Municipal Investment PlanMunicipal Investment Plan

OverviewOverviewA group RRSP / Investment Program A group RRSP / Investment Program negotiated by the MFAnegotiated by the MFA

All municipal employees, elected officials All municipal employees, elected officials and their spouses throughout BC are and their spouses throughout BC are eligibleeligible

Convenient contributions through Convenient contributions through automatic payroll deductions for employeesautomatic payroll deductions for employees

Benefits of Benefits of

The Municipal Investment PlanThe Municipal Investment Plan

Benefits of Benefits of

The Municipal Investment PlanThe Municipal Investment Plan

Discounted Fees - Significant savings off Discounted Fees - Significant savings off management fees with the savings to increase as management fees with the savings to increase as the program growsthe program grows

Management fees are fees deducted by the Mutual Management fees are fees deducted by the Mutual Fund / Insurance companies prior to showing their Fund / Insurance companies prior to showing their returns for the yearreturns for the year

Selection of quality mutual fundsSelection of quality mutual funds

No front end or back end loadsNo front end or back end loads

Immediate tax relief for employeesImmediate tax relief for employees

How did the MFA become How did the MFA become involved? involved?

Since 1989 the MFA has partnered with Since 1989 the MFA has partnered with PH&N to offer Regional Districts and PH&N to offer Regional Districts and Municipalities throughout BC Pooled Municipalities throughout BC Pooled Investment FundsInvestment Funds

Seeing the success of the MFA Pooled Seeing the success of the MFA Pooled Investments an Investment Firm approached Investments an Investment Firm approached the MFA to offer a similar program for the MFA to offer a similar program for municipal employees and elected officialsmunicipal employees and elected officials

A questionnaire was sent out to A questionnaire was sent out to Municipalities and Regional Districts to Municipalities and Regional Districts to see if they were interestedsee if they were interested

The MFA received an overwhelming The MFA received an overwhelming response and started to investigate the response and started to investigate the various providers on behalf of its various providers on behalf of its membersmembers

Why the Interest?Why the Interest?

The Investment Firms can see the The Investment Firms can see the potential of grouping BC’s approximately potential of grouping BC’s approximately 35,000 municipal employees creating a 35,000 municipal employees creating a very large volume salevery large volume sale

By decreasing their fees the companies By decreasing their fees the companies hope to create a win / win situation for hope to create a win / win situation for municipal employees and elected officialsmunicipal employees and elected officials

Benefits for MunicipalitiesBenefits for MunicipalitiesLarge corporations have been offering their Large corporations have been offering their employees comparable investment plans as an employees comparable investment plans as an added incentive in their employee’s benefit added incentive in their employee’s benefit packages. We feel that the Municipal packages. We feel that the Municipal Investment Plan will be able to assist Investment Plan will be able to assist municipalities in the attracting and retaining of municipalities in the attracting and retaining of exemplary employeesexemplary employees

Using the combined bargaining power of BC’s Using the combined bargaining power of BC’s Municipalities and Regional Districts we were Municipalities and Regional Districts we were able to negotiate fee discounts that would not be able to negotiate fee discounts that would not be available to many municipalities working on their available to many municipalities working on their ownown

These firms are already offering similar programs These firms are already offering similar programs for their employeesfor their employees

National:National:IBMIBMNortelNortelBombardierBombardierMagnaMagnaHondaHondaProctor & GambleProctor & GambleRoyal BankRoyal BankNHLNHLIncoIncoAliantAliantFedexFedexAlcanAlcan

Western Canada:Western Canada:Duke EnergyDuke EnergyPlacer DomePlacer DomeSimon Fraser UniversitySimon Fraser UniversityICBCICBCTeck ComincoTeck ComincoCoast Capital SavingsCoast Capital SavingsSyncrudeSyncrudeUniversity of University of SaskatchewanSaskatchewanShell CanadaShell CanadaLouisiana PacificLouisiana PacificFinning InternationalFinning InternationalHuskyHuskyChevronTexacoChevronTexaco

The MFA’s RoleThe MFA’s Role

The MFA’s primary role will be to provide the The MFA’s primary role will be to provide the centralized feed of payroll deductions, assist with the centralized feed of payroll deductions, assist with the initial implementation and the ongoing promotion of initial implementation and the ongoing promotion of the program, and the policing of the service provider the program, and the policing of the service provider and fund selectionand fund selection

FeesFees

The MFA will collect 3/20 of 1%. As with our The MFA will collect 3/20 of 1%. As with our other programs any profits will be given back other programs any profits will be given back to the customer as a benefit.to the customer as a benefit.

MFA staff are salaried and receive no MFA staff are salaried and receive no commission or bonuses from the programcommission or bonuses from the program

Three Individual PlansThree Individual Plans

– BC Municipal Employees – May only contribute if BC Municipal Employees – May only contribute if their municipality Regional District decides to their municipality Regional District decides to offer the programoffer the program

– Elected Officials – May contribute directly to the Elected Officials – May contribute directly to the MFA or if their area decides to offer the program MFA or if their area decides to offer the program they may contribute through payroll deductionthey may contribute through payroll deduction

– Eligible Spouses / Partners – May contribute Eligible Spouses / Partners – May contribute directly to the MFA if their spouse / partner is a directly to the MFA if their spouse / partner is a member of the programmember of the program

Bottom Line Shows the Decreased Investment Bottom Line Shows the Decreased Investment Management Fees (IMF)Management Fees (IMF)

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Average Investment ReturnsAverage Investment Returns Retail MFA Retail MFA

Plan Plan

Perigee Global Bond 2.37% 3.00%Perigee Global Bond 2.37% 3.00%

TDAM Cdn Bond Index 14.92% 15.77%TDAM Cdn Bond Index 14.92% 15.77%

CI Asian DynastyCI Asian Dynasty 6.65% 6.65% 7.50% 7.50%

Prices based on December 31, 2002 year to date Prices based on December 31, 2002 year to date results results

Individual ChoiceIndividual Choice

Each municipality / regional Each municipality / regional district will customize the district will customize the program to fit their needs.program to fit their needs.

