Important Enhancements to the Husky Employee Savings Plan

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Important Enhancements to the Husky Employee
Savings Plan
Your Health. Your Wealth. Prepare today for your
tomorrow
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Agenda

• Savings Plan Philosophy
• What's stays the same / What changes?
• Making elections Re Allocations
• The Tax-free Savings Account (TFSA) Share
  Purchase Plan
• Plan member responsibilities
• Fees
• Actions required Choosing your funds
• Tools and Services

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The Husky Energy Savings Plan Philosophy

• The objective of Husky savings plan is to assist
  employees in saving by supplementing any
  additional savings and retirement income they may
  receive from other sources
• This may include government programs, (for
  example CPP OAS)
• It is important to understand that you may
  require additional savings and investments to
  reach your retirement objectives.

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What stays the same?
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What stays the same?

• Husky will continue providing 5 of your base
  earnings to the savings plan
• No employee match is required
• You can still direct the 5 or a portion thereof
  to the Group RRSP
• Low investment management fees.

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What changes?
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What changes?

• Deposits are made per pay directly into the
  savings plan rather than an annual lump sum
  payment,
• Flexibility to make additional voluntary employee
  contributions,
• The Savings Plan entitlement section of the pay
  advice will be removed. The current period and
  year to date contributions can be viewed in the
  Employer Contribution and Deduction section of
  your pay advice

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What changes?

• Greater choice of investment vehicles, including
• Non-registered funds (same as those in the
  retirement plans)
• A TFSA added to the plan
• A Husky Share Purchase Plan has been added to the
  plan

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What are the changes?

• You can now direct Huskys contribution as
  follows

Husky Contribution (Plus employee voluntary
contributions)
RRSP/Spousal RRSP (pre tax)
Non Registered (after tax)
Husky Share Purchase Plan (after tax)
and/or
and/or
Elect the RRSP or Husky Share option on iConnect.
If no election is made, the default is the
taxable Non Registered account
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What are the changes?

• You can direct money from your Non Registered
  account as follows

Non Registered
RRSP/Spousal RRSP
TFSA
Husky Stock Purchase Plan
and/or
and/or
If no election is made, contributions will remain
in the Non-registered Sun Life Money Market fund

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Making Elections
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Making my Elections

• To elect the Group RRSP or Husky Share Purchase
  plan
• Log into iConnect using your network ID and
  password
• Click the Employee Self-Service tab at the top of
  the page
• On the Employee Self-Service Overview page, Click
  Savings Plan Update Husky Provided Allocations
  to update the employer portion of your savings
  plan
• The Savings Plan Change Form will open in a
  separate window Scroll down to fill in all
  required fields

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Making my Elections (cont.)

1. The Employee General Information section is
   pre-populated with your name and employee ID, and
   the Introduction section provides direction for
   filling out the form
2. Select the effective date for the change
3. Select the date from the calendar drop down, and
   then click Refresh Data. This displays the
   current values of your allocations as at the
   selected date
4. Input your new allocations by selecting the
   percentages from the drop down boxes. Note Your
   selections must add up to 5

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Making my Elections (cont.)

1. Check the box to confirm that you understand the
   changes you have made, and authorize Husky to
   implement the changes
2. Click Check and Send to verify your selections.
   Note When you do this, the effective date
   becomes either the 16th of the month, or the 1st
   of the next month, depending on the date you
   selected. Click Send to submit your changes

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Making Investment Changes
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Making Investment Changes

• Youll need an access ID and password to access
  your account online
• If you are a current Husky DC Pension or Group
  RRSP member, your current Sun Life Financial
  access ID and Password will enable you to
  reallocate your Husky Savings Plan assets
• Dont have an access ID or password?
• Go to mysunlife.ca and select the register now
  link. You will need your account number (see your
  welcome letter or your statement for this
  number). Welcome letters with access IDs
  instructions to obtain a password will be sent to
  all non-DC / RRSP members shortly

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TFSA
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Contributions to the TFSA

