Administrator s Guide CI GROUP PLANS

Transcription

1 Administrator s Guide CI GROUP PLANS

2 Table of Contents General Overview Setting up your CI Group RSP, TFSA and/or Non-Registered Plan Step 1: Employer Information Form Step 2: Investment Application Form Group Registered Education Savings Plan (RESP) RESP Individual and Family Plan Applications CI s Guide to RESP Grant Programs General Information Group RSP, TFSA, Non-Registered & RESP Changing Member Information Redemptions What CI Sends Your Company and All Plan Members Ongoing Employer Responsibilities Anti-Money Laundering Requirements Setting up your CI DPSP DPSP Overview Step 1: DPSP Employer Set-Up Form Sponsor Enrollment Step 2: DPSP Employee Mutual Fund Application Member Enrollment Step 3: Plan Registration The four parties to a Group Plan are: i. The plan sponsor employer ii. The financial advisor(s) iii. The fund manager CI Investments ( CI ) iv. Trustee Canada Trust Company ( Trustee ) The plan sponsor is responsible for setting up the plan; introducing the plan to plan members, maintaining the plan, and ensuring that plan or member terminations are done correctly. The financial advisor is the agent of each member and provides the members with investment recommendations to meet individual risk/return objectives. CI provides management services to the CI mutual funds. The Trustee is a federally regulated organization affiliated with CI. The Trustee appoints CI as its agent to provide services to the group plans offered. This includes applying to Canada Revenue Agency (CRA) for the registration of certain group plans. General Information DPSP Plan Sponsor Responsibilities CI Investments Responsibilities DPSP Transfers Plan Termination Remitting/Contributing to Your Group Plan Completing the Contribution List and Preparing Payment Options for Sending Payment to CI Investments Additional Considerations - DPSP CI s Group Plan Member Support and Services Frequently Asked Questions (FAQ) This guide provides a simplified reference for administering your CI Group Plan. Most situations are covered. However, feel free to contact us for timely answers to any specific questions. Our job is to make your CI Group Plan administration straightforward and efficient. Contact us from 8:00 a.m. to 8:00 p.m. (Eastern Time) Monday to Friday: Toll Free: French Toll Free: Toronto: Fax: groupplans@ci.com

3 Setting up your CI Group RSP, TFSA or Non-Registered Plan CI GROUP PLANS Getting your CI Group Plan set up and started is simple, straightforward, and only takes three steps: 1) The Plan Administrator completes: a) CI s Employer Information Form 2) Each Plan Member completes: a) A CI Application Form 3) To begin remitting group contributions, the Plan Administrator: a) Completes the Contribution List b) Prepares payment c) Sends Contribution List and payment to CI Investments *For accounts holding segregated funds please see page 10 Anti-Money Laundering Requirements. Step 1: Employer Information Form This form provides CI with the authorization and information to set up your Group Plan. Section 1 - Employer Information Company Contact is the person with overall responsibility for the plan. Section 2 - Plan Information Type of Plan please check the box or boxes corresponding to your Group Plan type or types. Investment Types please indicate the investment alternatives you wish to offer. Mutual funds are available for all Group Plans. Segregated funds are not available for RESPs. Section 3 - Dealer Information Please supply the Dealer s name and your Group Plan Financial Advisor s name. Section 4 - Employer Authorization To process the application, we need the signatures of the signing officers of your organization. 1

4 Setting up your CI Group RSP, TFSA or Non-Registered Plan Step 2: CI Investments Application Form Investment Application for Group RRSPs or Non-Registered Investment Accounts Participating employees must each complete application forms for mutual funds and/or segregated funds according to their investment choices. If an employee wants to set up both individual and spousal Group RRSP accounts, separate applications for each account type must be completed. * If your company is establishing DPSP accounts, see Page 11. The following section pertains to the mutual fund application only. For a segregated fund account, please obtain the segregated fund application form from your Group Financial Advisor or by calling CI Client Services at If an employee is opening an RESP account, a separate application form must be completed. For more information on completing the RESP application, see Page 4. Section 1: Plan Information For an individual Group RSP account, employees should check the Group RSP box. To set up a Group RSP spousal account, an employee should check both the Spousal RSP and Group RSP boxes. For a Non-Registered Investment Account, employees should check the Non-Registered Plan (Open) box Section 2: Unitholder Information Primary Unitholder/Annuitant Information For an individual Group RSP account, the employee enters his/her own information, and is defined as the Annuitant. For a spousal account, the employee enters the spouse s information in this section. The spouse is the Annuitant and the employee is the Contributing Spouse. Spousal plans are only available to individuals defined by Revenue Canada as a legal spouse. Joint Unitholder this is only applicable to Non-Registered open accounts held in both names. 2

