administrative guide for advisors€¦ · 2016-03-24 page 3 1. introduction this guide contains the...

BRA1423A (2016-03)

QUEBEC SALES OFFICETel.: 1-888-292-8483

ONTARIO, WESTERN AND ATLANTIC CANADA SALES OFFICETel.: 1-888-429-2543

CLIENT SERVICES2515, Laurier BoulevardP.O. Box 10510, stn Sainte-FoyQuebec QC G1V 0A3

Tel.: 1-800-320-4887Fax: 1-866-559-6871

[email protected]

ssq.ca

Advisor’s document

Investment

ADMINISTRATIVE GUIDE FOR ADVISORS Individual Client Sector

2016-03-24

Table of Contents

1. Introduction ......................................................................................................... 3 2. Summary of Changes Made .................................................................................. 3 3. Contact Us ............................................................................................................ 4 3.1 Administrative Offices and Client Services ........................................................................................ 4 3.2 Sales Offices ....................................................................................................................................... 4

4. Products ............................................................................................................... 5 4.1 SSQ Guaranteed Investment Funds (GIFs) ......................................................................................... 5

4.1.1 Key Characteristics ................................................................................................................ 5 4.1.2 List of available SSQ Guaranteed Investment Funds ............................................................ 6 4.1.3 A) SSQ Guarantees (other than SSQ Equity GIA and SSQ Guaranteed Income)

In force since November 26, 2012 .................................................................................... 6 4.1.3 B) SSQ Guarantees (other than SSQ Equity GIA and SSQ Guaranteed Income)

In force from July 18, 2004 to November 25, 2012 .......................................................... 7 4.1.4 Sales Charge Options and Commissions ............................................................................... 9

4.2 SSQ Guaranteed Investments .......................................................................................................... 10 4.2.1 Guaranteed Interest Accounts (GIAs) ................................................................................. 10 4.2.2 High Yield Account .............................................................................................................. 10

4.3 SSQ Equity GIA ................................................................................................................................. 11 4.3.1 Key Characteristics .............................................................................................................. 11 4.3.2 SSQ GIF Guarantees for SSQ Equity GIA ............................................................................. 12

4.4 SSQ Guaranteed Income (GI) ........................................................................................................... 13 4.4.1 Primary Characteristics of GI 1, GI 2 and GI 2.1 .................................................................. 13 4.4.2 Guarantees for the GI 1 and GI 2 Products ......................................................................... 14 4.4.3 Guarantees for the GI 2.1 Product ...................................................................................... 16

4.5 SSQ Private Wealth Management Program ..................................................................................... 17

5. Loans .................................................................................................................. 18 6. Registered Plans ................................................................................................. 18 6.1 Application Forms Required............................................................................................................. 18 6.2 Transfers between Financial Institutions ......................................................................................... 18

6.2.1 Transfers from Outside Sources (Transfers on Hold) ......................................................... 18 6.2.1.1 Welcome Bonus .................................................................................................... 18

6.2.2 Transfers to a Financial Institution Other than SSQ ........................................................... 19 6.3 Tax Deductions on Withdrawals - Registered Plan .......................................................................... 19 6.4 RRSP Contribution Deadlines and Limits ......................................................................................... 19 6.5 Features of RRIFs/LIFs/PRRIFs/LRIFs ................................................................................................ 19 6.6 Particularity – Withdrawals under the HBP ..................................................................................... 21 6.7 Conversion of Plan ........................................................................................................................... 21

7. Transactions ....................................................................................................... 21

7.1 Deadlines and Processing Times ...................................................................................................... 21 7.2 Missing Information ......................................................................................................................... 22 7.3 Payment of Purchases ...................................................................................................................... 22

2016-03-24

7.4 Corrections ....................................................................................................................................... 22 7.5 Cheque Specimen ............................................................................................................................ 22 7.6 Fees .................................................................................................................................................. 23 7.7 Required Signatures ......................................................................................................................... 23 7.8 Maximum Age to Subscribe, Make Contributions and Own by Plan and Province

(Other than SSQ Equity GIA) ............................................................................................................ 24 7.9 Available Forms ................................................................................................................................ 24 7.10 Benefit Upon Death of Annuitant .................................................................................................... 25 7.11 Documents Required for Settlement of Death Benefits .................................................................. 25 7.12 Rate Guarantees .............................................................................................................................. 26 7.13 Commissions .................................................................................................................................... 27 7.14 Resets and Changes in Sales Charge Options .................................................................................. 27 7.15 Transfer of the exemption of back-load fees to the No-load sales charge option – Mode A ........ 28 7.16 Pre-authorized Redemption Program (PRP) .................................................................................... 28 7.17 Pre-authorized Transfer Program (PTP) ........................................................................................... 28 7.18 Estate Planning ................................................................................................................................. 29

8. Document Production ......................................................................................... 29

8.1 Statements of Transaction ............................................................................................................... 29 8.2 Statements of Investment ............................................................................................................... 29 8.3 Tax Slips ............................................................................................................................................ 30 8.4 Confirmation of Maximum and Minimum Withdrawals from RRIF/LIF/PRRIF/LRIF Accounts ....... 30 8.5 List of GIAs to Renew ....................................................................................................................... 30

9. Information Available on our Secure Website ..................................................... 31

9.1 Client Access..................................................................................................................................... 31 9.2 Advisor Access .................................................................................................................................. 31

2016-03-24 Page 3

1. Introduction This Guide contains the key administrative rules for investments made with SSQ Financial Group. It has been divided into several sections to make it easier to use. To find the section you are looking for, please refer to the Table of Contents. This document contributes to standardizing our operations, and thereby guaranteeing quality service and compliance with recognized sound business principles. When the Guide is updated in the future, simply refer to section 2 for a summary of changes made. All changes will also be underlined in the text until the subsequent update. The electronic version of the Guide and its updates will be available on our secure website. This document is not part of the Information Folder and Contract. In case of discrepancy, the terms and conditions stipulated in the Information Folder and Contract will take precedence. Please note that the rules contained in this Guide may vary for Nominee account transactions or for transactions made using FundSERV.

2. Summary of Changes Made The terminology has been realigned with the changes made on November 9, 2015. 4.1 SSQ Funds – A plan and fund transfer is completed in two days. The plan transfer is done first.

The redemption sequence for the units must be confirmed due to the new fund codes. 4.1.3A) Guarantees – Some aspects of the enhanced guarantee have changed.

The change generates a new contract number. 4.1.3B) Guarantees from before November. 26, 2012 – The guarantee upon death bonus is not on the

investment statements. The guarantee fees are included in the fund's unit value. 4.1.4 Sales charge options – The trailer fee commission is doubled for the Back-Load sales charge schedule. 4.2.1 GIA – The GIA term may not exceed the age limit for participation. 4.2.2 The High Yield GIA has been replaced by the High Yield Daily Interest Account. 4.3.2 SSQ Equity GIA – The guarantee fees are included in the fund's unit value. 4.4 SSQ Guaranteed Income – Same changes as for the SSQ Funds. 4.5 Private wealth management – New administrative requirements for application. 6.5 Features of RRIFs/LIFs/PRRIFs/LRIFs – None by default for the minimum investment instructions. See the

explanations. 6.7 Conversion of plan – Performance records will not be transferred. 7.1 Deadlines – Details for after 2:00 p.m. 7.8 Age of subscription – Changed to age 75 for the enhanced guarantee. 7.9 Forms – Changes in beneficiary designation must be submitted using the "Estate Planning" form

(FRA1781). 7.10 Death benefit – Annuity settlement option available. 7.11 Death settlement document – Simplification of death settlements for amounts of $50,000 or less. 7.15 Transfer of the exemption of back-load fees to the No-load sales charge option – Mode A 7.16 Pre-authorized Redemption Program (PRP) – Allocation must be a % for payment of the

minimum/maximum/GWA/LWA/EWA. For other PRPs, allocation must be in $. 7.17 Internal Transfer Program (ITP) – New section. 7.18 Estate planning – New section.

