A group retirement savings plan for small business has never been easier…

Agenda

Understanding your needs Business concerns

Retaining employees

FutureStepTM

Product details

Product options

Service and support

Next steps

Unique small-business concerns

Attracting employees Competing with large firms

When you lose a key person, you feel it Knowledge-based small businesses

‘Day one’ employees

How to create effective retention strategies

Important features

Low cost

Little time or effort to run

High employee value and impact

Easy to understand You’re an expert in your business…not group retirement savings

Retirement savings plans play a big role inattracting and retaining employees

Did having an employer sponsored retirement savings plan, influence your decision to join and/or stay with your current employer?

Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)

38%

32%

30%

Join your currentemployer

Stay with yourcurrent employer

Undecided

Employees reluctant to leave because of the company retirement savings plan

Do you agree with the following statement? “I would be reluctant to leave my employer because of the retirement savings plan offered as part of my compensation package.”

Benefits Canada Capital Accumulation Plan Member Survey, 2012 (n=1212)

Reluctance increases as retirement approaches

40%

60%

Reluctant to leave

Not reluctant toleave

Manulife has a solution…FutureStep!

Product details

FutureStep is an innovative and flexible group retirement savings plan

Enhances employee appreciation and loyalty

Helps you gain a competitive edge

Conveys your concern for employees' life after work

Contributes to employees’ financial security

Plan options

Registered Retirement Savings Plan (RRSP) Offered by an employer to his/her employees as a way to save for

the future.

Both employers and employees can contribute to the plan and attain certain tax advantages.

Deferred Profit Sharing Plan (DPSP) Reward good company performance, in the form of profit sharing

Only an employer can contribute to the plan

Registered as a trust arrangement with the Canada Revenue Agency (CRA)

DPSP option can only be purchased along with the group RRSP and is not a stand-alone offering

You can get started with as little as…

Two eligible* employees

Contributions of $10,000** annually (cash flow) as a group

No cost to you***, unless you choose to contribute on employees’ behalf

*eligibility criteria is per FutureStep plan**If the combined cashflow for your RRSP and DPSP plans is less than $20,000.00 in a year, you will be charged a $750 administration trustee fee.*** if your cashflow falls below a minimum, you may could be charged an administration fee.

Contribution Options

All contributions are submitted electronically online

You choose who contributes to the plan: Company only

Company + employee

Employee only

You may choose different rules for different employees: Management

Non management

Either way, you will have: One contribution file

One set of online reports

Employee Eligibility Options

Manulife issues contracts for your immediate review

You choose a plan design(s) that suits you: Eligibility

Contribution formula

Definition of earnings

Plan Design Options

Employees may set up spousal RRSP accounts*

Two types of RRSP withdrawal restrictions: Allowed while employed

Not allowed while employed

Excludes Home Buyers’ Plan, Lifelong Learning Plan and employee voluntary contributions

Spousal Account & Withdrawal Options

* Not available for the DPSP option

Investment Fund Line-up

Employees choose their investments

Competitive investment management fees (IMF)

One fund line-up Managed by Manulife

Monitored by i-Watch®

Covered by Certified Diversified® Warranty Program

Range of choices for all types of investors No touch - Retirement Date

Low touch - Asset Allocation

High touch - Selection of ‘build your own’ funds

Default fund Primary: Retirement Date

Secondary (if date of birth is missing): Moderate Asset Allocation Fund

Guaranteed Investment Options 1, 3, 5 year terms

Investment Fund Line-up

Target DateTarget Date

Manulife Retirement Date suite of funds (2020 – 2055) – 1.80%

Manulife Retirement Income Fund (2000) – 1.80%

Asset AllocationAsset Allocation

Manulife Asset Allocation suite of funds (2001 – 2005) – 1.75%

Fixed IncomeFixed Income

Manulife Daily High Interest (3191) – 1.35%

MLI Canadian Money Market (3132)– 1.45%

MLI PH&N Bond Fund (4271) – 1.70%

MLI MFC Global Pooled Canadian Bond Index (4191) – 1.47%

BalancedBalanced

MLI Leith Wheeler Diversified Pooled (5301) – 1.75%

MLI Fidelity Canadian Asset Allocation (5141) – 2.10%

Canadian Large Cap EquityCanadian Large Cap Equity

MLI Jarislowsky Fraser Canadian Equity (7241) – 1.70%

MLI Scheer Rowlett Canadian Equity Fund (7601) – 1.80%

MLI Greystone Canadian Equity Fund (7481) – 1.70%

MLI MFC Global Pooled Canadian Index (7132) – 1.48%

Canadian Small Cap EquityCanadian Small Cap Equity

MLI MMF Growth Opportunities (7122) – 1.90%

US EquityUS Equity

MLI U.S. Diversified Growth Equity (Wellington) (8196) – 1.95%

MLI MFC Global Pooled US Equity Index (8131) – 1.48%

International EquityInternational Equity

MLI International Equity (Templeton) (8192) – 2.05%

MLI BlackRock International Equity Index Fund (8321) – 1.60%

Global EquityGlobal Equity

MLI Trimark Fund (8181) – 2.00%

MLI MFS MB Global Equity Fund (8161) – 1. 75%

Investment Fund Line-up

18

Lower Investment management fees (IMFs)

Take advantage of your group’s purchasing power

Potential fee savings for a $5,000 investment over 20 years = $1,353

Easy and Convenient Plan Set-up

Online application is quick and convenient

Client Relationship Manager Dedicated, proactive support for small-business employers

Invited to a webcast to get you started

Plan administration guide

Ongoing Support

Client Relationship Manager support continues

1-800 Plan Sponsor Call Centre

Secure sponsor website Newsletter and other resources

Online contributions and access to statements

Pre-authorized debit

Launching to Employees

Three options

[your name here if you will do in person employee meetings]

Online multi-media presentation

1-800 Financial Education Specialists

Monday to Friday, 9 a.m. to 5 p.m. ET

Employee Enrolment Support

Enrolment package with booklet Award winning

Easy to use

Plain language

Supports selecting investments

Ongoing Member Support

Annual statement

Secure website Steps Retirement Program®

Online and phone transactions

Paper transactions not recommended

1-800 Member Call Centre Monday to Friday from 8 a.m. to 8 p.m. ET

Why FutureStep?

For youFor you

A low-cost, high-value way to attract and retain employees

Quick to set-up, easy to manage

Top-quality product; very competitive price for your employees

For your employeesFor your employees

Low fees so retirement savings grow faster

First-class services and support

Access to financial advice [include if you will be providing this service]

Next Steps

[fill in your next steps here]

Questions