5 Setting up your CI Group RSP, TFSA or Non-Registered Plan CI GROUP PLANS Contributing Spouse s Name For a spousal plan, the employee who is making the contribution enters his/her own information. For all plans, the date of birth and social insurance number (SIN) of the Annuitant are mandatory. For spousal plans, the SIN of the Contributor is also mandatory. Section 3: Beneficiary Information The beneficiary s name and relationship is filled in by the Applicant. Section 4: Dealer and Representative Information Your Group Plan Financial Advisor will fill in this section. Section 5: Investment Selection The Applicant MUST indicate how the contributions should be invested by writing the fund name, fund code and the corresponding percentage of each contribution allocated. Percentages must total 100%. Any special instructions by the Applicant may be included in this section. Section 6: Pre-Authorized Chequing Plan (PAC) This section should be left blank unless the Applicant wishes to contribute additional amounts from a personal bank account. Section 7: Non-Registered Systematic Withdrawal Plan This section is only for Annuitants who wish to redeem their investments on a regular basis. Section 8: RIF/LIF/LRIF Plan Payment Details Do not complete this section. Section 9: Systematic Transfer Plan This section is only for Applicants who wish to transfer an amount on a regular basis from one fund to another. Section 10: Banking Information/Plan Payment Details This section can be left blank unless the employee has completed Section 6 or 7. Section 11: Group Retirement Savings Plan Ensure the company name and group number are filled in. Employees must sign this section if payroll deductions are being made. Section 12: LIRA/LIF/LRIF Information Do not complete this section. Section 13: Automatic Rebalancing Service This section is for applicants who wish to have their funds automatically rebalanced, please be advised that this is only applicable if the portfolio has more than one fund. Section 14: Insight Service Fee This section only applies to Insight accounts. The annual fee rate percentage must be indicated. Section 15: Authorization The Applicant listed in Section 2 must sign and date the application. For spousal plans, the employee must sign as the contributing spouse. The CI Application form should then be delivered to your Group Plan Financial Advisor who will forward it to CI Investments. 3

6 Registered Education Savings Plans (RESP) RESP Individual and Family Plan Applications Section 1: Tell Us About Yourself (Subscriber Information) Plan members should provide all the required information. Note that a Social Insurance Number is mandatory. Section 2: ESP Plan Options Please indicate ESP group plan. Section 3: Group Education Savings Plan (GESP) Ensure the group name is indicated and the member must also sign if contributions are made via payroll deduction. Section 4: Dealer Information Your Group Plan Financial Advisor will fill in this section. Section 5: Choose Your Investment(s) Plan members should indicate how the contributions are to be invested by writing the fund name and number and the percentage allocation. Percentages must total 100%. Section 6: ESP Pre-authorized Chequing Plan (PAC) This section should be left blank unless the plan member wishes to contribute additional amounts from a personal bank account. Section 10: Designation of Educational Institution and Termination Date Plan members can leave the first part of this section blank if they wish. By filling in this section, plan members are designating an educational institution to receive the funds if written instruction isn t received by CI regarding the disposition of funds in the plan following the 35th year. The Termination Date of the plan is considered to be 35 years from the year the plan is opened ie for plans opened in Section 11: Automatic Rebalancing Service This section is for applicants who wish to have their funds automatically rebalanced, please be advised that this is only applicable if the portfolio has more than one fund. Section 12: Authorization The application form must be signed and dated and should then be delivered to your Group Plan Financial Advisor who will forward it to CI. Please ensure CESG Authorization is completed if the client would like CI Investments to apply for the Canadian Education Savings Grant for the beneficiary(ies). Section 7: Banking Information This section should be left blank unless the plan member is contributing additional amounts from a personal bank account as per Section 6. Section 8: RESP Systematic Transfer Plan This section is only for plan members who wish to transfer an amount on a regular basis from one fund to another. Section 9: Designation of Beneficiary(ies) Plan members should enter the name, address and SIN of the child(ren) they are opening the plan for. If there is only one beneficiary, plan members can use the single beneficiary application. If there is more than one beneficiary, plan members should use the family plan application. 4

7 Registered Education Savings Plans (RESP) CI GROUP PLANS CI s Guide to RESP Grant Programs In 2004, the Government of Canada introduced two new RESP grant programs. In addition to the Basic Canada Education Savings Grant (Basic CESG), RESP beneficiaries may now qualify to receive the Additional Canada Education Savings Grant (Additional CESG) and the Canada Learning Bond (CLB). These two grant programs are based upon the primary caregiver s family net income. In addition, the Government of Alberta has introduced the Alberta Centennial Education Savings (ACES) plan, a new education savings grant for eligible Alberta children and Revenu Québec has introduced the Québec Education Savings Incentive (QESI) as well as the QESI Increase for RESP beneficiaries residing in Québec. The various grant programs are outlined below and additional information can be obtained by contacting CI Client Services. Step 1: To obtain the Basic CESG, please complete the Basic CESG Application for each eligible RESP beneficiary. Step 2: Determine if the RESP beneficiary is a dependent of an individual whose net family income qualifies the beneficiary for Additional CESG and/or CLB. Complete the required application for each eligible beneficiary. Step 3: ACES: To obtain the ACES Grant for eligible children whose parent/legal guardian is an Alberta resident, please complete the Application for ACES for each eligible beneficiary and provide proof of residence. A separate application must be completed for each initial and subsequent grant. QESI: To obtain the Basic QESI and QESI Increase, no additional documentation is required. 5