2016-03-24 Page 4

8.1 Transaction statements – A transaction statement is issued upon the first Pre-authorized Transaction Program operation.

8.3 Tax slips – Option to receive two slips per fund. Guarantee fees will appear annually. 9.2 Advisor access to the secure website – Consultation mode only.

3. Contact Us

3.1 Administrative Offices and Client Services

Client Services 1-800-320-4887 Business hours: Monday to Thursday, from 8:30 a.m. to 8:00 p.m. Friday from 8:30 a.m. to 5:00 p.m.

Fax Toll free: 1-866-559-6871

Email [email protected]

Website: ssq.ca

Administrative address: (where to send administrative documents)

Address: 2515, boulevard Laurier P.O. 10510, Stn Sainte-Foy Quebec QC G1V 0A3

3.2 Sales Offices

Montreal: Toll free: 1-888-292-8483 Fax: 1-866-606-2764

Quebec: Toll free: 1-888-292-8483 Fax: 1-866-559-6871

Ontario, Western Canada and the Maritimes:

Telephone: 1-888-429-2543 Fax: 416-928-8515

mailto:[email protected]

2016-03-24 Page 5

4. Products

4.1 SSQ Guaranteed Investment Funds (GIFs)

4.1.1 Key Characteristics Minimum contribution

$400 per contribution $40 per pre-authorized debit for the Pre-authorized Purchase Program (PAP): Weekly, every two weeks, monthly, every two months, quarterly, semi-annually, annually

(any day of the month).

Minimum redemptions and transfers

$100 per redemption or transfer (if the value of the contract subsequent to the transaction is less than $500, the redemption applies to all fund units, with the exception of RRIFs/LIFs/PRRIFs/LRIFs)

$100 per bank transfer for the Pre-authorized Redemption Program (PRP) with $5,000 minimum in SSQ GIFs in the contract (RRIF/LIF/TFSA/NRSP):

Weekly, every two weeks, monthly, every two months, quarterly, semi-annually, annually

(any day of the month). To ensure that planned redemptions can be made, a sufficient balance must be

maintained in each fund. Otherwise, the redemption requested cannot be made.

Transfers No transfer fees for transferring funds or managers from one to another, except for excessive short-term transactions.

For transfers of unit values within the same contract, the purchase dates of the units and the redemption fee tables, where applicable, are transferred in their entirety. The guarantee application dates and the guaranteed values are not affected by this transfer, as long as the guarantee features are not modified in any way.

Transfers of unit values from one contract to another are considered redemptions under the original contract and new contributions under the destination contract.

Requests including a plan transfer and a fund transfer will be processed over two days. First, the plan transfer will be completed, then the funds will be reorganized according to the desired allocation the next day.

Distribution frequency for income from funds

Please refer to the specific section in this regard in the Information Folder and Contract.

Sequence of unit redemptions

Because the sales charge option is included in the fund code, you must indicate the desired order of redemption by fund code. If you do not include this information in your redemption request, we will contact you for more information.

For units purchased with any sales charge options, units purchased first or considered to have been purchased first shall be redeemed first.

For units purchased with the Back-Load option, units entitled to an exemption of redemption fees at the time of redemption are always redeemed first. Units for which the fee schedule is terminated are redeemed second. Thereafter, the rest of the units are redeemed in the order most favourable to the client, i.e., by redeeming the units purchased first.

Income paid out For funds in which distribution is possible, and when your client has chosen to receive the fund’s distribution directly to his/her bank account, the operation will be considered to be a unit redemption. As a result, your client may have to pay back-load fees upon the redemption.

Application forms Other than TFSA: FRA641 TFSA: FRA1251

Note: Documents concerning SSQ GIFs are available on our secure website under the Documentation section (available funds, fund codes, details about each fund, management fees, returns, etc.).

2016-03-24 Page 6

4.1.2 List of available SSQ Guaranteed Investment Funds Please refer to the SSQ Guaranteed Investment Funds section under the Documentation section of our secure website.

4.1.3 A) SSQ Guarantees (other than SSQ Equity GIA and SSQ Guaranteed Income) In force since November 26, 2012

BASIC GUARANTEE

ENHANCED GUARANTEE

OPTIMAL GUARANTEE

First letter of fund code A

B

C

Maximum age for making initial contribution* RRSP and LIRA Other plans

71 years 90 years

71 years 75 years

71 years 85 years

Maximum age to make contributions* RRSP and LIRA Other plans

71 years 100 years

71 years 75 years

71 years 100 years

Guarantee upon maturity 75% 75% Guaranteed percentage depends on when the contributions were made:

Contribution date Guaranteed percentage

15 years or more before maturity 100%

At renewal 100%

At any other time 75% Guarantee application date upon first maturity date*

On the annuitant’s 100th birthday

Depends on annuitant's age at time of initial fund contribution:

Age at initial contribution Maturity date Up to age 55 At age 70

Starting at age 55 and 1 day 15 years after the first contribution

Guarantee application date upon second and third maturity date*

N/A 15 years after the renewal

Guarantee upon death 75% 100% 100%

Fees

None Between 0.00% and 1.00%

Between 0.05% and 1.75%

Guarantee reset None Upon maturity: - Upon request - Twice per calendar year (maximum age 85*) - The maturity date is recalculated as if it were a new purchase.

Upon death: - Automatic - Every 3 years up to age 80 - One last reset is made at age 80

2016-03-24 Page 7

BASIC GUARANTEE

ENHANCED GUARANTEE

OPTIMAL GUARANTEE

Redemption Redemptions have an effect on guaranteed contributions (based on market values at time of redemption).

Income from funds paid in cash is considered as redemption.

Changing the guarantee option

Permitted once per 12-month period, upon written request (using form FRA727). As a result of the change, a new guarantee will begin with an initial contribution

amount corresponding to the market value. The maximum age for making an initial contribution under the new guarantee must be respected.

Note: Changing the guarantee generates a new contract number that will be confirmed via an investment statement.

Internal transfers Internal transfers have no effect on the guarantee, for example, when changing between plans, insofar as the guarantee contains the same features.

New guarantee upon maturity period

The initial contribution considered for this guarantee corresponds to the unit market value on this date, including the guarantee payment made by SSQ, if applicable.

The guarantee upon death continues and is not affected by this new guarantee upon maturity period.

*The maximum age and the maturity dates for LIRAs, LIFs and RRIFs from Newfoundland and Labrador may be different. The Information Folder will provide details about all of these characteristics.

4.1.3 B) SSQ Guarantees (other than SSQ Equity GIA and SSQ Guaranteed Income) In force from July 18, 2004 to November 25, 2012

STANDARD GUARANTEE PREMIUM GUARANTEE First digit of fund code

3

4

Guarantee at maturity at age 65 (min. 10-year term)

75% of net contributions 100% of net contributions (75% for net contributions made over the past 10 years)

Guarantee upon death

100% of net contributions (75% at age 80 or over)

100% of net contributions PLUS 4% simple annual return (100% at age 80 or over) This % is not included in the guaranteed amounts presented on the income statements. It will be calculated upon death.

Fees Additional fees are applied to the daily market value of each fund. Fees included in the unit value of the funds. Guaranteed amounts are not affected.

Guarantee application date upon maturity

Established separately for each contract Established based on the date of the initial fund contribution Depends on annuitant's age at time of initial fund contribution: Age 55 or less: corresponds to the date of the annuitant's 65th birthday Over age 55: corresponds to the date of the initial contribution + 10 years

Resetting guaranteed value upon maturity

2 resets per calendar year, upon written request (using form FRA727). Resets do not affect the guaranteed value upon death. Maturity remains set at age 65 or, if less than 10 years remain before maturity, it is set at

10 years from the reset date.

