Not sure what a word means? This is your one-stop guide to definitions of common financial terms.

AAccess IDAccount BalanceActive MemberAdditional Voluntary Contributions (AVCs)Address ChangeAdjusted Cost Base (ACB)Adjusted Cost Base - ACB, Stock PlanAnnual ReturnAnnualized ReturnAnnuitantAnnuitant, ContingentAnnuityAnnuity, DeferredAnnuity, GuaranteedAnnuity, JointAsset AllocationAsset Allocation ProgramsAsset ClassesAsset MixAVCAverage Final Earnings

BBalanced FundsBefore-Tax DollarsBenchmarkBeneficiaryBeneficiary, Absolute or IrrevocableBeneficiary, ChangeBeneficiary, ContingentBenefitBenefit FormulaBond FundsBondsBook ValueBook Value, Stock PlanBreak in Service

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Investment Jargon

CCanada Customs and Revenue Agency (CCRA)Canada Pension Plan (CPP)Canadian Equity Funds Capital Gains or LossesCarrierCash InvestmentsCash Surrender ValueChargesCommuted ValueCompensationCompound InterestCompulsory PlanConsumer Price Index (CPI)Contingent BeneficiaryContinuous ServiceContributory Pension PlanCPPCredited ServiceCurrency risk

DDBPPDCPPDeath BenefitDeferred AnnuityDeferred Profit Sharing Plan (DPSP)Defined Benefit Pension Plan (DBPP)Defined Contribution Pension Plan (DCPP)Department of National Revenue (DNR)Derivatives RiskDisability Pension BenefitDisposable IncomeDiversificationDiversified FundsDividendDivision of Pension CreditsDollar Cost AveragingDPSP

EEAFEEarningsEffective DateEligibility RequirementsEmployee ContributionEmployee Profit Sharing Plan (EPSP)EnrolmentEntry AgeEPSPEquity FundExpenses

FFeesFixed Income FundForeign Equity FundsForfeitureFunds

GGARPGICGovernment ProgramGroup Registered Retirement Saving Plan (Group RRSP)GrowthGrowth at a Reasonable Price (GARP)Growth FundGuaranteed AnnuityGuaranteed FundsGuaranteed Income Supplement (GIS)Guaranteed Investment Certificate (GIC)Guaranteed Maturity Unit Value

HHome Buyers' Program

IIndexIndex FundIndexingInflationInterest RateInterest Rate RiskInternational FundInvestment FundsInvestment ChoicesIrrevocable Beneficiary

LLarge Cap versus Small Cap FundsLeave of AbsenceLeaving the PlanLIFLife ExpectancyLife Income Fund (LIF)LoadLocked-In Retirement Account (LIRA)Locked-InLocked-In Retirement Income Fund (LRIF)

MMarket Value Adjustment (MVA)Market ValueMoney Market FundsMoney Purchase Pension PlanMutual FundMVA

NNon-Contributory PlanNon-Registered Savings Plan (NREG)Normal Retirement AgeNormal Retirement DateNREG

OOld Age Security (OAS)

PPAPasswordPast ServicePensionPension Adjustment (PA)Pension Benefits Acts (PBAs)Pension PlanPensionable EarningsPensionable ServicePersonal Identification Number (PIN)Plan SponsorPolicyholderPooled FundPoolingPortabilityPower of AttorneyPresent ValueProfit Sharing Pension PlanProjected Pension BenefitsPro-ratePublic Pension Plan

QQualification DateQuebec Pension Plan (QPP)

RRegistered Pension Plan (RPP)Registered PlanRegistered Retirement Income Fund (RRIF)Registered Retirement Savings Plan (RRSP)Required ContributionsRetirement IncomeRetiring AllowanceReturnRevenue CanadaRisk and ReturnRRIFRRSPRRSP Contribution Limit

SS&P/TSX Composite IndexSalary ScaleSavings PlanSector RotationSegregated FundSC 91 Day T-Bill IndexSC Universal Bond IndexShort-term TradingSpecialized FundsSpill LimitSpousal RRSPSpouse's Pension AllowanceStocksSurviving Spouse BenefitSurvivor Benefit

TTax CreditTax DeductibleTax DeferralTax ReceiptsTax ShelterTaxes on WithdrawalsTerminationTransaction FeesT-1007T-2033T-2037T2151T4A

UUnits

VValueValue FundVestingVoluntary Withdrawals

WWaiting PeriodWithdrawals

YYear's Basic Exemption (YBE)Year's Maximum Pensionable Earnings (YMPE)

Access IDYour Access ID can be found in the Welcome Letter you received when you first joined the plan, or on anyAccount Statement we send you.

Account BalanceYour Account Balance is based on the previous business day's closing values. You can find this under the "Balances"selection on this Plan Member website or via our interactive Customer Care phone system at 1-800-SUN-LIFE.

Active MemberAn individual actively employed and currently making contributions to a Registered Pension Plan or DeferredProfit Sharing Plan.

Additional Voluntary Contributions - AVCsAdditional voluntary pension plan contributions made by you in addition to the contributions that are requiredunder the plan. Extra benefits are purchased with the AVCs. Although AVCs are not locked-in, they are subjectto pension legislation and unless plan terms dictate otherwise, can only be withdrawn at death, termination of service or retirement.

Address ChangeYou can change your address either online under MY ACCOUNT INFO>Personal Info if applicable to your plan,by contacting a Sun Life Financial Call Centre Representative at 1-800-SUN-LIFE, or through your employer.

Adjusted Cost Base - ACBFor non-registered plans, the Adjusted Cost Base (ACB) of a unit of a particular segregated / trust fund or a shareof a stock, is the total dollar amount used to purchase units in that segregated / trust fund or shares, plus the amount of income allocated from the segregated / trust fund or any reinvested dividends from shares,minus the adjusted cost base of the units or shares previously sold, divided by the total number of such unitsor shares held by you.

The ACB we provide is based on our records relating to your account. If you hold shares of the same stock outsideof the employee savings plan, it is your responsibility to combine all such shares for ACB calculation purposes.

Please consult your financial and/or tax advisor for assistance.

Adjusted Cost Base - ACB, Stock PlanIf you are a member of a stock plan, the adjusted Cost Base (ACB) is the amount of money that has been contributed to the non-registered plan by you and/or your employer plus any reinvested dividends, if applicable,minus the cost of the shares that have been withdrawn, if applicable.

The ACB we provide is based on our records relating to your account. If you hold shares of the same stock outsideof the employee savings plan, it is your responsibility to combine all such shares for ACB calculation purposes.

Please consult your financial and/or tax advisor for assistance.

Annual ReturnIs a fund or plan return over a one-year period.

