DGPFSS Strength through personnelLe personnel fait la force DGSSPF Canadian Forces Personnel and Family Support Services SISIP Financial Services Presentation to NPP BOD André Bouchard President 10 February 2010

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Provider of financial services to the Canadian Forces since 1969 in a Non-Public Property framework on behalf of the Chief of the Defence Staff through DG Personnel and Family Support Services SISIP FINANCIAL SERVICES…

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES AGENDA ITEMS Mandate, Locations Products & Services Results Challenges Key Initiatives – 2010 Financial Contributions to CF Community Questions

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES MANDATE Delivery of… Sound financial solutions: We are committed to enhancing the financial well-being of the CF community through tailored and unbiased financial solutions; thereby contributing to operational readiness and effectiveness M&W Financial Contributions: From generated revenue.

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES 24 Financial Planners 21 Financial Counsellors 14 Insurance Representatives 2 Financial Educators LOCATIONS

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Licensed insurance representatives, certified financial planners, financial counsellors and educators… Guide military personnel and their families towards financial solutions that meet their needs Salaried employees, not on commission Provides professional and unbiased financial services OUR TEAM

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES ProductCF Member CF Spouse Former CF Member Former CF Spouse Financial Planning Life Insurance Long Term Disability Vocational Rehabilitation Program Accidental Dismemberment Insurance Plan Financial Counselling CFPAF Education TO WHOM?

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES PRODUCTS & SERVICES Government of Canada Supported Plans Long Term Disability (LTD)  Provides medically released personnel with guaranteed income protection and Vocational Rehabilitation Services  Enhancements effective 1 April 2009  GOC pays premiums for all medical conditions directly attributable to military service  GOC pays 85% of premiums for all medical conditions not attributable to military service, member pays 15% General Officers’ Insurance Plan (GOIP) Term Life Insurance Guarantees payment of claims, even if someone dies in a theatre of operations such as Afghanistan

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES PRODUCTS & SERVICES (cont’d) CF Accidental Dismemberment Plan (service-attributable) Financial Counselling Canadian Forces Personnel Assistance Fund Personal Financial Management Education

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES RESULTS 2009 Life Insurance 137K insured persons $26B insurance in force $34M paid out Long Term Disability >102,900 injured CF members >3,000 Active claimants >2,800 on VRP $43M paid out

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES RESULTS 2009 (cont’d) ADIP $3.1M paid out to 28 claimants $7.8M since inception in 2003 Financial Planning Almost 5,900 clients with over $161M in money under management CFGroupRSP Over 4,500 serving and former members with $153M invested

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES RESULTS 2009 (cont’d) Financial Management Education Over 9,400 CF members educated through BMQ, BMOQ, PLQ and ILQ Financial Counselling Over 9,000 members assisted

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Canadian Forces Personnel Assistance Fund (CFPAF) enhancements Self Improvement Loan Program (SILP): The maximum amount for a loan under the SILP program will increase to $5,000 as of 1 January 2010 Minor Disbursements (MD): The maximum amount for MD will increase to $200 from $100 as of 1 January 2010 RESULTS 2009 (cont’d)

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES RESULTS 2009 (cont’d) CFPAF - LOANS AND GRANTS ISSUED

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES CHALLENGES Reinsurance: Issue : Requirement: $740M. Difficult to find full war risk coverage. Premium: Excessive ≈ $10M for ≈ $125M of capacity. Action : Explore option of a government backstop oGovernment to pay all claims attributable to military service.

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES CHALLENGES (cont’d) Morale and Welfare Contributions: Issue : Ability to financially contribute to the same level ( ≈ $4M/yr) ; Financial markets; and Impact of the reinsurance premium on net operating income. Action : Maintain profitable line of business. Generate investment income from SEG Fund. Reduce re-insurance premiums

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES KEY INITIATIVES Program enhancements to LTD & VRP: reviewing options and assessing impact of changes request TB’s approval on suggested enhancements Increase key books of business: financial planning and life insurance Increase visibility & services to OUTCAN personnel and families Continue financial support CF community programs: MW, VOREP, March 1 st I Quit, VOREP, CF Youth, Sports Award Ceremony, Local Events and Access Develop and implement a new Insurance Management platform Feasibility to introduce new insurance product

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES Beyond the commitment of providing quality financial solutions, our financial contributions to M&W are intended for the sole benefit of the CF community at large… FINANCIAL CONTRIBUTIONS

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES FINANCIAL CONTRIBUTIONS (cont’d) – $44 M in total contributions CF Community / Communauté des FC

CANADIAN FORCES PERSONNEL AND FAMILY SUPPORT SERVICES SERVICES DE SOUTIEN AU PERSONNEL ET AUX FAMILLES DES FORCES CANADIENNES SISIP FINANCIAL SERVICES Celebrating 40 years as the provider of Financial Solutions for the Canadian Forces! sisip.com