2016-03-24 Page 8

Contribution limit Since November 26, 2012, no new contracts may be opened with the Standard or Premium guarantees. The contribution limit per contract for the Standard and Premium guarantees under the original version of the contract is $25,000 per calendar year.

Redemption Redemptions have an effect on guaranteed contributions (based on market values at time of redemption).

Income from funds paid in cash is considered as a redemption.


Permitted once per 12-month period, upon written request (using form FRA727) As a result of the change, a new guarantee will begin with an initial contribution amount

corresponding to the market value. Maturity remains set at age 65 or, if less than 10 years remain before maturity, then it shall be set at 10 years from the date the change is made.

Internal transfers Internal transfers have no effect on the guarantee, for example, when changing between

plans, insofar as the guarantee contains the same features.

New guarantee upon maturity period

Upon maturity of the guarantee, a new guarantee period begins, in accordance with the terms and conditions of the guarantee at enrolment on this date for a period of 10 years.

The initial contribution considered for this guarantee corresponds to the unit market value on this date, including the guarantee payment made by SSQ, if applicable.

The guarantee upon death continues and is not affected by this new guarantee upon maturity period.

Note: Documents that deal specifically with the SSQ GIF guarantees are available on our secure website under the "Documentation" section. Additional information may be found in the product's Information Folder.

2016-03-24 Page 9

4.1.4 Sales Charge Options and Commissions

Back-Load Sales Charge

Also referred to as Back-Load

No-Load Sales Charge Mode A

Also referred to as No-Load

Front-Load Sales Charge

Also referred to as Front-Load

No-Load Sales Charge Mode B

Also referred to as Charge-Back

Second digit of fund code 0 1 2

3 Commission SSQ Fiera Capital Money Market GIF (without commission)

High sales commission Trailer fee commission

payable the first month The trailer fee commission is

doubled when the Back-Load sales charge schedule is terminated (for guarantees purchased on or after November 26, 2012)

No sales commission

High sales commission payable the first month

Negotiable sales commission

High sales commission payable the first month

Interesting sales commission

High trailer fee commission payable the 25th month

Commission chargeback

None None None

For 24 months, prorated for months remaining (10% exemption for RRIFs/LIFs/PRRIFs/LRIFs)

Client fees (per contract)

Year 1: 6% of the MV Year 2: 6% of the MV Year 3: 5% of the MV Year 4: 4% of the MV Year 5: 3% of the MV Year 6: 2% of the MV Subsequent years: none

None Maximum 5% of contribution (Front-Load charge)

None

Exemption of client fees (per contract)

10% (or 20% for RRIFs/LIFs/PRRIFs/LRIFs) of the market value of units as at December 31st of the previous year, plus 10% (20% for RRIFs/LIFs/PRRIFs/LRIFs) of the market value of units purchased during the year

Calculated on an individual basis

Redemption requests for exempted amounts must be made before December 15th of each year

N/A N/A N/A

2016-03-24 Page 10

4.2 SSQ Guaranteed Investments

4.2.1 Guaranteed Interest Accounts (GIAs)

Standard GIA Laddered GIA Select GIA Description A GIA that guarantees capital

at 100% as well as a return identified in advance.

A group of 3, 5, 7 or 10 GIAs (the term determines the number of GIAs) with the same interest rate and which allows for the reinvestment of a portion of the amounts every year.

A GIA with an enhanced rate.

Options Redeemable* or non-redeemable

Simple (NRSP and TFSA only) or compound interest

Redeemable or non-redeemable


Redeemable* or nonredeemable


Duration (the term may not exceed the age limit to own, depending on the plan – See section 7.12)

From 1 to 120 months 3, 5, 7 or 10 years 1 year and more

Minimum contribution

$400 $5,000 $25,000

Upon maturity

Automatically reinvested for the term selected initially at a rate in effect on that date

Automatically reinvested for the total term selected initially at the rate of regular GIA in effect on that date

Automatically reinvested for the term selected initially at a rate in effect on that date

Application forms

Other than TFSA: FRA641 TFSA: FRA1251



Available plans All NRSP, RRSP, LIRA and TFSA All Rate guarantee Refer to the Rate Guarantee section in this Guide.

Assuris coverage $100,000 for registered GIAs and $100,000 for non-registered GIAs

Note: Specific documentation for each product is available on our secure website under the Documentation section. A daily interest account also exists and is used for contributions when a product's minimum contribution amount is not reached, or when SSQ is awaiting investment instructions. * Two options are available for income plans. See section 6.5 for more information.

4.2.2 High Yield Account This savings account offers a higher interest rate than a bank account. It is available for all individual plans offered by SSQ. To apply, fill out the “Application Form – Other than TFSA” (FRA641) or the “Application Form for TFSA” (FRA1251). A $400 minimum is required.

2016-03-24 Page 11

4.3 SSQ Equity GIA

4.3.1 Key Characteristics

Description Combination of GIA and SSQ GIF whose capital is guaranteed at 100% A minimum return is guaranteed and there are no maximums for potential returns A separate guarantee exists for the SSQ Equity GIA (refer to the specific guarantees for the

SSQ Equity GIA)

Options 40% SSQ GIF and 60% GIA 60% SSQ GIF and 40% GIA Compound interest on the GIA portion

Duration

10 years

Minimum contribution

$5,000

Maximum age Maximum age to make contributions or renew an SSQ Equity GIA is December 31 of the year the annuitant turns 61.

Redemption Redeemable (minimum redemption of $5,000) Market value adjustment fee Prorated redemption of units currently held in GIAs and SSQ GIFs

Eligible funds

See the documents available on our secure website.

Upon maturity In the absence of instructions received at least five days before the GIA reaches maturity, and if the age limit has not been reached, the GIA portion is automatically reinvested for a new 10-year period at the rate in effect on this date. In the absence of instructions, and if the age limit has been reached, the amounts will be transferred into a daily interest account.

Sales charge option

The only option available is the Back-Load sales charge option.

Application forms

Other than TFSA: FRA641 TFSA: FRA1251 Requires a separate application.

Available plans

NRSP, RRSP, LIRA and TFSA

Rate guarantee Refer to the Rate Guarantee section in this Guide.

Assuris coverage $100,000 for registered GIAs and $100,000 for non-registered GIAs

2016-03-24 Page 12

4.3.2 SSQ GIF Guarantees for SSQ Equity GIA

Guarantee upon maturity 100% of all contributions made to the fund in the contract for this guarantee.

Guarantee upon death 100% of all contributions made to the fund in the contract OR 75% of all contributions made to the fund in the contract for this guarantee if the

annuitant's death occurs at or after age 80

Fees Guarantee fees applied to the daily market value of each fund These fees are included in the unit value and do not affect the guaranteed amounts

Guarantee application date

Set at 10 years following each contribution.

Resetting guaranteed value upon maturity

Not permitted

Redemption Redemptions have a proportional effect on guaranteed values.


Not permitted

Internal transfers Internal transfers have no effect on the guarantee, for example, when changing between plans, insofar as the guarantee contains the same features.

New guarantee upon maturity period (original contract number is maintained)

Upon maturity of the guarantee, and if the age limit has not been reached, a new guarantee period begins in accordance with the terms and conditions of the guarantee at application on this date for a period of 10 years

The initial contribution considered for this guarantee corresponds to the unit market value on this date, including the guarantee payment made by SSQ, if applicable

The guarantee upon death continues and is not affected by this new guarantee upon maturity period

Note: Documents that deal specifically with the SSQ Fund guarantees are available on our secure website under the "Documentation"

section. Additional information can be found in the product's Information Folder.

