Frequently Asked Questions (FAQ)
Description: The following are a list of questions and responses that participants may ask as part of the transition to Solium or the introduction of new plans. Some of these questions will need to be personalized as per your plan text. Please review the questions and draw from the samples below to aid in your communications.
Goal: Answer questions from participants on your plan and Solium’s services
Timing: Date of launch (Go LIVE date)
Distribution: Email / Mail / Shareworks
Branding: Use your branding, company letterhead
Uses: Intranet / Plan Booklet / Plan Brochure
Solium Services & Transition
Who is Solium?
To ensure that participation in the plan is as easy as possible, <<Company name>> has partnered with Solium Capital Inc. to administer the plan. Solium’s online software application – Shareworks? - gives employees a simple way of managing their participation in the plan – even for those who are unfamiliar with the stock market.
What is Shareworks?
Shareworks is an online software application that is directly linked to the stock markets. This allows you to access your account at anytime, from anywhere, to view your holdings, and transact. You can do this at any time from any computer connected to the internet.
What benefits does Shareworks provide to me?
Shareworks enables you to log on for secure services from any computer that has access to the Internet. It’s very similar to online banking. Here are some of the features provided:
§ View your complete portfolio anytime, online
§ Conduct real-time transactions and direct proceeds to your personal bank account. Shareworks integrates real-time brokerage services and stock quotes live from global exchanges.
§ View and print account statements anytime
§ See a complete history of your account activity
What can I do with Solium Shareworks that I could not do before?
The major service difference with Solium is that you may sell, transfer or certificate your shares on any business day of the week. Solium Shareworks is integrated with real-time brokerage services. This means that you are no longer restricted to conducting transactions to set days.
Will Solium provide me an account statement?
Shareworks enables all participants to login to view and print account statements at anytime. A complete history of your account and transaction history is available to you when you log on.
What if I don’t have access to the internet to use Shareworks?
Even if you don’t have access to the internet, Solium can provide you with full-service assistance.
The Customer Service Centre is open from 6:00 am to 6:00 pm MT, Monday through Friday.
What will happen to my shares that are currently in my <<Current Provider>> account(s)?
All existing share accounts held by your current provider will be transferred to Solium effective <<date here>>.
What is the last date I can make account transactions with <<Current Provider>> ?
<<Update this section to reflect your specific plan rules>>
The last purchase of shares with <<Current Provider>> will occur on <<time/date>>. If you wish to sell, transfer or withdraw shares from your account your instructions must be received by <<Current Provider>> no later than <<time/date>>.
What is the first date I can make account transactions through Solium?
<<Update this section to reflect your specific plan rules>>
In order to facilitate the transfer of records, there will be a blackout period for transactions during the period of <<date>> to <<date>>, inclusive. No shares will be sold, transferred or withdrawn as certificates during this period. The first date that you will be able to make account transactions with Solium is <<date>>. The first purchase of shares with Solium will occur <<date>>.
I have a Stock Option Account and a Share Purchase Account. Are both being transferred to Solium?
<<Update this section to reflect your specific plan rules>>
Yes. Both your Stock Option and Share Purchase Plan accounts are now accessible through Shareworks. This means that you have one log in to view your entire portfolio and transact as you choose.
Share Purchase Plan Basics
What is an Employee Share Purchase Plan?
An Employee Share Purchase Plan provides employees the ability to purchase shares in the Company they work for by payroll deduction, where the Company makes an additional contribution towards the purchase of corporate shares. An Employee Share Purchase Plan is a completely voluntary program that serves as a long-term investment vehicle.
What is the benefit of the Employee Share Purchase Plan?
The plan can help you accumulate savings by subsidizing your purchase of Company shares. The Company will pay all the administrative costs on the purchase of shares and all dividends will be reinvested to buy more shares for you.
Does the company match or add to my personal contribution?
<<Update this section to reflect your specific plan rules>>
Yes. For every $X you contribute to the plan, the Company contributes $X up to an annual maximum of $X per employee. You have the option of contributing up to a maximum of X% of your eligible annual earnings, in X% increments, to the plan. Your contributions will be made by payroll deduction.
For example, if you earn $X and you have decided to contribute X% of your earnings to the plan, your annual contribution would be $X (or $X per month). In this example, the Company would contribute an additional annual amount of $X (or $X per month).
Why should I join the Employee Share Purchase Plan?
It is entirely your choice to join or not join the program. When you purchase shares in the Company through the Share Purchase Plan, you have the opportunity to personally benefit from any increase in value of the Company shares. Be aware though, that the Company makes no representations or warranties as to the value or market performance of the shares. The shares will increase and decrease in price often as a result of circumstances that have little to do with the profitability of our Company. No one is able to predict the future of share prices and you should remember that the share prices could be depressed at a time when you wish to sell. The decision to participate in the plan is solely your choice, dependent on your individual financial situation.
Who is eligible to join the Employee Share Purchase Plan?
<<Update this section to reflect your specific plan rules>>
You are eligible to participate in the plan at any time if you are:
§ A permanent full-time employee who has completed at least x months of continuous service with the Company.
§ A permanent part-time employee working a minimum of x hours per week
What decisions do I need to make before I complete the enrollment form?
The decisions you need to make before completing the enrollment form are:
· The percentage of your earnings you wish to contribute to the plan
· How you wish your contributions to be directed (that is, into an RRSP account, a non-registered account or a combination of both)
· Designation of a beneficiary if you establish an RRSP account
If I am an insider, can I still participate in the Employee Share Purchase Plan?