• Governed by CRA legislation
• CRA will report contribution room on Notice of
  Assessment (5,000 per person in 2012)
• Indexed annually, rounded to nearest 500
• Contributions are after tax dollars
• Unused contribution room carries forward each
  year, indefinitely
• Lump sum payments or pre-authorized debit
  directly to Sun Life Financial contact Sun Life
  for more information

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Contributions to the TFSA

• May have more than one TFSA
• Total annual contribution must stay within the
  5,000 limit
• Over-contributions subject to penalty of 1 per
  month
• Investment management fees are the same as the
  other Husky funds

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Withdrawals from the TFSA

• Withdraw for any purpose at anytime
• Withdrawals are tax-free, original contributions
  plus investment growth
• No restrictions (or suspensions)
• 25 withdrawal fee
• Any amount withdrawn can later be re-contributed
  to a TFSA the next calendar year
• Increases contribution room in the following year
• Withdrawals have no impact on income tested
  government benefits OAS, GIS, EI benefits, Child
  Tax Credits, etc.

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Husky Share Purchase Plan
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Husky Share Purchase Plan

• Share Transaction Processing
• Frequency of trading is daily (employees can
  initiate transactions every day)
• Market timing of trade is next-day (i.e. todays
  transaction have a pending status overnight and
  get traded on market next business day morning)
• Contributions are processed when received
• Trading price all investment or redemption
  instructions are processed and a net trading
  price is determined
• Brokerage commissions are paid by the employee -
  0.03/share

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Husky Share Purchase Plan

• Inter-fund and inter-product transfers are
  permitted
• Three types of withdrawals permitted (no
  penalties or consequences for withdrawals)
• Cash withdrawal (cheque mailed)
• In-kind transfer (electronic book based transfer
  to a brokerage firm)
• Physical share certificates (couriered to
  employee)
• Transactions (redemptions and transfers) can be
  processed
• Up to 3pm ET by phone through the call centre
• Up to 4pm ET on the Internet

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Husky Share Purchase Plan

• Savings plan allocation and / or additional
  voluntary payroll deduction make purchasing Husky
  shares easy and convenient
• Lower trading costs because of the combined
  buying power of Husky and Sun Life, you pay fees
  that are generally lower than what you would pay
  on your own
• Husky pays most of the administration fees on
  your behalf
• Its an excellent way to share in the long-term
  growth of your company
• There is no Husky matching or discounting
• Dividends are reinvested to purchase more shares

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Your Responsibilities
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Responsibilities as a member of your plan

• You are responsible for
• Understanding and being aware of your annual RRSP
  / TFSA contribution limit (stipulated on your CRA
  Notice of Assessment and not over contributing
• Defining, monitoring and revising your investment
  strategy
• Paying for the fund management fees
• Understanding your risk tolerance and potential
  volatility of your investments

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Responsibilities as a member of your plan (cont.)

• Researching and reviewing the available
  investment options
• Making use of the information and tools available
  to assist you in making informed decisions
• Obtaining independent advice should you deem it
  necessary
• Allocating the contributions among the available
  investment options

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Plan Fees

• Investment Management Related Fees
• Fund Management Fees are paid monthly (they
  appear as an expense transaction the first
  business day each month)
• No front or back end load charges
• Plan Administration Fees
• Fees paid by Husky
• Withdrawals or transfers for the GRSP/NREG
• One free withdrawal per calendar year
• 10 for each additional withdrawal or transfer

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NREG Withdrawals and Plan Fees Contd

• Sun Life Financial will pay withdrawals to you
• By cheque or
• Electronic bank transfer
• Plan Administration Fees
• TFSA and Share Purchase Plan withdrawals or inter
  plan transfers
• 25 per withdrawal

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Action Required
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Action Required

• From September 17, 2012, you will have the
  opportunity to direct Huskys contributions to
  the investment vehicle(s) of your choice via
  iConnect.
• You must make your selection using the Husky
  selection tool found on iConnect
• If no election is made, Huskys contributions
  will be directed to the Sun Life money market
  fund within the Non-Registered savings plan.