2016-03-24 Page 13

4.4 SSQ Guaranteed Income (GI) N.B. The SSQ Guaranteed Income product is no longer available for new contracts as of March 4, 2013, and for new contributions as of May 3, 2013.

4.4.1 Primary Characteristics of GI 1, GI 2 and GI 2.1

Contribution No contribution permitted except for pre-authorized purchase programs implemented before February 14, 2013. However, the amounts may not be increased. They may only be decreased or cancelled. It is not possible to implement any new pre-authorized purchase programs since February 14, 2013.

Minimum redemptions and transfers

$100 per redemption or transfer (if the value of the contract subsequent to the transaction is less than $500, the redemption applies to all fund units, with the exception of RRIFs/LIFs/PRRIFs/LRIFs)

$100 per bank transfer for a Pre-authorized Redemption Program (PRP) (RRIF/LIF/PRRIF/LRIF/TFSA/NRSP):

Weekly, every two weeks, monthly, every two months, quarterly, semi-annually,

annually (any day of the month). To ensure that planned redemptions can be made, a sufficient balance must be

maintained in each fund. Otherwise, the redemption requested cannot be made. Transfers of funds eligible for the Guaranteed Minimum Withdrawal Benefit to SSQ Fiera

Capital Money Market GIF and SSQ OAM Treasury GIF are not permitted.

Transfers No transfer fees for transferring funds or managers from one to another, except for excessive short-term transactions.

For transfers of the value of units within the same contract, the purchase date of the units and the redemption fee tables, where applicable, are transferred in their entirety. The application dates of the guarantee and the guaranteed values are not affected by this transfer as long as the guarantee features are not modified in any way.

Sequence of unit redemptions

For units purchased with any sales charge option, units purchased first, or considered to have been purchased first shall be redeemed first.

For units purchased with the Back-Load option, units entitled to an exemption of redemption fees at the time of redemption are always redeemed first. Units whose fee schedule is terminated are redeemed second. Thereafter, the rest of the units are redeemed in the order most favourable to the client, i.e., by redeeming the units purchased first.

Because the sales charge option chosen is included in the fund code, you must indicate the desired order of redemption by fund code. If you do not include this information in your redemption request, we will contact you for more information.

Frequency of income distribution from funds

Please refer to the specific section in this regard in the Information Folder and Contract.

Available funds See our secure website for more information. Documentation for the SSQ Guaranteed Income product is available on our secure website under the Documentation section.

Note: Documentation for the SSQ Guaranteed Income product is available on our secure website under the Documentation section. Additional information may be found in the product's Information Folder.

2016-03-24 Page 14

4.4.2 Guarantees for the GI 1 and GI 2 Products N.B. The SSQ Guaranteed Income product is no longer available for new contracts as of March 4, 2013, and for new contributions as of May 3, 2013.

GI 1 GI 2 Guarantee upon maturity

75% of net contributions made as of the 100th birthday of the annuitant

75% of net contributions made as of the 120th birthday of the annuitant


• At least 100% of net contributions made. • The guaranteed amount may be increased by automatic resets every three years up to age 80. •

Guaranteed minimum withdrawal benefit (GMWB)

Guaranteed Withdrawal Balance (GWB): The total amount guaranteed to be available and which is paid in the form of annual withdrawals. It is used as a basis for calculating the amounts the investor can withdraw annually (GWA and LWA). It is equal to 100% of net contributions and may be increased by resets and bonuses, and decreased by withdrawals. Guaranteed Withdrawal Amount (GWA): The GMWB provides an income equal to a minimum of 100% of the initial capital investment, provided it is withdrawn over a minimum of 20 years. It is equal to 5% of the GWB at the time of the initial contribution and is recalculated every December 31st.

Lifetime Withdrawal Amount (LWA): After December 31st of the year during which the annuitant reaches age 64, a Lifetime Withdrawal Amount (LWA) is guaranteed for the annuitant’s lifetime for as long as the contract investment period has not terminated (100 years), provided that the total of annual withdrawals does not exceed the maximum permitted. The LWA is calculated at the time of the initial contribution if the annuitant was age 64 on December 31st preceding the initial contribution; otherwise, it is calculated on December 31st of the year the annuitant reaches age 64. It is recalculated every December 31st for the next calendar year. It is equal to 5% of the GWB.

Bonus An annual bonus equal to 5% of the bonus calculation base (BCB) increases the GWB and is granted for each year during which no withdrawals are made. If withdrawals are made before December 31 of the year during which the annuitant reaches age 64, we reserve the right to restrict the GWB bonus period to 15 years following the initial contribution (or transfer) to the funds eligible for the GMWB. Where applicable, bonuses are granted on December 31.

An annual bonus equal to 5% of the bonus calculation base (BCB) increases the GWB and is granted for each year during which no withdrawals are made. The BCB may be reduced following withdrawals. When applicable, bonuses are granted on December 31.

Resets The Guaranteed Value Upon Death and Guaranteed Withdrawal Balance are reset every three years (until the year the annuitant reaches age 80, and then one last time on the annuitant’s 80th birthday). This reset is made on the anniversary date of the initial contribution to funds subject to the Guaranteed Minimum Withdrawal Benefit (GMWB).

Redemption As long as they do not exceed the maximum amounts permitted, redemptions decrease the Guaranteed Withdrawal Balance (GWB) and have no impact on the GWA and LWA. If redemptions exceed the maximum amount permitted, the GWB may be decreased by an additional amount and the Guaranteed Withdrawal Amounts (GWA and LWA) may decrease.

Transfers Internal transfers permitted in the same contract have no impact on the guaranteed amounts. Unless the total amount is transferred to a new contract, transfers between contracts cancel the Guaranteed Minimum Withdrawal Benefits and are reset to zero.

2016-03-24 Page 15

GI 1 GI 2 Guarantee fees

Competitive fees vary depending on the fund. They are expressed as an annual percentage of the market value of the fund, calculated daily and paid quarterly by the redemption of units held in the contract.

SSQ Fiera Capital Money Market GIF and SSQ OAM Treasury GIF Competitive fees vary depending on the fund. They are expressed as an annual percentage of the market value of the fund, calculated daily and paid quarterly by the redemption of units held in the contract. Other available SSQ GIFs: Competitive fees vary depending on the fund. They are expressed as an annual percentage of the Guaranteed Withdrawal Balance (GWB), calculated daily and paid quarterly by the redemption of units in the contract.


2016-03-24 Page 16

4.4.3 Guarantees for the GI 2.1 Product N.B. The SSQ Guaranteed Income product is no longer available for new contracts as of March 4, 2013, and for new contributions as of May 3, 2013.

GI 2.1 Guarantee upon maturity

75% of net contributions made as of the 100th birthday of the annuitant.


• At least 100% of net contributions made. • The guaranteed amount may be increased by automatic resets every three years up to age 80.

EWA The Eligible Withdrawal Amount (EWA) may be withdrawn before the first LWA.

RWA The Residual Withdrawal Amount (RWA) may be withdrawn before the end of the calendar year

without exceeding the withdrawal amount permitted (EWA, LWA or minimum RRIF/LIF).

Guaranteed Minimum Withdrawal Benefit

A guaranteed income for life as of age 55 or later, as per investor’s preference. The annual Lifetime Withdrawal Amount (LWA) varies from 3% to 5% of the Guaranteed

Withdrawal Balance (GWB) based on the annuitant's age when the first LWA began. This percentage may be reset during automatic resets every three years depending on the age reached at that time.

Age of annuitant when the first LWA payment is made

Annual Lifetime Withdrawal Amount (LWA)

age 55 to 59 3.0% of the GWB age 60 to 64 3.5% of the GWB age 65 to 69 4.0% of the GWB age 70 to 74 4.25% of the GWB age 75 and over 5.0% of the GWB

Guaranteed amounts may be increased through automatic resets every three years and through

eligible 5% bonuses every year during which no withdrawal is made.