Annualized ReturnAn overall rate of return, usually over a period of two or more years, converted to an equivalent rate over eachone year period. For example, if you have a return of 9% in the first year, 4% in the second year and 18% in the thirdyear, this is averaged as a 10% return in each of the three years. So, 10% would be the 3-year annualized return.

AnnuitantAn individual in receipt of an annuity payment (usually a monthly pension).

Annuitant, Contingent (note: also under Annuitant, Joint)

Persons named to receive annuity payments if the primary annuitant dies. The contingent annuitant is usuallythe spouse, and may also be referred to as the joint annuitant.

AnnuityAn annuity is a contract that provides periodic payments to an annuitant, and is designed to continue for a fixedperiod, or until death.

Annuity, DeferredAn annuity under which the first payment is not made until the expiration of a fixed number of years, or theattainment of a stated age or a contract which includes an undertaking on the part of the insurer to providean annuity. A Deferred Annuity is frequently used to refer to a life annuity payable, at some future date, to an employee whose membership in a pension plan terminated before the normal retirement age. Paymentsusually start at normal retirement age.

Annuity, GuaranteedAn annuity which provides that payments are guaranteed for a specified length of time, and after that period,for as long as the annuitant lives.

For example, under an annuity guaranteed for five years, if the annuitant lives for fifteen years, payments willbe made for the full fifteen years. However, if the annuitant dies after three years, however, the annuity will be paid to a beneficiary for a further two years, until the payments have been made for a total of five years.

Annuity, JointPersons named to receive annuity payments if the primary annuitant dies. The contingent annuitant is usuallythe spouse, and may also be referred to as the joint annuitant.

Asset AllocationAsset Allocation refers to the way that you divide your portfolio between the various asset classes. It is the mostimportant way to diversify your investments, and diversification is the key to lowering your investment risk (by not putting all your eggs in one basket, so to speak). Check out the "Tools" selection on this Plan Memberwebsite and the online "Asset Allocation" calculator.

Asset Allocation ProgramsAre similar to Balanced Funds in that they invest in all of the asset classes. However, they are usually part of a series (or program) of funds, each fund appropriate for an investor with a different risk tolerance level.Each one holds a different mix of stocks, bonds and cash, creating funds ranging from conservative to aggressive.

Asset ClassesA grouping of similar investments. For example, all of the following are different asset classes: Guaranteed Fundsand Money Market Funds, Bond Funds, Balanced Funds, Canadian Equity Funds (large cap to small cap),American/International funds and single Stock funds.

Asset MixDescribes the proportion of your investments that you currently have invested in each of the asset classes. For example you might have 30% in bond funds, 40% in Canadian Equity Funds and 30% in foreign equity funds.

AVCSee Additional Voluntary Contributions.

Average Final EarningsThe amount of salary used to determine your accrued pension if you are participating in a "final average earningsplan". The amount is calculated by taking the average of a specified number of years of annual salary just priorto retirement.

Balanced Funds(note: also under Diversified Funds)Invests in a mix of stocks, bonds, and cash investments. The mix will change as market conditions change, butit usually stays within a pre-determined ranges (for example, stocks 40-60%, bonds 30-50%, cash 0-30%). ManyBalanced funds invest in foreign stocks up to the maximum allowed by foreign content regulations.

Balanced Funds tend to be more risky than Bond Funds, but less risky than Equity Funds. The benefit of a BalancedFund is that it provides automatic diversification by investing in a variety of asset classes and thereby reducingthe risk if one asset class performs poorly.

Before-Tax DollarsMoney that enters your plan account before income taxes are calculated. Taxes are deferred until you receivea payout from the plan.

BenchmarkAn industry average of similar investments used to compare and evaluate the performance of other funds.

The S&P/TSX Composite Index is a common benchmark for Canadian Equity Funds.

The S&P 500 is a common benchmark for American Equity Funds.

The MSCI EAFE Index is common for International Funds.

The SC Universal Bond Index is a common benchmark for Fixed Income Funds.

SC 91-Day T-Bill Index is a common benchmark for Money Market Funds.

BeneficiaryThe person or persons named by the plan member, in writing, to receive the policy or plan death benefit.Beneficiary rules may vary by province.

See also Beneficiary - Absolute or Irrevocable

Beneficiary, Absolute or Irrevocable An unalterable beneficiary - the owner relinquishes the right to change the designation without an approvalwhen such a beneficiary is named. For residents of Québec, a spouse beneficiary is automatically consideredirrevocable, unless otherwise stipulated. Sun Life Financial's application form allows a plan member to indicatethat the designation is revocable.

Beneficiary, Change (note: also under Change Beneficiary)You can change your beneficiary either online under MY ACCOUNT INFO>Personal Info if applicable to yourplan, or, write to us and include your name, plan number and name of your employer. For legal reasons, we currentlyrequire your signature on your request. We cannot accept faxes. Please mail your request to Sun Life Financial,Group Retirement Client Services, 225 King Street West, 14th floor, Toronto, ON M5V 3C5.

Beneficiary, ContingentAn alternate beneficiary whose rights under a policy, or a plan will depend on the death of the original beneficiaryor some other condition or provision.

BenefitA general term applied to any form of payment that may be made to a person under the terms of a pensionplan, depending on the circumstances.

Benefit FormulaA pension plan calculation that defines the method used to determine an employee's pension amount.

Bond Funds(note: also under Fixed Income Funds)Typically invest in bonds issued by Canadian governments and companies. As well as paying a rate of interest,many bonds held in these funds also have a "market value" which can rise and fall. So Bond Funds have thepotential for higher returns than Money Market or Guaranteed Funds, but there is a greater risk of loss as well.

Bonds(note: also under Fixed Income) When you buy a bond, you are actually lending money to a company or the government. The borrower promisesto pay back the amount of the loan, plus interest, according to a specific schedule. Bonds are usually less riskythan stocks, but the market value of a bond, especially long-term bonds, can go up and down as interest rates change.

Book Value The book value of your investments under each registered plan is determined by the original/establishedinvestment purchase price paid/set, and may include the amount of reinvested distributions (depending on the type of investment), less the book value of any withdrawals. The book value is reported for your information only.

Book Value, Stock PlanIf you are a member of a stock plan, the Book Value is the amount of money that has been contributed to the registered plan by you and/or your employer plus any reinvested dividends, if applicable, minus the costof the shares that have been withdrawn, if applicable. The book value is reported for your information only.

Break in ServiceAn interruption in employment for reasons other than those allowable and explained under the terms of thepension plan. Please see your plan booklet for details.

Canada Customs and Revenue Agency - CCRA(note: also under Revenue Canada and Department of National Revenue) The federal government body with which pension plans must be registered for contributions to be tax deductible.Formerly Revenue Canada or the Department of National Revenue.

