ACCESS TO RETIREMENT PLAN DESSAU (RRSP/DPSP) Group number: G000434

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1 This booklet provides a summary of your RRSP-DPSP. It describes separately the provisions applicable to the RRSP and the DPSP. Please read it carefully and save it for future reference. ACCESS TO RETIREMENT PLAN DESSAU (RRSP/DPSP) Group number: G Printed: May 2010

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3 TABLE OF CONTENTS Introduction... 1 What are my rights and responsibilities?... 2 RRSP Why should I contribute in this group RRSP?... 3 How do I join the Plan?... 3 How do I contribute?... 3 What other deposits are allowed?... 4 How much may I contribute?... 4 May I contribute on behalf of my spouse?... 5 How is my money invested?... 5 May I withdraw my contributions at any time?... 6 What happens when I retire?... 6 What happens upon my death?... 7 What happens if I terminate employment with the Company?... 7 May I assign benefits under this RRSP?... 7 DPSP What must I do to join this DPSP?... 8 Do I have to make contributions to this DPSP?... 8 How much will Dessau Inc. contribute in this DPSP?... 8 How are Dessau Inc. contributions invested... 9 What happens upon my death?... 9 May I withdraw contributions from the Plan? What happens if I terminate employment with the Company?. 10 When is retirement permitted? What will be my retirement benefit? May I assign benefits payable under this DPSP? Investment options Are there any fees payable? How to reach Desjardins Financial Security... 15

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5 I NTRODUCTION Everyone recognizes the importance of financial security at retirement. The ACCESS TO RETIREMENT PLAN DESSAU (RRSP-DPSP) has been established for the dual-purpose of recognizing your contribution to the success of Dessau Inc. and helping you to accumulate retirement savings that will constitute a foundation for your financial security during your retirement years. Since your investment will grow in a tax-sheltered environment, contributions made to this RRSP-DPSP, together with interest or capital gains, should allow you to accumulate more for your retirement than any taxable investment. Your participation to this program may also help you to achieve other financial goals such as the purchase of a first home. Your employee contributions will be allocated in the RRSP and the employer contributions will be allocated in the DPSP. Dessau Inc. has chosen Desjardins Financial Security Life Assurance Company (DFS) as service provider for the day-to-day administration of this RRSP-DPSP. If you require information on this RRSP-DPSP, you may contact Dessau Inc. or DFS (information on how to reach DFS is shown at the end of this booklet). 1

6 YOUR RIGHTS AND RESPONSIBILITIES What are my rights and my responsibilities? You are responsible for inquiring about the Access to retirement plan Dessau (RRSP/DPSP) by using the information and decisionmaking tools made available to you. You are in charge of determining the amount of your contributions to the RRSP. You are also responsible for the decision of investment direction that you will select. They will have an influence on the retirement capital which you will have accumulated at retirement. As a participant in the Access to retirement plan Dessau (RRSP- DPSP), you are responsible for choosing your investment direction. Desjardins Financial Security offers information and tools to help you to make a choice. Your employer has chosen the Lifecycle Balanced Investment Path assuming a retirement age of 65 as the default investment option for the RRSP and the DPSP. 2

7 RETIREMENT SAVINGS PLAN Why should I contribute to this group RRSP? It is to your advantage to begin contributing to an RRSP as early as possible. The Dessau Inc. group RRSP allows you to do it now. Starting early means you have more time to accumulate investment returns on a tax-sheltered basis for your retirement. A group RRSP allows you to defer taxes on the contributions you make to the plan within the limits allowed under the Income Tax Act. Furthermore, all investment earnings accumulate tax-free until the funds are withdrawn. Contributing by payroll deduction is a convenient way to save. How do I join the Plan? To join the plan, you simply complete an application form provided by Dessau Inc. The participation is compulsory. How do I contribute? You may make contributions by payroll deduction. If you wish to make a lump-sum deposit, you can make it by pre-authorized cheque or by cheque, payable to Desjardins Financial Security Life Assurance Company. If you make contributions through payroll deduction, you may qualify for an immediate tax reduction, instead of waiting until you file your tax return. 3

