Registered Retirement Savings Plan for M c Master University AGM May 2017

Registered Retirement Savings Plan for M c Master University AGM May 2017 Teena Dawson Senior Education Advisor Tom Dimitropoulos Senior Client Relationship Manager

Today s Topics Roles and responsibilities Saving for your retirement Your plan Where should you invest? Economic and financial markets review Fund review Payment options at retirement Staying on track

Roles and responsibilities

Roles and responsibilities McMaster Perform selection and monitoring of third-party service provider Ensure that termination of either the plan or the participant is done in accordance with the requirements of the legislation and the terms of the plan Provide you with investment information and decisionmaking tools Communicate with you regularly Offer sufficiently diversified investment options to meet your needs and monitor them Ensure employees are enrolled in the plan as required in accordance with the terms of the Plan

Roles and responsibilities You Use the information and decision-making tools provided by Desjardins and M c Master Make decisions on your investment choices and contribution amounts Continually assess whether your retirement needs and goals will be achieved Provide accurate and up-to-date information to Desjardins and M c Master Consider getting investment advice from an appropriately qualified individual

How much should you save?

How much should you save? What kind of lifestyle is most like you? JOANNE SAM NICK AND KAREN MICHAEL AND SOPHIE STEPHEN Retirement income $30,000 $40,000 $50,000 $60,000 $70,000 Personal Savings Required $275,000* $375,000* $525,000** $750,000** $950,000* *Based on a single life only annuity guaranteed 10 years **Assumes a joint life 60% survivor annuity guaranteed 10 years All assume CPP/QPP and OAS benefits, an interest rate of 3%, pension amounts are indexed with inflation at 2% and a retirement age of 65. For illustration purposes only - does not promise any guarantees or rights to the benefits.

Where will your money come from?

Where will your money come from? Government programs Canada/Quebec Pension Plan (CPP/QPP) Old Age Security (OAS) Your company retirement plan Defined Contribution Pension Plan Group RRSP Your personal savings Individual RRSP Non-Registered Plan Government plans only replace between 20% and 40% of your average annual income.

Where will your money come from? Government plans AS OF JANUARY 2017 Canada/Quebec Pension Plan (CPP/QPP) Old Age Security (OAS) ELIGIBILITY Based on your contributions to the plan 100% of your entitlement at age 65 Reduced benefit if between ages of 60 to 64 Increased benefit if over age 65 Based on your residency in Canada 100% of your entitlement at age 65 Increased benefit if over age 65 MONTHLY BENEFITS Maximum $1,114 Average $644 Maximum $579 As of January 2017. For illustration purposes only - does not promise any guarantees or rights to the benefits.

Your group retirement savings program

Your group retirement savings program Mandatory participation No withdrawals permitted Spousal RRSPs available Immediate tax savings Tax deferred earnings Lower fees Management: 0.64% on first $1 million; 0.50% thereafter Investment: 0.12% - 0.70%

Your group retirement savings program Your contributions M c Master's contributions Hourly Groups 3.5% of your basic salary up to the YMPE ($54,900 in 2016) plus 5% of the excess TMG & Security Services 3.5% of your basic salary up to the YMPE ($54,900 in 2016) plus 7% of the excess up to 2-times YMPE plus 10.5% in excess of 2-times the YMPE (n/a for Security Services) Additional voluntary contributions (up to your contribution limit) Transfers-in from other plans 100% match No match

Your group retirement savings program Contribution to your RRSP Limit set by Canada Revenue Agency (CRA) 18% Maximum of $26,010 (2017) Previous year s earned income + Unused contribution room = RRSP contribution limit Check your Notice of Assessment You are responsible for monitoring your RRSP limit Visit: www.cra-arc.gc.ca or call: 1-800-959-8281

Where should you invest?

Where should you invest?

Where should you invest?

Where should you invest?

Where should you invest?

