Employee Share Ownership Plan Your Guide to Scotiabank s Employee Share Ownership Plan
Table of contents About Scotiabank s Employee Share Ownership Plan (ESOP)... 3 Eligibility and enrolment... 4 Your contributions... 5 Scotiabank contributions... 7 Transferring and withdrawing shares... 9 Income tax reporting... 11 Transaction fees... 12 Share ownership... 13 Shareholder voting rights... 13 Dividends... 13 Account statements... 13 Glossary... 14 Question & answer... 15 Plan administration... 16 Contact information... 17 Throughout this document, certain technical terms are used. To ensure that you understand them properly, we have defined them under Glossary Terms. You can spot a defined terms throughout the Guide when it appears in italics. This Guide is intended to provide a summary of the Scotiabank Employee Share Ownership Plan (ESOP). Please read through this plan booklet to learn all the benefits of incorporating ESOP into your investment objectives. The Guide is not a legal document and the information within the Guide has been simplified. If there are any discrepancies between the official Plan Text and this Guide, the terms of the Plan Text will apply in all cases. The Plan Text is available on request by writing to: Scotiabank c/o Total Rewards, 100 Yonge St., 7th Floor, Toronto ON, M5C 2W1. Scotiabank intends to maintain ESOP indefinitely but reserves the right to amend ESOP or to terminate ESOP either in whole or in part. In the event of such termination, each participant would be entitled to 100% of the assets in their account. You can view this document in the Documents section of your Shareworks account available on HR Passport at HR Passport> Find> HR Policy> Handbook Published September 2015 Your Guide to Scotiabank s Employee Share Ownership Plan 2
About Scotiabank s Employee Share Ownership Plan (ESOP) Scotiabankers around the world contribute to the success of the Bank every day. Your participation in the Employee Share Ownership Plan (ESOP or Plan) enables you to share in the Bank s success in a tangible way. Contributing to ESOP, can help you achieve personal financial goals, such as saving for a home or your retirement. How it works By participating in ESOP, you have the opportunity to: Purchase common shares of Scotiabank through biweekly payroll deductions; Receive a 50% matching contribution from Scotiabank on the regular contributions you make; Make additional voluntary contributions of up to 25% of your Eligible Earnings (not matched by Scotiabank); Earn Dividends on the shares held in your accounts; and Hold shares at no cost in a non-registered or registered (tax-sheltered) account, or a combination of both. Investment risk The value of Scotiabank s shares may change due to a number of factors, including industry developments, competition, corporate performance, the state of the economy, or even rumours about potential activity. Shares increase or decrease in price as a result of market conditions. There is no way to predict how or when these changes will occur. As a Scotiabank shareholder you must be willing to accept the risks associated with potential declines in market price, in exchange for the potential gains that come with share price increases. Limitations on trading in Scotiabank shares From time-to-time, there are periods in which trading Scotiabank shares is restricted for affected Plan participants in accordance with the policies of Scotiabank, its subsidiaries and affiliates. The periods during which trading is permitted are referred to as Window Periods. Limitations on trading do not apply for any regular purchases of the Bank s shares which result solely from membership or participation in ESOP. However, limitations on trading Scotiabank shares can include changing ESOP contribution levels as well as selling or transferring shares. If the Window Periods apply to you, please refer to the Scotiabank Designated Employee Policy and Procedures for more information. Whether or not a Window Period is open and whether or not you have been advised that Window Periods apply to you, you may not trade if you have inside information. Your Guide to Scotiabank s Employee Share Ownership Plan 3
Eligibility and Enrolment Eligibility You are eligible to participate in the ESOP if you meet both of the following requirements: You are a regular full-time or regular part-time employee living in Canada, or a Canadian expatriate officer living outside Canada; and You have completed six months of continuous employment with one of the employers participating in ESOP. Note: For employees hired after January 1, 2015 and prior to January 1, 2016, eligibility to participate is the latter of January 1, 2016, and the anniversary date six months following your date of hire by a participating employer. Enrolling in the ESOP Once you have met eligibility requirements, participation in the ESOP is voluntary. You can enrol in ESOP at any time (subject to complying with Window Period Restrictions if they apply to you). Enrolling is easy, and is completed through your Shareworks account on HR Passport (HR Passport> Employee Kit> My ESOP Account). Step-by-step instructions on how to enrol are available on the Shareworks site: HR Passport> Employee Kit> My ESOP Account> Documents and Information> Plan Enrolment & Contribution Changes. When you enrol 1. Determine what percentage of your Eligible Earnings you wish to contribute through payroll deduction. 