8 What other deposits are allowed? In addition to your regular contributions, direct transfers may be made from a registered plan with a former employer, or from another RRSP or from a locked-in retirement account (LIRA). How much may I contribute? You must contribute a minimum of 3% of your basic salary (excluding overtime pay, allocation and bonuses), in order to receive the employer's portion. Additional contributions are allowed. However, those contributions will not bring matching contributions from Dessau Inc. in the DPSP. The amount of your contributions and Dessau Inc.'s contributions may not exceed up to the lesser of 18% of your previous year s earned income and the maximum dollar amount for that year as prescribed in the Income Tax Act. These contributions are deductible from your taxable income when you file your tax return. You may refer to the Notice of Assessment or the Notice of Reassessment which Canada Revenue Agency provides you each year to confirm your maximum deductible contribution. Your allowable contribution amount will be reduced by any pension adjustment (PA) reported by Dessau Inc. to Canada Revenue Agency in respect of your participation to the DPSP portion of this RRSP-DPSP. Should you require further information on the PA, you can contact Desjardins Financial Security (see the information at the end of this booklet), or consult the Web site of the Canada Revenue Agency at the address. Contributions cannot be made beyond the end of the year in which you turn 71. Your contributions must be made within 60 days after the end of the calendar year to be tax deductible for that year. As well, contributions made after year-end may be applied to the year in which they are made. 4

9 May I contribute on behalf of my spouse? Yes, you may make "spousal" contributions in addition to your basic contributions. These contributions are included in your total contributions limit determined by the government, and you benefit from the tax deduction claimed on your income tax return. Your spouse will be entitled to any benefit described in this booklet with respect to the contributions made on his/her behalf. The contributions made in the spousal RRSP will not bring matching contributions from Dessau Inc. in the DPSP. How is my money invested? Your contributions are invested according to your investment direction. If you do not provide any, they will be deposited by default in the Lifecycle Balanced Investment Path assuming a retirement age of 65 selected by Dessau Inc. You may refer to the "My investment Fund" document for more details. You may change your investment direction at any time. We recommend you review them annually. You can also transfer from one investment option to another that is offered under this RRSP. Desjardins Financial Security does not apply fees on transfers between funds. There may be a market value adjustment applied to any transfer or surrender from the guaranteed funds prior to maturity of an investment term. Please contact Desjardins Financial Security (see information at the end of this booklet) for further details or advice. 5

10 May I withdraw my contributions at any time? Since the purpose of this RRSP-DPSP is to help you save for retirement, Dessau Inc. discourages withdrawals from the RRSP portion of the plan. Withdrawals from your additional contributions are permitted at any time. However, withdrawals from your regular account will bring the suspension of Dessau Inc.'s contributions in the DPSP for a period of one year. Each withdrawal is subject to withholding taxes and to a $25 fee, in accordance with the Desjardins Financial Security contract. A withdrawal to take advantage of the Home Buyers Plan or the Lifelong Learning Plan will not be subject to withholding taxes. Locked-in amounts transferred from a registered pension plan cannot be paid in a lump sum. These amounts may only be transferred out in accordance with governing legislation. What happens when I retire? You may purchase an annuity at retirement. Annuity payments may commence at any time before the last day of the year in which you attain age 71. The amount of annuity you will receive will depend on your age, the accumulated value of your contributions, the annuity purchase rates applicable at the time you retire and the form of annuity you select. As an alternative to an annuity, you may transfer the accumulated value of your RRSP (except for locked-in money) to a registered retirement income fund (RRIF). The locked-in money may be transferred to a locked-in retirement account (LIRA) or converted to a life income fund (LIF). 6

