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December 15, 2018

Re: Amendments to Federal Investment Rules which impact your company stock investments

Dear Plan member,

As a result of amendments to the Pension Benefits Standards Regulations, 1985 - Federal Investment Rules, or FIR, there are changes affecting Defined Contribution Pension Plans (DCPPs) that offer company stock as an investment option. Your DCPP is affected by the amendments to the Regulation, which will come into effect on July 1, 2016.

How do these changes affect you?
A key amendment to the FIR will remove a ‘related party’ exception;currently the FIR prohibits a plan administrator from transacting with a party related to the pension plan (Related Party), except when investments in the securities of a Related Party are acquired at a “public exchange”. This exception to the Related Party rules has been relied upon by plan administrators to offer investments in company stock in pension plans.The exception has now been removed. As a result, if youhave investment instructionsthat include company stock as part of your DCPP, you will need to update/provide future investment direction for those contributions. {Your employer will also be selecting a replacement fund to reinvest your company stock dividends}[SI1].

If you hold investments in company stock as part of your DCPP,you will have until the date chosen by youremployer(no later thanJune 30, 2021) to divest your company stock and transfer the proceedsinto another available investment option within your plan. Your employermay provide you with additional information regarding this change in the near future.

Action required by you:

  • As of XX date,[SI2] the company stock fund will no longer be available for future investments. If you currently have investment instructions that include company stock, you must contact Sun Life Financial to update your investment instructions beforeXX date.
  • If you currently have investment instructions that include company stock and do not update your investment direction byXX date, the contributions that you would have made to company stock will be directed to {fund name to be provided by employerORthe replacement fund chosen by your employer.}

Note: Sun Life Financial is not responsible for any financial losses sustained, and/or increases in fund expenses incurred in your account relating to the change in your DCPP investment instructions, the divestiture of your company stock, or changes to the Regulation.

How do I update my investment instructions?
You may update your investment instructions at any time either:

  • online by logging in to your account at selecting Requests > Change investments, or
  • over the phone by calling the Sun Life Financial Customer Care Centre at 1-8XX-XXX-XXXX, from 8 a.m. to 8 p.m. ET, any business day.

With any change that impacts your investment funds, it’s always a good idea to review your current investment options to ensure they align with your risk tolerance. You can do this online by signing into the Plan Member Services website at and completing your Investment risk profiler by selecting > Resource Centre >my money tools > Asset allocation.

Questions?

Please contact Sun Life Financial’s Customer Care Centre any business day from 8 a.m. to 8 p.m. ET.

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[SI1]Employer to remove if not applicable to plan members.

[SI2]Determined by XXX Company depending on fund sweep date