Bonus An annual bonus equal to 5% of the bonus calculation base (BCB) increases the GWB and is granted for each year during which no withdrawals are made. The BCB may be reduced following withdrawals. When applicable, bonuses are granted on December 31.

Resets The Guaranteed Withdrawal Balance is reset automatically when the first LWA is withdrawn. The Guaranteed Value upon Death and Guaranteed Withdrawal Balance are reset every three years (until the year the annuitant reaches age 80, and then one last time on the annuitant’s 80th birthday). This reset is made on the anniversary date of the initial contribution to funds subject to the Guaranteed Minimum Withdrawal Benefit (GMWB).

Redemption As long as they do not exceed the maximum amounts permitted, redemptions decrease the Guaranteed Withdrawal Balance (GWB) and have no impact on the LWA. If redemptions exceed the maximum amount permitted, the GWB may be decreased by an additional amount and the Life Withdrawal Amounts may decrease.

Transfers Internal transfers permitted in the same contract have no impact on the guaranteed amounts. Unless the total amount is transferred into a new contract, transfers between contracts cancel the Guaranteed Minimum Withdrawal Benefits and are reset to zero.

2016-03-24 Page 17

GI 2.1 Guarantee fees

SSQ Fiera Capital Money Market GIF and SSQ OAM Treasury GIF: Competitive management fees vary depending on the fund. They are expressed as an annual percentage of the market value of the fund, calculated daily and paid quarterly by the redemption of units held in the contract. Other available SSQ GIFs: Competitive fees vary depending on the fund. They are expressed as an annual percentage of the Guaranteed Withdrawal Balance (GWB), calculated daily and paid quarterly by the redemption of units in the contract.


4.5 SSQ Private Wealth Management Program

Description Agreement between SSQ and an investor (or a group of eligible investors) who hold(s) significant assets, with a unique investment approach.

Offers extremely competitive management fees. Additional services: a quarterly market commentary and an annual performance report are sent to clients by email.

Minimum amount $500,000 in segregated funds

Maximum amount None

Available plans All

Investments allowed Funds The funds permitted are the same as for the regular contract Sales charge option: No-Load – Mode A (Levelled) or No-Load – Mode

B (Charge Back) Guarantee options available: Basic, Enhanced and Optimal

GIA Standard GIA Laddered GIA

Investments not eligible SSQ Equity GIA Select GIA High Yield Account

Automatic rebalancing option

Upon request in the Additional Instructions section of the Application form At no charge Quarterly or monthly

Redemption Restrictions depending on investment vehicle.

Statement of Investments Quarterly

Commissions For applicable commission rates, please refer to the specific Remuneration Schedule that you will receive when your contract is implemented.

Application forms Application Form - Other than TFSA: FRA641

Application Form for TFSA: FRA1251

Please indicate private wealth management in the Additional Instructions section.

Group of eligible investors Complete an application form for each member of the group Complete the form FRA1164 to identify the members of the group

FundSERV The product cannot be purchased or sold on FundSERV.

Processing delay A processing time of 48 to 72 hours is needed to put in place this program and for certain kind of transaction.

2016-03-24 Page 18

5. Loans For all administrative rules and regulations concerning RRSP loans or investment loans offered by SSQ or our partner, B2B Bank, please consult the documentation on this subject available on our secure website under the Documentation section. For the list of forms to be used for RRSP loans and investment loans, please refer to the Forms section on our secure website.

6. Registered Plans

6.1 Application Forms Required A separate application form is required: for each registered plan for each legislation for spousal RRSPs (in addition to the annuitant's own RRSP application form)

6.2 Transfers between Financial Institutions 6.2.1 Transfers from Outside Sources (Transfers on Hold) How to proceed: Send your transfer form directly to the ceding financial institution. Send a copy of the transfer request to SSQ, along with a recent statement of the investment to transfer (so

that SSQ can do the follow-up described below), as well as the application form (or investment instructions for an existing contract).

SSQ’s follow-up: SSQ follows up on transfers that have been on hold with the ceding financial institution provided that the

transfer is in the amount of $5,000 or more. The follow-up is carried out four weeks after receipt of the transfer request (or 7 days after the date of

maturity when the transferred amount has a maturity date). 6.2.1.1 Welcome Bonus The Welcome Bonus represents the reimbursement of certain fees incurred and payable to the ceding financial institution by the investor on external transfers. These fees may include redemption fees for funds with Back-Load Sales Charges, transaction fees, market value adjustment for guaranteed deposits or other eligible sales charges.

The funds must be invested in SSQ GIFs with the Back-Load Sales Charge or No-Load Sales Charge – Mode B option. Investments in SSQ Guaranteed Investments (GIAs) and SSQ Equity GIAs are not eligible.

Fees incurred on transfers will be reimbursed to the investor from the commission earned on the transfer. This deduction from the commission affects the advisor’s and the firm’s commission in the same proportion as the commission payments. The amount of the Welcome Bonus may not exceed the total amount of fees

2016-03-24 Page 19

charged by the ceding financial institution and may not exceed the gross sales commission for the transaction.

Reimbursement is in the form of SSQ GIF units deposited in the investor's SSQ account using the same investment instructions as for the transferred amount.

To be eligible, a minimum investment of $25,000 is required. To take advantage of the Welcome Bonus, transactions may not be made through FundSERV.

SSQ will not contact the ceding financial institution to obtain supporting documents confirming the amount of transfer fees incurred.

You must send the following to SSQ:

The Welcome Bonus (FRA1631) form. A supporting document issued by the ceding company indicating the fee amount charged. The form and the supporting document must be received by SSQ before the sums are deposited and

the fees are reimbursed. If the supporting document from the ceding institution is not received by SSQ at the same time as the transferred amount, only the approximate amount reimbursed will be indicated on the form (FRA1631).

Once the transaction is made, SSQ will not make any corrections to the reimbursed amount.

6.2.2 Transfers to a Financial Institution Other than SSQ When the advisor assigned to a file is not the one requesting the transfer to a financial institution outside SSQ: SSQ informs the advisor when the transfer request is received. The advisor has a maximum period of 14 calendar days before going ahead with the transfer.

6.3 Tax Deductions on Withdrawals - Registered Plan

Amount exceeding the

minimum

Rate – Residents of provinces other

than Quebec

Rate – Quebec residents

Federal Quebec Total

$5,000 and less 10% 5% 16% 21% $5,001 to $15,000 20% 10% 16% 26% More than $15,000 30% 15% 16% 31%

6.4 RRSP Contribution Deadlines and Limits Please refer to the guide updated every year, which can be found in the Documentation section (under the Other subsection) of our secure website.

6.5 Features of RRIFs/LIFs/PRRIFs/LRIFs Minimum payment In the event that we do not receive instructions regarding the Pre-authorized Redemption Program, the established default payment will be the minimum payment amount. Furthermore, the payment will be made by direct deposit to the client's bank account on December 1 of each year. We will therefore need to obtain a cheque specimen in the client's name. If we do not have payment instructions we will contact you to get them.