11 What happens upon my death? Should you die prior to electing a retirement option, your contributions and any investment earnings will be paid to your designated beneficiary in cash, subject to withholding taxes. If your spouse is the designated beneficiary, he/she also has the option to transfer the death benefit to his/her RRSP. A beneficiary should be designated to receive benefits upon your death. If a beneficiary is not designated, your estate will receive any benefits that are payable. Locked-in funds transferred from a registered pension plan may be treated differently. The transaction will be made free of charge. What happens if I terminate employment with the Company? Should your employment with Dessau Inc. be terminated, you will receive the contributions made to the plan plus any investment earnings in cash, subject to withholding taxes, or you may transfer your termination of employment benefit to another registered plan. There is no fee for this transaction. Locked-in contributions transferred from a registered pension plan cannot be paid in cash. They may only be transferred out in accordance with governing legislation. You will have 90 days from your termination date of employment to transfer your asset, in which case they will be payable in cash after this delay. The transaction will be made free of charge. May I assign benefits under this RRSP? The benefits under this RRSP cannot be assigned. 7

12 DEFERRED PROFIT SHARING PLAN What must I do to join this DPSP? If you are eligible to join the Dessau Inc.'s DPSP, you must complete the DPSP appendix in the RRSP enrolment form. Do I have to make contributions to this DPSP? You do not contribute to this DPSP. Only the Company may make contributions to the plan. How much will Dessau Inc. contribute in this Plan? Dessau Inc. will contribute an amount corresponding to 3 % of your basic salary if you contribute 3 % of your basic salary in the RRSP. Your employer must declare a Pension Adjustment (PA) on the T4 form for the contributions made on your behalf in the DPSP. Should you require further information on the PA, you can contact Desjardins Financial Security (see the information at the end of this booklet), or consult the Web site of the Canada Revenue Agency at the address. 8

13 How are the Dessau Inc.'s Contributions invested? The contributions made by the Company are invested according to your investment direction. If you do not provide any, they will be deposited by default in the Lifecycle Balanced Investment Path assuming a retirement age of 65 selected by Dessau Inc. You may refer to the "My investment Fund" document for more details. You may change your investment direction at any time. We recommend you review them annually. You can also transfer from one investment option to another that is offered under this DPSP. Desjardins Financial Security does not apply fees on transfers between funds. There may be a market value adjustment applied to any transfer or surrender from the guaranteed funds prior to maturity of an investment term. Please contact the Desjardins Financial Security (see the information at the end of this booklet) for further details or advice. What happens upon my death? A beneficiary should be designated to receive benefits from this DPSP upon your death. If you do not designate a beneficiary, your estate will receive the death benefit payable. If you die prior to retirement or termination of employment, your named beneficiary is entitled to the full value of your account less withholding taxes. If you have designated your spouse as beneficiary, he (she) will be allowed to transfer the death benefit to his (her) RRSP. The transaction will be made free of charge. 9

14 May I withdraw contributions from the Plan? Since the purpose of this DPSP is to help you save for retirement, you are not authorized to make withdrawals while you are employed by Dessau Inc. However, you can transfer funds to your RRSP in order to take advantage of the following programs: - the Home Buyer s Plan (HBP); - the Lifelong Learning Plan (LLP). All amounts allocated to you under this DPSP are fully vested according to the following: Termination of employment: vested after one (1) year of service Death: vested immediately Retirement: vested immediately What happens if I terminate employment with Dessau Inc.? Should you terminate employment with Dessau Inc., you are entitled to receive the vested value of the contributions made on your behalf in your account as per the following options: in cash less withholding taxes; as a transfer to a registered retirement plan; or as a transfer for the purchase of a deferred annuity. You will have 90 days from your termination date of employment to transfer your asset, in which case they will be payable in cash. The transaction will be made free of charge. 10