Canada Pension Plan - CPPA government pension plan that provides a monthly pension benefits for Canadians who have contributed to the plan. Benefits available include: retirement income; survivor benefits for widows, widowers and orphans;and a death benefit. The act operates in all Canadian provinces except Quebec where a separate plan the QuebecPension Plan, with similar benefits and contributions is in effect.

Canadian Equity FundsInvest primarily in stocks of Canadian companies. Some of these funds may invest up to 30% of their assets in stocks of companies located in other countries.

Because stocks have traditionally risen in value more than other types of investments, they offer the greatestpotential for long-term growth. However, with stock prices fluctuating more than other types of investments,investing in stocks is also riskier.

Capital Gains or LossesAn increase or decrease in the value of an account. Any transaction in a non-registered account could incur capitalgains (market value less book value) or losses. If so, you are required to report the gain/loss as income. If youare allowed to withdraw money from your registered account, the entire withdrawal becomes taxable to you.

CarrierGeneral term used to refer to an insurance company, trust company or other financial institution with responsibilityfor some or all functions under a group retirement and savings plan, usually including investments.

Cash InvestmentsCash investments usually take the form of guaranteed funds (also known as GICs), short-term deposits or government treasury bills. Cash investments are designed to protect your money while earning a currentrate of return. The value of a cash investment doesn't vary widely, so it is less risky than stocks or bonds.

Based on past performance, cash investments tend to provide lower returns over the long term than the otherasset classes. While stocks and bonds have a greater risk of declining in value over the short term, the risk of a loss lessens considerably the longer you own them.

See also Guaranteed Investment Certificates

Cash Surrender ValueThe amount which a policyholder may be permitted to collect, in cash, upon surrendering a policy before it matures.

ChargesDepending on plan rules, you may be required to pay Investment Management Fees for the funds you invest in. You may also be required to pay administration fees. Check your plan booklet for more details.

Commuted ValueA single amount of money which represents the current worth of future benefits payable. The future benefitsare discounted to the present to obtain the commuted value.

CompensationThe salary or wages received by an individual from an employer in the year, plus any other amounts that mustbe included when calculating the person's annual taxable income from that employer.

Compound InterestInterest credited to the investor at a set rate, on specified dates, and added to the original deposit to earn furtherinterest. Usually interest compounds annually.

Compulsory PlanA pension plan that eligible employees must join as a condition of employment.

Consumer Price Index - CPIThe Consumer Price Index measures the cost of various goods and services. It is used to determine the rate of inflation. In other words, the percentage of change in the CPI over a given year is the annual inflation rate.

Contingent BeneficiarySee Beneficiary, Contingent

Continuous ServiceThe period during which the same employer continuously employs a plan member. This may be defined in a pensionplan (or by law) so as to include certain periods of absence, and service with an associated or previous employer.

Contributory Pension PlanA pension plan that allows members to make contributions to qualify for plan benefits. Some plans require thatmembers contribute regularly. The members' contributions are usually related to their earnings.

CPPSee Canada Pension Plan

Credited ServiceThe period of service (as defined by the pension plan) that is used for such purposes as determining benefitamounts, entitlement to plan benefits and/or vesting.

Currency riskCurrency risk refers to changes in value of securities in response to changes in value of the Canadian dollarversus foreign currencies. A strengthening of the Canadian dollar tends to reduce the Canadian dollar value of foreign investments for Canadian investors; a weakening of the Canadian dollar tends to increase the Canadiandollar value of foreign investments for Canadian investors.

DBPPSee Defined Benefit Pension Plan

DCPPSee Defined Contribution Pension Plan

Death BenefitWhen applied to a pension plan, the sum of money paid in the event that a member of the plan dies beforethe pension commences.

Deferred AnnuitySee Annuity - Deferred

Deferred Profit Sharing Plan - DPSPA profit sharing plan under which the employer contributions are deductible under the Income Tax Act, but arenot taxable in the hands of the employee until they are withdrawn. Employee contributions are not permitted.

Defined Benefit Pension Plan - DBPPA registered pension plan which provides a certain level of income at retirement. The amount of retirementincome is calculated using a pre-determined formula.

Defined Contribution Pension Plan - DCPPA Defined Contribution Pension Plan is also known as a Money Purchase Pension Plan. Employer contributionsand employee contributions (if the plan permits them) are directed into an individual account for each employee.Contribution levels are usually expressed using a specific formula related to earnings such as 5% of annual salary.

When the employee reaches retirement, the accumulated contributions and investment earnings are used to purchase a pension for the individual. No specific income level can be guaranteed with this type of plan.

Department of National Revenue - DNR(note: also under Revenue Canada and Canada Customs and Revenue Agency (CCRA))The old name for a department of the federal government with which pension plans must be registered forcontributions to be tax-deductible. The new name is the Canadian Customs and Revenue Agency.

Derivatives RiskA derivative is a contract between two parties, the value of which is based on the performance of an “underlying”asset, such as for example a stock, commodity, currency, or market index. Derivatives may be used to gain a rightto buy or sell the underlying asset on a certain future date as well as to limit, or “hedge against”, losses thatmay occur because of an investment in a security or exposure to a currency or market.

Risks associated with derivatives include the following:

• the hedging strategy may not be effective; • there is no guarantee that a derivatives contract can be bought or sold when desired; • the price of a derivative may not accurately reflect the value of the underlying asset; • the cost of the derivative contract may increase; • the other party to the contract may not be able to honour its obligations and may default; • the use of derivatives can amplify both gains and losses in a Fund.

Disability Pension BenefitA pension payable to an employee who is unable to continue working due to a disability. This pension may be basedon service to the date of disability or, in some cases, based on past and prospective service (for example, a pension equal to what would have been received had the employee remained in service until normal retirement age at the last salary).

Disposable IncomeGenerally, a person's income from all sources, minus income taxes and other necessary expenses.

DiversificationDiversification is a strategy that helps reduce the risk associated with investing. When you diversify your holdings,you spread them over a range of investments by choosing different funds or different types of investments to balance your risk exposure.

If you belong to a retirement plan that directs all of its investments into guaranteed funds or a single stock fund,you may want to vary the holdings in your personal portfolio to establish a broader blend of investments.

Equity funds add an additional component of diversification for you since each fund contains a mixed portfolioof investments. One of our equity funds typically holds stocks of fifty or more large companies as well as a smallselection of money market instruments.

By contributing to your group plan, you're diversifying your retirement contributions in two ways. You're choosingfrom a mix of different funds available to you under your group plan. And, each market-based fund contains a diversified portfolio of investments.

