Your FutureStep Group RRSP Enrolment Guide

Transcription

1 Your FutureStep Group RRSP Enrolment Guide

2 About this Enrolment Guide This guide provides information you will need to enroll in your company s Group RRSP. Your employer is investing in your future by providing an easy to understand Group RRSP. Fast path! You have two enrolment options: 1. If you want to enroll in minutes and you don t plan on spending a lot of time monitoring your investments, determine the Retirement Date Fund closest to the year you plan to retire from the table below and write it in the box at the top of page four of the application on the next page. Tear out the application, complete the required sections, and send it to Manulife Financial using the instructions on the application. If you plan to retire during the period The Retirement Date Fund for you is Manulife Retirement Date Manulife Retirement Date Manulife Retirement Date Manulife Retirement Date Manulife Retirement Date Manulife Retirement Date Manulife Retirement Date or later Manulife Retirement Date Fund code If you are already retired or approaching retirement... The Retirement Date Fund for you is Fund code Manulife Retirement Income Fund If you would like to take more time to determine your investor style and select your investments, a colour coded, step by step process starts on page 6 that will help you navigate through this guide. Each step includes a To Do box showing what you must complete to enroll. The boxes separate what you must do from what you should simply keep in mind. 2

3 Please print clearly in the blank boxes. Important: If this application is for a spousal RSP, the spouse (i.e. Spousal Member) must complete this form. Check one: This RSP is for you as a Member (i.e. employee) This RSP is for you as a Spousal Member Application Form Group Retirement Savings Plan (RSP) Send your completed form to: Manulife Financial Attn: GRS Client Services PO BOX 396 STN WATERLOO WATERLOO, ON N2J 4A9 If you aren t sure how to complete any of these boxes, your Plan Administrator can help you or you can call Customer Service at Tell us about the plan Plan Sponsor/Employer Group annuity policy number Member number Division Member Class Not Applicable Not Applicable Date you are joining the plan (mmm/dd/yyyy) Date you started with your employer (mmm/dd/yyyy) Your personal information Gender First name Middle initial Last name Mailing address (number, street and apartment number) City Province Country Postal Code Date of birth (mmm/dd/yyyy) Social Insurance Number (SIN) Marital status Your preferred language Telephone number* Ext.* address* *These fields are optional. Complete this section only if the application is for you as a Spousal Member. Otherwise, leave this section blank. Tell us about the contributor (the member) First name Middle initial Last name Date of birth (mmm/dd/yyyy) Social Insurance Number (SIN) A revocable beneficiary can be changed at anytime. An irrevocable beneficiary can only be changed with written consent from that beneficiary. You will also need your beneficiary s consent to withdraw or transfer money from your account. A parent or guardian cannot provide consent on behalf of a minor who has been named as irrevocable beneficiary. If you want to name more than three beneficiaries, attach a separate page with the names and the percentage of proceeds for each beneficiary. If you have locked-in money in your RSP and you have a spouse on the date of your death, the law may require any death benefit be paid to your spouse, regardless of other beneficiaries you ve named. If you die while your beneficiary is still a minor, the trustee you name on this form will act on the child s behalf. The Manufacturers Life Insurance Company Name your beneficiary (or beneficiaries) If you do not name a beneficiary, proceeds will be paid to your estate. Check here if you have attached a separate page listing your beneficiaries. Please sign and date. Name Relationship Percentage of proceeds The above beneficiary designations are considered revocable unless you write irrevocable in the chart above. For Quebec only: The designation of a spouse as a beneficiary is deemed to be irrevocable unless specified here: Trustee for a minor beneficiary named above (not applicable in Quebec) Any payment to a beneficiary who is a minor will be paid in trust to the trustee named below. In Quebec, the proceeds will be paid in trust to the minor child's tutor. Trustee name R etain a copy for your files. Page 1 of 3 Relationship Revocable 3

