1. Delivering the promises

2. Cunningham Lindsey Canada Claims Services Ltd. Defined Contribution Registered Pension Plan 2012 Review

3. Agenda Why plan for retirement? Sources of retirement income Time & return Benefits of starting early Your plan Investments How do you chose? Making changes Investment Basics website

4. Agenda Personal Annual Review Retirement budget Steps Retirement Program CPP changes Service and support available

5. Why plan for retirement? Do you want to maintain your lifestyle? Food, clothing shelter & transportation No free lunch One third of Canadians age 60 or older are worried theyll outlive their retirement savings 1 Two thirds of Canadian households expecting to retire in 2030 are not saving enough to meet necessary living expenses 2 1 2007 Decima Research Poll 2 2007 Study by University of Waterloo and Canadian Institute of Actuaries

6. Sources of retirement income Canadians generally rely on three distinct sources of income: Government Pensions CPP: $987/month OAS: $540/month Personal Savings RRSPs, TFSAs, GICs, Mutual Funds Home equity, line of credit, reverse mortgage Other investments Company Retirement Plan CLC Registered Pension Plan

7. Sources of Income of Senior Couple Families - 2009 Percentage & number of tax filers reporting income from:

8. $ X 1,000 Percentage & amount of income received from those sources: Sources of Income of Senior Couple Families - 2009

9. Time & return $120,780 $66,439 Starting 10 years earlier means Terry will have $54,341 more than Chris Assumptions: Contributions made at the beginning of each year, compounded annually, at a 5% rate of return. 40 $40,000 30 $30,000

10. By starting early, you can contribute less to achieve your retirement goals 6% 30s40s50s 18% 10% 25% If you start in your… Percentage of income you have to save for retirement: 20s Income Benefits of starting early

11. Benefits of a group pension plan A convenient way to save (payroll deduction) –Immediate tax benefits CLC contributions add to your savings Tax-deferred growth Lower investment management fees Leading fund managers A way to consolidate your savings

12. Your plan - key highlights Contribution Category Employee Required Contributions Employer Required Contributions Employee Voluntary Contributions Contributions 5% of your earnings, maximum $7,500 To CRA maximum (2012: 18% of your earnings, maximum $23,820) Withdrawals No withdrawals while actively employed with CLC Withdrawals allowed at any time Please note: Vesting of Employer Required Contributions will be changing to immediately in the future in Ontario Vesting of Employer Required Contributions is immediate in Quebec

13. Investments – How do you choose? If you chose two or more from The best investment for you is Your symbol is… Column ATo select a Retirement Date Fund Column BTo select an Asset Allocation Fund Column C Build your own portfolio with individual funds

14. Automatic rebalancing; Gentle Slope approach Retirement Date Funds

15. Asset Allocation Funds Select the (1) that most closely matches your risk tolerance

16. Build Your Own portfolio – 66 Market based funds 7 Guaranteed accounts

17. Default fund If you have not chosen fund(s) for contributions to your plan, they will be invested in the plan default investment until you provide instructions. Plan default investment Retirement Date Fund selected according to your date of birth and an estimated year of retirement at age 65. If your date of birth is not on file, contributions will be invested in the Manulife McLean Budden Balanced Growth Fund (code 5161). Important: This fund may not be the most appropriate investment for you. Please review the materials, obtain assistance when necessary and provide your investment selection to Manulife

18. www.manulife.ca/investmentbasics Investment Basics

19. Personal Annual Review

20. Review the details of your plan Do you contribute the maximum amount? Review plan information Contact your plan administrator to: Increase contribution amounts Voluntary $$ Personal Annual Review

21. Are there changes to be made? Name change Address change Beneficiary Are you on track towards your retirement goal? Do you have one? Savings gaps? Provide up-to-date information to Manulife Financial Address can be updated online at www.manulife.ca/GRO For beneficiary changes, download a Change Form from www.manulife.ca/GRO

22. Your retirement budget Expenses / Income 70% rule of thumb Working vs. retirement lifestyle Recreational expenses may increase Day-to-day expenses often decrease Create your retirement income goal Have you thought about…?