<<Update this section to reflect your specific plan rules>>
Yes. If you are an insider of the Company, you may still participate. However, there are special reporting requirements for insiders. For all the shares acquired in the plan on your behalf during a calendar year, you must file an insider report on or before March 31 in the following year showing all those shares, which have not been sold or transferred. If you sell or transfer any shares in the plan, you must file an insider report within the normal time limits for filing an insider report.
As a plan participant, do I have any shareholder voting rights?
<<Update this section to reflect your specific plan rules>>
You will have the right to exercise all voting rights attached to the shares held in your accounts in the plan. You will be entitled to one vote for each share held. You will receive a voting instruction card prior to each meeting of shareholders, which will enable you to vote, should you wish.
How do I make a withdrawal from the plan?
<<Update this section to reflect your specific plan rules>>
Withdrawals can be made on both your contributions and the Company contributions as follows:
§ When the Company is not in blackout. All employees are precluded from buying or selling the Company’s common shares during trading blackout periods.
§ When the shares have vested or become unrestricted
Under what circumstances would my participation in the plan be terminated?
<<Update this section to reflect your specific plan rules>>
Your participation in the plan will terminate on the earliest of the following dates:
§ You cease to be an employee
§ You withdraw all your cash or shares from the plan
§ You move to a non-eligible status (for example from permanent to temporary status)
§ You pass away
§ The plan itself terminates
What happens when my participation in the plan is terminated?
If you own shares in a non-registered account, you will indicate through the Shareworks how you would like to receive any proceeds:
1. A share certificate representing the number of whole shares you own, together with any money standing to the credit of your account; or
2. A cash payment equal to the net proceeds of the sale of your shares, together with any money standing to the credit of your account; or
3. A combination of (1) and (2).
If you own shares in an RRSP account, you may indicate
1. To receive a cash payment equal to the net proceeds of the sale of the shares in your RRSP account together with any money standing to the credit of your account, less applicable taxes; or
2. To transfer your shares and any money standing to the credit of your account to another RRSP in your name on a tax-sheltered basis; or
3. To transfer the net proceeds of the sale of your shares and any money standing to the credit of your account to another RRSP in your name; or
4. A combination of (1), (2), and (3).
Could the plan itself be terminated?
<<Update this section to reflect your specific plan rules>>
The plan may be repealed, amended or terminated by the Company at any time. No repeal, amendment or termination will have retroactive effect nor will it affect any benefits accrued up to the time of any such change.
Do I need to designate a beneficiary?
<<Update this section to reflect your specific plan rules>>
If you have an RRSP account, you should consider designating a beneficiary who will receive the proceeds from your account in the event of your death. If no beneficiary is designated or your beneficiary is not living at the time of your death, the proceeds will be paid to your estate.
If you choose to change your beneficiary (subject to applicable laws), you may do so by completing a Change Form at any time.
Share Purchase Plan Contributions & Withdrawals
How are shares purchased?
All contributions allocated to your account are used by Solium to purchase shares through normal market facilities. Purchases of shares will be completed as a bulk purchase. An allocation of full and fractional shares will be made to your account. Dividends earned on shares will be used to purchase additional shares. Shareworks will calculate an average monthly value of purchases for all plan participants.
When the contributions are deducted from payroll, you will see these contributions on Shareworks as ‘funds awaiting investment’. When the bulk purchase is completed the units purchased and the book value will be shown in your portfolio view within Shareworks.
What is the process for a sale of shares?
<<Update this section to reflect your specific plan rules>>
If you elect to receive a cash payment for shares you can select to sell the share at the prevailing market price or enter a limit order and define a selling price. In each case, the expenses of the sale are borne by you. If the sale in a non-registered account results in a capital gain, you will be taxed accordingly. Solium will issue a T5008 tax form for you to include with your annual tax return. For a sale in your RRSP account, applicable taxes will be withheld at the time of the withdrawal. All taxes associated with any transaction are summarized by Shareworks at the time of transaction and are always available for viewing in your account history.
Can I transfer shares from my non-registered account to my RRSP account and vice versa?
<<Update this section to reflect your specific plan rules>>
You may elect to transfer all or a portion of shares in your non-registered account (including those purchased with Company contributions) to your RRSP account. Prior to considering a transfer of this type, you should take into account Revenue Canada’s annual limit on RRSP contributions.
When are transfers allowed?
<<Update this section to reflect your specific plan rules>>
Transfers can be completed at anytime through Shareworks.
How much can I contribute?
<<Update this section to reflect your specific plan rules>>
You can contribute up to X% of your eligible earnings. The percentage you contribute must be a whole percentage meaning that, for example, you would be unable to contribute X%. Eligible earnings include all employment income (including salary, overtime, vacation, sick pay, statutory holiday pay, pool draws and quarterly pool payments, profit share, commissions and draws against commission) and all bonuses. Not eligible are incentives, referral, production or asset bonuses, forgivable loans, disability benefits or director fees. There are no maximums on the amount of earnings. Your contributions will be made by regular payroll deductions.
How are the contributions invested?
<<Update this section to reflect your specific plan rules>>
All contributions are used to buy common shares of the Company listed on the <<Exchange>> under the symbol <<Symbol>>.
Are lump sum contributions allowed?
<<Update this section to reflect your specific plan rules>>
As the plan was designed to enable employees to accumulate shares through payroll deduction, it cannot accommodate any lump sum payments.