Municipal Investment Plan

Overview A group RRSP / Investment Program negotiated by the MFA All municipal employees, elected officials and their spouses throughout BC are eligible Convenient contributions through automatic payroll deductions for employees

Benefits of The Municipal Investment Plan Benefits of The Municipal Investment Plan Discounted Fees - Significant savings off management fees with the savings to increase as the program grows Management fees are fees deducted by the Mutual Fund / Insurance companies prior to showing their returns for the year Selection of quality mutual funds No front end or back end loads Immediate tax relief for employees

How did the MFA become involved? Since 1989 the MFA has partnered with PH&N to offer Regional Districts and Municipalities throughout BC Pooled Investment Funds Seeing the success of the MFA Pooled Investments an Investment Firm approached the MFA to offer a similar program for municipal employees and elected officials

A questionnaire was sent out to Municipalities and Regional Districts to see if they were interested The MFA received an overwhelming response and started to investigate the various providers on behalf of its members

Why the Interest? The Investment Firms can see the potential of grouping BC’s approximately 35,000 municipal employees creating a very large volume sale By decreasing their fees the companies hope to create a win / win situation for municipal employees and elected officials

Benefits for Municipalities Large corporations have been offering their employees comparable investment plans as an added incentive in their employee’s benefit packages. We feel that the Municipal Investment Plan will be able to assist municipalities in the attracting and retaining of exemplary employees Using the combined bargaining power of BC’s Municipalities and Regional Districts we were able to negotiate fee discounts that would not be available to many municipalities working on their own

These firms are already offering similar programs for their employees National:IBMNortelBombardierMagnaHonda Proctor & Gamble Royal Bank NHLIncoAliantFedexAlcan Western Canada: Duke Energy Placer Dome Simon Fraser University ICBC Teck Cominco Coast Capital Savings Syncrude University of Saskatchewan Shell Canada Louisiana Pacific Finning International HuskyChevronTexaco

The MFA’s Role The MFA’s primary role will be to provide the centralized feed of payroll deductions, assist with the initial implementation and the ongoing promotion of the program, and the policing of the service provider and fund selection

Fees The MFA will collect 3/20 of 1%. As with our other programs any profits will be given back to the customer as a benefit. MFA staff are salaried and receive no commission or bonuses from the program

Three Individual Plans –BC Municipal Employees – May only contribute if their municipality Regional District decides to offer the program –Elected Officials – May contribute directly to the MFA or if their area decides to offer the program they may contribute through payroll deduction –Eligible Spouses / Partners – May contribute directly to the MFA if their spouse / partner is a member of the program

Bottom Line Shows the Decreased Investment Management Fees (IMF)

Average Investment Returns Retail MFA Plan Retail MFA Plan Perigee Global Bond 2.37% 3.00% TDAM Cdn Bond Index 14.92% 15.77% CI Asian Dynasty 6.65% 7.50% Prices based on December 31, 2002 year to date results Prices based on December 31, 2002 year to date results

Individual Choice Each municipality / regional district will customize the program to fit their needs. - Elected officials payroll deduction - Plan participation post employment - Payroll deduction changes by employees

Payroll / Human Resources Roll Initially a payroll deduction form will be handed into payroll with the application being sent to the MFAs office. An , fax or phone call will be sent / received to confirm payroll deduction and new employees to the program bi-weekly The department will collect the money by payroll deduction from the employee and remit it to the MFA electronically or be EFT (any charges involved with this process will be paid by the MFA) All investment advice and education is to be provided by the service provider not by the Payroll or Human Resource departments

If your municipality is interested in this program have them contact Marguerite by fax at , at or by phone at #226 for further information or to set up a meeting in your area.

Municipal Investment Plan Employee Enrollment If there are a number of employees interested in joining the plan please contact the MFA and we will arrange an employee session in your area.

How to Join 1. Municipality informs MFA that they wish to participate in the Municipal Investment Plan 2. The MFA will send out an employee handout for distribution by payroll. If requested the MFA will also send the employee guides and packages 3. The employee requests the Guide and Package from either the MFA or their payroll department

4. Employee educates themselves on the plan and if they require more information they contact Sun Life 5. Employee mails in the application to the MFA and gives the payroll department the payroll deduction form 6. Payroll deduction starts on the next pay period after payroll deduction received

Municipal Investment Plan Elected Officials Enrollment

How to Join 1. If interested in the Municipal Investment Plan contact the MFA. The MFA will send out a package and program guide to you 2. If you are interested in joining the plan mail in an application to the MFA. If your municipality elects to offer the plan by payroll deduction submit the payroll deduction form to the payroll department

3. Payroll deduction starts on the next pay period after payroll deduction form is received. If your municipality does not offer payroll deduction you may remit contributions by cheque directly to the MFA’s office These payments will be deposited into the bank and credited to your account on the first Friday after payment is received unless cheques are postdated All correspondence should be mailed to the MFA, 737 Fort Street, Victoria, BC V8W 2V1 attn: Marguerite Fenske

Municipal Investment Plan Spousal / Partner Enrollment

How to Join 1. If interested in the Municipal Investment Plan contact the MFA. To be eligible for the plan you must be a spouse / partner of an existing plan member. The MFA will send out a package and program guide to you 2. If you are interested in joining the plan mail in an application to the MFA

3. Send in post dated cheques directly to the MFA (maximum of once per month). These payments will be deposited into the bank and credited to your account on the first Friday after the cheque is postdated All correspondence should be mailed to the MFA, 737 Fort Street, Victoria, BC V8W 2V1 attn: Marguerite Fenske