Diversified FundAlso known as Balanced Funds, a Diversified Fund invests in a mix of stocks, bonds, and cash investments. The mix will change as market conditions change, but it usually stays within a pre-determined range (for example,stocks 40-60%, bonds 30-50%, cash 0-30%). Many Diversified Funds invest in foreign stocks up to the maximumallowed by foreign content regulations.

Diversified Funds tend to be more risky than Bond Funds, but less risky than Equity Funds. The benefit of a DiversifiedFund is that it provides automatic diversification by investing in a variety of asset classes and thereby reducingthe risk if one asset class performs poorly.

DividendDividends represent payments made by companies to their shareholders. Companies that issue stock may paydividends quarterly, semi-annually, or annually if they have earnings to distribute to shareholders.

Our equity funds hold the stocks of many firms and whenever these firms pay dividends, the payments are depositedto the fund and distributed among the unit holders.

Division of Pension CreditsAlso known as "credit splitting". A provision in the Canada Pension Plan or Quebec Pension Plan whereby onespouse, on dissolution of a marriage or common-law relationship, may obtain an equal division of pension creditsearned under the CPP/QPP by one or both partners during the relationship.

This provision is now included in various pension benefits acts to apply to employer-sponsored pension plans.

Dollar Cost AveragingDollar Cost Averaging is a way that you can minimize the effects of an investment's volatility by buying it in regularinstalments, over a number of months or years.

It's easy to do, simply invest a set amount or a fixed percentage of your pay in a fund at regular intervals. The unitprice of the fund will be higher in some months, and lower in others. The average price you pay should be somewhere in the middle.

Provided the investment gains value over the long term, you'll profit from your purchases during the short-termprice declines. Dollar cost averaging lets you use an investment's volatility to your advantage.

DPSPSee Deferred Profit Sharing Plan

EAFEThe EAFE is the Morgan Stanley Capital International, Europe, Australasia, Far East Index. The index reflects the performance of a diversified portfolio of major non North American companies.

EarningsA person's income from employment or self-employment, usually excluding such forms of income as rents or bondinterest. In some pension plans certain bonuses, sick pay, etc., may also be excluded from earnings in calculatingbenefits and contributions.

Effective DateThe date that a retirement plan goes into effect and coverage starts.

Eligibility RequirementsConditions that determine if an employee is eligible for membership in the group retirement plan.

Employee ContributionDeductions from an employee's pay applied towards a pension plan or other company benefit.

Employee Profit Sharing Plan - EPSPA profit-sharing plan under which employer contributions are tax deductible by the employer but declared as income by the employee. Employee contributions are permitted but are not tax deductible. Payments outof the fund are generally tax-free. Investment earnings are taxable as earned.

EnrolmentYou may enrol online if offered by your employer. Please contact your employer or a Sun Life Financial Call CentreRepresentative to request a Member Enrolment kit.

Entry AgeThe age when a Plan Member was included in a pension plan, or would have been included if the plan had alwaysbeen in effect.

EPSPSee Employee Profit-Sharing Plan

Equity FundSee Canadian Equity Fund or Foreign Equity Fund

ExpensesDepending on plan rules, you may be required to pay Investment Management Fees for the funds you invest in. Please check your plan booklet or contact your employer for further information.

FeesAs a member, you are not required to pay transaction fees. You may however, depending on plan rules, pay a feefor withdrawals and fund management fees. This will depend on your plan rules and you may find this informationin your enrolment kit.

Note: a 2% fee will be charged (and paid to the fund) when a plan member initiates an interfund transfer into a fund followed by an interfund transfer out of the same fund within 30 days. The assessment of the fee is subject to materiality for administration purposes. See Short-term Trading for more details.

Fixed Income FundAlso known as Bond Funds, these funds typically invest in bonds issued by Canadian government and companies.As well as paying a rate of interest, many bonds held in these funds also have a "market value" that can rise and fall.

Foreign Equity FundsInvest primarily in stocks of companies located outside of Canada. As with Canadian Equity Funds, historicallyForeign Equity Funds offer greater potential for long-term growth, but can be riskier than other types of investments.

One of the important roles of Foreign Equity Funds is in diversifying your portfolio. Canada's share of the worldequity market is only about 3%, so there are far more investment opportunities out-of-country than in. By diversifying your equity investments globally, you spread your portfolio over a greater percentage of the worldmarket and reduce your overall investment risk.

ForfeitureAn employer contribution under a Defined Contribution Pension Plan or a Deferred Profit Sharing Plan, whichis given up by a Plan Member who terminates service before becoming fully vested in the Plan. In some plans,forfeitures are re-allocated to other active Plan Members; in other plans they are used to reduce the employer'scost. Canada Customs and Revenue Agency requires that forfeitures are used up or reallocated by December 31stof the year following the year it arose.

Funds (note: also under Investment Funds)For most plans offered in your company Group Retirement and Savings Plan, fund information is available on thisPlan Member Services website. You can view and print reports pertaining to the funds available in your plan.Fund information is also provided in the Member Enrolment kit when you first join the plan.

GARPSee Growth at a Reasonable Price

GICSee Guaranteed Investment Certificate

Government ProgramAny legislative program under which benefits (pensions, income supplements, etc.) are provided by a governmentin its role as government rather than its role as an employer (e.g., Old Age Security, Canada Pension Plan,Guaranteed Income Supplement).

Group Registered Retirement Saving Plan - Group RRSPA savings or retirement plan sponsored by a company for its employees. A Group Registered Retirement SavingsPlan (RRSP) is subject to the same legislative rules as an individual RRSP.

GrowthThe manager chooses stocks for the portfolio based on an assessment of a company's ability to grow its businessprofitably. If the manager is right, the company's stock will increase in price as the company achieves businessand earnings growth.

Growth at a Reasonable Price - GARPThe manager looks for the stocks of growth companies that they can buy for a reasonable price. This is a combinationof value and growth investing.

Growth FundConsists of company stocks with better than average growth prospects. The investment manager of a growthfund chooses stocks for the portfolio based on an assessment of a company's ability to grow its business profitability. If the manager is right, the company's stock will increase in price as the company achieves businessand earnings growth.

Guaranteed AnnuitySee Annuity, Guaranteed

Guaranteed FundsWhen you invest in a Guaranteed Fund, you earn a set rate of interest that is guaranteed for a specific term, so it's a very low-risk investment. There is a range of short and long-term rates available.

Guaranteed Income Supplement - GISA monthly payment under the Federal Old Age Security (OAS) Act to needy pension recipients. It is based on a guaranteed minimum income amount.

Guaranteed Investment Certificate - GICA fixed-dollar deposit with a bank or other financial institution with a pre-determined rate of return and maturity date.

