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Important Enhancements to the Husky Employee Savings Plan

Your Health. Your Wealth. Prepare today for your tomorrow. Important Enhancements to the Husky Employee Savings Plan. Agenda. Savings Plan Philosophy What's stays the same / What changes? Making elections & Re Allocations The Tax-free Savings Account (TFSA) & Share Purchase Plan

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Important Enhancements to the Husky Employee Savings Plan

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  1. Your Health. Your Wealth. • Prepare today for your tomorrow Important Enhancements to the Husky Employee Savings Plan

  2. Agenda • Savings Plan Philosophy • What's stays the same / What changes? • Making elections & Re Allocations • The Tax-free Savings Account (TFSA) & Share Purchase Plan • Plan member responsibilities • Fees • Actions required & Choosing your funds • Tools and Services

  3. The Husky Energy Savings Plan Philosophy • The objective of Husky savings plan is to assist employees in saving by supplementing any additional savings and retirement income they may receive from other sources: • This may include government programs, (for example CPP & OAS) • It is important to understand that you may require additional savings and investments to reach your retirement objectives.

  4. What stays the same?

  5. What stays the same? • Husky will continue providing 5% of your base earnings to the savings plan • No employee match is required • You can still direct the 5% or a portion thereof to the Group RRSP • Low investment management fees.

  6. What changes?

  7. What changes? • Deposits are made “per pay” directly into the savings plan rather than an annual lump sum payment, • Flexibility to make additional voluntary employee contributions, • The Savings Plan entitlement section of the pay advice will be removed. The current period and year to date contributions can be viewed in the Employer Contribution and Deduction section of your pay advice

  8. What changes? • Greater choice of investment vehicles, including; • Non-registered funds (same as those in the retirement plans) • A TFSA added to the plan • A Husky Share Purchase Plan has been added to the plan

  9. What are the changes? You can now direct Husky’s contribution as follows: Husky Contribution (Plus employee voluntary contributions) RRSP/Spousal RRSP (pre tax) Husky Share Purchase Plan (after tax) Non Registered (after tax) and/or and/or Elect the RRSP or Husky Share option on iConnect. If no election is made, the default is the taxable Non Registered account

  10. What are the changes? You can direct money from your Non Registered account as follows: Non Registered RRSP/Spousal RRSP TFSA Husky Stock Purchase Plan and/or and/or If no election is made, contributions will remain in the Non-registered Sun Life Money Market fund

  11. Making Elections

  12. Making my Elections To elect the Group RRSP or Husky Share Purchase plan: Log into iConnect using your network ID and password Click the Employee Self-Service tab at the top of the page On the Employee Self-Service Overview page, Click Savings Plan– Update Husky Provided Allocations to update the employer portion of your savings plan The Savings Plan Change Form will open in a separate window; Scroll down to fill in all required fields

  13. Making my Elections (cont.) The Employee General Information section is pre-populated with your name and employee ID, and the Introduction section provides direction for filling out the form Select the effective date for the change Select the date from the calendar drop down, and then click Refresh Data. This displays the current values of your allocations as at the selected date Input your new allocations by selecting the percentages from the drop down boxes. Note: Your selections must add up to 5%

  14. Making my Elections (cont.) Check the box to confirm that you understand the changes you have made, and authorize Husky to implement the changes Click Check and Send to verify your selections. Note: When you do this, the effective date becomes either the 16th of the month, or the 1st of the next month, depending on the date you selected. Click Send to submit your changes

  15. Making Investment Changes

  16. Making Investment Changes • You’ll need an access ID and password to access your account online • If you are a current Husky DC Pension or Group RRSP member, your current Sun Life Financial access ID and Password will enable you to reallocate your Husky Savings Plan assets • Don’t have an access ID or password? • Go to mysunlife.ca and select the “register now” link. You will need your account number (see your welcome letter or your statement for this number). Welcome letters with access IDs & instructions to obtain a password will be sent to all non-DC / RRSP members shortly

