Fonds de solidarité FTQ - Don't touch my tax credit!

1. There’s
solidarity in
each of us
The Québec context:
• Strong demographic pressure on retirement plans; Don’t touch my
• Very low savings rate – approximately 2%; tax credit!
• Almost 50% of workers have no pension plan at work;
• A struggling manufacturing sector facing challenges on all fronts:
competition, innovation, growth prospects for companies and dollar parity.
The Fonds is ...
• A retirement savings vehicle
used predominantly by the
middle class;
SOURCE OF CAPITAL
• A solid institution with
• $6 billion invested in Québec and
$8.8 billion in net assets, no
debt and all the liquidity required companies over the last 10 years;
to meet its obligations; • The Fonds and its regional funds’
network invest in all sectors of the SAVINGS VEHICLE
• Close to 500,000 jobs
created and maintained since economy, in all regions of Québec and • 600,000 shareholders
1990; at all stages of business development: – 36% invested in an RRSP for the
• One of the only funds that – present in 25 economic sectors first time (80% made contributions
invests its assets primarily in – 70% of our partner companies in other RRSPs thereafter)
Québec companies; are in regions and 80% have less – 212,000 contribute through
than 100 employees payroll deduction, demonstrating
• A provider of patient capital
great savings discipline
funding that complements • 67% of the Fonds’ assets are
traditional financing sources; invested in high risk unsecured – 6,600 companies have set up
capital in Québec (and not 11% as the Fonds’ payroll deduction plan
• An economic innovation that
mentioned in the Federal Budget in their workplace;
harnesses cooperation between
the labour world, the business announcement), in compliance with • 6.9% annual compound return
community and the govern- our law which imposes a minimum to the shareholder the last 3 years as
ments, and that has created investment of 60%; at May 31st, 2012;
greater social cohesion. • 2,239 partner companies; • $6.6 billion in retirement savings
• The Fonds’ size allows it to strategically collected in the last 10 years;
support Québec’s renown companies • $4 billion returned to shareholders
(Métro, Bombardier, Transcontinental, when they retire (last 10 years);
Transat);
• Our shareholders contribute an
• Purveyor of complementary capital average of $2,830 per year.
in the financial ecosystem: patient,
unsecured and subordinated to banks.
The Fonds must continue to grow to be able to help Quebecers save for retirement –
something they urgently need to do – and to help SMEs address mounting challenges.
The tax credit is not a cost for the governments:
the economic benefit of job creation and preservation allows the governments to recover
these tax credits within 3 years.
(Source Sécor-KPMG study)

2. A MODEL THAT WORKS
FOR QUÉBEC
• CREATION OF
QUALITY JOBS
• PRESSURE ON
REDUCED
Governments
PENSION COSTS
• COST RECOVERY • REASONABLE
RETURN
THROUGH
taxation shareholders • RETIREMENT
SAVINGS
• ECONOMIC
SOLIDARITY
• PATIENT, STABLE
AND COMPLEMENTARY
CAPITAL
• PRESENCE IN ALL
REGIONS
businesses
• CONTRIBUTES
TO ALL SECTORS
OF THE ECONOMY
P-02-03-1161 • 04-13