Changes in the Management of the Canadian Scholarship ... · Changes in the Management of the Canadian Scholarship Trust Plans Certain of the Plans’ portfolio managers were changed

19OCT201511451320

No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise.

Amendment Number 1 dated October 21, 2015 to the DetailedPlan Disclosure dated May 25, 2015 for the Canadian Scholarship

Trust Plans known as Group Savings Plan 2001, IndividualSavings Plan and Family Savings Plan

canadian scholarshiptrust planTM

Unless otherwise defined herein, all capitalized terms used in this Amendment Number 1 have the same meanings asprovided for in the Detailed Plan Disclosure.

The Detailed Plan Disclosure dated May 25, 2015 relating to the distribution of the Canadian Scholarship Trust Plansknown as Group Savings Plan 2001, Individual Savings Plan and Family Savings Plan (the Prospectus) is herebyamended, and must be read subject to the following changes in the management of the Plans which were effective asof October 20, 2015.

Changes in the Management of the Canadian Scholarship Trust PlansCertain of the Plans’ portfolio managers were changed effective October 20, 2015. The disclosure on pages 61-64 ofthe Detailed Plan Disclosure describing the portfolio managers is replaced with the following.

Portfolio ManagersBlackRock Asset Management Canada LimitedToronto, Ontario

BMO Asset Management Inc.Toronto, Ontario

Canso Investment Counsel Ltd.Richmond Hill, Ontario

CGOV Asset ManagementToronto, Ontario

CIBC Asset Management Inc.Toronto, Ontario

Greystone Managed Investments Inc.Regina, Saskatchewan

Sionna Investment Managers Inc.Toronto, Ontario

TD Asset Management Inc.Toronto, Ontario

Each portfolio manager manages a portion of the assets of the Plans according to specific mandates we have assignedthem. We have established compliance criteria designed to ensure overall compliance with the investment policies,objectives and strategies of each Plan. CSTC monitors the management of the assets of the Plans and manages eachportfolio manager. CSTC’s Chief Investment Officer carries out this management and oversight. The InvestmentCommittee of the Foundation’s Board of Directors also monitors the portfolio managers’ performance on a quarterlybasis in accordance with the investment policy of the Plans and the mandate of the portfolio managers and mayterminate any of the investment management agreements with appropriate notice in consultation with CSTC.

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BlackRock Asset Management Canada Limited (Toronto, Ontario)BlackRock Asset Management Canada Limited (BlackRock) is a premier provider of global investment managementservices. BlackRock manages equity, fixed income, real estate, liquidity, alternatives, and asset allocation/balancedstrategies for institutional and retail clients. Through BlackRock Solutions (‘‘BRS’’), the firm provides risk managementand advisory services that combine capital markets expertise with internally-developed systems and technology. Itsmandate is to invest Plan assets in US equities through exchange traded funds that trade on a stock exchangein Canada.

The people principally responsible for managing a material portion of this portfolio are:

Greg Savage, CFA 14 years 23 years Managing Director and Head ofManaging Director iShares Equity Portfolio

Management

Creighton Jue, CFA 16 years 18 years Managing Director, PortfolioManaging Director Manager in BlackRock’s

Institutional Equity PortfolioManagement Group

BMO Asset Management Inc. (Toronto, Ontario)BMO Asset Management Inc. is a multi-asset management business characterized by specialized, regional investmentteams providing a range of investment solutions to global clients. BMO Asset Management Inc. is the legal operatingentity in Canada and was originally established in 1982 as Jones Heward Investment Counsel Inc. Now wholly ownedby BMO Financial Group, the company was renamed in 2010 following the amalgamation of the BMO Exchange TradedFunds and Quantimental Investment groups. Its mandate is to invest Plan assets in US equities through exchangetraded funds.


Rob Bechard, CFA, M.Sc. 5 years 16 years Head of Equity and FixedSenior Vice President and Head Income Portfolio Managementof ETF Portfolio Management for the ETF and Global

Structured Investment Group

Chris McHaney, CFA 5 years 16 years Equity and Derivative PortfolioVice President and Portfolio ManagerManager

Raymond Chan, CFA, FRM 5 years 13 years Equity Portfolio Manager andVice President and Portfolio Currency Hedging SpecialistManager

Chris Heakes, M. Fin. 4 years 6 years Portfolio Manager, Equity andPortfolio Manager Covered-Call portfolios. Previous

experience includes quantitativeequity research, investmentfunds product support.