23. Set a retirement goal Lifestyle or income Create a path to get to goal Select investments Track your progress Are you on course towards your goal? Steps Retirement Program ®

24. Canada Pension Plan Changes

25. Canada Pension Plan - CPP You & your company contribute 4.95% of earnings Max: 2012 - $2,307 (each) Maximum benefit, $987/month @ 65, based on: 25% of 5 year average YMPE / 12 Average YMPE for 2012 = $47,360 You can retire Early Late Payments are indexed to inflation annually

26. Canada Pension Plan - CPP Changes have been made 2011 Gradual increase in benefit enhancement for those who retire late –+ age 65 to 70 –Over 3 years –From 0.5%/month (2010) to 0.7%/month (2013) Year% monthly increase% annual increaseIncrease if age 70 20110.576.8434.2 % 20120.647.6838.4 % 20130.708.4042.0 %

27. Canada Pension Plan - CPP Changes have been made 2012 Gradual increase in benefit reduction for those who retire early –Age 60 to < 65 –Over 5 years –From 0.5%/month (2010/2011) to 0.6%/month (2016) Year% monthly decrease% annual decreaseDecrease if age 60 20120.52 6.2431.2 % 20130.54 6.4832.4 % 20140.566.7233.6 % 20150.586.9634.8 % 20160.607.2036.0 %

28. Canada Pension Plan - CPP Changes have been made 2012 Dont have to stop work to collect –But, you & employer still contribute between ages 60 to 65 »Even if youve already started to receive payment –Voluntary participation after 65 »Opt out »No loss of hours or earnings Creates Post-Retirement Benefit –Will be paid even if you are receiving maximum amount –Does not increase amount of other CPP benefits –Not subject to »Credit split »Pension sharing Credit for years of low or no earnings increased to 16% = 7.5 years

29. Canada Pension Plan - CPP Changes have been made 2014 Credit for years of low or no earnings increased to 17% = 8.0 years

30. Quebec Pension Plan Changes

31. Quebec Pension Plan - QPP You & company currently contribute 5.025% of earnings Max: 2012 - $2,341.65 (each) Maximum benefit, $987/month @ 65, based on: 25% of 5 year average AMPE / 12 Average AMPE for 2012 = $47,360 You can retire Early Late Payments are indexed to inflation annually

32. Quebec Pension Plan - QPP Changes have been made 2012 Gradual increase contribution amount –0.075% each for employee, employer –Total amount – 10.80 % @ 2017 –2018 »Automatic adjustment for future amounts YearEmployee AmountEmployer AmountTotal 20125.025 % 10.05 % 2013 5.100 % 10.20 % 20145.175 % 10.35 % 20155.250 % 10.50 % 20165.325 % 10.65 % 20175.400 % 10.80 %

33. Quebec Pension Plan - QPP Changes have been made 2013 Increase in benefit enhancement for those who retire late –+ age 65 to 70 –From 0.5%/month to 0.7%/month Year% monthly increase% annual increaseIncrease if age 70 20130.708.4042.0 %

34. Quebec Pension Plan - QPP Changes have been made 2014 Phased increase in benefit reduction for those who retire early –Age 60 to < 65 –Over 3 years –From 0.5 %/month (2014) to 0.6 %/month (2016) –Rate will increase proportionally to amount of pension »Minimum – 0.5% »Maximum – 0.6% Will not apply to those born before January 1, 1954 Monthly pension @ 65Reduced by 30 % New Proportional Reduction Reduction is: $298$209$20332 % $596$417$39534 % $960$672$61436 %

35. Services and support

36. Web site available 24 hours a day, 7 days a week. Online at www.manulife.ca/GRO Monitor and manage your accounts: Obtain your account balance (updated daily) View: Summary of your contributions Current unit values Personal rates of return Make changes to your investment mix Change your future investment instructions

37. Call Manulife toll-free at 1-888-727-7766 Financial Education Specialists Monday to Friday, 9 a.m. to 5 p.m. ET for assistance with investments and retirement planning Customer Service Representatives Monday to Friday, 8 a.m. to 8 p.m. ET for account inquiries and administrative assistance Services and support Interactive Voice Response (IVR) service available 24 hours a day, 7 days a week. Use your customer number and PIN to gain access.

38. As a member of a group plan with Manulife, you can view a series of online presentations hosted by personal finance writer and host of TVs Til Debt Do Us Part, Gail Vaz-Oxlade Gails webcasts have addressed the topics of Debt vs. Savings, Finding Money to Save and Creating a Financial Plan You can watch a recording at: www.manulife.ca/gvo Gail Vaz-Oxlade

39. New – Secure website home page Second quarter 2012 Personalized banner Account balance Estimated retirement income Message centre Learning centre

40. Personal Consultation For personal consultation please contact your consultant: David Mannila Corporate Benefit Consultants Ltd. dmannila@sympatico.ca 1-800-287-7703 or 416-804-0581 (cell)

41. Questions