4 Your investment instructions If you do not complete this section, or the total does not add up to 100%, your contributions will be invested in the Retirement Date Fund You can go online at anytime to change the funds you have chosen. The minimum amount you can invest in a fund is 5%. Percentages must be whole numbers. Note: The investment performance of a market-based fund is not guaranteed. Follow the instructions on page 9 to see what type of investor you are. Then fill in one of the sections below according to your type. Complete if Retirement Date Fund is your investment strategy 1. Follow the instructions starting on page 11 of your Fund Selection Guide to choose your Retirement Date Fund. 2. Write in the 4-digit fund code for your Retirement Date Fund below. Fund code Fund name Percentage of your contribution Manulife Retirement Date Fund 100% Complete if Asset Allocation Fund is your investment strategy 1. Follow the instructions starting on page 12 of your Fund Selection Guide to determine your investor style and choose your Asset Allocation Fund. 2. Write in the 4-digit fund code for your Asset Allocation Fund below. Fund code Fund name Percentage of your contribution Asset Allocation Fund 100% Complete if Build your own portfolio is your investment strategy 1. Follow the instructions starting on page 12 of your Fund Selection Guide to determine your investor style and choose your funds. 2. Specify the percentage of contributions you want to invest in each fund. Your percentages must add to 100%. Fund code Fund name % Your percentages must add up to 100%. 100% Please sign here I confirm that I have read, understood and agreed to the information in this form, including the Enrolment and Registration Authorization section below, and the Personal Information Statement. I also confirm that information in this form is correct to the best of my knowledge. Enrolment and Registration Authorization I request that Manulife enroll me as a Member in this plan and register me in a Retirement Savings Plan (RSP) under the Income Tax Act (Canada). If I live in Quebec, I request that I am registered in a RSP under the Taxation Act (Quebec). I understand that any withdrawals from my RSP will be taxed according to the rules outlined in the Income Tax Act (Canada) or the Taxation Act (Quebec), as applicable. I understand that withdrawals may be restricted under the terms of the plan. I authorize the Plan Sponsor (my employer or my spouse's employer if I am a Spousal Member) to remit contributions and to deliver directions to Manulife on my behalf. I request that Manulife accept a transfer of locked-in funds into the plan, if applicable, according to the terms described in the Lock-in Retirement Account (LIRA) or locking-in addendum. I understand that with respect to such funds, these terms will override the group RSP contract. Your signature (as the annuitant) Date signed (mmm/dd/yyyy) For Manulife use Manulife customer number Date (mmm/dd/yyyy) The Manufacturers Life Insurance Company 4 Retain a copy for your files. Page 2 of 3

5 The personal information statement Your consent to use your personal information By signing this Application form, you give your consent for us to obtain, verify, and share your personal information, as set out below, in administering your account, now and in the future, with the plan sponsor, the plan administrator, the plan advisor and its employees and other parties in the performance of their duties for us. You authorize us to use your Social Insurance Number (SIN) if applicable, to uniquely identify you during the administration of your account. How we will maintain and use your personal information You agree that we may use the personal information that we collect to: comply with legal and regulatory requirements, confirm your identity and the accuracy of the information you ve provided, conduct searches to locate you and update your member information, administer this plan while you actively work for your employer, and after you no longer work with your employer, administer any other products and service that we provide to you, and determine your eligibility for, and provide you with details of, other select financial products or services that may be of interest to you that are offered by us, our affiliates or other select financial product providers. Who may access your personal information The following individuals may have access to your personal information: our employees and representatives who require this information to do their jobs, the plan advisor, including its employees, appointed by your Plan Sponsor to provide ongoing benefit counselling or plan administrative services, people to whom you have granted access, people who are legally authorized to view your personal information, and service providers who require this information to do their jobs. This may include data processing, programming, printing, mailing, distribution, research and marketing or administration and investigation services. Asking us not to use your personal information You may withdraw your consent for us to use your SIN for non-tax administration purposes. You may also withdraw your consent for us to use your personal information to provide you with other product or service offerings, except those that are mailed with your statements. If you wish to withdraw your consent for us to collect, use, retain or share your personal information, you may contact us by phoning our customer service centre at or by writing to the Privacy Officer at the address below. How long we can keep your personal information You authorize us to keep your personal information for the longer of: the time period required by law and by guidelines set for the financial services industry, and the time period required to administer the products and services we provide. The information we collect with your consent will be protected and maintained in your Manulife plan member file. The personal information that we must have You may not withdraw your consent for us to collect, use, retain or share personal information that we need to issue or administer your account unless federal or provincial laws give you this right. If you do so, we may no longer be able to properly administer your account and this is what could happen: benefits will not be payable as provided under the plan, we may treat your withdrawal of consent as a request to terminate your contract, and your rights, and the rights of your beneficiary or estate under the plan may be limited. Recording your customer service calls to us We may record your customer service calls to us for the following reasons: quality service controls, information verification, and training. If you do not wish to have your calls recorded, you must communicate with us in writing to Group Savings and Retirement Solutions, 25 Water Street South, Kitchener, ON N2G 4Y5, and request that any response by us also be in writing. Questions, updates and requests for additional information If you have a request, a concern, or wish to receive more information about our privacy policies, or if you wish to review your personal information in our files or correct any inaccuracies, you may contact us by sending a written request to: Privacy Officer, Group Savings and Retirement Solutions, 25 Water Street South, Kitchener ON N2G 4Y5. The Manufacturers Life Insurance Company Retain a copy for your files. Page 3 of 3 5

6 Step one Here s what you need to do... Step one: Step two: Learn about the advantages of your group savings program Enroll in your Group RRSP Step three: Decide how to invest Step four: Step five: Transfer RRSP assets into this Group RRSP Check to see you ve completed each step Let s Get Started... 6