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Length of servicewith the portfolio Business experience

Name and Title manager Industry Experience in the last 5 years



Canso Investment Counsel Ltd. (Richmond Hill, Ontario)Canso Investment Counsel Ltd. (Canso) was founded in 1997 and remains an independent firm wholly owned by itsemployees. Canso provides investment management services to institutional and private investors using a disciplinedapproach of both fundamental valuation of financial securities and portfolio construction. It specializes in securityselection based upon its proprietary research which examines default risk and cash flows of issuers to create long-termvalue for their portfolios. Its mandate is to invest Plan assets in Canadian fixed income debt instruments issued byCanadian federal and provincial governments and corporate debt securities issued by Canadian and foreign entitiesdenominated in Canadian dollars, according to defined asset mixes. It also has performance objectives and risk controllimit guidelines.


John Carswell, CFA 17 years 30 years President Canso and ChiefPresident Investment Officer

Timothy Hicks, CFA 5 years 27 years Fixed Income Portfolio Manager;Vice President previously Director North

American Equities, RussellInvestments

CGOV Asset Management (Toronto, Ontario)Established in 1995, CGOV Asset Management (CGOV) oversees assets on behalf of high net-worth individuals andfamilies, charitable organizations and institutions. CGOV manages investments using a disciplined and repeatableapproach derived from a stable team exercising good judgment and constructing portfolios of high quality securities.Its mandate is to invest Plan assets in an actively managed, concentrated Canadian equity portfolio with a long terminvestment horizon and disciplined sell procedures. The mandate has both performance objectives and risk controlguidelines.


Roy Hewson, MBA, CFA 18 years 25 years Lead Portfolio Manager forCGOV Canadian Equity andDividend mandates.

Gord O’Reilly, BCom, CFA 20 years 30 years Chief Investment Officer & LeadPortfolio Manager for CGOVTotal Equity & Global Equitymandates.

Steve Cocchetto, CFA, MBA 5 years 12 years Investment Analyst & LeadPortfolio Manager for CGOVU.S. Equity mandate.

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CIBC Asset Management Inc. (Toronto, Ontario)CIBC Asset Management Inc., the asset management subsidiary of Canadian Imperial Bank of Commerce, has beenproviding a range of investment management services to institutional and individual investors since 1973 and is one ofthe largest asset management firms in Canada. The firm’s expertise spans across fixed income, equity, asset allocationand currency asset classes. Research is guided by a rigorous and consistent process to yield better results for clientsover the long term. Its mandate is to invest Plan assets in Canadian fixed income debt instruments issued andguaranteed by Canadian federal and provincial governments, using a stratified sampling process, to replicate theperformance of a blended government benchmark. It also has performance objectives and risk control limits.


Jeffrey Waldman, CFA 17 years 27 years Managing Director, Head ofGlobal Fixed Income

Jacques Prevost, CFA 16 years 28 years First Vice-President, Global FixedIncome

Lou Paolone, CFA 5 years 23 years Assistant Vice-President, GlobalFixed Income

Greystone Managed Investments Inc. (Regina, Saskatchewan)Greystone Managed Investments Inc. (Greystone) has been serving institutional clients across Canada since 1988. It isone of the largest independent money managers in Canada. Utilizing a team-based approach, Greystone offers a fullrange of investment services including fixed income, Canadian equities, U.S. equities and international equities, realestate, mortgages and infrastructure. Its mandate is to invest Plan assets in Canadian financial institution bonds and toadd value through security and sector selection. Greystone’s fixed income team actively participates in the investmentdecisions made in its portfolio; the lead portfolio manager has ultimate responsibility for the oversight and approval allthe investment decisions. The mandate has performance objectives and risk control limit guidelines.


Blaine S. Pho, CFA 20 years 20 years Head of Fixed Income, PortfolioSenior Vice President, Fixed ManagerIncome

Chad Toews, CFA, CMT 17 years 17 years Fixed Income Trading, PortfolioVice President, Fixed Income Manager

Curtis Schimmelmann, CFA 6 years 18 years Portfolio Manager; previouslySenior Portfolio Manager, Fixed Manager, Capital Markets withIncome Viterra

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Sionna Investment Managers Inc. (Toronto, Ontario)Sionna Investment Managers Inc. (Sionna) is an independent, Toronto-based investment management firm, which wasestablished in 2002. Today, Sionna oversees assets for institutional clients, mutual funds, separately managed accountprograms and high net worth individuals. Sionna is an active investment manager and uses a value-driven, bottom-upapproach to stock selection. The investment team focuses on providing downside protection and delivering long-term,above-average returns by applying a disciplined value investing process to the Canadian equity universe. Its mandateis to invest Plan assets in Canadian equities with performance objectives and risk control guidelines.