Where should you invest? Secure Moderate Balanced Growth Aggressive

Where should you invest? One page fund summaries Information on manager Objective, style of fund Top 10 holdings Portfolio composition Gross rates of return

Economic and financial markets review

Canada in 2016 Canadian stock market Interest rates movement Oil Price rebound

Economic Review Canadian Fixed Income As at December 31st, 2016 % 2 1.8 Strong rebound in interest rates (10 year Canadian bonds) 1.6 1.4 1.2 1 0.8 Source: Desjardins, Economic Studies 31/12/15 31/03/16 30/06/16 30/09/16 31/12/16 The sharp rise in interest rates drove down bond indices in the fourth quarter. Losses in the 2 nd semester offset the majority of the gains from the beginning of the year. The Bank of Canada stayed on track: no movement in the key rate (0,50%). Anticipated increase in Q4 2018 (Desjardins). 3 months 2016 FTSE TMX Canada TB 91 days 0.14% 0.51% FTSE TMX Canada Universe -3.44% 1.66% FTSE TMX Canada Short term -0.50% 1.01% FTSE TMX Canada Long term -7.54% 2.47%

Economic Review Canadian Dollar As at December 31st, 2016 CAD/USD 0.82 Oil prices and the movement of the Canadian dollar. WTI Barrel $CAD 55 0.8 0.78 0.76 0.74 0.72 0.7 WTI barrel price CAD/USD 50 45 40 35 30 0.68 Sources : Bloomberg and Bank of Canada 25 15/12/31 16/02/29 16/04/30 16/06/30 16/08/31 16/10/31 16/12/31 Good return for the Canadian dollar in 2016. Net appreciation of 3% against the US dollar. One of the few currencies to have appreciated against the US$ in 2016. Fluctuation of the dollar in the fourth quarter. Weakness following Trump s election. OPEC s decision triggered a short-term rally for the dollar in mid-december. 2015 2016 2017f 2018f USD/CAD 1.383 1.343 1.370 1.316 EURO/CAD 1.503 1.417 1.437 1.403 GBP/CAD 2.041 1.656 1.630 1.528

Financial Market Review Canada As at December 31st, 2016 16000 S&P/TSX 15000 + 21% 14000 13000 12000 Source : Morningstar Direct 11000 31-Dec-15 29-Feb-16 30-Apr-16 30-Jun-16 31-Aug-16 31-Oct-16 31-Dec-16 Return of 21% for 2016. The S&P/TSX was one of the best performing financial markets in 2016. The Energy sector following OPEC s decision added on its 2016 returns. The gold sub-sector suffered a little drop in the 4th quarter but had an overall stunning year in 2016. The Financial sector, and especially insurers, rose sharply following the rise in interest rates.

In the US Federal reserve 4.7% Unemployment rate TRUMP

Financial Market Review United States As at December 31st, 2016 2300 S&P 500 ($CAD) 2200 + 8% 2100 2000 1900 1800 1700 31-Dec-15 29-Feb-16 30-Apr-16 30-Jun-16 31-Aug-16 31-Oct-16 31-Dec-16 Source : Morningstar Direct 7th consecutive year of positive returns. Indices (S&P 500 and Dow Jones) attained historic heights. Investors galvanized by the promises of the President-Elect. Three sectors with returns above 20% for 2016: Energy: Oil increased by more than 42% this year. Financials: rising rates will increase banks profits. Telecommunications: The sector will benefit from promises of deregulation.

Abroad European Union vs Brexit Emerging Markets economic outlook China

Financial Market Review International As at December 31st, 2016 950 MSCI Emerging ($CAD) 900 850 + 7.3% 800 750 700 Dec 31, 2015 Feb 29, 2016 Apr 30, 2016 Jun 30, 2016 Aug 31, 2016 Oct 31, 2016 Dec 31, 2016 Source : Morningstar Direct Emerging markets rose following a disappointing 2015. Positive returns for most majors markets. Overall rally in the Energy sector as oil price surged. Commodities like gold, copper and coal rebounded. Index Return 2016 (can $) MSCI World 3.80% MSCI ACWI 4.14% MSCI Emerging Markets 7.34% MSCI EAFE -2.48%

Fund Performance Review 2016

Funds available in your plan Off the shelf - Lifecycle Path BlackRock LifePath Index Funds (Retirement, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055) Do it yourself À La Carte Funds DGIA Money Market DFS BlackRock Universe Bond Index Jarislowsky Fraser Balanced CC&L Canadian Equity DFS BlackRock US Equity Index Fiera Global Equity Baillie Gifford International Equity

