MVP Segregated Funds Maturity Date and Maturity Process

MVP Segregated Funds Maturity Date and Maturity Process

This summary is designed to assist you in understanding the MVP maturity procedures.

Maturity Maturity Date The Maturity Date is the date on which the Owner of the contract is entitled to receive a Maturity Benefit of a maturing contract. The Maturity Date was elected by the client at the time the contract was established, based on the rules outlined within the applicable contract, and varies by plan type and contract version. The Maturity Date is the later of: ? the Maturity Date elected by the client under the terms of the contract ? the extended Maturity Date. The last possible Maturity Date: ? for a registered Contract:

? the final date permitted under the applicable legislation but not later than the annuitant's 90th birthday; ? for a non-registered Contract:

? is the annuitant's 85th birthday for the 1987 and 1993 versions of the contract ? is the annuitant's 90th birthday for the 1996 and 1997 versions of the contract. Once the annuitant has reached the last possible Maturity Date, the contract will automatically terminate and the Maturity Benefit becomes payable. For a RRIF/LIF/LRIF contract that does not have an annuitization date mandated by the applicable pension legislation, the Maturity Date is the annuitant's 90th birthday.

Maturity Benefit

On the Maturity Date, if the client elects to receive the Maturity Benefit, the Maturity Benefit is calculated as the greater of:

(a) the aggregate of the value of all Units under the contract, calculated as of the Valuation date following the Maturity Date; and

(b) the Guaranteed Maturity Benefit. The calculation of the Guaranteed Maturity Benefit varies depending on the MVP contract. An outline of the Guaranteed Maturity Benefit calculation for each contract is included at the end of this summary.

The "Guaranteed Benefit" Payment

If the client elects to receive their Maturity Benefit and the guaranteed amount exceeds the market value on the Maturity Date, the difference (the Guaranteed Benefit) will be deposited into CI Money Market Fund at no cost to the client. This transaction will occur prior to the execution of any maturity settlement option when the client is electing to receive the Maturity Benefit.

Clients may extend the Maturity Date as per the rules outlined in the contract. The Guaranteed Benefit is only payable upon termination of the contract ? for example, following a full withdrawal. Therefore, no Guaranteed Benefit will be payable upon extension. Clients that have reached their latest possible contract maturity do not have the option to extend their Maturity Date.

Maturity Settlement

Maturity Settlement Options

The following options are available to clients upon their contract Maturity Date:

1. Transfer the Maturity Benefit to a CI-managed product that the client is eligible to purchase. To complete the transaction, please submit the required application form.

2. Transfer the Maturity Benefit to a product offered by Sun Life or another financial institution that the client is eligible to purchase. To complete the transaction, the applicable transfer form is required.

3. Request a cash payment (excluding locked-in plans). Withholding taxes will be charged, if applicable.

Maturity Date Extension Options

Unless CI receives alternate instructions prior to the Maturity Date, the Maturity Date will be extended to the maximum age permitted under the contract.

The Guaranteed Benefit (if applicable) is not paid when the contract is extended. Instead, the contract will be assessed on the extended Maturity Date to determine the Maturity Benefit.

If the client wishes to change their Maturity Date to something other than the default Maturity Date, client-signed documentation must be received prior to the Maturity Date.

Extension restrictions and the last available Maturity Date by contract version:

Contract Version MVP 1987

Plan Type Non-Registered

Registered

Extension

? Up to Annuitant's 85th birthday ? Must be later than the existing Maturity Date.

? Up to Annuitant's 90th birthday ? Must be later than the existing Maturity Date.

MVP 1993

Non-Registered Registered

? Up to Annuitant's 85th birthday ? Must be later than the existing Maturity Date.

? Up to Annuitant's 90th birthday ? Must be later than the existing Maturity Date.

MVP 1996

All Plans

? Not less than 10 years from the date received at CI ? Not later than the annuitant's 90th birthday.

MVP 1997

All Plans

? Not less than 10 years from the date received at CI, not later than the annuitant's 90th birthday

? New Maturity Date must be at least 15 years from the issue date of the policy

? If the annuitant has reached his/her 80th birthday, then the new Maturity Date is the annuitant's 90th birthday.

Submitting Manual Maturity Instructions

To complete your client's request for any of the maturity options, CI must receive the instructions along with the appropriate application and transfer form before the Maturity Date. All maturity settlement instructions should clearly indicate that the transaction should be processed on the Maturity Date.

