Retirement Options

A) Fixed Annuities Option

The following fixed annuity options normally are available:

a) Life, guaranteed 5 years - the annuity is payable for your lifetime but should you die within the first 5 years, your beneficiary will receive the balance of the 5 years of payments.

b) Life, guaranteed 10 years - the annuity is guaranteed for your lifetime but should you die within the first 10 years, your beneficiary will receive the balance of the 10 years of payments.

c) Life, guaranteed 15 years - same as (b) but guaranteed for 15 years.

d) Joint and survivorship annuity - Your spouse is named as your joint annuitant. Payments are made to you for your lifetime. If you predecease your spouse, the annuity policy will continue to make payments to him/her for the remainder of his/her lifetime.

e) Life only - payable for the lifetime of the retiree with no built-in guarantees.

Retirement Income

Retirement Income will be fully guaranteed once an annuity is purchased from BF&M Life Insurance Company Limited.

B) Life Income Fund (LIF) Option:

A LIF is another retirement fund, except that you use it to generate retirement income rather than to grow your retirement savings. It's one of the methods you have of receiving retirement income from the locked-in proceeds of your defined contribution pension account.

If you set up a LIF, you're only permitted to put locked-in money into it that you transfer directly from:

• your defined contribution pension account
• another registered pension plan
• another LIF

You must take a certain amount out of your LIF each year. The minimum and maximum withdrawal requirements are dictated by the applicable pension legislation.

Before you reach age 80 (unless otherwise specified by the applicable legislation) you must convert your LIF into an annuity that pays you a guaranteed income for the rest of your life.