Kim Shannon, CFA, MBA 13 Years 32 years President and CIOPresident and CIO

Teresa Lee, CFA 12 years 20 years Portfolio ManagerPortfolio Manager & ManagingDirector, Investments

Marian Hoffmann, CFA 11 years 11 years Portfolio ManagerPortfolio Manager

Mel Mariampillai, CFA 9 years 13 years Portfolio ManagerPortfolio Manager

Dave Britton, CFA, MBA 7 years 8 years Portfolio ManagerPortfolio Manager

TD Asset Management Inc. (Toronto, Ontario)TD Asset Management Inc. (TDAM) is a wholly-owned subsidiary of the Toronto-Dominion Bank. In January 1996,TDAM was incorporated with the amalgamation of the investment division of Toronto-Dominion Securities Inc. andLancaster Investment Counsel Inc. TD manages two distinct mandates on behalf of the Plans. The first mandate is toinvest Plan assets in Canadian fixed income debt instruments issued and guaranteed by Canadian federal andprovincial governments, designed to replicate the performance of a blended government benchmark according todefined asset mixes. The second mandate is to invest Plan assets in Canadian financial institution bonds and to addvalue through security and sector selection. Both mandates have performance objectives and risk control limitguidelines.


Rob Pemberton, CFA 15 years 24 years Head of Fixed Income (PortfolioHead of Fixed Income Management), Lead Portfolio

Manager Institutional ActiveFixed Income

Christopher Case 5 years 25 years Senior Fixed Income PortfolioVice President and Director, ManagerFixed Income

Michelle Hegeman 10 years 24 years Senior Fixed Income PortfolioVice President and Director, ManagerFixed Income

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As a result of the changes described in this Detailed Plan Disclosure Amendment, the list of material contractscontained on page 67 of the Detailed Plan Disclosure, should be read to include the following InvestmentManagement Agreements:

• Investment Management Agreement between CGOV Asset Management and us dated September 4, 2015.• Investment Management Agreement between CIBC Asset Management Inc. and us dated September 4, 2015.• Investment Management Agreement between Sionna Investment Managers Inc. and us dated

September 4, 2015.• Investment Management Agreement between Greystone Managed Investments Inc. and us dated

September 4, 2015.• Investment Management Agreement between BMO Asset Management Inc. and us dated June 19, 2014 and

amended September 24, 2015.• Investment Management Agreement between TD Asset Management Inc. and us dated November 30, 2012 and

amended September 4, 2015.

Your Rights as an InvestorYou have the right to withdraw from your Contract and get back all of your money (including any fees or expensespaid with the exception of optional insurance premiums which are non-refundable), within 60 days of your ApplicationDate. If your plan is cancelled after 60 days, you will only get back your net Contributions. Any Government Grantsyou’ve received will be returned to the government.

In several provinces and territories, securities legislation also gives you the right to withdraw from a purchase and getback all of your money, or to claim damages, if the prospectus or any amendment contains a misrepresentation or isnot delivered to you. You must act within the time limits set by the securities legislation in your province or territory.

You can find out more about these rights by referring to the securities legislation of your province or territory or byconsulting a lawyer.

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CERTIFICATES

Certificate of the Scholarship PlansOctober 21, 2015

The Prospectus dated May 25, 2015 for the Canadian Scholarship Trust Plans known as Group Savings Plan 2001,Individual Savings Plan and Family Savings Plan as amended by this Amendment Number 1 dated October 21, 2015together with the documents incorporated by reference, constitutes full, true and plain disclosure of all material factsrelating to the securities offered by the Prospectus dated May 25, 2015, as amended, as required by the securitieslegislation of each of the provinces and territories of Canada.

C.S.T. Consultants Inc.On Behalf of the Plans

(Signed) Sherry J. MacDonald, CPA, CA (Signed) Richard D’Archivio, CPA, CA, CFAPresident and Chief Executive Officer Vice President, Chief Financial Officer

CANADIAN SCHOLARSHIP TRUST FOUNDATIONON BEHALF OF THE BOARD OF DIRECTORS OF C.S.T. CONSULTANTS INC.

ON BEHALF OF THE PLANS

(Signed) Colin E. Litton, FCPA, FCA, ICD.D (Signed) David R. Lewis, CFADirector Director

Certificate of the Investment Fund ManagerOctober 21, 2015

The Prospectus dated May 25, 2015 for the Canadian Scholarship Trust Plans known as Group Savings Plan 2001,Individual Savings Plan and Family Savings Plan, as amended by this Amendment Number 1 dated October 21, 2015together with the documents incorporated by reference, constitutes full, true and plain disclosure of all material factsrelating to the securities offered by the Prospectus dated May 25, 2015, as amended, as required by the securitieslegislation of each of the provinces and territories of Canada.