  17. TFSA

  18. Contributions to the TFSA • Governed by CRA legislation • CRA will report contribution room on Notice of Assessment ($5,000 per person in 2012) • Indexed annually, rounded to nearest $500 • Contributions are after tax dollars • Unused contribution room carries forward each year, indefinitely • Lump sum payments or pre-authorized debit directly to Sun Life Financial – contact Sun Life for more information

  19. Contributions to the TFSA • May have more than one TFSA • Total annual contribution must stay within the $5,000 limit • Over-contributions subject to penalty of 1% per month • Investment management fees are the same as the other Husky funds

  20. Withdrawals from the TFSA • Withdraw for any purpose at anytime • Withdrawals are tax-free, original contributions plus investment growth • No restrictions (or suspensions) • $25 withdrawal fee • Any amount withdrawn can later be re-contributed to a TFSA – the next calendar year • Increases contribution room in the following year • Withdrawals have no impact on income tested government benefits OAS, GIS, EI benefits, Child Tax Credits, etc.

  21. Husky Share Purchase Plan

  22. Husky Share Purchase Plan Share Transaction Processing: • Frequency of trading is daily (employees can initiate transactions every day) • Market timing of trade is next-day (i.e. today’s transaction have a “pending” status overnight and get traded on market next business day morning) • Contributions are processed when received • Trading price – all investment or redemption instructions are processed and a net trading price is determined • Brokerage commissions are paid by the employee - $0.03/share

  23. Husky Share Purchase Plan • Inter-fund and inter-product transfers are permitted Three types of withdrawals permitted (no penalties or consequences for withdrawals) : • Cash withdrawal (cheque mailed) • In-kind transfer (electronic book based transfer to a brokerage firm) • Physical share certificates (couriered to employee) Transactions (redemptions and transfers) can be processed: • Up to 3pm ET by phone through the call centre • Up to 4pm ET on the Internet

  24. Husky Share Purchase Plan • Savings plan allocation and / or additional voluntary payroll deduction make purchasing Husky shares easy and convenient • Lower trading costs; because of the combined buying power of Husky and Sun Life, you pay fees that are generally lower than what you would pay on your own • Husky pays most of the administration fees on your behalf • It’s an excellent way to share in the long-term growth of your company • There is no Husky matching or discounting • Dividends are reinvested to purchase more shares

  25. Your Responsibilities

  26. Responsibilities as a member of your plan You are responsible for: • Understanding and being aware of your annual RRSP / TFSA contribution limit (stipulated on your CRA Notice of Assessment and not over contributing • Defining, monitoring and revising your investment strategy • Paying for the fund management fees • Understanding your risk tolerance and potential volatility of your investments

  27. Responsibilities as a member of your plan (cont.) • Researching and reviewing the available investment options • Making use of the information and tools available to assist you in making informed decisions • Obtaining independent advice should you deem it necessary • Allocating the contributions among the available investment options

  28. Plan Fees • Investment Management Related Fees: • Fund Management Fees are paid monthly (they appear as an expense transaction the first business day each month) • No front or back end load charges • Plan Administration Fees: • Fees paid by Husky • Withdrawals or transfers for the GRSP/NREG: • One free withdrawal per calendar year • $10 for each additional withdrawal or transfer

  29. NREG Withdrawals and Plan Fees Cont’d • Sun Life Financial will pay withdrawals to you: • By cheque or • Electronic bank transfer • Plan Administration Fees: • TFSA and Share Purchase Plan withdrawals or inter plan transfers: • $25 per withdrawal

  30. Action Required

  31. Action Required • From September 17, 2012, you will have the opportunity to direct Husky’s contributions to the investment vehicle(s) of your choice via iConnect. • You must make your selection using the Husky selection tool found on iConnect • If no election is made, Husky’s contributions will be directed to the Sun Life money market fund within the Non-Registered savings plan.