- - Elected officials payroll deductionElected officials payroll deduction- Plan participation post employmentPlan participation post employment- Payroll deduction changes by employeesPayroll deduction changes by employees

Payroll / Human Resources RollPayroll / Human Resources Roll

Initially a payroll deduction form will be handed into Initially a payroll deduction form will be handed into payroll with the application being sent to the MFAs office. payroll with the application being sent to the MFAs office. An email, fax or phone call will be sent / received to An email, fax or phone call will be sent / received to confirm payroll deduction and new employees to the confirm payroll deduction and new employees to the program bi-weeklyprogram bi-weekly

The department will collect the money by payroll The department will collect the money by payroll deduction from the employee and remit it to the MFA deduction from the employee and remit it to the MFA electronically or be EFT (any charges involved with this electronically or be EFT (any charges involved with this process will be paid by the MFA)process will be paid by the MFA)

All investment advice and education is to be provided by All investment advice and education is to be provided by the service provider not by the Payroll or Human the service provider not by the Payroll or Human Resource departmentsResource departments

If your municipality is interested in this program If your municipality is interested in this program have them contact Marguerite by fax at have them contact Marguerite by fax at

1-250-384-3000, email at 1-250-384-3000, email at marguerite@mfa.bc.camarguerite@mfa.bc.ca or by phone at 250-380-0432 #226 for further or by phone at 250-380-0432 #226 for further information or to set up a meeting in your area.information or to set up a meeting in your area.

Municipal Investment Plan Municipal Investment Plan Employee EnrollmentEmployee EnrollmentIf there are a number of employees interested in If there are a number of employees interested in

joining the plan please contact the MFA and we will joining the plan please contact the MFA and we will arrange an employee session in your area.arrange an employee session in your area.

How to JoinHow to Join

1.1. Municipality informs MFA that they wish Municipality informs MFA that they wish to participate in the Municipal Investment to participate in the Municipal Investment PlanPlan

2.2. The MFA will send out an employee The MFA will send out an employee handout for distribution by payroll. If handout for distribution by payroll. If requested the MFA will also send the requested the MFA will also send the employee guides and packagesemployee guides and packages

3.3. The employee requests the Guide and The employee requests the Guide and Package from either the MFA or their Package from either the MFA or their payroll departmentpayroll department

4.4. Employee educates themselves on the Employee educates themselves on the plan and if they require more information plan and if they require more information they contact Sun Lifethey contact Sun Life

5.5. Employee mails in the application to the Employee mails in the application to the MFA and gives the payroll department MFA and gives the payroll department the payroll deduction formthe payroll deduction form

6.6. Payroll deduction starts on the next pay Payroll deduction starts on the next pay period after payroll deduction receivedperiod after payroll deduction received

Municipal Investment Plan Municipal Investment Plan Elected Officials EnrollmentElected Officials Enrollment

How to JoinHow to Join

1.1. If interested in the Municipal Investment If interested in the Municipal Investment Plan contact the MFA. The MFA will Plan contact the MFA. The MFA will send out a package and program guide send out a package and program guide to youto you

2.2. If you are interested in joining the plan If you are interested in joining the plan mail in an application to the MFA. If your mail in an application to the MFA. If your municipality elects to offer the plan by municipality elects to offer the plan by payroll deduction submit the payroll payroll deduction submit the payroll deduction form to the payroll departmentdeduction form to the payroll department

3.3. Payroll deduction starts on the next pay period Payroll deduction starts on the next pay period after payroll deduction form is received. If your after payroll deduction form is received. If your municipality does not offer payroll deduction municipality does not offer payroll deduction you may remit contributions by cheque directly you may remit contributions by cheque directly to the MFA’s officeto the MFA’s office

These payments will be deposited into the These payments will be deposited into the bank and credited to your account on the first bank and credited to your account on the first Friday after payment is received unless Friday after payment is received unless cheques are postdatedcheques are postdated

All correspondence should be mailed to the All correspondence should be mailed to the MFA, 737 Fort Street, Victoria, BC V8W 2V1 MFA, 737 Fort Street, Victoria, BC V8W 2V1 attn: Marguerite Fenskeattn: Marguerite Fenske

Municipal Investment Plan Municipal Investment Plan Spousal / Partner EnrollmentSpousal / Partner Enrollment

How to JoinHow to Join

1.1. If interested in the Municipal Investment If interested in the Municipal Investment Plan contact the MFA. To be eligible Plan contact the MFA. To be eligible for the plan you must be a spouse / for the plan you must be a spouse / partner of an existing plan member. The partner of an existing plan member. The MFA will send out a package and MFA will send out a package and program guide to youprogram guide to you

2.2. If you are interested in joining the plan If you are interested in joining the plan mail in an application to the MFA mail in an application to the MFA

3.3. Send in post dated cheques directly to Send in post dated cheques directly to the MFA (maximum of once per month). the MFA (maximum of once per month). These payments will be deposited into These payments will be deposited into the bank and credited to your account on the bank and credited to your account on the first Friday after the cheque is the first Friday after the cheque is postdatedpostdatedAll correspondence should be mailed to All correspondence should be mailed to the MFA, 737 Fort Street, Victoria, BC the MFA, 737 Fort Street, Victoria, BC V8W 2V1 attn: Marguerite FenskeV8W 2V1 attn: Marguerite Fenske