Guaranteed Maturity Unit ValueThe guaranteed maturity unit value reflects the fund’s highest month-end unit value to date. While the fund is valued each business day and its unit value does fluctuate, you will receive the maturity unit value onlyupon the fund’s maturity date. The maturity unit value is guaranteed by ABN AMRO Bank N.V. All transactionsprior to maturity will be processed at the fund's current unit value.

Home Buyers' ProgramA program offered by the Canada Customs and Revenue Agency to help first-time home buyer's borrow fundsfrom their Registered Retirement Savings Plan to facilitate the purchase of a home. If you meet the eligibilityrequirements, you are required to complete the Application for a First Time Homebuyer's Withdrawal (T1036).This form is available at any Canada Customs and Revenue Agency office or any bank.

IndexThe Manager uses a passive investment style by simply buying and selling assets to match the characteristicsof an index (i.e. S&P/TSX Composite Index). The performance of an index fund should be similar to the performanceof the index. Because of the passive style these funds tend to have lower management fees.

Index FundA fund whose investment manager uses a passive investment style by simply buying and selling assets to matchthe characteristics of an index (i.e. TSE 300). The performance of an Index Fund should be similar to the performanceof the index. Because of their passive style, these funds tend to have lower management fees.

See also Consumer Price Index

IndexingThe periodic adjustment of a benefit amount (typically after retirement) according to a formula, usually basedon a recognized price or wage index such as the Consumer Price Index (CPI) or the Average Industrial Wage Index.Typically, indexing involves increasing a payment to keep pace with increases in the cost-of-living.

InflationSee Consumer Price Index

Interest RateThe cost of borrowing money over a period of time. When you lend your money to a person or company, you expect them to pay something in return. This is usually expressed as a percentage of the money loanedand is referred to as the interest rate. If you're borrowing money, the interest on your loan goes to the lender.

International FundA fund that invests primarily in the common stock of companies based outside of Canada.

Interest Rate RiskInterest rate risk refers to changes in value of fixed income securities, such as bonds, in response to changes in interest rates. If interest rates rise, the value of the fixed income security tends to fall; if interest ratesfall, the value of the fixed income security tends to rise.

Investment Funds (note: also under Funds)For most plans offered in your company Group Retirement and Savings Plan, fund information is available on thisPlan Member Services website. You can view and print reports. Fund information is also provided in the MemberEnrolment kit when you first join the plan.

Investment ChoicesOn this Plan Member Services website, please select "About My Funds" to learn more. You will be able to readinformation such as top ten holdings and performance charts to help you to make the fund choice that bestfits your needs.

Irrevocable BeneficiarySee Beneficiary - Irrevocable

Large Cap versus Small Cap FundsSome funds invest exclusively in large companies (known as large capitalization or "large cap" funds), others in small companies ("small cap" funds). The distinction is important because small cap funds tend to be higherrisk investments than large cap funds. The reason? Small companies are typically not as well established as largecompanies and often have a shorter track record of success. And while the potential growth of smaller companiesoffers the potential for greater returns over the long term, the short-term ups and downs can be significant.

Leave of AbsenceAny absence from employment, approved by the employer, which would still qualify for pension service.

Leaving the Plan (note: also under Termination)Upon termination of employment, there maybe a number of options available to you depending on the typeof assets you have with us.

If you have non-registered assets, you may transfer them to a non-registered account with an external institution,our Group Choices Plan or take the assets in cash.

If you have registered pension assets and they are locked-in, you can transfer the assets to a locked-in accountwith an external institution, our Group Choices Plan, or purchase an annuity and transfer funds to another pensionplan if allowable.

If you have assets in an RRSP or DPSP, you may transfer those to an RRSP account with an external institution,into the Group Choices Plan, take the assets in cash (less applicable taxes) or purchase an annuity.

LIFSee Life Income Fund

Life ExpectancyThe number of years a person is expected to live based on current mortality statistics. Factors such as genderand age are used in the calculation of mortality statistics.

Life Income Fund - LIFA Life Income Fund (LIF) provides you with income during your retirement years. It is designed to hold savingsthat originate from a Registered Pension Plan that are "locked-in" by pension legislation. The LIF is very similarto the RRIF but there are two key differences:

In addition to the requirement for a minimum annual withdrawal (same minimum as for a Registered RetirementIncome Fund), LIFs also have a maximum withdrawal set by pension legislation. Your annual withdrawal must be within these minimum and maximum amounts. You must convert your LIF to a life annuity (in most provinces),when you reach age 80.

LoadThe commission and other service fees charged upon the sale or purchase of mutual fund units. Generally, eithera front-end load (at the time of purchase), or a back-end load (at the time of sale) is charged.

Locked In Retirement Account - LIRAA LIRA is essentially the same as a Registered Retirement Savings Plan, but only locked-in pension funds can be accepted. In addition to purchasing a life annuity with the funds, the owner may transfer funds in a LIRA to a Registered Pension Plan (RPP) if the RPP allows, another LIRA, a Life Income Fund or a Locked-in RetirementIncome Fund, if one exists.

Locked-inRequired contributions become unavailable (locked-in) after an employee has been a member of a pension planfor a specific length of time.

Locked-in money can be used to purchase an annuity, a Locked-in Retirement Account/Locked-in RegisteredRetirement Savings Plan, a Life Income Fund, or a Locked-in Retirement Income Fund.

Locked-In Retirement Income Fund - LRIFAn LRIF provides you with income during your retirement years. It is designed to hold savings that originate froma registered pension plan that are "locked-in" by pension legislation. LRIFs are currently available in a limitednumber of provinces. The LRIF is very similar to the LIF but there are two key differences:

The maximum withdrawal amount is calculated in a different way. It is generally equal to the investment earningsin your LRIF in the previous year (or 6% of your LRIF balance in the first two years). There is no requirement to buy a life annuity at age 80, although you are permitted to convert your LRIF assets to a life annuity at any time.

Market Value Adjustment - MVAThis term is used in connection with Guaranteed Funds. It describes the difference between the book value of the amount guaranteed under a fund, and the market value amount that is actually paid when a guaranteeddeposit is withdrawn prior to maturity. The MVA may be positive or negative, depending on interest rates at the time of liquidation.

Market Value (note: also under Adjusted Cost Base)Market value is the balance in the account after the funds invested have been valued. Book value is the amountof money that has been contributed to the account, also know as the Adjusted Cost Base. The difference betweenthe book value and the market value determines if any capital gains/losses have been established which willthen be reflected on your T3 slip each year.

The ACB is reported to you for your information and for tax planning purposes. It is an estimate of the costbase at this point in time. However, it does not include capital gains which may be allocated to you as a resultof Fund Realization as these values are only included at the end of each year.

Money Market FundsInvest primarily in short-term (under one year) government treasury bills and corporate notes. Because they are short term and issued mostly by the government or high-quality businesses, they are very low-risk and alsoearn a fairly low rate of return.

