the school board as a non-teaching employee and meet Plan criteria. You had to join the plan on your date of appointment if you were appointed on a permanent basis to a permanent position and work at least 20 appointed hours per week. As of January 1, 1998, as a casual worker or part time employee, you became eligible to join if you had completed two consecutive calendar years of employment and had received salary of 35% or more of the YMPE in each of the two consecutive calendar years. If you chose not to join when you were first eligible, you could still join at the beginning of any subsequent period. 8

10. What contributions can I make to the Plan? 9

11. H OW MUCH DO I CONTRIBUTE TO THE PLAN ? 10 Employee required contributions to the Plan are: - 4.9% of annual earnings up to the YMPE - 6.6% of annual earnings over the YMPE In 2015 the YMPE (Years’ Maximum Pensionable Earnings under Canada Pension) is $53,600

12. H OW MUCH DOES THE BOARD CONTRIBUTE TO THE PLAN ? 11 Under Pension Regulation the actuary is required to value the Plan at least every three years. The most recent complete valuation performed by our actuary is as of December 31, 2013 and that valuation requires that the Board contributes at a rate of 9.31% of covered payroll which includes: 8.11% for benefits earned in the year by members 1.2% administration allowance The Board also pays 40% of the cost of retiree health and dental premiums

13. M AY I MAKE ADDITIONAL VOLUNTARY CONTRIBUTIONS ? Subject to certain tax limits, you may make additional voluntary contributions to the Plan, but you can not purchase additional pensionable service with them. On resignation or retirement, these contributions, accumulated with interest, may be taken in cash, less applicable tax, or transferred tax-free to your RRSP. 12

14. CONTRIBUTIONS DURING A LEAVE OF ABSENCE For leaves of absence after 1996, pension credits may be granted, but only if both Member and Board Contributions are paid to the Plan. In some circumstances, based on the applicable collective agreement, the Board may pay your required contributions during a leave of absence. In other cases you may elect to pay both your and the Board’s required contributions during a leave of absence. It is important to note that, regardless of who makes the contribution, they are treated as required Member and Board contributions respectively. 13

15. MAY I DISCONTINUE CONTRIBUTIONS? Other than for specified leave of absence situations, you may not discontinue your required contributions while your employment with the Board continues. You may stop voluntary contributions at any time, but they cannot be withdrawn except on termination of employment or retirement. 14

16. Definitions you need to know 15

17. PENSIONABLE SERVICE & EARNINGS Pensionable service is a measure of the time you have been contributing to the Plan and does not necessarily have a direct relationship to your length of service with the Board nor with your seniority. Pensionable earnings are the earnings on which your contributions and pension are based. 16

18. P ENSIONABLE SERVICE & EARNINGS – CONTD. Pre-January 1, 1997 Each calendar year of participation in the Plan was considered as a year of pensionable service. This generally included leaves of absence. Your pensionable earnings for this period are your T4 earnings, excluding taxable benefits and allowances. 17

19. PENSIONABLE SERVICE & EARNINGS – CONTD. Post December 31, 1996 1500 or more hours in a calendar year counts as one year of pensionable service and your pensionable earnings are your T4 earnings, excluding taxable benefits and allowances, and lump sum payouts when leaving the Board. Less than 1500 hours Pensionable service is calculated as a percentage of 1500 hours, but your pensionable earnings are grossed up by that same percentage, so your pensionable earnings would be as if you worked 1500 hours. 18

20. WHEN CAN I RETIRE ???? 19

21. W HEN CAN I RETIRE ON PENSION ? Normal retirement age is 65 The formula for the lifetime pension is: 1.3% x average of 3 highest consecutive years’ pensionable earnings to the YMPE x years of pensionable service plus 2% x average of 3 highest consecutive years’ pensionable earnings above the YMPE (of the previous year) x years of pensionable service 20

22. A M I ELIGIBLE TO RETIRE ON AN UNREDUCED PENSION ? You may receive an unreduced pension if: Your age is 60 or more and you have at least ten years of pensionable service OR Your age is 55 or more and the combination of your age and years of pensionable service equals 80 (an example would be age 56 with 24 years of pensionable service) The lifetime pension calculation is the same as for normal retirement and the bridge pension is:.7% x average of 3 highest consecutive years’ pensionable earnings up to the YMPE (of the previous year) x years of pensionable service. 21

23. C AN I RETIRE ON A REDUCED PENSION ? You may receive a reduced pension if: Your age is less than 55 and the combination of your age and years of pensionable service equals 80 There is no reduction in respect to the pension earned for pensionable service before January 1, 1997 and a reduction of 6% for each year before age 60 for pension earned for pensionable service after December 31, 1996. 22

24. CAN I RETIRE ON A REDUCED PENSION ( CONTD.)? Your age is less than 55 and you have not reached the ‘rule of 80’ when you retire, but you have 10 or more years of pensionable service: the reduction is 3% for each year, if any, before age 60 for pension earned for pensionable service before January 1, 1997 and 6% for year before age 60 for pension earned for pensionable service after December 31, 1996. 23

25. C AN I RETIRE ON A REDUCED PENSION ( CONTD.) You have less than 10 years of pensionable service and are over age 60 when you retire: the reduction is 3% for each year, if any, before age 65 for pension earned for pensionable service before January 1, 1997 and 6% for each year before age 65 for pension earned for pensionable service after December 31, 1996 You have less than 10 years of pensionable service and are under age 60 when you retire: the reduction is an actuarial calculation from age 65 – reductions vary, but are normally in excess of 6% per year 24