7 Learn about the advantages of your Group RRSP Step one To Do! Learn about the advantages of your Group RRSP. Advantages of your Group RRSP To help ensure you are prepared for life after work, your plan sponsor (employer) has taken the first step toward helping you save for your retirement by offering you a Group RRSP. Now, it s up to you to take the next step and join your program. Your Group RRSP provides many benefits that may not be available to you through an individual savings or investment account, such as: A convenient way to save Making regular contributions directly from your pay before money ever reaches your bank account makes it easier to commit to saving consistently. Even if the amount you contribute each time is small and is an amount you re not likely to miss it can grow very nicely over the long term. Immediate tax reduction Regular payroll contributions to Registered Retirement Savings Plans are taken from your gross pay before payroll taxes are calculated. This immediately reduces the amount of your income that s taxed. You ll only pay income tax on the remaining portion of your salary, so you ll enjoy tax savings on each and every pay cheque throughout the year. Competitive Fees this Group RRSP is a low cost alternative for you and paying lower fees now means more of your money goes towards your retirement income. Leading fund managers With this Group RRSP, you have access to some of the world s leading fund managers and their funds. Many of these funds aren t available to individual investors. Secure website and telephone account access Manage your account and investments using the service option you prefer. Access your account via the secure member website and/or the Customer Service Centre. Easy-to-read statements Manulife s annual member statement provides updates on your savings and includes tips and reminders to help you build an effective retirement savings plan. Consolidate your savings You can transfer RRSP accounts you hold at other institutions to this Group RRSP, allowing you to enjoy the above benefits for all of your retirement savings. Additional information can be found in Your Member Booklet at the back of this guide. 7

8 Step two Enroll in your Group RRSP To Do! Follow the instructions to enroll in your Group RRSP. Included with this Guide is an application form on page 3 for you to tear out and complete. Complete the following sections on the Application form: Tell us about your plan Your personal information Name your beneficiary (or beneficiaries) Once you have completed these sections on the Application form, go to the next step in this Guide. 8

9 Step three Decide how to invest To Do! Follow the instructions on the following pages to determine your investor style. Review the Group Investment Report and Rate of Return Overview included with this Guide for detailed information about the funds available for you to invest in. Specify the percentage of contributions you want to invest in each fund in the Your Investment Instructions section on the Application form. Note - If you consult a Financial Planner for advice regarding funds for this Group RRSP, provide him or her with this Guide. If you do not generally seek the advice of a financial planner before making investment decisions, please continue reading. 9

10 Step three Determine what type of investor you are To Do! Answer the questions below to determine the type of investments that best suit you. 1. How interested are you in selecting investment funds for your retirement savings? I am not interested. A B C I have some interest. I am very interested. 2. How likely are you to monitor and rebalance your investments on an annual basis? I don t want to review my investments. I review my investments annually. I check my investments on a regular basis (at least quarterly). 3. How would you rate your investment knowledge? I have little to no knowledge about investing. I understand the basics of investing. I am confident in my investment knowledge. If you chose two or more responses from... The best investment strategy for you is... Look for this symbol throughout this Guide Turn to page... Column A...to select a Retirement Date Fund. A Retirement Date Fund offers a well-balanced investment portfolio inside a single fund. Each fund is identified by its year of maturity, and as the maturity date approaches the fund gradually rebalances to become more conservative. 11 Column B...to select an Asset Allocation Fund. Asset Allocation Funds offer a well-balanced portfolio inside a single fund, and a professional fund manager monitors and rebalances these portfolios for you. There is an Asset Allocation Fund that is suitable for you whether you re a conservative investor or an aggressive one. 12 Column C...to build your own portfolio. Choose from the individual funds available through your program to build your own portfolio

11 Step three How to choose a Retirement Date Fund To Do! Decide at what age you want to retire: Calculate the year you plan to retire: Use the table below to select the Retirement Date Fund that is best suited to you. Specify the 4-digit fund code of the Retirement Date Fund you select in the Your investment instructions section on the Application form (page 4). If you plan to retire during the period The Retirement Date fund for you is Fund code Manulife Retirement Date 2015 Fund Manulife Retirement Date 2020 Fund Manulife Retirement Date 2025 Fund Manulife Retirement Date 2030 Fund Manulife Retirement Date 2035 Fund Manulife Retirement Date 2040 Fund Manulife Retirement Date 2045 Fund or later Manulife Retirement Date 2050 Fund 2050 If you are already retired or approaching retirement The Retirement Date fund for you is Fund code Manulife Retirement Income Fund 2000 You will also find a detailed description of each Retirement Date Fund in the Group Investment Report included with this Guide. 11