Fund Review Fixed Income Returns as at December 31, 2016 DGIA Money Market 3 mths 1 yr 3 yrs 5 yrs Fund 0.31% 1.33% 1.35% 1.42% FTSE TMX Canada 91-Day Treasury Bills 0.15% 0.51% 0.69% 0.82% Added Value 0.16% 0.82% 0.66% 0.60% (+) Longer maturities and narrower credit spreads DFS BlackRock Universe Bond Index 3 mths 1 yr 3 yrs 5 yrs Fund -3.43% 1.67% 4.61% 3.23% FTSE TMX Canada Universe -3.44% 1.65% 4.61% 3.22% Added Value 0.01% 0.02% 0.00% 0.01%

Fund Review Balanced Funds Returns as at December 31, 2016 Jarislowsky Fraser Balanced 3 mths 1 yr 3 yrs 5 yrs Fund 2.48% 7.10% 9.02% 11.20% Benchmark 0.90% 7.51% 7.06% 8.01% Added Value 1.58% -0.41% 1.96% 3.19% Q4 (+) overweight Canadian and US equities (+) underweight bonds 2016 (-) Underweight Canadian equities at the beginning of the year

Fund Review Canadian Equity Returns as at December 31, 2016 CC&L Canadian Equity 3 mths 1 yr 3 yrs 5 yrs Fund 3.30% 19.58% 8.48% 11.44% S&P/TSX Capped 4.53% 21.08% 7.07% 8.25% Added Value -1.23% -1.50% 1.41% 3.19% (-) Security selection in the Materials, Industrials, Energy and Consumer Staples sectors (-) Overweight in Information Technology and Materials

Fund Review US Equity Returns as at December 31, 2016 BlackRock US Equity Index 3 mths 1 yr 3 yrs 5 yrs Fund 5.91% 8.07% 17.53% 20.91% S&P 500 (Canadian dollars) 5.94% 8.09% 17.66% 21.15% Added Value -0.03% -0.02% -0.13% -0.24%

Fund Review Global Equity Returns as at December 31, 2016 Fiera Global Equity 3 mths 1 yr 3 yrs 5 yrs Fund 0.10% 2.79% 13.48% 18.68% MSCI World Net 3.93% 3.80% 12.18% 16.66% Added Value -3.83% -1.01% 1.30% 2.02% (-) Security selection in Financials (-) No exposure to the Energy sector

Fund Review International Equity Returns as at December 31, 2016 Baillie Gifford International Equity 3 mths 1 yr 3 yrs 5 yrs Fund -4.87% -1.07% 5.46% 13.49% MSCI EAFE Net 1.31% -2.48% 6.35% 12.57% Added Value -6.18% 1.41% -0.89% 0.92% (-) Security selection in Financials and Information Technology

Fund Review BlackRock LifePath Returns as at December 31, 2016 3 mths 1 yr 3 yrs 5 yrs DFS BlackRock LifePath Retirement Index I -0.85% 4.36% 6.06% 6.13% Benchmark -0.77% 4.45% 6.13% 6.21% Added Value -0.08% -0.09% -0.07% -0.08% DFS BlackRock LifePath 2020 Index -0.36% 5.58% 8.01% 8.34% Benchmark -0.23% 5.52% 7.96% 8.35% Added Value -0.13% 0.06% 0.05% -0.01% DFS BlackRock LifePath 2025 Index 0.17% 6.19% 8.68% 9.53% Benchmark 0.28% 6.14% 8.74% 9.53% Added Value -0.11% 0.05% -0.06% 0.00% DFS BlackRock LifePath 2030 Index 0.62% 6.67% 8.91% 10.34% Benchmark 0.72% 6.61% 9.00% 10.36% Added Value -0.10% 0.06% -0.09% -0.02%

Fund Review BlackRock LifePath Returns as at December 31, 2016 3 mths 1 yr 3 yrs 5 yrs DFS BlackRock LifePath 2035 Index 1.06% 7.24% 9.39% 11.12% Benchmark 1.16% 7.14% 9.42% 11.15% Added Value -0.10% 0.10% -0.03% -0.03% DFS BlackRock LifePath 2040 Index 1.49% 7.83% 9.84% 11.83% Benchmark 1.60% 7.75% 9.92% 11.92% Added Value -0.11% 0.08% -0.08% -0.09% DFS BlackRock LifePath 2045 Index 1.85% 8.36% 10.36% 12.60% Benchmark 1.96% 8.20% 10.41% 12.61% Added Value -0.11% 0.16% -0.05% -0.01% DFS BlackRock LifePath 2050 Index 2.07% 8.31% 10.38% n/a Benchmark 2.13% 8.23% 10.66% n/a Added Value -0.06% 0.08% -0.28% n/a DFS BlackRock LifePath 2055 Index 2.08% 8.30% n/a n/a Benchmark 2.15% 8.16% n/a n/a Added Value -0.07% 0.14% n/a n/a