8 Registered Education Savings Plans (RESP) Program Name Who is the RESP Subscriber? Application Form Name Notes Basic QESI, QESI Increase Parent (Subscriber is the beneficiary s custodial parent or legal guardian and primary caregiver) No documents required The incentive is automatically applied for on behalf of eligible beneficiaries Non-Parent (Subscriber is not the beneficiary s custodial parent or legal guardian and primary caregiver) No documents required The incentive is automatically applied for on behalf of eligible beneficiaries ACES Parent or Non-Parent Application for Alberta Centennial Education Savings Grant Please complete one application for each eligible beneficiary. Proof of residency for the parent/legal guardian must be verified. A valid driver s license, Alberta photo I.D., bank statements or utility bills are acceptable. Please ensure that the type of identification used is indicated in section B of the ACES Application Form. A copy of the document used to verify residency is not required by CI. Basic CESG, Additional CESG, CLB Parent (Subscriber is the beneficiary s custodial parent or legal guardian and primary caregiver) Basic and Additional Canada Education Savings Grant and Canada Learning Bond Application -Subscriber(s) Only (HRSDC SDE 0073) Both pages of the application must be completed for each eligible beneficiary. This form can be used to apply for any or all of the three programs. Non-Parent (Subscriber is not the beneficiary s custodial parent or legal guardian and primary caregiver) Basic and Additional Canada Education Savings Grant and Canada Learning Bond Application (HRSDC SDE 0071) All six pages of the application must be completed for each eligible beneficiary.this form can be used to apply for any or all of the three programs. To download or request RESP grant program application forms and brochures, or for additional information, please contact one of the following sources: CI Investments or call CI Client Services at The Department of Human Resources and Skills Development (HRSDC) or call O-Canada ( ) Government of Alberta (ACES information only) Revenu Québec (QESI information only) 6

9 General Information Group RRSP/TFSA & Non-Registered CI Group Plans Changing Member Information 1) Updating the Investment Allocation Investment options for future contributions may be changed by completing the Change to Standing Investment Instructions section of the Group Plan Changes form or a letter of direction signed by both the plan member and financial advisor. A switch of existing assets may also be accomplished with a letter of direction signed by both the plan member and financial advisor. 2) Member Address Changes Plan members can change their address by calling CI s Client Services Team at (In Toronto ), or by including the address change with the next mailing to CI Investments. 3) Change of Name In the event of a Member name change as a result of marriage, separation, divorce, or personal reasons, the Member must provide CI Investments with a copy of the legal name change documents along with the Member s former and current signature. 7) Removing Members If an employee withdraws from the plan or leaves your employment, please remove the employee s name from the Group Contribution List and complete the Notice of Termination/Retirement/Death section of the Group Plan Changes form signed by the plan administrator. If a member dies, CI Client Services should be notified as soon as possible and provided with the date of death. CI Estate Services will notify the beneficiary with options and requirements to settle the assets held of the deceased. 8) Plan Termination Should you wish to terminate your plan with CI, submit a signed request on company letterhead to the financial advisor stating the effective date of plan termination and final contribution. Your financial advisor will forward the request on your behalf to CI. 4) Changing the Beneficiary If a member wishes to change the beneficiary on their group plan, the member must notify CI in writing of the change. Provide the name and relationship of each new beneficiary along with percentage breakdown when applicable. Complete the Change of Beneficiary section of the Group Plan Changes form or a letter of direction signed by the plan member and signature guaranteed. 5) Adding New Members When a new member becomes eligible to participate in the plan, notify the financial advisor(s) so the member can be provided with the necessary information and guidance for their investments and complete the appropriate enrolment forms. 6) Temporarily Suspending Member Participation Employees may wish to temporarily stop their contributions (when on leave, for instance). To accommodate this, simply change the amount contributed to zero next to their name on the Group Contribution List. When contributions resume, indicate the amount of the contribution. 7