2. Determine where to allocate your regular contributions and additional voluntary contributions, if any. Your contributions will be used to purchase Scotiabank shares. You have the option to direct your contributions to one or a combination of: Regular Tax Account (RTA); Retirement Savings Plan (RSP); and Tax Free Savings Account (TFSA). 3. Determine where to allocate Scotiabank s contributions. Scotiabank s contributions will also be used to purchase shares. For employees hired before January 1, 2016, Scotiabank contributions can be directed to one or both of: - Employee Profit Sharing Plan (EPSP); and-or - Deferred Profit Sharing Plan (DPSP) (only for Plan participants with an annual base salary of $139,000 or less). For employees hired on or after January 1, 2016 (or who have an annual base salary in excess of $139,000), Scotiabank contributions must be directed to the Employee Profit Sharing Plan (EPSP). 4. Designate a beneficiary If you are allocating any of your contributions to a registered account (i.e., your RSP or DPSP), or to a TFSA, you must designate a beneficiary. For Quebec members with TFSA accounts, your estate is your automatic beneficiary and no separate beneficiary designation is permitted or required. Non-registered accounts (i.e., your RTA or EPSP) do not require a beneficiary designation, as your estate is your automatic beneficiary. 5. Complete and submit the appropriate forms If you are allocating any contributions to a registered account (RSP or DPSP), or to a TFSA, you must complete the specified application form(s). These forms are located in the Documents section of Shareworks. Completed forms must be faxed or mailed to using the contact information provided at the back of this booklet. Please note that until your completed forms are received by, all contributions will be directed to the non-registered accounts. Note: To determine the best option for your personal situation, you may wish to consult a personal tax advisor before making a decision. If you cannot access Shareworks If you are not able to access Shareworks or require additional assistance, please contact the HR Call Centre at 1-888-888-8089, and follow the ESOP prompts. You will be connected to s Participant Services Group to complete any transaction or get information on a confidential basis. Your Guide to Scotiabank s Employee Share Ownership Plan 4
Your contributions Regular contributions Your regular contributions to ESOP are made through biweekly payroll deduction. You can choose to contribute any whole percentage of your Eligible Earnings, up to the biweekly and annual maximums, as outlined in the chart below. Percentage of Eligible Earnings Annual Maximum Biweekly Maximum Up to 6% $6,000 $230 Additional voluntary contributions You can make additional voluntary contributions to ESOP of up to 25% (in whole percentages) of your Eligible Earnings. These additional voluntary contributions: Are used to purchase Scotiabank shares; Are not matched by Scotiabank; May be directed to the RTA, RSP, or TFSA; and Are recorded separately in your ESOP account. Change to contribution level You may change your contribution level or voluntarily suspend your contributions at any time, online through your Shareworks account (during applicable Window Periods). For step-by-step instructions on how to change your contribution level, or suspend your contributions to ESOP, please refer to the Plan Enrolment & Contribution Changes link in the Documents section of your online Shareworks account. Suspension of contributions If you suspend your regular contributions to ESOP, Scotiabank contributions, and any additional voluntary contributions, will be suspended automatically. Eligible Earnings Eligible Earnings refer to the amount of regular earnings including eligible commissions you receive from Scotiabank in each pay period. Eligible Earnings do not include overtime, bonuses and other incentives (unless the plan under which such amounts are paid provides otherwise). Scotiabank contributions Scotiabank contributes an amount equal to 50% of your regular contributions to ESOP (i.e., $1 for every $2 you contribute). The maximum amount Scotiabank contributes depends on your regular contributions, as outlined below. Annual Maximum Biweekly Maximum $3,000 $115 Your Guide to Scotiabank s Employee Share Ownership Plan 5
