Click to edit Master title style Group Financial Services Building Employee Loyalty Proposal For:...

Click to edit Master title styleGroup Financial ServicesBuilding Employee Loyalty

Proposal For: Merit Contractor’s Association of Manitoba

Matt Nishi, Sales Consultant

May 27, 2010

May 27, 2010 Proposal for Merit Contractor’s Association of Manitoba 2

Proposal for Merit Contractor’s Association of Manitoba

Why Group Savings Plans are ImportantA Little Bit About Us Plan OptionsHow RBC is DifferentOur Recommendation to YouWhat Your Employees GetHow We Minimize Plan Administration


Why Group Savings Plans are Important

The cost of replacing an employee ranges from 29% to 46% of the person's annual salary*Organizations that have managed to find, keep and engage good employees have better business results^Employee anxiety in volatile markets impacts productivity

Employee loyalty is a growing concern in today’s marketplace

Why do employees go elsewhere?

53%: better compensation and benefits*35%: dissatisfaction with potential career development*32%: ready for a new experience*

*Source: Retaining Talent: A benchmarking study, by Paul R. Bernthal PhD and Richard S. Wellins, Ph.D., Development Dimensions International Inc. www.ddiworld.com/pdf/ddi_retainingtalentabenchmarkingstudy_es.pdf

^ 2007 Mercer What’ Working™ Survey


Why Group Savings Plans are Important

What is important to employees Importance to Employees*

Having appropriate health insurance 83%Needing to save for retirement 76%Having more flexible, or generous, paid-time-off policies 67%Having financial security if a wage earner can no longer work due to a disability or serious illness

62%

Having a financial plan for achieving major financial goals 60%When nearing retirement, having advice about how to invest your retirement money and how to make it last as long as needed

53%

Having financial security in the event of a premature death 51%

Having flexible workplace arrangements to better balance work and personal life 47%

Having to provide for long-term care needs of either yourself or a spouse 40%Finding a trusted source to provide financial advice 39%Having enough money for your children’s college education 33%Need to work in retirement 29%Having access to mental health or emotional well-being counseling 22%

*Prudential Life Insurance Company of America Study of Employee Benefits – 2007 and beyond: Top two scores on a 7 point scale


Personalized Financial Advice


RBC Asset Management Inc.

More than 1.2 million investorsOver $90 billion in assets under managementOver 90% of assets performing above average on a five-year basisOver 95% of the funds holding management expense ratios below the industry averageHas a repeatable investment approach, ensuring a consistent security selection process

A Little Bit About Us


Dedicated support structure for plan set-up and ongoing managementAdministers more that 4,000 registered and non-registered group savings plansManages more than $2 billion in assets invested in those plansServices over 150,000 plan membersUtilizes RBC retail expertise for employees

1,100 bank branches and other locations400 investment retirement planners1,000 financial planners9,000 qualified mutual fund salespeople

Group Financial Services

A Little Bit About Us


Group Savings Plan Options

•Royal Choices Group Retirement Savings Plan (Group RSP)•Royal Choices Group Investment Account (GIA)•Deferred Profit Sharing Plan (DPSP)

Service Delivery Options


How RBC Is Different

Most of our plans are available with no administration fee reducing how much it costs you to offer benefits to your employees

Service and support – With no administration fee

Each of your employees meets with a qualified investment professional who helps make sure their investments match their individual circumstances

One-on-one personalized financial advice

Award winning investment options for your employeesNamed “Best Overall Fund Group” in Canada by Lipper in Canada for two consecutive years

Group banking packages

Offer a variety of great incentives such as more attractive interest rates, discounts and waived fees on banking services


Our Recommendation to You


Implement a Group RSP By implementing a Group Savings Plan, you can provide your employees with a convenient way to save for their retirement that:

Provides complete portabilityOffers a range of investments with advice Uses investment professionals to help simplify how your employees saveAllows assets to be consolidated

Provide an employer matching contributionTo increase the benefit of your program and number of employees who participate Flexibility to implement a plan, tailored to meet your specific organizational needs

Eligibility requirements Employer matching programPlan restrictions Spousal account option

Our Recommendation to You


Regular RRSP

Monthly Salary $3,000 Income Tax 700

Take Home Pay $2,300 RRSP Contribution 100

Net Take Home Pay $2,200

Group RRSP

Monthly Salary $3,000GRRSP Contribution 100

Taxable Income $2,900 Income Tax 660

Take Home Pay $2,240

You only pay $60 to make that $100 contribution!Note: Minimum annual taxable income to receive savings from an RRSP contribution is $7,256

What Your Employees GetTax Efficiency


What your Employees Get Award Winning Investment Options

Best Overall Fund Group in Canada for two consecutive years 2007 and 2008* and “Best Bond Fund Family” in 2009

Best risk-adjusted performance over 3 years.*

Among the top-performing fund families in Canada, with over 85% of assets performing above-average on a five-year basis.

RBC Funds, offered by RBC Asset Management Inc., provide your employees with award winning investment options

*Lipper Inc. (a Reuters company). As of December 31, 2007.


Web Submission: encrypted sponsor site for contribution remittance

ADP or Ceridian Payroll: direct link which submits contributions directly to your RBC plan.*

Spreadsheet E-mail: formatted Excel spreadsheet submitted via encrypted e-mail

* Some ADP or Ceridian payroll systems may not be available for direct contributions.

How We Minimize Your Plan Administration

Our contribution remittance options are easy to establish and administer


Sponsor feesGroup RSP & Group Investment Accounts (GIA):

No annual administration fee

Deferred Profit Sharing Plan (DPSP):Annual administration fee for less than 25 employees: $450.00

Annual administration fee for more than 25 employees: $300

Plan member feesNo Fees “per member account” at RBC branchCompetitive fees are charged on investments Over 95% of RBC Funds hold management expense ratios below the industry average

No Administration Fees

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Thank you for your time!


RBC Funds are offered by RBC Asset Management Inc. and sold by Royal Mutual Funds Inc. Royal Mutual Funds Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company and RBC Asset Management Inc. are separate corporate entities which are affiliated. Royal Mutual Funds Inc., RBC Dominion Securities Inc. and RBC Direct Investing Inc. are member companies under RBC Investments. Monies held by *RBC Dominion Securities Inc. or RBC Direct Investing Inc. in their respective securities accounts are not insured by Canada Deposit Insurance Corporation or by any other government deposit insurer. Unless otherwise indicated, securities sold through the member companies are not insured by Canada Deposit Insurance Corporation or any other government deposit insurer, and are not guaranteed by Royal Bank of Canada and subject to market fluctuations. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Read the prospectus before investing. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec. * Member CIPF ® Registered trademark of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2007

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