  32. Action Required • If you wish to participate in the Group RRSP, TFSA or the Husky Share purchase plan, you must enrol to ensure contributions are allocated as you desire. The enrollment form can be found on iConnect under the Health, Benefits & Retirement Forms • Contributions can be made to the TFSA by transferring your NREG funds, providing lump sum contributions to Sun Life or by the Automatic Cheque Plan (Complete Section 5 on the TFSA Application if this is your desire)

  33. Action Required • If you are a current Husky DC Pension or Group RRSP member, your current Sun Life Access ID and Password will enable you to change your Savings Plan investment options

  34. Accrual Amount July - September • This payment will occur as it has in the past • Allocation will be paid as taxable cash, unless the employee elects the Group RRSP, • If the RRSP is elected – the allocation will be sent to Sun Life Financial • The actual dollar allocation can not be used to purchase shares or be deposited into the Non Registered since taxes apply • The employee must ensure they have enrolled in the RRSP or have an existing account in the plan

  35. After October 1st • Allocations to the RRSP occur on a pre tax basis • Allocations to the stock plan or NREG will be after tax • Taxes deducted for the NREG or Stock Plan allocations will be estimated based on the marginal tax rate from your province of residence

  36. Choosing Your Funds

  37. Build your own Pre-built • Build your portfolio using the different investment funds • Match your investment risk profile with a suggested asset mix • You’ll need to rebalance periodically to maintain your target asset allocation • Based on your risk tolerance - revisit periodically • The Fund Manager creates a fund with specific asset allocation – “one-stop shopping” • Match your investment risk profile to the right fund • The Fund Manager rebalances the fund • Based on your risk tolerance - revisit periodically Which approach is right for you?

  38. Investment Risk Profiler Conservative InvestorScore of 35 points or less Moderate InvestorScore of36 to 85 points Balanced Investor Score of 86 to 145 points

  39. Your investment fund choices Asset Class Fund Name Risk FMF* Guaranteed/ Money Market • Sun Life Assurance Guaranteed 3 Year • Sun Life Financial Money Market Low N/A 0.39% Bonds • Beutel Goodman Income Fund Low – Moderate 0.49% Balanced • Beutel Goodman Balanced Fund • BlackRock Moderate Balanced • BlackRock Conservative Balanced • BlackRock Aggressive Balanced • Greystone Balanced Segregated Fund Moderate 0.51% 0.56% 0.55% 0.58% 0.67% Canadian Equity • Beutel Goodman Canadian Equity • Beutel Goodman Small Cap • MFS McLean Budden Cdn Equity Gwth Fund Moderate – High High 0.51% 0.53% 0.60% U.S. Equity • Sun Life MFS McLean Budden US Equity Moderate – High 0.66% Foreign Equity • MFS Global Equity Moderate – High 1.11% *FMFs as of Aug 31st, 2012

  40. Build your own asset mix Example: A score of 36 to 85 points - Moderate 15% Intl. Equity 10% Money Market 15% U.S. Equity 40% Fixed Income 20% CDN. Equity

  41. Get Involved

  42. Additional on-line tools to help • Planning Tools • Withdrawal Calculator • Capital Gains vs. RRSP Calculator • Mortgage vs. RRSP Calculator • RRSP Loan Calculator • Non Resident Tax Calculator • Retirement Planner - Updated • Retirement Tools • Annuity Premium Calculator • Old Age Security Calculator • Registered Retirement Income Fund (RRIF) Calculator

  43. Sun Life is Here To Help Internet mysunlife.ca/ my Sun Life Mobile Customer Care Centre 1-866-733-8612 • Receive up-to-date account balances • View transaction history • Make investment changes • Link directly to investment reports • View online member statements • 24 hour automated phone account access • Representatives available every business day (8 am to 8 pm ET) • Account updates • 189 languages supported • Transaction processing and support • My balances • My contributions • Help me save

  44. My Sun Life Mobile Fast and easy access, wherever you go • Check plan balances • View recent contributions • Three new financial planning tools to help you save! • Visit mysunlife.ca/mobile • for a test drive *App available for download, free of charge through the BlackBerry and iPhone app stores

  45. Questions?HRINFOLINE@huskyenergy.com ORCall 403-298-6658

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