Please see table below for details of the fund value as at 31st December 2012.

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THE CONTRIBUTORY PENSION SCHEME FOR JAMAICA NATIONAL BUILDING SOCIETY & SUBSIDIARY COMPANIES ANNUAL REPORT 2012 M A T T E R S I N T H I S R E P O R T : Fund Type Trustees Facts about the Pension

59 years will become eligible to join the scheme on the first day of the month following confirmation.

1 THE CONTRIBUTORY PENSION SCHEME FOR JAMAICA NATIONAL BUILDING SOCIETY & SUBSIDIARY COMPANIES ANNUAL REPORT 2012 M A T T E R S I N T H I S R E P O R T : Fund Type Trustees Facts about the Pension Scheme Asset Allocation Income & Expenses Auditor s Report Actuarial Report Fund Type: Defined Contribution Scheme Eligibility & Membership: All permanent Members of staff between the ages of 18 and 59 years will become eligible to join the scheme on the first day of the month following confirmation. Normal Retirement Age: 60 yrs for both male & female Fund Administrator &Investment Manager: JN Fund Managers Limited 17 Belmont Road Kingston 5 Tel. No. (876) Auditors: KPMG 6 Duke Street, Kingston Tel. No. (876) Actuaries: Eckler 6A Oxford Road Tel. No. (876) Who are Trustees? Trustee serve to safe guard the assets of a pension scheme; they ensure proper management of the Scheme. Know Your Trustees: Chairperson: Hon. Oliver Clarke Sponsor Trustees: Mrs. Jennifer Martin c/o Newlin Street, Ocho Rios, Tel No. (876) Mr. Carlton Barclay Mr. Wendell Smith Member Trustees: Mrs. Joy Brady Miss Tasha Manley Pensioner Trustees: Mr. Llewelyn Bailey Secretary: Mr. Byron Ward Facts about your Pension Scheme as at December 31, 2012 There were 1,039 members in your Pension Scheme The market value of your fund was $3.60 billion Your monthly Basic Contribution is 5% of your pensionable salary. You may make an Additional Voluntary Contribution of up to 5% of your pensionable salary. Your employer matches your 5% required contribution and up to 5% of your Additional Voluntary Contribution, once you have completed 11 years of pensionable service.. Income which is paid as contributions into the Plan is not taxed. Reminder Kindly advise your Human Resource Department regarding any changes such as member beneficiary updates, marital status, name change etc. Please note that these forms can be obtained electronically on the Pensions Website:

2 P A G E 2 Asset Allocation The Trustees have established the following asset allocation parameters for those asset classes being managed by the Investment Manager. The fund value as at December 31, 2012 stood at $3.60 billion an increase of $ million or 6.5% when compared to the value of $3.38 billion for the scheme year ended December 31, The Fund s performance fell below targeted objective ( 3% above the inflation rate i.e 8%), by 6.38%. The return for 2012 was 4.62%. Please see table below for details of the fund value as at 31st December Asset Allocation Recommended Portfolio Mix % Fund Value As at 31/12/11 $ 000 Fund Value As at 31/12/12 $ 000 Actual Portfolio Mix % Quoted Ordinary Shares ,791 70, Non-Quoted Ordinary Shares Real Estate , , Fixed Income Repurchase Agreements Other GOJ Securities ,988 2,044,820 Income and Expenses for ,899 2,260,318 Cash Equivalents 5 2, Mutual Funds ,968 46, Receivables 378, , Payables 24,126 9, Fund Value 3,380,701 3,601, Income: Contributions - $ million Investment Income - $ million Other Income - $ million Total Income $ million Expenses: Benefits paid to members - $ million Audit fees million Other Expenses - $ million Total Expenses - $ million

3 P A G E 3 Auditor s Report The audit exercise for the Scheme s Year ended December 31, 2012 was undertaken by KPMG. Auditor s Opinion The statement below depicts the opinion of the auditors regarding the 2012 financial statements. In our opinion, the financial statements give a true and fair view of the Scheme s net assets available for benefits as at December 31, 2012, and of the increase in net assets available for benefits and cash flows for the year then ended, are in accordance with International Financial Planning Standards. : Governance Activities In keeping with the Pensions (Superannuation Funds & Retirement Schemes) Act, Governance Regulations, all contributions deducted from members salaries have been paid over to the Investment Manager within the specified time, i.e. within fourteen days (14) of the end of the month in which the deduction was made. The Plan s Policies and Procedures are being reviewed. During the year ended 2012, five (5) Trustees meetings were held.

4 P A G E 4 Actuarial Report Actuarial Valuation due as at December 31, 2009 was carried out by the Actuaries and a surplus of $287.41million was reported. The solvency level of the Fund (ratio of the assets to the liabilities) was %. In other words, the assets of the Plan exceeded the liabilities by 12.3% Please see breakdown of the results below: Liabilities - $2, M Market Value of Assets - $2, M Contingency Reserve - $ M Surplus - $ M Actuarial review as at December 31, 2011 has not been finalized. The main purposes to the Valuation are to determine the solvency of the fund as at December 31, 2009 and to make recommendations based on the results. The Valuation is based on the membership data and financial information supplied by the Administrator and the Scheme Rules in effect as at the Valuation Date. We believe that the assumptions and methods used in the Valuation are reasonable and appropriate for the purposes for which they have been used. In our opinion, all methods, assumptions and calculations are in accordance with applicable Actuarial Standards of Practice and the procedures followed and presentation of results are in conformity with Generally Actuarial Principles and Practices.

5 P A G E 5 General Comments The credited interest rate of 4.62% for 2012 has been approved by the board of trustees and has been applied to each member s account. This is in accordance with the Trust Deed & Rules of the Scheme. We have in place a Complaints Register and the steps which are to be followed are clearly stated in the Member s Handbook. There were no benefit adjustments during Distribution of Member Statements for the year 2012 is being undertaken. During the year, we have conducted several meetings with the members of the Scheme to update them on changes, if any, affecting the pension industry, explained the Rules of the Plan and apprised them of the performance of the assets in the Plan. We will continue to hold these meetings on an ongoing basis.

Member s Handbook. 1 ScotiaBRIDGE Member s Handbook

Member s Handbook. 1 ScotiaBRIDGE Member s Handbook Member s Handbook * 1 ScotiaBRIDGE Member s Handbook About this Handbook This handbook is designed to provide a general understanding of the product features and Plan Member options under the ScotiaBRIDGE