12 Step three To Do! If you are choosing......an Asset Allocation Fund Complete the Investor Style questionnaire starting on page 13. Refer to page 16 for help selecting the Asset Allocation Fund that is right for you. Specify the 4-digit fund code of the Asset Allocation Fund you select in the Your investment instructions section on the Application form (page 4)....to build your own portfolio Complete the Investor Style questionnaire starting on page 13. Refer to page 17 for help selecting the investments that are right for you. Specify the percentage of contributions you want to invest in each fund in the Your investment instructions section on the Application form. 12

13 Step three Determine your investor style To Do! Circle one answer for each question. Write your score indicated in brackets at the end of each answer in the box to the right of each question. Tally the scores you record for each question to get your total. Your age, the number of years remaining until you retire, and how you feel about risk will determine your investor style. Once you know your investor style, you can choose funds for your retirement savings. Your score 1. What is your investment horizon when will you need this money? a. Within 3 years (0) b. 3-5 years (3) c years (5) d years (8) years (10) 2. What is your most important investment goal? a. To preserve your money (0) b. To see modest growth in your account (4) c. To see more significant growth in your account (7) d. To earn the highest return possible (10) 3. Please indicate which statement reflects your overall view of managing risk: a. I don t like risk and I am not prepared to expose my investments to any market fluctuations in order to earn higher long-term returns. (0) b. I am prepared to experience modest short-term market fluctuations in order to generate growth of capital. (2) c. I am prepared to experience average short-term market fluctuations in order to achieve a higher long-term return. (4) d. I want to maximize my long-term returns and am comfortable with significant short-term market fluctuations. (6) 13

14 Step three 4. If you owned an investment that declined by 20% over a short period, what would you do? a. Sell all of the remaining investment (0) b. Sell a portion of the remaining investment (2) c. Hold the investment and sell nothing (4) d. Buy more of the investment (6) 5. If you could increase your chances of improving your investment returns by taking more risk, would you: a. Be unlikely to take more risk (0) b. Be willing to take a little more risk with some of your portfolio (2) c. Be willing to take a lot more risk with some of your portfolio (4) d. Be willing to take a lot more risk with your entire portfolio (6) 6. The following picture shows three model portfolios and the highest and lowest returns each is likely to earn in any given year. Which portfolio would you be most likely to hold? Return (%) a. Portfolio A (0) b. Portfolio B (3) c. Portfolio C (6) Portfolio Portfolio B -12 Portfolio C 7. After several years of following your retirement plan, you review your progress and determine you are behind schedule and will need to modify your strategy in order to retire at your preferred age. What would you do? a. Keep the same investments you currently hold, but increase your contributions as much as possible. (0) b. Slightly increase your exposure to riskier investments and slightly increase your contributions. (3) c. Move your entire portfolio to riskier investments, hoping to achieve the highest long-term return. (6) 14

15 Step three 8. Which statement best applies to your approach regarding achieving your retirement income goals on time? a. I must achieve my financial goal by my target retirement date. (0) b. I would like to come close to achieving my financial goal by my target retirement date. (2) c. If I have not reached my financial goal by my target retirement date, I have the flexibility to delay my target retirement date. (4) d. I re-evaluate my financial goals and target retirement date regularly and have the flexibility to adjust them to align with the performance of my investments. (6) Your total score: Match your score to an investor style below. If your score is between Your investor style is About your investor style 0 7 Conservative Protecting your money is your chief concern. You may be approaching retirement, or simply prefer to take a cautious approach to investing and preserve your money Moderate You want your money to grow, but are more concerned about protecting it. Retirement may be in your near future or you may prefer to be cautious with your investments and preserve your money Balanced You want a balance between growth and security although you will accept some risk to have the potential for higher returns over time Growth You want to increase your money and are somewhat comfortable riding the ups and downs of the market in exchange for the possibility of higher returns over the long term. You may have time on your side until you retire Aggressive You want to maximize the long-term growth of your retirement savings. You understand the ups and downs of the markets and are comfortable taking more risk to maximize potential returns. You have plenty of time to wait out market cycles until you retire. My investor style is: 15

16 Step three How to choose an Asset Allocation Fund To Do! Specify the 4-digit fund code of the Asset Allocation Fund you select in the Your investment instructions section on the Application form (page 4). Your investor style (from page 15): Choose the Asset Allocation (AA) Fund that matches your investor style. If your investor style is... The Asset Allocation fund for you is Fund code Conservative Manulife Conservative Asset Allocation Fund 2001 Moderate Manulife Moderate Asset Allocation Fund 2002 Balanced Manulife Balanced Asset Allocation Fund 2003 Growth Manulife Growth Asset Allocation Fund 2004 Aggressive Manulife Aggressive Asset Allocation Fund 2005 Note Although these funds are rebalanced periodically to ensure they meet the objectives for each investor style, we recommend you complete the Investor Style Questionnaire at least annually to ensure your style has not changed. 16

