NLPP - financial

<BODY TEXT="#000000" LINK="#0000FF" VLINK="#0000A0" BGCOLOR="#FFFFFF"> <BASE TARGET="_top"> <DIV ALIGN=center class=s2 style='text-align: center;'> <FONT style='font-size:10pt;'><B></B></FONT><FONT style='font-size:8pt;'><B>The "actuarial" standards for pension commuted values can, on a 1-1 basis, affect individual Canadians </B></FONT></DIV> <DIV ALIGN=center class=s2 style='text-align: center;'> <FONT style='font-size:8pt;'><B></B><B>more directly and with less market choice than almost any other work that "actuaries" produce  </B></FONT></DIV> <DIV ALIGN=center class=s2 style='text-align: center;'> <FONT style='font-size:8pt;'><B></B><B>because the standards are being implemented as requirements by Canadian governments. </B></FONT></DIV> <DIV ALIGN=center class=s2 style='text-align: center;'> <FONT style='font-size:10pt;'><B> </B></FONT></DIV> <DIV ALIGN=center class=s0 style='text-align: center;'> <FONT style='font-size:11pt;'><B></B></FONT><FONT style='font-family:"Times New Roman";font-size:11pt;'>Canadian Defined Benefit Pension Plans </FONT></DIV> <DIV ALIGN=center class=s0 style='text-align: center;'> <FONT style='font-size:12pt;'><B>www.CommutedValues.com </B></FONT></DIV> <DIV ALIGN=right class=s0 style='text-align: right;'> <FONT style='font-size:13pt;'><B></B></FONT><B><A class=s0 HREF="cv-asb1_000024.htm">Website Menu</A></B>  </DIV> <DIV ALIGN=right class=s0 style='text-align: right;'> <B> <A class=s0 HREF="cv-asb1_00000b.htm">Glossary</A></B>  </DIV> <DIV class=s2> <FONT style='font-size:10pt;'>An illegitimate Component of the Commuted Value Calculations </FONT></DIV> <DIV class=s0> <B>"Non-Liquid Pension Promise" Penalty </B></DIV> <DIV class=s0>  </DIV> <DIV class=s0> <FONT style='font-size:16pt;'><B>NLPP - Financial Effect </B></FONT></DIV> <DIV class=s2>  </DIV> <DIV class=s2> <FONT style='font-size:10pt;'>Based on interest rates at June 2008, the financial effect of this "exit fee" of 90 basis points was estimated as</FONT><FONT style='font-size:10pt;'><B> reducing the commuted value by the following %s</B></FONT><FONT style='font-size:10pt;'> relative to what the commuted value would have been without the 90 basis point charge:  </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV ALIGN=center class=s2 style='text-align: center;'> <FONT style='font-size:10pt;'><IMG SRC="cv-asb1_i000011.gif" BORDER=0 ALIGN=MIDDLE WIDTH=356 HEIGHT=124 >: </FONT></DIV> <DIV class=s2>  </DIV> <DIV class=s2> <FONT style='font-size:10pt;'>The above estimates are based on a July 2008 Watson Wyatt web-article that took account of the first ASB exposure draft June 27, 2008. </FONT></DIV> <DIV class=s2> <FONT style='color:#0000FF;font-size:7pt;'></FONT><FONT style='color:#0000FF;font-size:10pt;'><A class=s2 HREF="http://www.watsonwyatt.com/canada-english/pubs/Infoflash/showarticle.asp?ArticleID=19328&articledate=7/3/200">http://www.watsonwyatt.com/canada-english/pubs/Infoflash/showarticle.asp?ArticleID=19328&articledate=7/3/2008</A> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'>To help clarify the significance of the interest rate deductions, the "exit fee" to transfer your commuted value is a lump sum charge equivalent to nine tenths of a percentage point every year, for the rest of your life, where the percentage is applied to the value of the remaining pension. </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'>The above estimates, and references to the Watson Wyatt article, are also identified in: </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> a) Dec 13, 2008 Toronto Star article by James Daw  </FONT></DIV> <DIV class=s2 style='margin-left: 13mm;'> <FONT style='font-size:10pt;'>New Ruling Cuts Into Pensions </FONT></DIV> <DIV class=s2 style='margin-left: 13mm;'> <FONT style='font-size:10pt;'><A class=s2 HREF="http://www.thestar.com/Business/article/553193">http://www.thestar.com/Business/article/553193</A> </FONT></DIV> <DIV class=s2 style='margin-left: 13mm;'> <FONT style='font-size:10pt;'> (also note additional commentary following the article) </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'>b) Dec 11, 2008 email to members of the Actuarial Standards Board and the Standards Oversight Council, following the Dec 10, 2008 public meeting: </FONT></DIV> <DIV class=s2 style='margin-left: 13mm;'> <FONT style='font-size:10pt;'><A class=s2 HREF="http://www3.sympatico.ca/dan.anderson/ASB-ASOC-CV/public-meeting-2008-12-10.doc">http://www3.sympatico.ca/dan.anderson/ASB-ASOC-CV/public-meeting-2008-12-10.doc</A> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'> </FONT></DIV> <DIV class=s2> <FONT style='font-size:10pt;'>c) Oct 1, 2008 correspondence provided to the Actuarial Standards Oversight Council.  </FONT></DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s2>  </DIV> <DIV class=s0>  </DIV> <DIV class=s0>  </DIV> <DIV class=s2> <FONT style='font-family:"Times New Roman";font-size:9pt;'>-source - www.CommutedValues.com - <A class=s2 HREF="cv-asb1_00001a.htm">[e.g. 2008 Title Page ]</A> </FONT></DIV>