2016-03-24 Page 20

If we are unable to reach you, we will withdraw the units without fees (exempted and off schedule) first, followed by the order of funds listed on the original request. This automatic payment can be changed by sending us new instructions in writing at least 5 business days prior to the transaction date. Features of the SSQ Guaranteed Income product in RRIFs/LIFs/PRRIFs/LRIFs If the client selects payment of the GWA, LWA or EWA, but the minimum annual withdrawal amount in a given year is higher than the GWA, LWA or EWA payment, the following applies: the choice of GWA, LWA or EWA will stay as scheduled but the mandatory minimum withdrawal will be paid at the frequency stipulated. The following year, if the scheduled GWA, LWA or EWA is higher than the mandatory minimum, the GWA, LWA or EWA already planned will be paid as scheduled. Non-redeemable GIAs It is possible to have non-redeemable GIAs in a portfolio that take advantage of higher interest rates, but these GIAs cannot be redeemed (pre-authorized or lump-sum redemptions). Features of redeemable GIAs with regard to RRIFs/LIFs/PRRIFs/LRIFs Redeemable GIA Option 1: The redeemable GIA Option 1 permits cash redemptions totalling up to 20% of the market value of the

redeemable GIAs held in the contract as at the preceding December 31 without any redemption fees. Additional redemptions may be made but redemption fees (adjustment to the market value) will apply,

unless the GIA has come to term. The interest rates applied to these GIAs are usually higher than those for Option 2. Redeemable GIA Option 2: Redeemable GIA Option 2 allows for scheduled periodic cash redemptions for an annual total of more than

20% of the market value of the redeemable GIAs held in the contract as at the preceding December 31 without any redemption fees.

Additional unplanned lump-sum redemptions may be made, but redemption fees (adjustment to the market value) will apply, unless the GIA has come to term.

The interest rates applied to these GIAs are usually lower than those for Option 1. Withdrawal options Minimum withdrawals: Minimum withdrawal RRIFs/LIFs/PRRIFs/LRIFs allow you to withdraw only the

minimum amount required by law. Level income (RRIF only)*: You can spread your total income over a fixed period of time. The withdrawal

amount is therefore divided equally over the desired number of years. Fixed income: The fixed income RRIFs/LIFs/PRRIFs/LRIFs provide income stability. The member determines

the amount of the annuity (higher than the minimum annual amount). The LIF payments are subject to the maximum amount permitted under the law;

Maximum withdrawal amounts (LIF/PRRIF/LRIF only): Allow you to withdraw the maximum amount of income possible to meet current financial needs. The client may withdraw the maximum amount permitted under the law.

* To ask for level income, check the « Other » box in section 8C of the application form and indicate the desired period of time.

2016-03-24 Page 21

6.6 Particularity – Withdrawals under the HBP Subject to the 90-day hold rule, in the case of withdrawals under the Home Buyer’s Plan (HBP), the transaction will be processed 5 business days before the date entered as the "Date withdrawal required" on the T1036 form. If the request is received fewer than five business days before the date entered as the “Date withdrawal required” on the T1036 form, the request will be processed on the same day if it is received before 2 p.m. (EST), and on the next business day if it is received after 2 p.m. (EST).

6.7 Conversion of Plan A plan conversion form (FRA1525) must be used for all conversions from RRSP/LIRA to a RRIF/LIF/PRRIF/LRIF when the client remains under the same product. Clients who wish to take advantage of this conversion to change products must send in an application form. Please note that contracts converted to RRIFs/LIFs will lose their performance records. Examples of scenarios and forms to use depending on the desired results:

Conversion of an RRSP/LIRA to a RRIF/LIF/PRRIF/LRIF Form to use

Regular product to regular product GI 1 to GI 1 GI 2 to GI 2 GI 2.1 to GI 2.1

Plan Conversion (FRA1525)

GI 1 to GI 2.1 GI 2 to GI 2.1

Plan Conversion (FRA1525) AND Transfer of the GI 1 and GI 2 Products Toward the GI 2.1 Product (FRA1515)

7. Transactions SSQ may, at its sole discretion, refuse or suspend any transaction request if it deems an operation to be exceptional or abusive. In addition, to ensure that transactions are processed quickly and efficiently, it is important to properly identify the contract or the client concerned (provide a contract number if one exists, the client’s full name, date of birth and address).

7.1 Deadlines and Processing Times Except under certain circumstances, transaction requests are processed as follows: All transaction requests received by SSQ before 2 p.m. (EST) on valuation day are established at the unit

value in effect that day. However, SSQ reserves the right for any requests received after 2 p.m. (EST) on valuation day or non-

valuation day, to apply the unit value established on the valuation day following the actual day of receipt of the request.

When requests are not related to the valuation day, maximum processing times are as follows: Change of beneficiary: 5 business days Transfer form sent to a ceding financial institution: the following business day

2016-03-24 Page 22

Written reply to an information request: 5 business days Creation, modification or cancellation of an Pre-authorized transaction program (PTP): 5 business days or

maximum 5 days before the date of the PTP Purchase of an annuity: 5 business days

7.2 Missing Information Some situations may require using automated applications for the forms when information is missing or incomplete. SSQ reserves the right to use these applications by default. When signatures, documents or other information required for the completion of a transaction is missing or incomplete, and when no automated operation can be applied: A call will be made to inform you that information is missing The transaction will be made only when all missing information is received, in accordance with the

previously mentioned deadlines

7.3 Payment of Purchases If SSQ cannot cash the cheque or other negotiable bill of exchange: The purchase is cancelled Units involved in the transaction are redeemed If the redemption value is lower than the purchase value, the member shall owe the difference to the fund In all cases, SSQ invoices the member for fees (refer to the Fees section for more details about these fees) For pre-authorized purchase programs, unless indicated otherwise, the transaction will not be repeated

7.4 Corrections If you wish to correct a transaction* (one that has not resulted from an error made by SSQ): A release from obligation (letter) will be required before going ahead with the correction This letter must specify the correction to be made, the name and contract concerned, the name of the

advisor and the general agent It must also state that a person authorized to indemnify is fully committed to assuming any fees that may be

incurred by the correction The letter must bear the signature of this authorized person * Subject to approval by SSQ. Administrative fees may be charged at a rate agreed upon with the advisor.

7.5 Cheque Specimen To ensure that the bank account linked to a transaction belongs to the right person and that the contact information provided is correct, one of the following documents is necessary: Personalized cheque specimen in the client's name Copy of a void cheque taken from the client's financial institution's secure website confirming the client's

bank information

2016-03-24 Page 23

Non-personalized cheque specimen with the name written by hand + the direct deposit section completed and signed by the client (either using the Direct Deposit form (FRA518) or the Banking Information and Authorization section on our main forms)

Non-personalized cheque specimen with the name written by hand + client's signature on the same sheet Copy of a bank statement where the client's name and account number are visible Proof of the account in the name of the client provided by the financial institution 7.6 Fees Administrative fees for the following transactions:

Type of fee Amount Transfer to another financial institution $35 Redemption as part of the LLP or HBP program $35 Cancellation of a purchase in the case of non-sufficient funds or any payment not honoured

$35

Inactive contract $35 Unusual work requiring significant additional effort Based on a rate agreed to by

the advisor

7.7 Required Signatures Signatures that are required based on the type of transaction:

Transactions Required Signatures

Investor Advisor Investor or advisor

Purchase of a subsequent product in an existing contract X Welcome bonus X X Change of address X Change of beneficiary X Change of Advisor X Change of investment vehicle within the same contract (transfer between funds, transfer from GIA to funds or vice-versa, pooling investments, etc.)