10 General Information Group RRSP/TFSA & Non-Registered Redemptions Applicants can redeem their funds at any time by sending in a written request with signature guarantee. Remember, in the case of spousal plans, the written request comes from the Annuitant, not the Contributor. 1) For all redemptions, the signature on the written request must be guaranteed by your Group Financial Advisor. 2) Redemption notices received in proper order by CI Investments prior to 4:00 p.m. (Eastern Time) will be priced at the next asset value per security as of 4:00 p.m. (Eastern Time) that day. Redemptions are calculated at the price per security on close of business of the day the request is received by CI Investments. Redemptions from a Group plan are subject to applicable withholding taxes, and the percentage withheld depends on the amount of the redemption and the prevailing withholding rate applicable to the province of residence of the employee. Redemptions may also be subject to redemption fees if funds have been purchased by the deferred sales charge method. What CI Sends Your Company and All Plan Members: CI Sends Your Company: 1. A Welcome letter 2. A Group Purchase Confirmation showing employee and employer contributions for each plan member after each purchase. CI Sends All Plan Members: 1. Annual Reports which review the fund s performance and include financial statements. 4. CI issues T4RSP tax receipts in February for all redemptions made during the previous year. 5. CI applies for Canada Education Savings Grants for all Registered Education Savings Plans where applicable. Please see page 5 for more information. 6. All plan members can access their accounts through the CI website at to receive daily updates on account balances and fund information. See page 20 for more information. 2. Statements of Account for the six months ending June 30th and the year ending December 31st. If requested, CI will send transaction confirmations for each employee contribution. All contributions and redemptions are also reported on the Statements of Account. 3. CI issues tax receipts for contributions as follows: a) in January for contributions from March 2 through December 31 of the previous year which are mailed with the year-end statement. b) at the beginning of February for the month of January c) daily in February 8

11 General Information Group RRSP/TFSA & Non-Registered CI GROUP PLANS Ongoing Employer Responsibilities: 1. Deducting Group Plan contributions for participating employees and making remittances to CI Investments along with any employer contributions. 2. Recording any employer contributions on each employee s T4 slip. Any employer contribution is added to employees gross income and treated as a taxable benefit. CI issues RSP contribution receipts to the employees. 4. Adjusting the Group Contribution List as required. 5. Notifying your Group Financial Advisor of new employees who may be interested in becoming Group Plan members. 6. Notifying your Group Financial Advisor and CI Investments of any employees who leave the plan. 3. Calculate income tax to be withheld at source for each participating employee using gross pay less the amount of the RSP contribution. (For GROUP RSP Plans Only) 9

12 Anti-Money Laundering Requirements Sun Life Financial advisor (applicable to both mutual and segregated funds) Employer requirements as of June 23, The administrator of the plan for the Employer must complete and provide: 1) CI s Employer Information Form 2) Copy of Corporate Resolution and any relevant corporate documents applicable to the Employer. (NEW) Employee requirements as of June 23, ) For Mutual funds, complete a current CI Mutual Fund application form. 2) For Segregated funds, complete a current CI application that includes updates made for Anti-Money Laundering purposes. March Advisor requirement as of June 23, ) Identity verification, third party determination and politically exposed foreign persons (PEFP) form - Sun Life Financial E4105 form Must be completed for all Employers establishing a group plan (NEW) 2) Identity verification, third party determination and politically exposed foreign persons (PEFP) form - Sun Life Financial E4105 form Must be completed for each individual investor establishing a Non Registered plan (NEW) Non Sun Life Financial advisor (applicable to Sun Life Financial segregated funds only) Employer requirements as of June 23, The administrator of the plan for the Employer must complete and, or provide: 1) CI s Employer Information Form 2) Copy of Corporate Resolution and any relevant corporate documents applicable to the Employer. (NEW) Employee requirements as of June 23, ) Complete a CI application form that includes updates made for Anti-Money Laundering purposes. March Advisor requirement as of June 23, ) CI Anti-Money Laundering Identity Verification Supplement (CI AML Form 04_08) -Must be completed for all Employers establishing a group plan (NEW) 2) CI Anti-Money Laundering Identity Verification Supplement (CI AML Form 04_08) Must be completed for each individual investor establishing a Non Registered plan (NEW) Important: For full administrative requirements refer to the Road map for CI Investments group plans available on ABC 10

13 Deferred Profit-Sharing Plans (DPSP) CI GROUP PLANS DPSP Overview Your Group Financial Advisor is responsible for assisting in the set-up of the plan, enrolling each member, and providing personal retirement planning for each member. The Plan Sponsor is responsible for the overall plan administration. CI Investments is responsible for compliance with the Trustee and Canada Revenue Agency (CRA) regulations and registration, as well as the investment management of contributions in CI Investments mutual funds. Step 1: DPSP Employer Set-Up Form Sponsor Enrollment 1. The plan sponsor meets with the Financial Advisor and complete a DPSP Employer Set-Up Form where variable terms including one of three vesting options are determined. See section 3 of the DPSP Employer Set-Up Form for full details on the Variable Terms of the Plan. 2. Forward the completed DPSP Employer Set-up Form to CI Investments for review. Step 2: DPSP Employee Mutual Fund Application Member Enrollment 1. The financial advisor meets with all participating members, either individually or in a group session in order to complete the forms required including signed DPSP Employee Mutual Fund Applications. 2. Send all completed DPSP Member Information Forms to CI Investments as soon as possible to ensure investment instructions are on file prior to the initial contributions. 3. Connected Persons are not eligible to participate within a DPSP. Connected Persons include an individual who owns directly or indirectly 10% or more of the issued shares of any class of the capital stock of the Plan Sponsor or any other corporation related to the Plan Sponsor, who does not deal at arms length with the Plan Sponsor as defined in the Income Tax Act, or is a specified shareholder of the Plan Sponsor under paragraph (d) in subsection 248(1) of the Income Tax Act. Persons connected by blood, marriage or adoption to a Connected Person are also ineligible to participate. 4. Employee investment options within a DPSP are restricted to mutual fund products only. 11