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Action Required

• If you wish to participate in the Group RRSP,
  TFSA or the Husky Share purchase plan, you must
  enrol to ensure contributions are allocated as
  you desire. The enrollment form can be found on
  iConnect under the Health, Benefits Retirement
  Forms
• Contributions can be made to the TFSA by
  transferring your NREG funds, providing lump sum
  contributions to Sun Life or by the Automatic
  Cheque Plan (Complete Section 5 on the TFSA
  Application if this is your desire)

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Action Required

• If you are a current Husky DC Pension or Group
  RRSP member, your current Sun Life Access ID and
  Password will enable you to change your Savings
  Plan investment options

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Accrual Amount July - September

• This payment will occur as it has in the past
• Allocation will be paid as taxable cash, unless
  the employee elects the Group RRSP,
• If the RRSP is elected the allocation will be
  sent to Sun Life Financial
• The actual dollar allocation can not be used to
  purchase shares or be deposited into the Non
  Registered since taxes apply
• The employee must ensure they have enrolled in
  the RRSP or have an existing account in the plan

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After October 1st

• Allocations to the RRSP occur on a pre tax basis
• Allocations to the stock plan or NREG will be
  after tax
• Taxes deducted for the NREG or Stock Plan
  allocations will be estimated based on the
  marginal tax rate from your province of residence

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Choosing Your Funds
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Which approach is right for you?
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Investment Risk Profiler
Conservative InvestorScore of 35 points or less
Moderate InvestorScore of 36 to 85 points
Balanced Investor Score of 86 to 145 points
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Your investment fund choices
Risk
Fund Name
Asset Class
FMF
Low

• Sun Life Assurance Guaranteed 3 Year
• Sun Life Financial Money Market

Guaranteed/ Money Market
N/A 0.39
Low Moderate

• Beutel Goodman Income Fund

Bonds
0.49
Balanced

• Beutel Goodman Balanced Fund
• BlackRock Moderate Balanced
• BlackRock Conservative Balanced
• BlackRock Aggressive Balanced
• Greystone Balanced Segregated Fund

Moderate
0.51 0.56 0.55 0.58 0.67
Moderate High High

• Beutel Goodman Canadian Equity
• Beutel Goodman Small Cap
• MFS McLean Budden Cdn Equity Gwth Fund

Canadian Equity
0.51 0.53 0.60

• Sun Life MFS McLean Budden US Equity

0.66
U.S. Equity
Moderate High
Moderate High

• MFS Global Equity

Foreign Equity
1.11
FMFs as of Aug 31st, 2012
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Build your own asset mix
Example A score of 36 to 85 points - Moderate
Investment Type Investment Option
15 U.S. Equity Sun Life MFS McLean Budden US Equity
15 International Equity MFS Global Equity
20 Canadian Equity MFS McLean Budden Cdn Equity Gwth Fund Beutel Goodman Canadian Equity
40 Bond/ Fixed Income Beutel Goodman Income
10 Guaranteed/ Money Market SLF Money Market Sun Life Assurance 3 Year Guaranteed
10 Money Market
15 Intl. Equity
15 U.S. Equity
40 Fixed Income
20 CDN. Equity
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Get Involved
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Additional on-line tools to help

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• Retirement Planner - Updated
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• Annuity Premium Calculator
• Old Age Security Calculator
• Registered Retirement Income Fund (RRIF)
  Calculator

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Sun Life is Here To Help
Internet mysunlife.ca/
my Sun Life Mobile
Customer Care Centre 1-866-733-8612

• Receive up-to-date account balances
• View transaction history
• Make investment changes
• Link directly to investment reports
• View online member statements

• 24 hour automated phone account access
• Representatives available every business day (8
  am to 8 pm ET)
• Account updates
• 189 languages supported
• Transaction processing and support

• My balances
• My contributions
• Help me save

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My Sun Life Mobile
Fast and easy access, wherever you go

• Check plan balances
• View recent contributions
• Three new financial planning tools to help you
  save!
• Visit mysunlife.ca/mobile
• for a test drive

App available for download, free of charge
through the BlackBerry and iPhone app stores
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Questions?HRINFOLINE_at_huskyenergy.com OR Call
403-298-6658