15 When is retirement permitted? Your may retire on the first day of the month coinciding with or immediately following your 65 th birthday or an earlier or later date upon which you and Dessau Inc. mutually agree, but not later than the last day of the year in which you attain age 71. What will be my retirement benefit? Upon retiring you become eligible to receive your vested benefits. You may elect one of the following options: receive your retirement benefit in cash subject to withholding taxes; purchase an annuity which will commence not later than the last day of the year you attain age 71; transfer to a registered retirement plan. If you do not make an election, Dessau Inc. will consider that you have elected to receive a cash payment. May I assign benefits payable under this DPSP? No, the benefits payable under this DPSP may not be assigned. 11

16 INVESTMENT OPTIONS Dessau Inc. offers you a range of investment options through the contracts signed with DFS under this RRSP-DPSP. The Company has considered the following criteria in the selection of investment options available to you: the degree of diversification among the investment options available; the liquidity of the investment options; and the level of risk associated with the investment options. You are responsible for using the information and decisionmaking tools made available by Dessau Inc. and Desjardins Financial Security to assist you in making investment decisions. You should consider obtaining investment advice from a qualified investment advisor to help you make appropriate investment decisions, according to your investor profile. The Desjardins Financial Security Customer Contact Centre offers you this service (see information at the end of this booklet). 12

17 Guaranteed Funds This RRSP-DPSP offers Guaranteed Funds with a 3-year term. Investing in this Guaranteed Fund ensures the safety of your contributions and the interest accrued at a fixed rate for the term selected. Desjardins Financial Security Life Assurance Company (DFS) is a member of Assuris. Assuris is a not for profit corporation, funded by the life insurance industry, that protects Canadian Policyholders against loss of benefits due to the financial failure of a member company. Details about the extent of Assuris' protection are available at or in their brochure, which can be obtained from your financial advisor, DFS or Assuris at info@assuris.ca or by calling Pooled Funds This RRSP-DPSP offers various pooled funds that are managed by professional investment firms. When investing in pooled funds, your investment is not guaranteed and there is no fixed rate of return. The value of your investment will fluctuate depending on market conditions. The expected return will vary depending on the risk profile of the fund. Lifecycle Investment Paths You may choose Lifecycle Investment Paths formed by the pooled funds selected by Dessau Inc. and the experts of AON consulting. They are based on different levels of risk tolerance and evolve depending on your number of years before retirement. You may select the path that is suitable to you after having determined your investor profile using the tools made available by Desjardins Financial Security. 13

18 Are there any fees payable? Investment fees are applied to each pooled fund. There are no fees applicable to the guaranteed funds. Other fees for the administration of the plan also apply. If you select a Lifecycle Investment Path, the investment fees applicable will be those applicable to each pooled fund in proportion to the asset allocation of the path. For details on fees payable in this RRSP/DPSP, you may consult the management contract or the Overview of Access to Retirement Plan Dessau (RRSP/DPSP) document or Desjardins Financial Security (see information at the end of this booklet). 14

19 HOW TO REACH Desjardins Financial Security Life Assurance Company OUR CUSTOMER CONTACT CENTRE By Telephone (514) By By fax OUR INTERACTIVE WEBSITE To use this site all you need is a password and a user ID. You can obtain them using the procedure provided under the site or by calling the DFS Customer Contact Centre at the telephone number shown above. 15

20 OUR "PARTICIPANT SERVICES" WEB SITE Discover the possibilities for managing your personal finances offered by our "Participant Services" Web site. The transactional aspect of our "Participant Services" Web site allows you to: View your account balance and asset mix; Modify your investment instructions for future contributions; Transfer assets between funds; Print a financial statement for a period of your choice; Print forms; Enter a change of address (postal or ); View a history of transactions carried out on the Web site. The informational aspect of our "Participant Services" Web site contains a wealth of information and tools that are designed to help you plan your retirement. In addition to current publications such as the Setting Sail for the Future newsletter and our Economic Commentary, there are also daily unit values, performance reports, and asset mixes for each of our funds, an investor profile questionnaire, a financial calculator and much more. 16