Municipal Investment Plan

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Municipal Investment Plan
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Overview

• A group RRSP / Investment Program negotiated by
  the MFA
• All municipal employees, elected officials and
  their spouses throughout BC are eligible
• Convenient contributions through
  automatic payroll deductions for employees

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Benefits of The Municipal Investment Plan

• Discounted Fees - Significant savings off
  management fees with the savings to increase as
  the program grows
• Management fees are fees deducted by the Mutual
  Fund / Insurance companies prior to showing their
  returns for the year
• Selection of quality mutual funds
• No front end or back end loads
• Immediate tax relief for employees

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How did the MFA become involved?

• Since 1989 the MFA has partnered with PHN to
  offer Regional Districts and Municipalities
  throughout BC Pooled Investment Funds
• Seeing the success of the MFA Pooled Investments
  an Investment Firm approached the MFA to offer a
  similar program for municipal employees and
  elected officials

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• A questionnaire was sent out to Municipalities
  and Regional Districts to see if they were
  interested
• The MFA received an overwhelming response and
  started to investigate the various providers on
  behalf of its members

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Why the Interest?

• The Investment Firms can see the potential of
  grouping BCs approximately 35,000 municipal
  employees creating a very large volume sale
• By decreasing their fees the companies hope to
  create a win / win situation for municipal
  employees and elected officials

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Benefits for Municipalities

• Large corporations have been offering their
  employees comparable investment plans as an added
  incentive in their employees benefit packages.
  We feel that the Municipal Investment Plan will
  be able to assist municipalities in the
  attracting and retaining of exemplary employees
• Using the combined bargaining power of BCs
  Municipalities and Regional Districts we were
  able to negotiate fee discounts that would not be
  available to many municipalities working on their
  own

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These firms are already offering similar programs
for their employees

• Western Canada
• Duke Energy
• Placer Dome
• Simon Fraser University
• ICBC
• Teck Cominco
• Coast Capital Savings
• Syncrude
• University of Saskatchewan
• Shell Canada
• Louisiana Pacific
• Finning International
• Husky
• ChevronTexaco

• National
• IBM
• Nortel
• Bombardier
• Magna
• Honda
• Proctor Gamble
• Royal Bank
• NHL
• Inco
• Aliant
• Fedex
• Alcan

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The MFAs Role

• The MFAs primary role will be to provide the
  centralized feed of payroll deductions, assist
  with the initial implementation and the ongoing
  promotion of the program, and the policing of the
  service provider and fund selection

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Fees

• The MFA will collect 3/20 of 1. As with our
  other programs any profits will be given back to
  the customer as a benefit.
• MFA staff are salaried and receive no commission
  or bonuses from the program

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Three Individual Plans

• BC Municipal Employees May only contribute if
  their municipality Regional District decides to
  offer the program
• Elected Officials May contribute directly to
  the MFA or if their area decides to offer the
  program they may contribute through payroll
  deduction
• Eligible Spouses / Partners May contribute
  directly to the MFA if their spouse / partner is
  a member of the program

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Bottom Line Shows the Decreased Investment
Management Fees (IMF)
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Average Investment Returns

• Retail MFA
  Plan
• Perigee Global Bond 2.37 3.00
• TDAM Cdn Bond Index 14.92 15.77
• CI Asian Dynasty 6.65 7.50
• Prices based on December 31, 2002 year to
  date results

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Individual Choice

• Each municipality / regional district will
  customize the program to fit their needs.
• - Elected officials payroll deduction
• Plan participation post employment
• Payroll deduction changes by employees

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Payroll / Human Resources Roll

• Initially a payroll deduction form will be handed
  into payroll with the application being sent to
  the MFAs office. An email, fax or phone call
  will be sent / received to confirm payroll
  deduction and new employees to the program
  bi-weekly
• The department will collect the money by payroll
  deduction from the employee and remit it to the
  MFA electronically or be EFT (any charges
  involved with this process will be paid by the
  MFA)
• All investment advice and education is to be
  provided by the service provider not by the
  Payroll or Human Resource departments

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• If your municipality is interested in this
  program have them contact Marguerite by fax at
• 1-250-384-3000, email at marguerite_at_mfa.bc.ca or
  by phone at 250-380-0432 226 for further
  information or to set up a meeting in your area.

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Municipal Investment Plan Employee Enrollment

• If there are a number of employees interested in
  joining the plan please contact the MFA and we
  will arrange an employee session in your area.

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How to Join

• Municipality informs MFA that they wish to
  participate in the Municipal Investment Plan
• The MFA will send out an employee handout for
  distribution by payroll. If requested the MFA
  will also send the employee guides and packages
• The employee requests the Guide and Package from
  either the MFA or their payroll department

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1. Employee educates themselves on the plan and if
   they require more information they contact Sun
   Life
2. Employee mails in the application to the MFA and
   gives the payroll department the payroll
   deduction form
3. Payroll deduction starts on the next pay period
   after payroll deduction received

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Municipal Investment Plan Elected Officials
Enrollment
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How to Join

• If interested in the Municipal Investment Plan
  contact the MFA. The MFA will send out a
  package and program guide to you
• If you are interested in joining the plan mail in
  an application to the MFA. If your municipality
  elects to offer the plan by payroll deduction
  submit the payroll deduction form to the payroll
  department

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• Payroll deduction starts on the next pay period
  after payroll deduction form is received. If
  your municipality does not offer payroll
  deduction you may remit contributions by cheque
  directly to the MFAs office
• These payments will be deposited into the bank
  and credited to your account on the first Friday
  after payment is received unless cheques are
  postdated
• All correspondence should be mailed to the MFA,
  737 Fort Street, Victoria, BC V8W 2V1 attn
  Marguerite Fenske

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Municipal Investment Plan Spousal / Partner
Enrollment
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How to Join

• If interested in the Municipal Investment Plan
  contact the MFA. To be eligible for the plan
  you must be a spouse / partner of an existing
  plan member. The MFA will send out a package and
  program guide to you
• If you are interested in joining the plan mail in
  an application to the MFA

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• Send in post dated cheques directly to the MFA
  (maximum of once per month). These payments will
  be deposited into the bank and credited to your
  account on the first Friday after the cheque is
  postdated
• All correspondence should be mailed to the MFA,
  737 Fort Street, Victoria, BC V8W 2V1 attn
  Marguerite Fenske