Your contributions continued Directing your contributions You may direct your regular contributions and additional voluntary contributions to a RTA, a RSP, or a TFSA, or a combination of any two or three of these individual savings vehicles. Features of these three vehicles are compared below. Regular Tax Account (RTA) Retirement Savings Plan (RSP) Tax Free Savings Account (TFSA) Type of savings vehicle Non-registered savings plan Registered Retirement Savings Plan (RRSP) Tax Free Savings Account Are my contributions deducted before or after tax? After tax pay After tax pay After tax pay Is my contribution tax deductible? No Yes No Are there contribution limits other than ESOP limits? No Yes. Contributions are limited by the Income Tax Act. Yes. Contributions are limited by the Income Tax Act. Do my ESOP contributions limit contributions I can make to other savings vehicles? No Yes, with respect to contributions to other RRSPs. You will need to track your contributions to all RRSPs, including ESOP, so that you do not exceed your limit. Yes, with respect to contributions to other TFSAs. You will need to track your contributions to all TFSAs, including ESOP, so that you do not exceed the limit. Are Dividends on shares taxable? Yes, dividends allocated in the form of additional shares are considered taxable income. No, tax is deferred as long as shares remain in the RSP. No How are capital gains and-or losses treated? Capital gains and-or losses are realized on the sale or deemed disposition of shares and reported for tax purposes in the same year. Capital gains and-or losses are not recognized for tax purposes while the shares remain in the RSP. If shares cease to be held in a registered plan, you will realize capital gains/losses from subsequent sales or deemed dispositions, which must be reported for tax purposes in the year of realization. Capital gains and-or losses are not recognized for tax purposes while the shares remain in the TFSA. Are withdrawals taxable? No, however you will realize capital gains. Withdrawals (other than eligible transfers to another registered plan) are included in taxable income in the year in which shares are withdrawn and are subject to withholding tax. No Your Guide to Scotiabank s Employee Share Ownership Plan 6
Scotiabank contributions There are two types of plans for Scotiabank contributions. If you were hired prior to January 1, 2016 you may direct Scotiabank contributions to the Employee Profit Sharing Plan (EPSP) or the Deferred Profit Sharing Plan* (DPSP), or a combination of the two. If you were hired after January 1, 2016, or your eligible earnings are in excess of $139,000, you may only direct Scotiabank contributions to the EPSP. Features of these two plans are compared below. Employee Profit Sharing Plan Deferred Profit Sharing Plan Type of savings vehicle Non-registered savings vehicle Registered savings vehicle Are contributions by Scotiabank taxable? Are there contribution limits other than ESOP limits? Are Dividends on shares taxable? How are capital gains and-or losses treated? Are withdrawals taxable? Yes, in the year in which they are made. No Yes, Dividends allocated in the form of additional shares are considered taxable income. Capital gains and-or losses are realized by the EPSP on the sale or deemed disposition of shares and treated for tax purposes as if you realized them personally. They must be reported for tax purposes in the year of realization. No, however you will realize capital gains and-or losses from sales or deemed dispositions of shares occurring after withdrawal from the EPSP, which must be reported for tax purposes in the year of realization. No, tax is deferred as long as they stay in DPSP. Yes. Contributions are limited by the Income Tax Act. Contributions result in a Pension Adjustment (PA) which reduces the amount of the benefit you may accrue and/or the contributions that may be made to your account under the Scotiabank pension plan in the current year, as well as your personal RRSP contribution room for the following year. No, when allocated in the form of additional shares, tax is deferred as long as shares remain in a registered plan. Capital gains and-or losses are not recognized for tax purposes while the shares remain in the DPSP. If shares cease to be held in a registered plan, you will realize capital gains and-or losses from subsequent sales or deemed dispositions, which must be reported for tax purposes in the year of realization. Withdrawals (other than eligible transfers to another registered plan) are included in taxable income in the year in which withdrawn and are subject to withholding tax. *Note: If your Eligible Earnings are in excess of $139,000, or if you are eligible to participate in the hybrid defined benefit/defined contribution section of the Scotiabank Pension Plan, contributions cannot be made to the DPSP regardless of your date of hire. In this case, all Scotiabank contributions will go to the EPSP. Your Guide to Scotiabank s Employee Share Ownership Plan 7