Before submitting maturity instructions, please ensure you contact your distributor to determine if there are any additional requirements.

Submitting Maturity Instructions Electronically via FundSERV

Maturity instructions can be submitted electronically via FundSERV up to 60 days prior to any applicable Maturity Date. Wire order trade instructions for maturity amounts will remain pending until the Maturity Date when they will settle on T+1. Please contact your distributor for further information on placing wire order transactions for maturity amounts. Any trades placed either manually or electronically after the maturity instructions have been received will be processed and may impact the Maturity Benefit.

In some cases, the automatic payout at the Maturity Date may differ as a result of certain legal, regulatory or product requirements. These exceptional circumstances include, but are not limited to, assigned policies, and locked-in policies.

Tax Treatment of Maturity "Guarantee Benefit" Payments

Non-registered Policies: Any Guaranteed Benefit will be treated as capital gains and reported to the contract holder on a T3 slip for the year in which the guarantee benefit payment was made. This may be offset by any capital losses realized at the time of a withdrawal.

Registered Policies: Any Guaranteed Benefit included as part of the redemption proceeds is reported as income to the contract holder/annuitant on a T4 RSP/RIF slip.

The Guaranteed Maturity Benefit

MVP 1987 Contract:

The Guaranteed Maturity Benefit is calculated as 75% of the premiums paid, proportionately reduced by any partial surrenders.

MVP 1993 Contract:

The Guaranteed Maturity Benefit is calculated based on one of the following, as applicable:

i) when the Maturity Date has not been extended, the Guaranteed Maturity Benefit shall be equal to the amount of Net Premiums, provided that the Net Premiums for the last six Policy Years do not exceed the Net Premiums for all of the preceding Policy Years;

ii) when the Maturity Date has not been extended and the Net Premiums for the last six Policy Years exceed the Net Premiums for all earlier Policy Years, (if any), then the Guaranteed Maturity Benefit shall be equal to the aggregate of: a) the amount of Net Premiums for all years except the last six Policy Years; b) the amount of Net Premiums for the last six Policy Years that is equal to the Net Premiums of all preceding Policy Years; and c) and amount that is 75% of the difference between the amount determined under (b) above and the total amount of Net Premiums paid in the last six Policy Years;

iii) when there are fewer than six Policy Years, the Guaranteed Maturity Benefit shall be equal to 75% of Net Premiums; and

iv) when the Maturity Date has been extended, then the Guaranteed Maturity Benefit shall be equal to the aggregate of 75% of the value of the contract on the original Maturity Date and 75% of the Net Premiums for the period between the original Maturity Date and the extended Maturity Date.

In any event, the Guaranteed Maturity Benefit shall never be less than 75% of all Net Premiums nor more than 100% of all Net Premiums.

MVP 1996 Contract: The Guaranteed Maturity Benefit (GMB) is determined as follows:

i) It shall be equal to 100% of the Group One Net Premiums, provided that the Group One Net Premiums for the last six Policy Years do not exceed the Group One Net premiums for all preceding Policy Years;

ii) If the Group One Net Premiums for the last six Policy Years exceed the Group One Net Premiums for all earlier Policy Years, then the Guaranteed Maturity Benefit shall be equal to the aggregate of: a) the amount of Group One Net Premiums for all years except the last six Policy Years; b) the amount of Group One Net Premiums for the last six Policy Years but no more than the amount determined under (a) above; and c) amount that is 75% of the difference between the amount determined under (b) above and the total amount of Group One Net Premiums paid in the last six Policy Years; Plus

iii) 75% of Group Two Net Premiums. In any event, the Guaranteed Maturity Benefit will never be less than 75% of all Net Premiums nor more than 100% of all Net Premiums. MVP 1997 Contract: The Guaranteed Maturity Benefit (GMB) is determined as follows:

i) 100% of the group one net contributions for all years except the six MVP years preceding the Maturity Date; Plus

ii) 100% of the group one net contributions for the six MVP years preceding the Maturity Date, but not more than the amount determined under (i) above; Plus

iii) 75% of the difference, if any, between group one net contributions in the six MVP years preceding the Maturity Date and the amount determined under (ii) above. Plus

iv) 75% of group two net contributions

1201-0138_E (01/12)

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