14 Deferred Profit-Sharing Plans (DPSP) Step 3: Plan Registration 1. Meet with the Financial Advisor and complete a DPSP Employer Set-up Form. 2. Complete all copies of the following documentation which is provided and delivered to you by CI Investments: Three (3) copies of the Corporate Resolution announcing the adoption of a DPSP for the employees of the company Three (3) copies of the Variable Terms of the CI DPSP Three (3) copies of the Trust Agreement Three (3) copies of the Employer Resolution Adopting the Trust Agreement Two (2) copies of the Employer Plan Document One (1) copy of T2214 Revenue Canada DPSP Registration Form The remittance cheque is date and time stamped when received by CI Investments. The contributions are then credited to the individual member accounts as of the date the cheque was received providing CI Investments has received a signed and completed CI Investments DPSP employee application for each member noted on the contribution list. For subsequent remittances, the Plan Sponsor can either continue using the CI Investments DPSP Contribution List, an employer-created spreadsheet or attach the remittance to a copy of the DPSP Contribution Purchase Confirmation issued to the Plan Sponsor after each remittance has been processed. It is strongly recommended that all original documents be thoroughly reviewed by the Plan Sponsor prior to signing. CI will keep one set of the documents on file, forward one set to Canada Revenue Agency, and return signed and completed copies to the Plan Sponsor. The initial remittance should be forwarded to: CI Investments Inc. 15 York Street, 2nd Floor Toronto, Ontario M5J 0A3 Attn: Group Plans Department The Plan Sponsor must include a breakdown on a per member basis for each remittance. For the initial remittance the Plan Sponsor can use either the CI Investments Group Plan Contribution List included with the Employer Set-Up Kit or you can create your own personalized list. The Plan Member s full name and SIN should appear on the list as well as the contribution amount for that member. The total contribution amounts should balance to the remittance cheque. 12

15 General Information DPSP CI GROUP PLANS Plan Sponsor Responsibilities Adding New Members As new members become eligible for enrollment in the DPSP, they should arrange to meet with the Group Financial Advisor in order to complete a DPSP Member Information Form. Once the DPSP Member Information Form has been completed, the Plan Sponsor must sign off the Employer Authorization (Section 8) in order for CI Investments to enroll the new member. The DPSP Member Information Form is then forwarded to CI Investments. Deleting Members Due to Termination, Retirement or Death Once a Member ends employment with the Plan Sponsor due to termination or retirement, it is the Plan Sponsor s responsibility to notify CI Investments. Once CI Investments has been notified that a member is no longer participating in the DPSP, he/she has the option to either redeem or transfer the proceeds in the event that the vesting period has been met. If the proceeds are not vested to the employee, they will be forfeited back to the company. If a member dies, CI Investments should be notified as soon as possible. CI Investments will draft a letter to the Estate of the Member outlining the options available and the documents required. Change in Standing Investment Instructions All changes to standing investment instructions must be received in writing by CI Investments. The request must be signed by the Member or Plan Sponsor (where the Sponsor is responsible for making investment decisions) and duly authorized by the Financial Advisor. Change of Name In the event of a Member name change as a result of marriage, separation, divorce, or personal reasons, the Member must provide CI Investments with a copy of the legal name change documents along with the Member s former and current signature. Change of Beneficiary If a Member wishes to change the beneficiary on the DPSP, the Member must notify CI Investments in writing of the change. The request must be signature guaranteed and the full name and relationship of each new beneficiary must be clearly indicated. Termination of Plan In the event the Plan Sponsor wants to terminate the DPSP with CI Investments, a Corporate Resolution on company letterhead must be forwarded to CI Investments. Upon receipt of the termination request CI Investments will provide the Plan Sponsor with a list of requirements for termination. Monitoring Contribution Limits It is the responsibility of the Plan Sponsor and individual Plan Members to ensure Maximum Contribution Limits, as prescribed by CRA, are not exceeded. Contributions to a DPSP do not affect RRSP contribution room in the current year, but will reduce contribution room in the following year. The amount of the reduction shows up as a Pension Adjustment (PA) on the employee s T4 tax slip. 13