Scotiabank contributions continued Your contributions, as well as those Scotiabank makes on your behalf, are used to purchase Scotiabank shares which trade under the symbol BNS on the Toronto Stock Exchange. When the contributions are deducted from payroll, you will see them designated in your individual accounts on Shareworks as cash awaiting investment until the shares are purchased. The number of shares purchased and the Book Value will be shown in your portfolio view. An allocation of full and fractional shares will then be made to your account. Your Regular Contributions Regular Tax Account Retirement Savings Plan Tax-Free Savings Account Additional Voluntary Contributions Regular Tax Account Retirement Savings Plan Tax-Free Savings Account Scotiabank Contributions Employee Profit Sharing Plan Deferred Profit Sharing Plan* *Note: Only if you were hired before January 1, 2016, or your eligible annual earnings are less than $139,000. Your Guide to Scotiabank s Employee Share Ownership Plan 8
Transferring and withdrawing shares Transactions All transactions, including contributions, purchases, transfers, withdrawals, and dividend payments will be reported in your Shareworks account. You must submit all transaction requests to. This can be done either through your online Shareworks account or by contacting through the HR Call Centre. Several transactions may only be made through the HR Call Centre, including: Registered Plan Transfers; Registered Plan-Specific Transactions; Home Buyers Plan; Life Long Learning Plan; Estate Transactions; and Charitable Transactions. For more information, review the Transferring Your Shares document in the Documents section of Shareworks. Transferring between ESOP accounts You may transfer your shares from one plan or account to another within ESOP (Inter-plan Transfers), subject to Restrictions on transfers between certain plans and accounts. Transfers are generally treated as withdrawals for purposes of the Vesting rules set out below, so transfers in your first two years of ESOP participation can result in the forfeiture of shares purchased with Scotiabank contributions. The Inter-plan Transfers that can be made within ESOP are illustrated below. You should seek independent financial advice prior to requesting a transfer of this type, due to the potential tax implications. Considerations for Inter-plan transfers Within your ESOP account, you are not permitted to: Transfer shares between your EPSP and DPSP accounts; Transfer shares from the RSP or TFSA to any other accounts; There are tax implications (capital gains and-or losses) to be considered when transferring shares from: Your RTA or EPSP to your RSP: This type of transfer requires a withdrawal to complete and, as such, capital gains, if any, need to be reported to the CRA. Your RTA or EPSP to your TFSA: This type of transfer requires a withdrawal to complete and, as such, capital gains, if any, need to be reported to the CRA. Inter-plan Transfers are restricted except during Window Periods for certain designated employees (as transfers are considered withdrawals); You should seek independent financial advice prior to considering these transfers. Your Guide to Scotiabank s Employee Share Ownership Plan 9
Transferring and withdrawing shares continued Withdrawing shares Subject to rules on Restriction and Vesting of shares and the limitations of applicable Window Periods, you may withdraw your shares in one of the following ways: 1. Cash withdrawal* (selling your shares in the open market) Choose one of the following options: Real-time: This option submits your trade to the market immediately after you enter and verify your order; Limit Order: This option allows you to specify a timeframe (up to 30 days) and the price at which you wish the trade to be executed; or Bulk Sale: This option groups your trade with other withdrawal transactions entered on the same day, and will be traded in aggregate at the market price at the time the order is submitted. Your transaction must be entered in Shareworks by 1 p.m. ET in order to be included in that day s sale. You have the option to receive the proceeds by cheque, bank deposit (EFT), or bank wire, and you can specify the currency in which you wish to receive the funds as Canadian or U.S. 2. Share withdrawal You may transfer your shares electronically to your outside brokerage account. If you choose to transfer your ESOP shares to your outside brokerage account, please consider the following: Your RSP or DPSP registered shares are required to be delivered to a registered brokerage account; Your RTA or EPSP non-registered shares are required to be delivered to a non-registered brokerage account; and Your TFSA shares are required to be delivered to a TFSA brokerage account The following transaction types must be facilitated through the HR Call Centre: Registered Plan Transfers; Registered Plan-Specific Transactions; Home Buyers Plan; Life Long Learning Plan; Estate Transactions; and Charitable Transactions. If you require a transfer