The document summarizes the context in Quebec regarding retirement savings and pensions. It then summarizes the Fonds de solidarité des travailleurs du Québec (FTQ) as a retirement savings vehicle that predominantly serves the middle class. It has $8.8 billion in assets and has created or maintained close to 500,000 jobs since 1990 by investing primarily in Quebec companies. It provides patient capital to complement traditional financing sources. The FTQ argues it must continue growing to help Quebecers save for retirement and support small and medium enterprises.

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