Money Purchase Pension PlanSee Defined Contribution Pension Plan

Mutual FundA mutual fund combines the assets of many investors into a single pool. A professional investment managermanages them. Our segregated funds usually invest either in units of a pooled fund or mutual funds.

MVASee Market Value Adjustment

Non-Contributory PlanA pension plan which does not require any employee contributions in order to qualify for benefits. The employermakes all contributions.

Non-Registered Savings Plan - NREGA savings plan under which contributions made by members is not tax deductible. Any withdrawals made fromsuch a plan are not taxable.

Normal Retirement AgeThe age that employees are expected or entitled to retire, specified in a Registered Pension Plan. Often it is theage at which benefits are first paid out of the plan without reduction penalties.

Normal Retirement DateThe earliest date a pension plan member may receive an unreduced pension or annuity on terminating employmentfor any reason other than disability.

NREGSee Non-Registered Savings Plan

Old Age Security - OASA Canadian program that provides retirement benefits to those who qualify. Payment levels are adjusted to reflectincreases in the cost-of-living.

PASee Pension Adjustment

PasswordFormerly called PIN (for Personal identification Number).

A Password for Sign in to the Plan Members Services website was communicated to you in a Welcome Letterwhen you first enrolled in the plan. If you have forgotten your Password you can click on the words, ForgotMy Password, under the Sign in area.

If you need assistance, call Sun Life Financial at the Call Centre number provided by your employer (if applicable)or call 1-800-SUN-LIFE. If you are a member of the PSHCP or PDSP Plan, call 1-888-757-7427 or (613) 247-5100 (in the Ottawa area) for assistance.

Past ServiceA service which has been recognized for pension purposes as rendered by the employee, to the employer,prior to the inception of the plan or prior to the employee's entry into the pension plan. This is also referredto as Prior Service.

PensionA payment, or series of payments, paid to a retired employee.

Pension Adjustment - PAThe Pension Adjustment (PA) reflects the pension benefit accruing to a plan member during the year, under an employer-sponsored plan. This amount is subtracted from the contribution ceiling (dollar amount) to determinethe member's maximum Registered Retirement Savings Plan contribution limit.

Under money purchase plans or Defined Contribution Pension Plan, the PA is simply the total of the employer'sand employee's required contributions, any Additional Voluntary Contributions made by the employee, and anyallocated forfeitures.

For Defined Benefit Pension Plans, the PA for a member is determined directly from the amount of benefit themember earned in the year. The formula is 9 X the benefit accrual - $600 plus the dollar amount of any AdditionalVoluntary Contributions made by the member.

Pension Benefits Acts - PBAsLegislation governing plans registered through provincial pension commissions. The aim of the PBAs is to protectthe rights of plan members, and to ensure that promised benefits are provided.

Pension PlanA plan which provides a regular income for retired employees for the rest of their lives. Many pension plansalso provide income for employees who have terminated employment, or who have a permanent disabilitywhen they reach retirement age. Some plans provide for income to continue being paid to surviving spousesof deceased members.

Pensionable EarningsThe portion of an individual's total earnings used in calculating the pension entitlement under a registered plan,as defined in the plan document. In addition to basic salary, pensionable earnings may or may not include bonuses,overtime payments, taxable benefits and so on.

Pensionable ServiceSee Credited Service

Personal Identification Number - PINSee Password

Plan SponsorThe individual(s) or company responsible for the contracting and administrative duties of the savings or pension plan.

PolicyholderThe policyholder is the person or sponsor to whom a contract is issued. In terms of a pension or savings plan,this is likely your employer, labour union or trustee. In terms of an individual life insurance policy, or othersuch contract, the policyholder is the person to whom the contract is issued.

Pooled FundA pooled fund, similar to a mutual fund, combines the assets of many investors into a single pool. The fund is managed by a professional investment manager. Sun Life Financial's Segregated Funds usually invest either in units of a pooled fund or a mutual fund.

See also Segregated Fund

PoolingIn pension plans, this term used to describe any method by which certain risks or costs are shared by all membersof a group, and certain group advantages are gained.

See also Pooled Fund

PortabilityThe term portability is used to describe the provisions which allow terminated employees to transfer the valueof their deferred pension benefit or the value of their contributions and those made on their behalf, to anotherpension plan. The pension plan can include a LIRA, a LIF, an LRIF (if one exists in your province) or a deferred or immediate life annuity.

Depending on plan rules, you may or may not be allowed to transfer assets into your group plan with Sun Life Financial. The application forms referred to here can be found on the Canada Customs and RevenueAgency's website. Simply select "Forms" from this Plan Member Services site menu.

If your plan allows, the form T2033 must be completed to transfer Registered Retirement Savings Plan assets. If the assets are locked-in, we would also require a Locking-In Agreement as well as an application form to becompleted for the investment product that you select.

For transferring pension or DPSP assets, please complete form T2151. If the assets are locked-in, we require a Locking-In Agreement as well as an application form to be completed for the investment product that you select.

Power of AttorneyA Power of Attorney gives legal authority to one or more person(s) to sign certain documents should you becomeunable to do so. Power of Attorney may be revoked at any time, provided you are mentally competent. It canbe general in scope, covering all aspects of your financial affairs, or it can be limited to giving authority to acton certain aspects of your estate.

Present ValueThe value, today, of money to be received in the future.

Profit Sharing Pension PlanAn arrangement under which payments, computed by reference to business profits, are made by an employer,in trust, for the benefit of employees whether or not the employees contribute.

Projected Pension BenefitsAn estimate of pension plan benefits calculated by using a particular set of actuarial assumptions. Such itemsas the effects of past and anticipated future service credits, past and anticipated future compensation, and ageare taken into account.

Pro-rateTo withdraw proportionally from each fund.

For example:If your selected withdrawal amount is: $3,000.00

And your Fund Balances are: Canadian Equity Fund = $ 2,000.00 Bond Fund = $ 1,000.00 Balance Fund = $ 7,000.00 Total Fund Balance = $10,000.00

Your total withdrawal amount will be pro-rated across your funds. For example, your Canadian Equity Fund willbe pro-rated by 20% [($2,000/$10,000)*$3,000=$600.00] as shown below:

Canadian Equity Fund = $ 600.00 Bond Fund = $ 300.00 Balance Fund = $2,100.00

Public Pension PlanA pension plan such as Old Age Security or Canada Pension Plan/Quebec Pension Plan provided by the government.

Qualification DateThe date on and after which, under the laws of a designated province, a pension plan is required to maintainits qualification for registration.

Quebec Pension Plan - QPPA government pension plan that provides retirement benefits for each contributor living in the province of Quebec.Recipients of QPP benefits are not eligible to receive benefits from the Canada Pension Plan.