form for these types of transfers, please obtain one from your broker, dealer, or financial institution. All transactions must be submitted through, either through your online ESOP account (Shareworks), or by contacting the HR Call Centre. *Note: Refer to the Transaction Fees section in this booklet for further information on the costs associated with the various transaction types. As applicable, details on de-registration and-or withholding taxes, transaction fees, brokerage commission, and disbursement fees will be listed in full detail when you complete a transaction. Vesting and Restriction of shares Vesting refers to ownership of the shares in your ESOP account. Shares purchased with your regular contributions are vested, immediately. However, they are restricted in the first two years of ESOP membership. This means that if you withdraw or transfer restricted shares: You must withdraw 100% of the shares purchased with your regular contributions; and You forfeit 100% of the shares purchased with Scotiabank contributions. Shares held after two years of ESOP membership are available to withdraw or transfer (subject to the limitations note above) without Restriction. Shares purchased with Scotiabank contributions are vested after two years of ESOP membership and are forfeited on withdrawals or transfers in the first two years. Shares purchased with your additional voluntary contributions vest immediately and can be withdrawn or transferred at any time without Restrictions. There are special Vesting rules that apply in the event of retirement, death or the termination of ESOP. Your Guide to Scotiabank s Employee Share Ownership Plan 10
Income Tax Reporting Tax forms will issue the appropriate tax reporting forms each year. The following forms may apply to you as a result of contributions or transactions completed. Transactions Tax forms issued Who provides the forms? Contributions and-or Inter-plan RRSP Contribution slip Transfers to the RSP Scotiabank contributions to the EPSP Sales from the RTA and-or Inter-plan Transfers to the RSP Gains and-or losses from sales in the EPSP and-or forfeitures from the EPSP Forfeitures in the DPSP Withdrawals from the RSP Withdrawals from the DPSP Receipt of Dividends in the RTA Receipt of Dividends in the EPSP T4PS Relevé 25 (Québec) NR4 (Non-resident) T5008 Relevé 18 (Québec) NR4 (Non-resident) T4PS Relevé 25 (Québec) NR4 (Non-resident) T10 slips Pension Adjustment Reversal (PAR) T4RSP Relevé 2 (Québec) T4A Relevé 2 (Québec) NR4 (Non-resident) T5 Relevé 3 (Québec) NR4 (Non-resident) T4PS Relevé 25 (Québec) NR4 (Non-resident) Inter-plan transfers to the TFSA Not applicable Not applicable Withdrawals from the TFSA Not applicable Not applicable You have the option to receive the forms through your Shareworks account or in the mail. If you receive your tax slips online, you will have the ability to access them at any time. These forms are located Documents section of Shareworks. Scotiabank will provide your T4 (Relevé 1) through regular mail. Your Guide to Scotiabank s Employee Share Ownership Plan 11
Transaction fees Scotiabank pays the fees associated with recordkeeping and overall ESOP administration, as well as the transaction and brokerage fees associated with the purchase of shares in your Regular and Additional Voluntary Contribution accounts. In addition, Scotiabank pays the transaction, brokerage fees and disbursement fees for the first two transactions in a calendar year consisting of either Cash Withdrawals (Bulk Sale only) or Share Withdrawals in your Regular and Additional Voluntary Contribution accounts. After the first two transactions in a calendar year, you are responsible for all fees associated with Cash Withdrawals (including Bulk Sales) or Share Withdrawals. At all times, any fees associated with Real-time Sale transactions (including Limit Orders) are also your sole responsibility. Full details of on the transaction fees, brokerage commission, and disbursement fees are provided to you when you complete a transaction. These fees are subject to change. Cash Withdrawals (fees as of September 1, 2015) Fee Description Fee for Bulk Sale Transactions Fee for Real-time Sale Transactions Transaction Fees Shareworks Transaction Fee No charge $25 Transaction performed by the Call Centre (e.g., telephone) Brokerage Commission Free for first two transactions per year $25 for additional transactions $50 Brokerage Commission No charge $29 flat fee or 3 /share (whichever is greater) Disbursement Fees Electronic Fund Transfer (EFT) Cheque Wire (domestic) Wire (U.S. and international) Free for first two transactions per year $5 for additional transactions Free for first two transactions per year $10 for additional transactions Free for first two transactions per year $20 for additional transactions Free for first two transactions per year $40 for additional transactions $5 $10 $20 $40 Share withdrawals (fees as of September 1, 2015) Transaction Electronic Transfers Fee Free for first two transactions per year Your Guide to Scotiabank s Employee Share Ownership Plan 12
