The Supplemental Pension Arrangement (SPA) is a Benefit for Employees who are affected by Tax Restrictions on Registered Pension Plan Contributions.

• Notional contribution accounts will be established in respect of individuals eligible to participate in the SPA. These accounts will be credited with the difference between the contributions the University would make to the plan on behalf of the individual if there were no tax restrictions and the contributions actually made by the University on behalf of the individual.

• The University will set aside and invest sums of money equal to the contributions credited to the notional contribution accounts. These earmarked assets will continue to belong to the University; the members of the SPA will not have any direct claims against the assets. In particular, the earmarked assets will not be held in trust for the benefits of SPA members and no assets of the University have been or will be set aside in the name of a particular employee in respect of the SPA.

• All the assets relevant to the SPA will be available for the general creditors of the University.

• The SPA will operate as a money purchase plan (although, as described above, there will not be assets held in trust for the purposes of the SPA). The notional contribution accounts will be adjusted monthly by reference to the investment experience (including gains and losses) of the earmarked assets, net of the SPA administrative expenses.

• SPA members will be provided with statements each year setting out the amounts added to and deducted from their notional contribution accounts.

• If a member retires on or after reaching normal retirement age for the purposes of the SPA, the University will pay an amount equal to the balance in the member's notional contribution account to the member in equal annual instalments over a period not more than fifteen years. The University will pay the amount in equal annual instalments over the numbers of years designated by the member, not to be fewer than two. Small notional account balances may be paid in a lump sum.

• On termination (including early retirement) prior to normal retirement, a member will be entitled to receive from the University the balance in the member's notional contribution account either in a lump sum or in equal annual payments over a period of not more than fifteen years. The member will be required to elect the form of payment PRIOR to the effective date of termination. A terminated member will be entitled to elect a deferred commencement date for the commencement of the annual payments. If a member terminates prior to becoming eligible to elect early retirement under the terms of the University Pension Plans and elects the annual payment option, the earliest commencement date for the annual payments will be the date they could elect early retirement. Where the commencement of the annual payments is postponed after the member's termination, the member's notional contribution account will continue to be maintained until the commencement of the annual payments.

• If a member dies before termination of employment and has designated his or her spouse as the beneficiary under the SPA, the spouse will be entitled to receive from the University the balance in the member's notional contribution either in a lump sum or in equal annual payments over a period of not more than fifteen years. The spouse will be required to elect the form of payment before any payments are made by the University. If there is a non-spouse beneficiary, then the University will make a lump sum payment equal to the balance of the member's notional contribution account to such beneficiary.

The University intends that the plan will be ongoing. However, it cannot guarantee continuance should current provisions under the Income Tax Act or any other legislation be amended which would require the termination or suspension of the plan.