16 General Information DPSP Plan Sponsor Responsibilities (continued) Calculating Pension Adjustments CRA has made calculating the pension adjustment (PA) for plan members the plan sponsor s responsibility. Members contacting CRA with questions about amounts used in calculating the PA will be referred to their plan sponsor. If the plan sponsor is having difficulty calculating the PA, CRA should be consulted for further assistance. The PA should be recorded on the member s T4/T4A. The PA is utilized by CRA to provide uniform limits for tax deductible retirement savings and is used to calculate the maximum annual RSP contribution an individual can make. The PA plus RSP contributions must not exceed annual limits which are generally the lesser of: - 18% of the previous year s earned income, or A PAR calculation is required when a plan member ceases to be entitled to a benefit under a provision of the DPSP after 1996 for which a PA was originally reported. PAR information returns must be filed 60 days after the end of the applicable quarter in which the termination occurred and on or before January 31 of the following year if termination occurs in the fourth quarter. Example: An employee who is a plan member terminates employment before expiry of the plan vesting period. The plan sponsor has contributed $1,000 to the plan on behalf of that member, which the plan member forfeits as a result of the plan s terms. Therefore the PAR that must be issued to the terminating employee is $1, ½ of the CRA specified Money Purchase limit for the year ($11,910 in 2012) Calculating the Pension Adjustment (payroll records ending December 31 are required) Plan Sponsor Contribution to the Plan = Pension Adjustment 14

17 General Information DPSP CI GROUP PLANS CI Investments Responsibilities Government Reporting CI, as agent for Canada Trust Company as Trustee, will ensure the following forms and documents are filed and/or registered with CRA: Form T3D Income Tax Return for DPSP or Revokes DPSP CRA requires the Fund Company to file form T3D within 90 days of the end of the calendar year. Any additional or revised information should be submitted by letter and not by filing an amended return. T2214 Application for Registration as a DPSP CRA requires the Fund Company to file form T2214 for each participating plan sponsor when requesting registration of a profit sharing plan in accordance with Section 147 of the Income Tax Act. This form is not to be used when submitting an amendment to the plan text or trust agreement or when adding a participating plan sponsor to a previously registered plan. Variable Terms to be filed with CRA Board Resolution to be filed with CRA Employer Resolution CRA requires a resolution adopting the Trust Agreement if the plan sponsor is a corporation. A certified copy of the resolution of directors authorizing the application must be forwarded to CI. What CI Sends to Plan Sponsors and Plan Members CI Sends to Plan Sponsors A copy of the Trust Agreement A DPSP Contribution Purchase Confirmation acknowledging receipt of purchase and detailing company contribution on a per member basis after each purchase is completed by CI Investments. CI Sends to Plan Members Statements of Account for the six months ending June 30th and the year ending December 31st. CI Investments will also send transaction confirmations for each employee contribution as it is processed. T4A slips for each member requesting a cash refund upon withdrawal from the DPSP. 15

18 General Information DPSP DPSP Transfers Procedure when transferring a DPSP from another financial institution to CI: A. Advisor meets with employer to complete the CI DPSP Employer Set-Up Form Plan Termination The Plan Sponsor or CI will be required to send a letter informing CRA of the plan termination and a reason for termination. B. Advisor meets with employees to complete CI DPSP Employee Mutual Fund Application for each plan participant. C. Employer notifies relinquishing institution of their intent to transfer the DPSP to CI Investments. The employer and/or advisor should consult the relinquishing institution as to what constitutes a notification of intent to transfer. D. CI will contact the relinquishing institution s DPSP administrator to obtain: a. Plan Document b. Variable Terms c. CRA Registration Letter CI will then draft the CRA registration documents to be sent to the advisor and be signed by the employer and forward the Transfer of Carrier document to CRA. E. Company and/or advisor should consult the relinquishing institution for the proper procedure and requirements for DPSP transfer-out as different institutions have different procedures. Typically a T2151 for each employee will suffice. F. CI Group Plans team will coordinate with the relinquishing institution on the actual transfer of funds. CI will not invest until the DPSP sponsor and the Trustee sign the registration documents and all documents are in good order. 16