Share ownership Shareholder voting rights As a participant in ESOP you are a Scotiabank shareholder. You are entitled to one vote per share held in your ESOP account, including any shares purchased with Scotiabank contributions. You will be sent shareholder communications with respect to meetings of shareholders and voting instruction forms as applicable. Dividends Dividends on shares, including those purchased through ESOP contributions, are declared at the discretion of Scotiabank s Board of Directors. There is no guarantee that Dividends will be declared; however, if and when declared, Dividends on shares held in your ESOP accounts will be paid in cash and automatically reinvested in additional shares (allocated to your accounts). Dividends that are allocated to your accounts are determined based on the number of shares you held as of the dividend record date. Due to the processing times involved, Dividends are not visible in your account until shortly after the dividend payment date. Account statements You can log into your online account at any time to view and print your account statements and to review activity within your account, including purchases and transactions completed in Shareworks. Your Guide to Scotiabank s Employee Share Ownership Plan 13
Glossary of Terms Term Book Value (or Adjusted Cost Base) Bulk Sale Dividends Eligible Earnings Leave of Absence Limit Order Sale Plan Administrator Plan Text Real-time Sale Restriction Shareworks Vesting Window Period Definition When purchasing shares, this is calculated as the number of shares acquired multiplied by the original purchase price. When selling shares, your capital gain or loss for income tax purposes is calculated as your proceeds of disposition less your adjusted cost base (ACB) plus applicable expenses relating to the disposition. Note: Book Value and ACB will not necessarily be the same amount. Information on calculating ACB is available from your personal tax advisor and the Canada Revenue Agency. When selling your shares, this option groups your trade with other withdrawal transactions entered on the same day, and your shares will be traded in aggregate at the market price at the time the order is submitted. Your transaction must be entered in Shareworks by 1 p.m. ET in order to be included in that day s sale. Payments that are made by companies to their shareholders, and are paid at the discretion of the Board of Directors. Dividends on Scotiabank shares held in ESOP are paid in cash and reinvested to purchase additional shares on the open market which are allocated to your ESOP account. The earnings you receive from Scotiabank in each pay period excluding overtime, bonus, incentive pay and special allowances. A participant who is on leave without pay or is in receipt of reduced pay during a leave may elect to continue contributions. Eligible Earnings during the period of the leave will be determined by the Bank based on the participant s Eligible Earnings prior to the leave. An ESOP Contributions During an Authorized Leave form is required for contributions to continue during periods of unpaid leave. If a participant is on a fully paid leave, participant and Bank contributions will continue as if the participant were actively at work. When selling your shares, this option allows you to specify a timeframe (up to 30 days) and the price at which you wish the trade to be executed. If your price is not met in the specified periods, your shares will not be sold. The company chosen by Scotiabank to administer ESOP on its behalf. Scotiabank is now partnered with as the Plan Administrator. All contributions and withdrawals will be executed by, through their software, Shareworks. is the primary point of contact for inquiries about ESOP. A document outlining the governing rules of the ESOP. When selling your shares, this option submits your trade to the market immediately after you have entered and verified your order. The period of time during which you cannot withdraw or transfer your shares without forfeiting shares purchased with Scotiabank contributions. Once this period is complete, the Restriction will be lifted and the shares are available for withdrawal or transfer without Restriction. Shares purchased with additional voluntary contributions are not subject to any Restriction. Shareworks is s online software application which allows you to manage your ESOP account online, withdraw or transfer your shares, change your contribution percentages, access your account activity, view online activity, and more. Refers to a condition regulating rights with respect to your shares in ESOP. Shares purchased with your contributions are always vested and cannot be forfeited by you. Shares purchased with Scotiabank s contributions vest after two years of continuous participation in ESOP and may, in some circumstances, be forfeited before the end of such two year period. The period during which trading is permitted. Your Guide to Scotiabank s Employee Share Ownership Plan 14