X

Change of product X Request for Interest Rate Guarantee X Loan application X X Implementation of a pre-authorized transaction program X Change to a pre-authorized transaction program X Guarantee option change X Setting up a new contract X X Partial or total redemption (issued directly to client) X Partial or total redemption (external transfer) X Guarantee reset X Reset or change the sales charge option X X GIA renewal X Special event transaction (death, divorce, bankruptcy) X Transaction for which a signed form (HBP, LLP, withdrawal of excess contributions, etc.) is required by a government agency X

2016-03-24 Page 24

7.8 Maximum Age to Subscribe, Make Contributions and Own by Plan and Province (Other than SSQ Equity GIA)

Maximum Age to Subscribe and Make Contributions

(effective November 9, 2015) BASIC GUARANTEE ENHANCED

GUARANTEE OPTIMAL

GUARANTEE Age to subscribe* NRSP - TFSA - RRIF - LIF - PRRIF - LRIF 90 years 75 years 85 years RRSP - LIRA 71 years 71 years 71 years LIRA - LIF Newfoundland and Labrador 70 years 65 years 65 years Age to make contributions* NRSP - TFSA - RRIF - LIF - PRRIF - LRIF 100 years 75 years 100 years RRSP - LIRA 71 years 71 years 71 years LIRA - LIF Newfoundland and Labrador 80 years 75 years 80 years Maximum age to own* NRSP - TFSA - RRIF - LIF - PRRIF - LRIF 100 years 100 years 100 years RRSP - LIRA 71 years 71 years 71 years LIRA - LIF Newfoundland and Labrador 80 years 80 years 80 years

* Until the day the annuitant reaches the specified age. According to legislation in force on the date this document is printed. For GIAs, the chosen term may not exceed the maximum age to own. For the SSQ Equity GIA (NRSP, RRSP, LIRA and TFSA), the maximum age to make contributions or renew is December 31 of the year the annuitant reaches age 61. 7.9 Available Forms It is very important to use the most recent version of the forms available on our secure website under the Forms section. In general, it is not necessary to send us the original transaction request already sent in by fax. The original documents we must receive are the Application form and the Change of Beneficiary form. If you send us the original of a document that you already submitted by fax, we would appreciate if you would indicate somewhere on this document that it has already been sent by fax. This will limit the risk of us making this transaction twice. Available Forms:

Form name Form number

Electronic version only

Membership Application Form for Annuity Payment FRA1271 X Application Form – Other than TFSA FRA641 Application Form for TFSA FRA1251 Declaration of Marital Status (death settlement) FRA917 X Transfer Authorization for Non-Registered Accounts FRA1457 X Welcome Bonus FRA1631 X Contribution Slip FRA1040 X Change of Address FRA1450 X Change of Beneficiary – SSQ Guaranteed Income FRA697-RG X Plan Conversion FRA1525 X Declaration of Transmission (Movable Property) FRA1006 X Request for Interest Rate Guarantee FRA1014 X SSQ Guaranteed Investment Funds (GIF) Guarantee Option Change FRA1175 X Request for Redemption or Internal Transfer FRA1330 X Death Settlement Claim Form FRA682 SSQ GIF Guarantee Reset FRA727 X

2016-03-24 Page 25

Form name Form number

Electronic version only

Request to Reset the Sales Charge Schedule and/ or Change the Sales Charge Option FRA1424 X

Direct Deposit FRA518 Locked-In Agreement (SSQ transferee) FRA1190 X Annuity Settlement Option FRA1744 X Estate Planning and Change of Beneficiary FRA1781 X Power of Attorney FRA1519 X Waiver of Pre-Retirement Death Benefit FRA1232 X Spousal Waiver of Joint and Survivor Pension FRA1147 X SSQ Private Wealth Management FRA1164 X Pre-authorized Transaction Program – Regular Contract FRA1394 X Pre-authorized Transaction Program – GI Contract FRA1239 X Direct Transfer FRA728 Transfer of the GI 1 and GI 2 Products to GI 2.1 FRA1515 X Verification of the Existence (identity) of Corporations or Other Entities FRA1235 X

Verification of Third Parties and Politically Exposed Foreign Persons (PEFPs) FRA1234 X

7.10 Benefit Upon Death of Annuitant The member can choose to designate either a revocable or irrevocable beneficiary. If the contract includes an irrevocable beneficiary: The beneficiary must provide consent for any future changes to the beneficiary designation. The beneficiary must give consent for any partial or total withdrawal from the contract that exceed the

minimum withdrawal amount required by law. If a minor child is designated as an irrevocable beneficiary, that beneficiary designation cannot be changed

until the child reaches the age of majority and is able to give his/her legal consent by signing the appropriate form.

Your client may request that the death benefit be paid to their beneficiaries as an annuity. This option is particularly recommended in cases where beneficiaries are minors, or your client wishes to provide a regular income for his or her beneficiaries for either a set period or their entire lives. For you client to select this option, you must fill out the "Annuity Settlement Option" form (FRA1744).

7.11 Documents Required for Settlement of Death Benefits If the value of a settlement is $50,000 or less, and there has been no change in beneficiary in the past 6 months nor change in legal status (e.g., divorce), the following information and documents must be provided: Name and address of the estate executor (liquidator in Quebec) A copy of the funeral announcement from the funeral home, or other recognized proof of death The settlement will be made within 5 business days of receipt of this information.

If the value of the settlement exceeds $50,000, all of the following documents are required: Death certificate issued by the appropriate authorities Death Settlement Claim form

2016-03-24 Page 26

Declaration of transmission(movable property) (if applicable) Will (notarized or duly certified) or marriage certificate with testamentary provision (if applicable) Two requests to search for a will (Quebec only) Beneficiary's birth certificate if beneficiary is a minor The settlement will be processed within 4 to 6 weeks of receipt of all the information. * SSQ reserves the right to require additional documents or information. As mentioned in the Information Folder, as soon as SSQ is informed of the client’s death, the investments are transferred in a DIA.

7.12 Rate Guarantees

Source of investment amounts Number of days guaranteed (calendar days)

All GIAs and annuities (except Select GIA) Select GIA

Amounts transferred internally (registered or non-registered)

Renewals 20 days before GIA reaches maturity

5 days before GIA reaches maturity

Combined at maturity

45 days before maturity of the last GIA concerned

10 days before maturity of the last GIA concerned

Amounts transferred from sources outside SSQ

Registered amounts

45 days between the date of the rate guarantee request to the date amounts are received

30 days between the date of the rate guarantee request and the date amounts are received

Non-registered amounts

45 days between the date of the rate guarantee request to the date amounts are received, WITH PROOF of investment 10 days between the rate guarantee request and the time the amounts are received, WITHOUT PROOF of investment

5 days between the date of the rate guarantee request to the date amounts are received

Note 1: SSQ can guarantee a rate for a combination of internal and external amounts invested in a daily interest account awaiting transfer, as well as the internal amounts, and the deposit from external sources will benefit from the rate guarantee. Note 2: The rate granted is always the best of either the guaranteed rate or the rate applicable at the time the amounts are received. Note 3: If the funds are received after the rate guarantee period, the rate in effect on the date the funds are received shall apply. How to request a rate guarantee: Complete the “Request for Interest Rate Guarantee” form (FRA1014) and send it to SSQ by mail or fax. Faxes will be accepted until midnight. Otherwise, we will guarantee the rate in effect on the following

business day.

2016-03-24 Page 27

SSQ automatically assigns a rate guarantee on the date it receives a direct transfer application for registered plans.

Furthermore, quotations received through our Quotation Calculator tool automatically benefit from a rate guarantee.

For requests received by telephone, a written confirmation with all the required documents as well as the advisor’s signature must be sent to SSQ offices within 10 days of the rate guarantee date.

7.13 Commissions Commission rates: Please refer to your Remuneration Schedule. Frequency of commission payments: Sales commissions are payable weekly Trailer fee commissions are payable every month for the previous month

Commission reports: Commission reports are available on our secure website for amounts not processed by FundSERV.