19 Remitting/Contributing to Your Group Plan CI GROUP PLANS Completing the Contribution List and Preparing Payment Completing the Contribution List When you send in your first contribution, please complete the Group Contribution List to provide us with itemized contribution amounts. For subsequent remittances, Plan Sponsors HAVE THREE OPTIONS: Group Purchase Confirmation Upon receipt of your group contribution, CI will send you a Group Purchase Confirmation report. This confirms all the trades that have been processed for your Group Members. 1. continue using the CI Investments Contribution List, 2. create their OWN spreadsheet or 3. use a copy of the Purchase Confirmation and MAKE THE NECESSARY CHANGES, i.e. contribution amounts. Spousal Plans If an employee is contributing to a spousal RSP, this must be clearly indicated on the contribution list. In the event that an employee is contributing to both an individual and spousal RSP, the employee s name must be listed twice and show the contribution amounts separately. Please ensure to indicate which account is the spousal plan. Changing Contribution Amounts Simply change the amount shown next to the employee s name on the Group Contribution List and revise the total amount. Fund Pricing CI Investments will process contributions at the price per security immediately following receipt of the contribution payment. Our fund prices are determined at the close of business on each day the Toronto Stock Exchange is open for trading. Group Contribution (Purchase Confirmation) Trade Date Aug Group Name JAMES ANDERS MAIN STREET Representative JACK ADAMS PO BOX 777 Dealer Name ABC FINANCIAL CORPORATION ANYWHERE, ON 1818 Trophy Ave. W. L2L 2L2 Unit #1 Somewhere, ON M6M 6M6 Contact MARY HILL Phone # (905) Phone # (905) Dealer Code 1212 Contribution Contribution Contribution Member Name Amount Changes Account Summary JANE SMITH Employee $ RSP Employer $ CI Canadian Balanced Fund DSC $ Total $ CI Global Equity RSP Fund DSC $27.00 Employee $0.00 RSP JOHN DOUGH Employer $ CI Money Market Fund $ Total $ Employee $0.00 RSP DIANE DOE Employer $ CI Money Market Fund $ Total $ Employee $0.00 RSP JACK ANDERSON Employer $ CI Pacific Fund DSC $12.80 Total $ CI Latin American Fund DSC $ CI Canadian Balanced Fund DSC $ Employee $0.00 RSP MIKE HILL Employer $ CI Global Equity RSP Fund DSC $ Total $ Employee $0.00 RSP MARY LEE Employer $ CI Pacific Fund DSC $25.00 Total $ CI Canadian Balanced Fund DSC $ CI Global Equity RSP Fund DSC $25.00 Employee $0.00 RSP JAY JONES Employer $ CI Money Market Fund $ Total $ Group Summary Employee: $0.00 Employer: $1, $1, This contribution list acknowledges the dollar amount deposited to the plans listed above according to the trade date shown. Please remit one copy of this list with your next contribution to CI Investments Inc. at the address above. For new members, please add their names and contribution amounts below and attach the RSP application. Page 1 of 1 17

20 Remitting/Contributing to Your Group Plan Options for Sending Payment to CI Investments Preparing Payment Three payment options currently exist for sending contributions to Group Plans. By Cheque Cheques should be made payable to CI Investments and sent with a corresponding contribution list to: CI Investments 15 York Street, 2nd Floor Toronto, Ontario M5J 0A3 Attn: Group Plans Department A group contribution confirmation report will be sent by mail to the company contact the day after all transactions. If requested, an additional confirmation can also be sent to the representative for the group. By Telephone Transfer (EFT) To arrange this contribution method, an electronic funds transfer (EFT) application form must be completed. To obtain a copy of an EFT form, please contact CI s Client Services Team toll-free at or groupplans@ci.com. The completed form and void cheque can be sent to the group plans team by mail, or fax ( ). Once an EFT has been set-up, the company contact will receive a letter from TD Bank by mail or fax that provides instructions regarding the telephone transfer procedure. The company contact must initiate the transfer of funds via telephone and send a corresponding contribution list to CI Investments. A group contribution confirmation report will be sent by mail to the company contact the day after all transactions. If requested, an additional confirmation can also be sent to the representative for the group. Automated Remission Plan An Automated Remission Plan has been launched to replace Pre-Authorized Chequing (PAC) plans on Group Accounts. The advantage of the Automated Remission Plans over a PAC is that the Employer s bank account only experiences one withdrawal per remission and Group Purchase Confirmations are generated automatically. The advantage over manual remissions via cheque or EFT is that an Automated Remission Plan reduces the amount of paperwork necessary from Employers provided that the amount being remitted is consistent and at regular predetermined intervals. To set-up an Automated Remission Plan, the company contact must complete and sign the CI Group Plan Automated Remission Create New form, which provides the following information: Payroll/Employer bank information Details, the start date for the plan, total amount being remitted, the frequency of the automated remissions and a contribution list that breaks down each participating member s portion of the remissions. A void cheque for the company s bank account must also be included. To modify or terminate an Automated Remission Plan, the company contact must complete and sign the CI Group Plan Automated Remission Modify Existing form with the specified changes indicated. This form would be applicable if the Employer wishes to change the employer banking information, add new employees to the regular contributions, remove participating employees from the regular contributions or change the amounts being contributed for all or some of the participating employees. This form is also used if the employer wishes to terminate the Automated Remission Plan by completing Section A only. In order to act on any modification/ termination request, CI must receive direction in good order 3 business days prior to the automated remission run date. Please note that each form should be accompanied with a separate contribution list if the space does not exist to clearly communicate the necessary employee breakdowns for new and existing automated plans. If you have additional questions about Automated Remission Plans or wish to convert an existing Group to an Automated Remission Plan, please contact us at groupplans@ci.com or by calling CI Client Services at