17 Step three How to build your own portfolio To Do! Choose the funds you want to use to build your own portfolio.. Specify the percentage of contributions you want to invest in each fund in the Your investment instructions section on the Application form (page 4). Your investor style (from page 15): Find the sample portfolio that matches your investor style. You can use the sample portfolios as a guideline to help you choose individual funds. To ensure you create a welldiversified portfolio, select at least one fund from each asset class. Each asset class in the sample portfolio is represented by a different colour. When choosing funds, look for pages printed in the same colour in the Group Investment Report included with this Guide. If your investor style is... A recommended asset mix for you is... Conservative International Equity and Global Equity 5% U.S. Equity 5% Canadian Money Market and GIAs 12% Canadian Large Cap Equity 10% Fixed Income 68% Moderate U.S. Equity 7% Canadian Small Cap Equity 5% International Equity and Global Equity 8% Canadian Money Market and GIAs 7% Canadian Large Cap Equity 20% Fixed Income 53% 17

18 Step three If your investor style is... A recommended asset mix for you is... Balanced International Equity and Global Equity 13% U.S. Equity 11% Canadian Money Market and GIAs 5% Canadian Small Cap Equity 6% Canadian Large Cap Equity 30% Fixed Income 35% Growth International Equity and Global Equity 17% Fixed Income 20% U.S. Equity 15% Canadian Small Cap Equity 9% Canadian Large Cap Equity 39% Aggressive International Equity and Global Equity 21% U.S. Equity 19% Canadian Large Cap Equity 44% Canadian Small Cap Equity 16% 18

19 Step three Notes: Balanced funds are not included in the sample portfolios. These funds are already well-diversified and generally invest 40% in fixed income investments and 60% in equity investments. Keep this in mind when you are using the guidelines shown. You should consider how your savings outside of this plan are invested. Your other investments may already fulfill some parts of the sample portfolios in the above table. The guidelines provided are only suggestions. You can change your investment options or complete an inter-fund transfer at any time by: Accessing the secure Member Internet Dialing the Interactive Voice Response , 24 hours a day, seven days a week, or Contacting a Client Service Representatives available at the same number from 8AM to 8PM ET, Monday to Friday or by at gromail@manulife.com. Where to find detailed fund information You will find a summary of the funds available through your group program in the Group Investment Report included with this Guide. 19

20 Step four Consider transferring RRSP assets you already have to this Group RRSP To Do! Decide if you would like to transfer assets into this Group RRSP. Locate your RRSP account number(s). Contact the financial institution where your RRSP is if you do not know the account number (you will need this number to complete the transfer). Complete the transfer form on the next page. Contact Manulife Financial at for help and additional transfer forms if necessary Here are a couple of important reasons why you may want to transfer existing RRSP assets you may already have to this Group RRSP: Low Fees When fees are low, savings grow faster. The investment management fees (IMFs) in the Group RRSP are typically lower than the Management Expense Ratio (MER) fees in RRSPs charged by individual mutual funds or at a bank. Member Reward Program Once your Group RRSP account is valued at over $25,000, you can take advantage of our Member Reward Program. This lets you enjoy even lower investment management fees (IMFs), and higher guaranteed interest account (GIA) rates. If you transfer funds from your RRSPs at other institutions to this Group RRSP, you will be able to take advantage of the Member Reward Program even faster! If you have existing RRSP assets you would like to transfer, please complete the transfer form on the next page. If you need assistance, please call a Financial Education Specialist from Manulife at

21 Please print clearly in the blank boxes. Do not use this form for transfers due to death or marriage breakdown. Transfer Authorization for Registered Investments (RSP, TFSA, LIRA, LRSP, RPP) Complete Sections below and forward to the institution that will transfer your funds to Manulife. Completing this transfer will NOT result in reporting of income or issuance of a tax receipt as your savings remain in registered funds. This form is also available online at Your personal information Last name First name Middle Initial Mailing address (number, street & apartment number) City Province Postal Code S.I.N. Telephone number* Ext.* address (if applicable)* *These fields are optional Your direction to relinquishing institution Relinquishing institution name FROM: Address City Province Postal Code Account/policy number Group plan number Member certificate number OR Transfer: (check one box only) * Please refer to statement in bold in Client authorization section below All in cash* Partial* - as listed below or on attached list All Investment amount Symbol and/or certificate number or policy number Delay delivery until (dd/mmm/yyyy) Dollars Investment description All Investment amount Symbol and/or certificate number or policy number Delay delivery until (dd/mmm/yyyy) Dollars Investment description All Investment amount Symbol and/or certificate number or policy number Delay delivery until (dd/mmm/yyyy) Dollars Investment description Manulife (The institution receiving your funds) If your plan offers Group IncomePlus note this option is intended to provide you with guaranteed retirement income. Before you select Group IncomePlus, review The Bold Print for more information. If you transfer funds to your existing Group IncomePlus, please remember that a contribution exceeding 20% of your Guaranteed Benefit Base will reset your Minimum Five (5) Year Holding period whether you make one large contribution or a series of smaller transfers and contributions over a 365 day period. Receiving institutionmanulife Financial, Group Retirement Solutions, KC6 PO BOX 396 STN WATERLOO, WATERLOO ON N2J 4A9 Group policy number Member number Customer number Investment instruction for this deposit. Fund code names and details appear online at or in the Group Investment Report. Fund code Fund name $ % The Manufacturers Life Insurance Company Retain a copy for your files. Page 1 of 2 100% Must equal 100% GP0807E Wat (07/2010) 21