26. P ENSION PAYMENT OPTIONS : WHAT ARE THEY AND WHAT DO THEY MEAN ? 25

27. P ENSION PAYMENT OPTIONS … CONT ’ D 26

28. D O PENSION PAYMENT AMOUNTS CHANGE AFTER PENSION COMMENCEMENT ? 27

29. HEALTH BENEFITS Currently a retiree may elect coverage under the basic Medical Services Plan of B.C., as well as extended health and dental plans in B.C. 60% of the premiums are paid by deduction from the retiree’s monthly pension cheque; 40% is paid by the Board. Effective July 1, 2002, Plan members retiring can elect to take benefit coverage only at time of retirement or upon involuntary loss of coverage at a later time. Current premium rates are on page 9 of your worksheets. 28

30. R ECIPROCAL SERVICE Effects of Reciprocal Agreements The Plan is party to reciprocal arrangements with Public Sector Plans of B.C. (Municipal, Teaching, College, Public Service) Importance of April 1, 2004 date to participants. 29

31. ITEMS TO TAKE INTO CONSIDERATION Monthly Expenses – be realistic Projected monthly income – pension (calculator @ SD43/Resources/Pension/Links), CPP, OAS, other Reduction in pension benefit? Long term service payouts – seniority? 30

32. THE DECISION IS MADE!!! Write the letter to Human Resources! If retirement is voluntary, make sure you give adequate notice. Generally, it is recommended that your retirement date is close to the end of the month because: - pensions are only paid for complete months| - pensions are deposited in your bank account on the 1 st of the month 31

33. WHAT HAPPENS NEXT – PENSION? Aon Hewitt completes all calculations You will receive an information package from Aon Hewitt showing: Option A – spousal benefit with 60% to survivor Option B – spousal benefit with 75% to survivor Option C – spousal benefit with 100% to survivor Option D – single life All with no guarantee, 5 year guarantee or 10 year guarantee All options are further broken down into pre- January 1, 1997 and post-December 31, 1996 Choose wisely – there is no going back! 32

34. FORMS TO BE SIGNED RE PENSION Pension Option form Bank deposit form TD1 Income Tax forms Acceptance or declining of health benefits form Medical Services Plan application Extended Health and Dental Benefits form Return completed forms either directly to Aon Hewitt or via the Board Office. 33

35. BENEFITS ON LEAVING SERVICE OF THE BOARD If you meet eligibility rules, the Payroll Department will contact you regarding the following: Long term service Sick Leave Gratuity Vacation Pay Banked Overtime Pension Plan Voluntary Contributions 34

36. T ERMINATION OF EMPLOYMENT Options available if non-vested: Option A: Lump Sum Payment Option B: Delayed Payment Option C: Transfer to New Employer’s Plan Option D: Deposit into an RRSP Options available if vested: Option A: Deferred Pension Option B: Deposit Transfer Amount into RRSP Option C: Use Transfer Amount to purchase Annuity Option D: Transfer to New Employer’s Plan 35

37. D ISABILITY PENSION You are entitled to a disability pension if: You are under age 60 and have 10 years of retirement service You have become totally and permanently disabled as determined by the Committee and eligibility for Canada Pension Plan disability You are unable to perform any suitable job AND You have been disabled for at least four months 36

38. DISABILITY BENEFIT If you qualify, you receive an immediate pension for life. The calculation is similar to that of an unreduced pension with following adjustments: An addition of 50% of pensionable service you expected to accrue between pension commencement date and age 60; No bridge pension to age 65; No reduction for early retirement 37

39. W HAT HAPPENS TO MY PENSION IF I DIE BEFORE RETIREMENT ? 38

40. POTENTIAL ADJUSTMENTS TO PENSION BENEFIT PAYMENTS 39

41. P OTENTIAL ADJUSTMENTS TO PENSION PLAN PAYMENTS … CONT ’ D 40

42. O THER PENSION - RELATED ITEMS Family Law Act Pension “vesting” Vesting means you are eligible for pension and occurs after 2 years of Plan membership, or, if you were a plan member before 1998, after 5 years continuous employment. Under proposed new legislation vesting will be immediate and the change will be retroactive for all service. Deferred Pension Beneficiary designation 41

43. Where can I go for more information ? 42

44. I NFORMATION SOURCES Through your home computer: Go to the Pension website Access your SD43 website Click on Resources>>Pension>>Links Go to the Pension Calculator website www.aoncanada.com/SD43 To login, ensure you know your personal SD43 number and PIN provided on your last Annual Pension Statement Access other websites www.cra-arc.gc.ca www.servicecanada.gc.ca www.qp.gov.bc.ca www.pensionsbc.ca 43

45. I NFORMATION SOURCES — CONT ’ D Read the Newsletters sent to you semi-annually in January and June Review your Annual Pension Statement produced annually in June Refer to the Plan Pamphlet “The Retirement Plan for Non-teaching Employees” Refer to Seminar Handouts for specific Plan Contributions and Health Benefits Contact Irene Schoemaker ( ischoemaker@sd43.bc.ca ) or call at 604-937-6715 Contact a Retirement Committee Plan Member (refer to list provided) Discuss your financial goals and Pension options with your bank, and your financial planner 44

46. O THER CONSIDERATIONS FOR RETIREMENT “ SAVINGS ” Federal Tax-free Savings Accounts (TFSA) effective January 2009 Contact your local bank/credit union for more info You are eligible to make up to $5,000 in annual contributions (retro to the 2009 tax year) or $5,500 since 2013 Voluntary contributions through our Pension Plan Contact the Payroll Department for more information Buybacks of Pensionable Service for Leaves in excess of 15 consecutive days through our Pension Plan Forms are available on the Pension website CSB purchase through Payroll Department or outside banks 45

47. A RE YOU READY FOR RETIREMENT ?? FAQ’s and other Questions 46

48. A HAPPIER RETIREMENT ! LIFESTYLE PLANNING INFO GATHERING 47

49. 48