21 Remitting/Contributing to Your Group Plan CI GROUP PLANS Additional Considerations DPSP Remitting Contributions Once the Plan Sponsor receives a copy of the signed and completed documents, the Plan Sponsor can start remitting contributions to CI Investments. CI must receive all completed documents before the Plan can be established. We cannot accept transaction requests for any member until the Plan has been established and CI has received a completed DPSP Member Information Form. Transactions will receive the unit price established after the receipt of contributions and investment instructions, as provided in the simplified prospectus. Contributions received by CI for individuals who do not have a DPSP employee application in good order will be returned to the Employer. 19

22 CI s Group Plan Member Support and Services We are here to help your Group Plan members with a broad range of products and services. All Group Plan members are free to access any of these resources: CI Client Services or Client Services Representatives are available: Monday-Friday 8:00 am - 8:00 pm Eastern Time Full account information Order duplicate account statements or tax receipts CI Teleservice Line or Our automated telephone response system is available seven days a week from 8:00 a.m. to midnight (Eastern Time). This service allows you to: Receive your account balance and last five transactions per fund Obtain closing fund prices, interest rates, and distribution information Request client statements CI Website CI InvestorOnline Selecting Client Access on will provide employees with safe and easy access to account information such as market value, a list of recent transactions, and access to view and print key documents, including tax receipts and statements. In order to register for free online access clients need their Login ID which is found on the most recent statement or trade confirmation. eciss Selecting Advisor Access on will provide the Company Contact with secure access to the group plan and all accounts associated with them. Registering for eciss will enable the Company Contact to access employer and employee contribution histories, account numbers and the ability to view and print Group Contribution Confirmations. To register contact CI s Client Services Team. Thank you for choosing CI for your Group Plan. You have helped your employees begin to build for their financial future. If you have any comments or questions, please feel free to contact your Group Plan Financial Advisor or CI s Client Services Team. CI s state-of-the-art website has thorough information on all our products and services as well as all these great features: Advanced technology with advanced search options Profiles of CI management teams, including downloadable materials Detailed fund profiles with facts and information Customized pricing for a select group of funds InvestorOnline client access to current account information, plus key documents including tax receipts 20

23 CI s Group Plan Member Support and Services CI GROUP PLANS Frequently Asked Questions 1) How many representatives can be assigned to a Group Plan? As a general rule, one representative can be assigned per Group. An exception to this would be in the case that the group s representative is licensed in one province and the Group has participating employees in other provinces outside his/her jurisdiction. In this case another representative can be appointed to handle clients outside jurisdiction. CI would request a letter from the principal representative indicating the circumstances and providing the names of other representatives assigned to the plan for other provinces. 2) Is there any cost associated with setting up or administration of a Group Plan at CI? No additional fees are associated with the administration of Group Plans at CI Investments. 3) What is the minimum allowable number of participants to a Group Plan at CI? We do not currently enforce a minimal level of participation in any of our Group Plans. 4) What types of funds are permitted in the different plan types? Group RSP, TFSA and Non-Registered plan members may hold either Mutual and/or Segregated funds. Deferred Profit Sharing and Group RESP plans may hold Mutual funds only. 5) What options are available for making Group contributions? Group Contributions can be made either directly (via cheque), via Telephone Funds Transfer Service (EFT) or via Automated Remission. Contributions cannot be submitted by wire order within DPSPs. 6) Why does CI require a signature guarantee on Group RRSP redemptions? 7) What does CI need to change a dealer representative on Group accounts? i) If the entire group is changing over to a new representative CI requires a Letter of Direction, from the employer on company letterhead, requesting to update all accounts to the new code. ii) If a participating employee is no longer employed with the company CI requires a Letter of Direction notifying us that the member is no longer with the company and would like their account to be changed to an individual RSP account under the new representative. 8) What is the procedure to change the name assigned to the Group? In order to change the name of an existing Group CI would require a Letter of Direction on company letterhead requesting to update the group name from the existing to the new name. The letter should be signed by the assigned group plan administrator. 9) Can a client redeem from their DPSP account? In order to redeem from a DPSP account the monies must first be vested to the client. This can be confirmed by consulting the DPSP set-up documents. The client must also be terminated from the company in order for DPSP proceeds to be redeemed. 10) If DPSP monies are vested to the client, what is needed to either redeem or transfer? We require a Group Plan Changes Form completed by the employer confirming the termination date of the client and a letter of direction signed by the client confirming how to proceed with the requested redemption or transfer. The purpose of the signature guarantee is to prevent the employee from redeeming contributions that should be safeguarded against any potential redemption restrictions imposed by the company. By having the redemption filtered through the representative s office we are assured that we do not violate any agreements between the company and the employee. 21

24 Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. CI Investments and the CI Investments logo design are registered trademarks of CI Investments Inc. 2 Queen Street East, Twentieth Floor, Toronto, Ontario M5C 3G7 I Head Office / Toronto Calgary Montreal Vancouver Client Services English: French: _E (10/12)