See also Canada Pension Plan

Registered Pension Plan - RPPAn employer-sponsored pension plan that is registered with Canada Customs and Revenue Agency and withthe appropriate provincial pension commission. A Registered Pension Plan qualifies for favourable tax treatmentby the federal and provincial governments.

Registered PlanAny plan that has been submitted to and formally approved by the appropriate governmental agencies and forwhich a registration number has been granted by these agencies.

Registered Retirement Income Fund - RRIFA Registered Retirement Income Fund provides you with income during your retirement years. A RRIF is like a continuation of your Registered Retirement Savings Plan whereby your funds remain tax sheltered and youcontinue to choose how those funds are invested. The main difference is that rather than contributing as witha Registered Retirement Savings Plan, the RRIF is designed to provide payments.

With a RRIF you must withdraw a minimum amount each year (except for the year of purchase). There is no maximumlimit on the amount that can be withdrawn but of course if you make significant withdrawals, your funds maynot last as long as you originally intended.

Registered Retirement Savings Plan (RRSP)A savings vehicle for retirement, approved under the Income Tax Act. Taxes are deferred on contributions andincome earned until the savings are withdrawn.

Required ContributionsContributions that an employer and employee are obligated to make under the terms of the plan.

Retirement IncomeIncome from pensions and other sources, to which a retired person is entitled. Retirement income may includeboth private and public pension payments, income from personal savings, government income supplements,and imputed income (e.g., free health insurance premiums).

Retiring AllowanceAn amount received upon or after retirement from office or long-time service, or with respect to loss of officeor employment. A retiring allowance is usually paid as a single sum or in a few annual instalments. Although it must be included as income in the year of receipt, it can be transferred, within limits, to an RPP or an RRSP.

ReturnReturn is the amount of money that you earn on your investment. Normally, it is expressed as a percentage of your original investment.

Revenue Canada (note: also under DNR and Canada Customs and Revenue Agency - CCRA) The new name is the Canadian Customs and Revenue Agency (CCRA).

Risk and ReturnWhen you invest your money, you expect it to grow and to generate a return on your investment. Risk is thecomplicating factor. Most investors think of risk as the possible loss of some, or all of their money. But, there'sanother type of risk. This is the risk that your investment returns will be lower than inflation and that yourmoney will lose its purchasing power.

For example, $1,000 worth of goods at an inflation rate of 5% will cost over $2,500 in 20 years. You want yourinvestment to achieve a return over and above the rate of inflation.

It's important to know that bearing some risk over the long term is the most effective way to achieve the highestreturns. By investing in growth funds, you're assuming more risk than a fixed income investor but you also havea greater potential for high returns in the long term. The growth fund investor must have a stronger stomachsince investing in these funds is a bit like riding a roller coaster; growth funds fluctuate in price and may actuallydecline in value, while fixed income funds generally offer somewhat lower returns with less risk.

RRIFSee Registered Retirement Income Fund

RRSPSee Registered Retirement Savings Plan

RRSP Contribution LimitYour RRSP contribution limit is indicated on your Canada Customs and Revenue Agency Notice of Assessmentthat you receive from the federal government after filing your taxes each year. There are two factors that limitthe amount you can contribute to a RRSP: a maximum annual dollar limit, or a percentage of the previous year's"earned income" and your "pension adjustment".

S&P/TSX Composite IndexA common benchmark used to evaluate the performance of Canadian Equity Funds. The index represents theperformance for the 300 largest companies in Canada.

Salary ScaleIn pension costing, salary scale is an estimate of future increases in wages and salaries of plan Members whosebenefits are based on earnings.

Savings PlanAny plan that allows you to save money towards your retirement or for other reasons. Contributions to a savingsplan may or may not be tax deductible.

Sector RotationSome managers focus on the economy in general and try to choose groups of companies that will do well in the current environment. Then they put more money in the stock of companies in the industry and regionsthey think will perform well.

Segregated FundAn investment in a Segregated Fund is similar to an investment in a Mutual Fund. Both types of funds combinemoney from a large number of investors and these assets are invested and managed by a professional fund manager.

The assets in a Segregated Fund are owned by the insurance company but are segregated from its other assets.Neither the value of the assets nor the rates of return are guaranteed. Segregated Fund assets are the assets of the insurance company but in case where the latter were to declare bankruptcy, all Segregated Fund assetswould be allocated to the participants in priority over the insurance company's other creditors.

Segregated Funds are the investment options underlying an annuity or life insurance contract. As such, if youdeclare bankruptcy, your Segregated Fund savings may be protected from your creditors as long as a spouse,child, parent or grandchild or an irrevocable beneficiary has been designated as the beneficiary under the contract.However, there are a number of exceptions to this protection from creditors, requiring each case to be lookedat individually. Moreover, if you die, the full value of your account (all contributions plus earnings) will be paiddirectly to your beneficiaries without passing through your estate and incurring probate.

See also Pooled Fund and Mutual Fund

SC 91-Day T-Bill IndexThe SC 91-Day T-Bill Index measures the total return on 91-Day T-Bills, valued on a monthly basis. T-Bills are issuedby the Government of Canada and are considered "short term paper". The Index is a good gauge for MoneyMarket Funds.

SC Universal Bond IndexThe SC Universal Bond Index monitors approximately 700 marketable Canadian bonds that have terms to maturityof more than one year. This index is a good representation of the Canadian bond market as a whole and canbe used as a gauge of most Canadian bond funds.

Short-term TradingShort-term trading (also known as "frequent trading" or "timing the market") is the practice where an investormakes multiple buying and selling transactions in an attempt to time market trends and boost returns to theiraccount. However, these transactions affect all investors in the fund and can lead to an overall negative impacton the fund’s performance. As of January 1, 2005, a 2% fee will be charged when you initiate an interfund transferinto a fund followed by an interfund transfer out of the same fund within 30 days. Note, this fee does not applyto deposits or withdrawals, or transactions in guaranteed investments, directly held stock or money marketfunds. In the event a member continues to engage in short-term trading, their trades may be delayed and theirability to conduct online interfund transfers may be restricted.

For more details, please read the Questions & Answers.

Specialized FundsFunds which specialize in one sector of the economy (technology or resource funds for example) or focus on one region of the world. The narrower the focus of the fund, the more short term ups and downs you'lllikely experience, so make sure your investment in these funds is consistent with your risk profile.

Spill LimitOnce a member has contributed his or her maximum allowable contribution amount under a pension plan,RRSP or DPSP, contributions in excess of the allowable limit will be moved to another plan. This plan is called a "spill vehicle". The maximum allowable contribution amount in this case is called the "spill limit".