7.14 Resets and Changes in Sales Charge Options

To From BL NI FL CB

Back-Load Sales Charge BL

Permitted (1) Except: for the portion where

charges are exempt for the portion where

the schedule is terminated

when converting RRSP/LIRA to RRIF/LIF/PRRIF/LRIF in the GI product

Permitted (1) Except: for the portion where

charges are exempt in the GI product

for the portion where the schedule is terminated

when converting RRSP/LIRA to RRIF/LIF/PRRIF/LRIF in the GI product

N/A Permitted (1) Except: for the portion where

charges are exempt for the portion where the

schedule is terminated when converting

RRSP/LIRA to RRIF/LIF/PRRIF/LRIF in the GI product

No-Load Sales Charge — Mode A NI

Permitted (1) N/A N/A Permitted (1)

Front-Load Sales Charge FL

Permitted (1) N/A N/A Permitted (1)

No-Load Sales Charge — Mode B CB

Not permitted, except for product or plan changes (1)

N/A

N/A Not permitted, except for product or plan changes (1)

These transactions have impacts on the guarantees. Amounts transferred are considered as a redemption under the original contract and as a new contribution under the destination contract. For more information, please refer to the Information Folder for the products you are interested in. (1) Form FRA1424 is mandatory.

2016-03-24 Page 28

7.15 Transfer of the exemption of back-load fees to the No-load sales charge option – Mode A

You may request this transfer for all your clients at any time during the year. However, the following contracts will automatically be rejected :

RRIF/LIF and other related plans At the end of the year, we will be able to transfer the exemption for RRIFs/LIFs for all your clients as long as you make sure that they are not in one of the following situations, which could penalize them :

Contracts with a Pre-authorized Redemption Program (PRP) in operation Contracts in which income is paid out

This type of transfer should also not be carried out during the course of the year for clients holding non-registered and TFSA contracts in which a Pre-authorized Redemption Program is in operation and if the redeemed funds are back-load sales charge option funds, because fees could apply to these periodic redemptions. This type of transfer should also not be carried out at any time for clients who chose to receive income distributed each month in their bank account for funds that have been purchased with the back-load sales charge option (certains funds only and non-registered contracts or TFSAs), because the distribution will be considered to be a unit redemption and thus be subject to redemption fees. The situations mentioned above are under your responsability for all transfers of exemption requests. You must therefore confirm their effects, since the transfer may mean back-load fees for your client. 7.16 Pre-authorized Redemption Program (PRP)

Periodic redemptions may be made from redeemable GIAs, SSQ GIAs or from both at once. For the payment of minimum or maximum income from a GWA, LWA or EWA from a RRIF/LIF/PRRIF/LRIF,

the allocation must be calculated as a % for each of the funds or GIAs included in the PRP. For the redemption PRP, other than for the payments mentioned in the previous point, the allocation must

be determined as a $ amount. When the withdrawal product of a PRP is a redeemable guaranteed income account (GIA) the redemption

will be made from this GIA until the remaining balance is at zero. If the GIA is renewed, unless you indicate otherwise, this GIA will continue to be used for the PRP withdrawals until the balance is zero.

Note: The amounts must stay in the participant's contract for at least 10 business days before a withdrawal or transfer can be made. There is an exception for PRPs of $100 or less where this rule does not apply. 7.17 Pre-authorized Transfer Program (PTP)

To implement a PTP, an order of priority of investment must be determined from among the chosen destination funds. This priority of investment will be used when the source fund reaches a balance of less than the amount requested. If this situation arises and no order of priority has been confirmed, we will withdraw the units without fees (exempted and off schedule) first, followed by the order of funds listed on the original application. In the event that we do not receive instructions regarding the Pre-authorized Redemption Program, the established default payment will be the minimum payment amount. Furthermore, the payment will be made by

2016-03-24 Page 29

direct deposit to the client's bank account on December 1 of each year. We must therefore obtain a cheque specimen in the client's name. If the payment instructions have not been specified, we will contact you to obtain them. If we are unable to reach you, we will withdraw the units without fees (exempted and off schedule) first, followed by the order of funds listed on the original application. This automatic payment can be changed by sending us new instructions in writing at least 5 business days prior to the transaction date. Only fund-to-fund and high-yield daily interest account–to-fund PTPs are permitted.

7.18 Estate Planning Your client has the option to designate individuals to take over following the death of a party to the contract, allowing the contract to remain in force (contingent investor (subrogated in Quebec), successor annuitant). Clients also have the option of naming not only the beneficiaries, but also the contingent beneficiaries who will become beneficiaries in the event that the all named beneficiaries are deceased when the death benefit becomes payable. To do so, you must fill out the "Estate Planning" form. Different rules may apply depending on the plan selected. Certain options are available only for non-registered plans. For more information, please refer to the Information Folder.

8. Document Production 8.1 Statements of Transaction Investors will receive a written confirmation each time they make a purchase or redemption of SSQ GIF or GIA units, as well as upon transfer of the unit value of SSQ GIFs or renewal of a GIA. You can view the daily transaction statements issued to your client on our secure website. For participation in the Pre-authorized Transaction Program (PTP), a transaction statement is issued when the first operation is made. You will not receive confirmation of any SSQ GIF unit purchases from reinvested distribution of income from funds.

8.2 Statements of Investment Every six months (as at June 30 and December 31), SSQ sends its clients a Statement of Investment which provides information about the investments they hold. You can view your clients' investment statements on our secure website. This statement includes, among other things: the value of investments as at the date of the statement the amounts of transactions made during the statement period the allocation of investments as at the date of the statement

2016-03-24 Page 30

the returns on investments as at the date of the statement the type of guarantee in the contract the name of the beneficiary in the event of death in the contract

8.3 Tax Slips The following tax slips are sent directly to investors:

Type of slip Deadline

RRSP contribution slip First 60 days of the year: 1 slip for the period for the Pre-authorized Transaction Program (PTP)

Month of January: 1 receipt for the period for lump-sum contributions

Month of February: 1 daily receipt for lump-sum contributions

Rest of the year: 1 receipt for the period for PTPs and lump-sum contributions

T3/RL-16 slip March 31 T5/RL-3 slip February 28 T4A/RL-2 slip February 28 T4RSP/RL-2 slip February 28 T4RIF/RL-2 slip February 28 NR4 March 31

In certain cases, the client may receive two tax slips for the same fund due to the new management system for investment products.

8.4 Confirmation of Maximum and Minimum Withdrawals from RRIF/LIF/PRRIF/LRIF Accounts

At the beginning of each year, investors receive a letter confirming the minimum and maximum withdrawal amounts (if applicable) for their RRIF/LIF/PRRIF/LRIF accounts. You will receive a copy of this confirmation letter. 8.5 List of GIAs to Renew A list of clients whose GIAs are coming up for renewal will be posted on our secure website once a month (at least one month in advance). For example, the list of GIAs coming up for renewal between October 1 and 31 will be posted on our secure website at the end of August.

2016-03-24 Page 31

9. Information Available on our Secure Website

9.1 Client Access Client access in consultation mode may be granted by the advisor. This decision applies to all members of an advisor. Investors may have access to: Status of the investor's portfolio Statement of transactions SSQ GIF returns GIA interest rates Records stored electronically (semi-annual statements, tax receipts) When you give your clients access to our secure website (consultation and/or transaction mode), they can register directly by clicking on Investor under the Login section of ssq.ca.

9.2 Advisor Access The following information is available: General information (news, fund returns, unit values, GIA interest rates, documentation, forms) Consultation mode access to your clients' files (including the statements sent to your clients) Information about commissions (summary report, cumulative report, detailed report, remuneration

schedule, bank information) Tools (quote calculator, retirement simulator)

BRA1423A (2016-03)

QUEBEC SALES OFFICETel.: 1-888-292-8483

ONTARIO, WESTERN AND ATLANTIC CANADA SALES OFFICETel.: 1-888-429-2543

CLIENT SERVICES2515, Laurier BoulevardP.O. Box 10510, stn Sainte-FoyQuebec QC G1V 0A3

Tel.: 1-800-320-4887Fax: 1-866-559-6871

[email protected]

ssq.ca

Advisor’s document

Investment

ADMINISTRATIVE GUIDE FOR ADVISORS Individual Client Sector