22 Your authorization I hereby request the transfer of my account and its investments as described above. * I have requested a transfer in cash, I authorize the liquidation of all or part of my investments and agree to pay any applicable fees, charges or adjustments. If I have selected Group IncomePlus, I acknowledge that I have read and understood The Bold Print and by signing below, I agree to the terms, conditions and fees applicable to that option Signature of Account Holder Date (dd/mmm/yyyy) Irrevocable Beneficiary: I consent to the transfer of the account. Signature of irrevocable beneficiary (if applicable) Date (dd/mmm/yyyy) For use by relinquishing institution only Account type: RSP TFSA LIRA LRSP RPP Spousal Plan? No Yes - if "Yes," Contributor's information: Last name First name Initial S.I.N Locked-In funds Yes, confirmation attached No Governing legislation Contact name Title Telephone number Fax number Authorized signature Date (dd/mmm/yyyy) The Manufacturers Life Insurance Company 22 Retain a copy for your files. Page 2 of 2 GP0807E Wat (07/2010)

23 Step five Check to see you ve completed each step To Do! Refer to the checklist below. Return the completed form(s) included with this Guide to Manulife Financial using the instructions on the forms. Make sure you ve completed the Application form. Have you: Completed the Your personal information section? Named your beneficiary (or beneficiaries)? Selected your funds? Signed and dated the form? 23

24 You ve successfully enrolled What s next? You ll receive a letter from Manulife welcoming you to the Group RRSP. This letter will provide your Customer number and explain how you can get your Personal Identification Number (PIN). With your Customer number and PIN, you can access the online tools Manulife offers to help you track and manage your savings. How can I track the progress of my account? Member statements You ll receive an annual member statement updating you about your account activity and growth. Internet You can access your account information 24 hours a day, 7 days a week at Phone You can call to speak with a Customer Service Representative from Manulife. Representatives are available Monday to Friday from 8 a.m. to 8 p.m. ET. Take the time to review Your Member Booklet starting on the next page 24

25 Your Member Booklet Your plan sponsor (employer) has established this Group RRSP with Manulife Financial to assist you in saving money for retirement. What are my responsibilities as a plan member? Any tax-deferred group savings plan that lets you choose between two or more investment options is known as a Capital Accumulation Plan (CAP). As a CAP member, you have these responsibilities: Deciding how much to contribute. Making use of the tools and information available to you through your program. Selecting your investments. Reviewing your investments regularly to ensure they continue to meet your retirement savings and investment goals. You should also consider obtaining investment advice from an appropriately qualified independent advisor. Manulife s Customer Service Representatives and Financial Education Specialists are available at to help you understand the many planning tools and services you can use. Customer Service Representatives are available Monday to Friday, from 8 a.m. to 8 p.m. ET. Financial Education Specialists are available Monday to Friday, from 9 a.m. to 5 p.m. ET. 25

26 How your Group RRSP works: This is a registered retirement savings plan (RRSP), sponsored by your plan sponsor, for the purpose of assisting you in saving money for your retirement. An account is set up in your name at Manulife Financial. All contributions made by you and your plan sponsor are tax deductible and any investment earnings grow tax-deferred. You choose how contributions are invested from the choices available under the plan. The amount available for your retirement depends on the total contributions made and the investment returns they earn. You will receive an annual statement and access to information and tools to help you manage your account. Your plan has been established based on certain participation assumptions provided to Manulife Financial by your plan sponsor. If these assumptions are not met, the plan may be terminated and your assets will be transferred to another group RRSP sponsored by Manulife. Your personal information: Your plan sponsor and Manulife Financial require personal information to administer your account. The plan advisor as designated by your plan sponsor will have access to your personal information to assist you in managing your account. By enrolling in this Group RRSP, you will have authorized access to this information. Details are available on the back of your application and in the Manulife Financial privacy policy. 26