Changes to your Fund Line-up August 2016 Addition of the DFS BlackRock LifePath Index 2055 to complete the series

Payment options at retirement

Payment options at retirement 1. Cash 2. Annuities 3. Registered Retirement Income Fund (RRIF)

Annuities One-time lump sum purchase Set monthly income paid for a defined period of time No management of investments Locked in to the interest rate at time of purchase Once purchased, you can t Change your mind Change payment schedule Make extra withdrawals Payments will be declared as income and taxes paid

Annuities Two basic types Term-certain annuity Guarantees a set monthly income for a specified number of years Beneficiary or estate receives payments Life annuity Provides a set monthly income until you die Options can be purchased (lowers monthly payment): Joint-and-last-survivor option - payments continue until you and your spouse or commonlaw partner die Guaranteed benefit - guarantees a certain number of payments to your beneficiary Inflation protection your income goes up as inflation increases

Annuities $100,000 lump sum MONTHLY PAYMENT 10 YEAR GUARANTEE 15 YEAR GUARANTEE Single life - male age 65 $623 $574 Single life - female age 65 $535 $515 Joint - male age 65; female age 65 60% payable $536 $516 Joint - male age 65; female age 65 100% payable $490 $484 Joint - female age 65; male age 65 60% payable $507 $490 Joint - female age 65; male age 65 100% payable $490 $484 For illustration purposes only - does not promise any guarantees or rights to the benefits Assumes an annuity rate of 3%; source: www.retirementadvisor.ca

Annuities $100,000 lump sum MONTHLY PAYMENT 10 YEAR GUARANTEE 15 YEAR GUARANTEE Single life - male age 60 $546 $522 Single life - female age 60 $474 $465 Joint - male age 60; female age 60 60% payable $475 $466 Joint - male age 60; female age 60 100% payable $436 $435 Joint - female age 60; male age 60 60% payable $451 $446 Joint - female age 60; male age 60 100% payable $436 $435 For illustration purposes only - does not promise any guarantees or rights to the benefits Assumes an annuity rate of 3%; source: www.retirementadvisor.ca

Registered retirement income funds RRIFs You make investment decisions Flexible: Types of investments Payment schedule Assets grow tax-deferred At death: Beneficiary receives account balance, less taxes Spouse/common-law partner may transfer assets to a registered plan tax-free or receive account balance, less taxes

Registered retirement income funds RRIFs Minimum withdrawals Declared as income Taxes paid Taxes withheld on withdrawals above the minimum amount AGE MINIMUM WITHDRAWALS 55 2.86% 60 3.33% 65 4.00% 70 5.00% 75 7.85% 80 8.75% 85 10.33% 90 13.62% 94+ 20.00%

Registered retirement income funds RRIFs Alice is 65 years old. She has $100,000 in her RRIF. Here are the amounts she must withdraw annually. Age 65 Minimum withdrawal is 4%, which equals $4,000 Age 75 Minimum withdrawal is 7.85%, which equals $7,850

Staying on track, your way

Staying on track, your way www.dfs.ca/participant Participant services website Click the Register now button. Need help? Call our Customer Contact Centre at 1-800-968-3587

Staying on track, your way www.dfs.ca/participant Participant services website

Staying on track, your way

Staying on track, your way

Staying on track, your way

Staying on track, your way 1-800-968-3587 Customer Contact Centre Investment information and guidance Information about your account and plan Interfund transfers Completing forms Available from 8 a.m. to 8 p.m. EST, Monday to Friday

Staying on track, your way www.yourwaymobile.ca Log on to the secure mobile site using your mobile device to view your: Account balance Asset allocation by funds Allocation by type of contribution Rate of returns Transactions There is also a calculator which provides a snapshot of your retirement strategy.

Staying on track, your way Let our Transition Team help you Facilitate transfers to your Desjardins account from other providers Provide assistance if you leave your employer Understand retirement payout products and provide an estimate of RRIF/LIF and/or annuity payments Contact a Transition Consultant at 1-877-585-3033 or yourtransition@dfs.ca

Thank you!