The spill limit is not provided on our website. Please contact a Sun Life Financial Call Centre Representative at the number provided by your employer or 1-800-SUN-LIFE. Members of most plans, can update the amountover the phone after a quick security check.

Spousal RRSPA spousal RRSP is an account that is set up under your spouse's name but contributions are made by you. Thecontributions will be attached to your RRSP limit and you will receive the tax benefit. Once the contributionshit the account they are registered in your spouse's name and your spouse now has full control of the assets in the spousal account. All trades and account updates on the Plan Member Services website have to be madeby your spouse via a spousal Access ID and PIN.

Spouses Pension AllowanceUnder the federal Old Age Security Act, a monthly payment based on family income payable to the spouse of an OAS pensioner.

StocksWhen you buy a stock (you'll see the term "equity" used as well), you become part owner of the company thatissued it. Stocks can pay investors through dividends and/or stock-price increases. In general terms, stocks aretypically more risky over the short term, but historically have offered higher returns over the long term thanother types of investments.

Surviving Spouse BenefitA monthly benefit payable under a pension plan to the surviving spouse of a deceased employee or pensioner.It usually refers to a benefit other than payments under a Guaranteed Annuity or Joint Life and Last Survivor Annuity.

Survivor BenefitGenerally, a benefit payable under a pension plan to the surviving spouse or dependent of a plan member whodies before or after retirement.

Tax CreditThe provision for a reduction of income tax payable (not a deduction from taxable income) usually calculatedas an amount of other taxes payable, or a portion of housing or other expenses of the taxpayer (e.g. Ontariotax credits).

Tax DeductibleRefers to a type or amount of income that may be deducted from a person's total income in computing net or taxable income (e.g. Registered Pension Plan contributions).

Tax DeferralProvision in the Income Tax Act whereby income/savings from certain pension and similar contributions (e.g. RRSP)are tax-deductible, and employer contributions and investment income are not included in a member's currenttaxable income. However, benefit payments are considered taxable income in the year in which they are received.Therefore, tax is deferred until payment is made.

Tax ReceiptsThere are generally two RRSP receipts issued per year for contributions made. One for the period of January-February,which you will receive in March, and one for the period of March-December which you will receive in Januaryof the following year.

Tax ShelterA tax-deferred savings arrangement that permits a contributor to accumulate funds - usually contributions and any accumulated income - which will be withdrawn at a later date under potentially more favourabletax conditions. An RRSP is one common example.

Taxes on WithdrawalsTransactions in registered accounts are tax sheltered except in the case of withdrawal. When you withdrawmoney from your registered account, the withdrawal becomes taxable to you.

Termination (note: also found under Leaving the Plan)Upon termination of employment, there may be a number of options available to you depending on the typeof assets you have with us.

If you have non-registered assets, you may transfer them to a non-registered account with an external institution,our Group Choices Plan or take the assets in cash.

If you have registered pension assets and they are locked-in, you can transfer the assets to a locked-in accountwith an external institution, our Group Choices Plan or purchase an annuity and transfer funds to another pensionplan if allowable.

If you have assets in an RRSP or DPSP, you may transfer those to an RRSP account with an external institution,into our Group Choices Plan, take the assets in cash (less applicable taxes) or purchase an annuity.

Transaction Fees As a member, you are not required to pay transaction fees. You may however, depending on plan rules, pay a feefor withdrawals and fund management fees.This will depend on your plan rules and you may find this informationin the Plan Member Enrolment kit.

Note: a 2% fee will be charged (and paid to the fund) when a plan member initiates an interfund transfer into a fund followed by an interfund transfer out of the same fund within 30 days. The assessment of the fee is subjectto materiality for administration purposes. See Short-term Trading for more details.

T-1007An information return required to be filed with the Canada Customs and Revenue Agency when a "connectedperson" joins a pension plan.

T-2033A Canada Customs and Revenue Agency form used for a direct, tax-free transfer from one RRSP to another.

T-2037A form required by the Canada Customs and Revenue Agency for a direct, tax-free transfer from a registered planto an insurance company or other carrier, to purchase an annuity.

T-2151A Canada Customs and Revenue Agency form which records transfers from an RPP or DPSP.

T4AA Canada Customs and Revenue Agency tax form which must be prepared when a payment is made from a RegisteredPension Plan or a Deferred Profit Sharing Plan to a client or member.

UnitsWhen you deposit contributions into a fund, you obtain a proportionate share of the assets. To recognize this"share" you are allocated "units". There is no ownership interest. The unit is a notional method used to measure"policy" participation in a fund and a unit is simply the name given to the measurement that represents a pieceof one of the pooled funds. By counting pieces of the fund, we can track the total share each participant owns.

A "unit value" is the current value of each unit you own in a fund. Basically, the unit value is determined by totallingthe value of all of the assets held in a fund and dividing that total by the number of pieces all members hold.Once a unit has been purchased, its value increases or decreases in relation to the investment earnings of the fund.

It is important to keep in mind that units are used strictly to determine each member's share of the fund. The unitvalue represents the current worth of each unit. The current value of the funds total holdings can be determinedby multiplying the number of units held in the fund by the unit value.

ValueThe manager chooses stocks that are inexpensive based on an analysis of the company's current strengths andfuture prospects. If the manager is right, the company's stock will increase in price as others in the market recognize the true value of the stock.

Value FundThe investment manager chooses stocks that are inexpensive based on an analysis of the company's currentstrengths and future prospects. If the manager is right, the company's stock will increase in price as othersin the market recognize the true value of the stock.

VestingUnder a defined contribution plan or a Deferred Profit Sharing Plan, vesting refers to your entitlement, upontermination of employment, to contributions made on your behalf by your employer.

Voluntary Withdrawals (note: also under Withdrawals)Depending on plan rules, you may withdraw a portion, all or none of your assets. If your plan has Call Centreaccess and you are entitled to make a withdrawal, you can contact a Call Centre Representative to process the request.

Waiting PeriodThe period of service with an employer that an employee must satisfy to meet the eligibility requirements for membership in a plan.

Withdrawals (note: also under Voluntary Withdrawals)Depending on plan rules, you may withdraw a portion, all or none of your assets. If your plan has Call Centreaccess and you are entitled to make a withdrawal, you can contact a Call Centre Representative to process the request.

Year's Basic Exemption - YBEA term used in reference to the Canada/Quebec Pension Plan to describe the earnings level that is not subjectto contributions.

Year's Maximum Pensionable Earnings - YMPEA term used in reference to the Canada/Quebec Pension Plan that is often referred to as the earnings ceiling.It refers to the maximum amount of annual earnings from employment on which Canada Pension Plan or QuebecPension Plan contributions and benefits are calculated. The YMPE changes annually.