27 When can I join? Your plan sponsor will tell you when you are eligible to join. Enrolment To become a member, you must enroll. If you choose to contribute on behalf of your spouse or common-law partner, your spouse or common-law partner must also complete and sign an enrolment form indicating you as the contributor. Once Manulife Financial receives your completed and signed application, contributions can begin. Default investment option If you do not select an investment option, all your contributions will be directed to a Retirement Date Fund. If Manulife does not have your date of birth, and you have not selected an investment option, all contributions will be deposited to the Moderate Asset Allocation Fund. You can change your investment options or complete an inter-fund transfer at any time. A fee may apply to complete an inter-fund transfer, refer to the What fees may apply to me? section. How much will be contributed to my account? Member Required Contributions Your plan sponsor will tell you if you have to contribute, and if so, how much. Plan Sponsor Contributions Your plan sponsor will tell you if they are contributing on your behalf, and if so, how much. Member Voluntary Contributions You may always make voluntary contributions. 27

28 Spousal Contributions You can make contributions on behalf of your spouse or common-law partner. These contributions are included in your maximum contribution limit the same as contributions made to your own RRSP. You receive the tax deduction for the contributions made to a spousal RRSP, but the assets belong to your spouse or common-law partner. Only they can make decisions including withdrawals, investments and designating of a beneficiary. Earnings If contributions are based on earnings, your plan sponsor can tell you the definition of earnings your contributions are based. Contribution Limits and Tax Contributions made to this Group RRSP or any other registered plan by you or on your behalf may not exceed the overall tax assisted retirement savings maximum allowed under the Income Tax Act (Canada). In general, this amount will be a maximum of 18% of your employment income for the year, subject to a maximum dollar limit. You will receive a Notice of Assessment from Canada Revenue Agency (CRA) following the filing of your income tax return. This Notice of Assessment will notify you of your RRSP maximum contribution limit for the current year. If you do not contribute the maximum limit allowable in a given year you may carry forward the unused limit amount. This means that you can increase your allowable contribution for the next year or future years. You can also carry forward the deduction to a future year when your taxable income may be higher. Over-contributions It is your responsibility to ensure you do not make contributions in excess of the maximum amounts. If you do over-contribute, Canada Revenue Agency (CRA) will charge a penalty tax on the amount contributed in excess of your maximum RRSP contribution room for the year. If you do over-contribute unintentionally, it is wise to remove the over-contribution. Failure to remove over-contributions will result in you paying tax on those amounts when paid out as a benefit, without having received a deduction for them when contributed. In effect, double taxation. Also, contributions that exceed your RRSP contribution room are not tax deductible in the year in which they are made. You can call Manulife Financial at for the appropriate method of retrieving any over-contributions made to the plan. 28

29 Can I make withdrawals from my account while I am employed? If permitted, you may withdraw any contributions at any time provided they are not transferred in amounts from a registered plan that is subject to locking-in provisions. The amount withdrawn may be taken in cash, transferred to another registered plan or used to participate in the Home Buyers or Lifelong Learning Plan(s). Amounts taken in cash are subject to immediate tax withholding. The amount of tax withheld will depend on the amount being withdrawn. Since cash withdrawal amounts will be included in your taxable income, you may end up paying additional tax. Keep in mind any cash withdrawals will reduce your potential retirement savings. Fees in relation to withdrawals are indicated under the What fees apply to me? section. Your plan sponsor can tell you if you are permitted to make withdrawals while employed. The withdrawal of voluntary contributions is always permitted. What happens if I terminate employment prior to my normal retirement date? The value of your account will be transferred to the Manulife Financial Personal Plan RRSP when you terminate employment. You will receive confirmation of this transfer. Under the Manulife Financial Personal Plan RRSP you will have the right to select any one of the following options at any time: 1. Remain in the Manulife Financial Personal Plan RRSP (registered retirement savings plan), and enjoy the same services you are already using, 2. Transfer your assets to another registered plan at a financial institution of your choice, or 3. Receive a lump sum cash payment subject to withholding tax. Written confirmation from you will be required to select options 2 or 3 above. Any amounts transferred in originating from a registered plan that is subject to locking-in provisions cannot be taken in cash. What happens when I retire? You may choose to start your retirement income at any time prior to the end of the calendar year in which you reach age 71 (or such other age required by the Income Tax Act (Canada)) for any amounts in your account not subject to any locking-in provisions. Your employment with your plan sponsor must cease prior to electing early retirement. 29