Question & Answer I want to terminate my participation in ESOP You can terminate your participation in ESOP at any time by changing your contribution level to zero. What happens if I take a leave of absence? If you are on a paid or unpaid authorized Leave of Absence, you may continue to contribute to your ESOP account(s) during your leave. While on paid leave your contributions will continue to be deducted from your pay in the same manner as if you were actively employed. If you choose to contribute to ESOP while on an unpaid leave, contributions will be deducted from your bank account following your completion of the ESOP Contributions during an Authorized Leave form located in the Documents section of your online Shareworks account. You can also make changes to your contribution percentage and your plan options while on leave. Upon return from a leave during which your contributions by way of payroll deduction were suspended, such contributions will automatically restart at the same level(s) as applied immediately before the start of your leave and any contributions by way of deduction from your personal bank account will stop. What happens to my ESOP account if I retire or leave the Bank? Terminating from Scotiabank When your employment relationship with Scotiabank and its subsidiaries ends for a reason other than retirement, and you are no longer on payroll, your regular contributions and Scotiabank s contributions will stop and you or your beneficiary or legal representative in the event of your death will need to close your ESOP account within 90 days after the end of your employment relationship. If you have not closed your ESOP account by these deadlines, your shares will be sold, the appropriate taxes and fees will be withheld, and a cheque will be sent to the address has on record for you. Retirement from Scotiabank Upon retiring from Scotiabank, you will have 180 days after your retirement to close your account. If you have not closed your ESOP account by these deadlines, your shares will be sold, the appropriate taxes and fees will be withheld, and a cheque will be sent to the address has on record for you. What happens if the ESOP program ends? Scotiabank reserves the right to terminate the ESOP at any time. In the event of such termination, each participant would be entitled to 100% of the assets in their account. The assets would be distributed to each participant within 90 days of the ESOP s termination. Your Guide to Scotiabank s Employee Share Ownership Plan 15
Plan administration Capital To ensure that participation in the ESOP is as easy as possible, Scotiabank has partnered with Capital () to administer the ESOP. s online software application, Shareworks, makes it easy for you to participate in the ESOP. Shareworks Shareworks is an online software application that is directly linked to the Toronto Stock Exchange. Through Shareworks, you will have access to your own online account, from which you can view your ESOP holdings and transact at any time. Shareworks enables you to log into your account securely, from anywhere with an Internet connection it s very similar to online banking. Here are some of the things you can do: View your complete portfolio online, any time; Conduct sale transactions and direct proceeds to your personal bank account, as Shareworks integrates real-time brokerage services and stock quotes live from the Toronto Stock Exchange; View and print account statements anytime; and See history of your Shareworks account activity at any time (transactions that occurred prior to the conversion in September 2010 to Shareworks are not available). Accessing Shareworks You can access your Shareworks account through HR Passport, at HR Passport> Employee Kit > My ESOP Account. You may also log in at www.solium.com/login using the personal account number and temporary passwords you received in the mail from. If you do not have Internet access, can provide you with full-service assistance. Their customer service call centre is open from 8 a.m. to 8 p.m. ET, Monday through Friday. Your Guide to Scotiabank s Employee Share Ownership Plan 16
Contact information Questions For questions, contact through the HR Call Centre. Customer service representatives are available from 8 a.m. to 8 p.m. ET, Monday to Friday. Phone: 1-888-888-8089 GTA: 416-701-7209 TTY/TDD: 1-877-726-8429 Toll-free fax: 1-888-837-0455 Email: hrcallcentre@scotiabank.com Enrolment and Change form submissions Regulatory requirements are such that must receive certain forms in hard copy. Please send your completed RSP, DPSP and TFSA Application forms and-or Change of Beneficiary Designation forms to at: Fax: 403-515-3919 Mail: Capital Suite 1500 800-6th Avenue SW Calgary, AB T2P 3G3 Your Guide to Scotiabank s Employee Share Ownership Plan 17