30 What are my retirement income choices? The value of your account will be transferred to the Manulife Financial Personal Plan RRSP when you retire. You will receive confirmation of this transfer. Under the Manulife Financial Personal Plan RRSP you will have the right to select any one of the following options at any time: 1. Remain in the Manulife Financial Personal Plan RRSP, and enjoy the same services you are already using, 2. Transfer your assets to a Registered Retirement Income Fund at Manulife Financial, 3. Transfer your assets to a Group Registered Income Plan at Manulife Financial, 4. Transfer your assets to another registered plan at a financial institution of your choice, 5. Receive a lump sum cash payment subject to withholding tax, or 6. Purchase an annuity. Written confirmation from you will be required for options 2 through 6 above. Any amounts transferred in originating from a registered plan that is subject to locking-in provisions cannot be taken in cash. What happens if I die before I terminate employment or retire? If you die before you terminate employment or retire, Manulife Financial will pay a death benefit to your designated beneficiary. More information regarding the amounts and options available will be provided to your beneficiary upon request. If your spouse is your designated beneficiary, your spouse can choose one of the following options: 1. Transfer your assets to another registered plan at a financial institution of their choice, or 2. Receive a lump sum cash payment subject to withholding tax. Any amounts transferred in originating from a registered plan that is subject to locking-in provisions will be subject to applicable legislation and may have different rules. Any benefit paid to any other beneficiary or estate must be paid as a lump sum cash payment, less income tax withholding. Who is your beneficiary? You may name a beneficiary to receive any death benefit payable from this Group RRSP. Your beneficiary may be changed at any time, subject to any legal restrictions. If you do not name a beneficiary, any death benefit would be payable to your estate. 30

31 What about RRSP receipts for income tax purposes? Manulife Financial will issue RRSP tax receipts twice a year. The first receipt will be issued in January covering contributions received by Manulife Financial s head office between March and December of the preceding calendar year. The second receipt will be issued in March covering the contributions received at Manulife Financial s head office in the first 60 days of the current calendar year (January February). You may choose to claim all or a portion of the amount reported on the second receipt as a deduction from your taxable income for the previous calendar year or for the year in which the contributions were made. Manulife Financial will mail receipts directly to your mailing address. What fees may apply to me? Replacement Tax Forms/Receipts A charge of $10 per request will apply to paper receipts. This fee will be deducted from your account. You may go on-line to request a replacement tax form/receipt free of charge. Inter-Fund Transfer Fee (see the How can I get help selecting investment options? section above) There is no fee for your first four requests in any calendar year if your request is made in writing. A fifth written request will incur a $25 fee and will be deducted from your account. An additional fee will apply for each successive request in a calendar year. Inter-fund transfer requests made on-line or by calling are free. Interim Financial Statement Fee A charge of $5 per requested interim financial statement will apply for each request and will be deducted from your account. In Service Withdrawal Fee (where permitted see the Can I make withdrawals from my account while I am employed on page 29) Each calendar year your first in service withdrawal is free. Any subsequent in service withdrawals will incur a charge of $25 per request. This fee will be deducted from your withdrawal amount. In service withdrawal includes cash withdrawal or transfer to another carrier. Investment Management Fees (IMFs) You pay the IMFs that apply to Market Based Funds available under this Group RRSP. You may contact your plan sponsor or go on-line to request this information. 31

32 Questions? Under the Income Tax Act (Canada), who qualifies as a spouse or common-law partner? A spouse means a person of the opposite or same sex who is married. A common-law partner means a person who lives and has a conjugal relationship with a person of the opposite or same sex to whom any of the following applies. He or she: is the natural or adoptive parent (legal or in fact) of that person's child, has been living with that person for at least 12 continuous months, or lived with that person previously for at least 12 continuous months and is living with the person again. The above includes any period that they were separated for less than ninety (90) days because of a breakdown in their relationship; Note: a different definition of spouse will apply for any transfers in from products other than an RRSP that may or may not be subject to locking-in provisions in accordance to any provincial legislation. What happens to my benefits if my marriage ends? The value of your account accumulated during the period of your marriage may be split between you and your spouse or common-law partner as part of the division of assets. You should consult a lawyer about the laws governing this situation and the options available to you and your former spouse. What happens if I m taking a leave from work? Talk to your plan sponsor, who can explain the different rules that may apply to different types of leaves. 32

33 Your Notes: 33

34 34 Your Notes:

35 You need your Customer number (found on page 1 of your statement) and Personal Identification Number (PIN) to access your account online. Call the number on the front of this card if you need a PIN. You can reach Customer Service Representatives and Financial Education Specialists using this number My Customer number is:

36 Questions? Contact Manulife ( Call to speak with a Customer Service Representative, Monday to Friday from 8 a.m. to 8 p.m. ET. If you have questions about your investment choices, you can contact a Manulife Financial Education Specialist by calling from Monday to Friday between 9 a.m. and 5 p.m. ET. Be sure to select option 4 then option 1 after you choose your language Via at gromail@manulife.com 8 Visit us at You can also reach us via TTY service at Contact Manulife ( Call Via at gromail@manulife.com 8 Visit us at You can also reach us via TTY service at Group Retirement Solutions' products and services are offered through Manulife Financial (The Manufacturers Life Insurance Company). Manulife, Manulife Financial, Manulife Financial For Your Future logo and the block design are service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates under license b