C.S.T. Consultants Inc.As Manager



AS MANAGER

(Signed) Colin E. Litton, FCPA, FCA, ICD.D (Signed) David R. Lewis, CFADirector Director

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Certificate of the Principal DistributorOctober 21, 2015

The Prospectus dated May 25, 2015 for the Canadian Scholarship Trust Plans known as Group Savings Plan 2001,Individual Savings Plan and Family Savings Plan, as amended by this Amendment Number 1 dated October 21, 2015together with the documents incorporated by reference, constitutes full, true and plain disclosure of all material factsrelating to the securities offered by the Prospectus dated May 25, 2015, as amended, as required by the securitieslegislation of each of the provinces and territories of Canada.

C.S.T. Consultants Inc.As Distributor


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Canadian Scholarship Trust PlansGroup Savings Plan 2001Minimum Subscription: Greater of $9.50 per month or 1/10th of a Unit

Individual Savings PlanMinimum Subscription: $150

Family Savings PlanMinimum Subscription: $150

PROSPECTUS May 25, 2015 CONTINUOUS OFFERING

No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise.

DETAILED PLAN DISCLOSURE

These investment funds are scholarship plans that are managed and distributed by C.S.T. Consultants Inc.

Canadian Scholarship Trust Plan is a registered trademark of the Canadian Scholarship Trust Foundation.

Prospectus cover.indd 2 2015-06-04 11:51 AM

Important Information to Know Before You InvestThe following is important information you should know if you are considering an investment in a scholarship plan.

No Social Insurance Number = No Government Grants, No Tax BenefitsWe need Social Insurance Numbers for you and each child named as a Beneficiary under the Plan before we canregister your plan as a Registered Education Savings Plan (RESP). The Income Tax Act (Canada) won’t allow us toregister your plan as an RESP without these Social Insurance Numbers. Your plan must be registered before it can:

• qualify for the tax benefits of an RESP, and• receive any Government Grants.

You can provide the Beneficiary’s Social Insurance Number after your Plan is open. If you don’t provide theBeneficiary’s Social Insurance Number when you sign your Contract with us, we’ll put your Contributions into anunregistered education savings account. During the time your Contributions are held in this account, we will deductsales charges and fees from your Contributions as described under ‘‘Costs of Investing in this Plan’’ in the prospectus.You will be taxed on any Income earned in this account if your plan is not registered.

If we receive the Beneficiary’s Social Insurance Number within 24 months of your Application Date, we’ll transfer yourContributions and the Income they earned to your registered plan. If you do not obtain the Social Insurance Numberfor your Beneficiaries within 12 months of your Application Date, you must contact us to request a 12-monthextension to the deadline.

If we do not receive the Beneficiary’s Social Insurance Number within 12 months of your Application Date, and if youdo not contact us to apply for the available 12 month extension, we’ll cancel your plan. You’ll get back yourContributions and the Income earned, less sales charges and fees. Since you pay sales charges up front, you could endup with much less than you put in.

If you don’t expect to get the Social Insurance Number for your Beneficiary within 24 months of yourApplication Date, you should not enroll or make Contributions to the plan.

Payments Not GuaranteedWe cannot tell you in advance if your Beneficiary will qualify to receive any Educational Assistance Payments (EAPs) orany Discretionary Payments from the Group Savings Plan 2001 or how much your Beneficiary will receive. We do notguarantee the amount of any payments or that they will cover the full cost of your Beneficiary’s post-secondaryeducation.

Payments from Group Savings Plan 2001 Depend on Several FactorsThe amount of the EAPs from Group Savings Plan 2001 will depend on how much the Plan earns and the number ofBeneficiaries in the group who do not qualify for payments. Specifically, the EAP values reflect:

• the total number of Units for which there are Beneficiaries enrolled in Eligible Studies who will share in theIncome in the EAP Account; and,

• the amount of the Group Plan Bonus paid from the General Fund to supplement EAPs.

We may also make Discretionary Payments that are allocated to Beneficiaries eligible to collect an EAP to furtherenhance the amount of EAPs the Beneficiaries collect.

Discretionary Payments are not guaranteed. You must not count on receiving a Discretionary Payment. TheCanadian Scholarship Trust Foundation decides if it will make a payment in any year and how much the payment willbe. If the Canadian Scholarship Trust Foundation makes a payment, you may get less than what has been paid inthe past.

Understand the RisksIf you withdraw your Contributions early or do not meet the terms of the Plan, you could lose some or all ofyour money. Make sure you understand the risks before you invest. Carefully read the information found under‘‘Risks of Investing in a Scholarship Plan’’ and ‘‘Risks of Investing in this Plan’’ in this Detailed Plan Disclosure.

If You Change Your MindYou have up to 60 days after signing your Contract to withdraw from your plan and get back all of your moneyexcluding optional insurance premiums (see Additional Services on page 8), which are non-refundable.

If you (or we) cancel your plan after 60 days, you’ll get back your Contributions, less sales charges and fees. You willlose the Income on your money in the Group Savings Plan 2001. Your Government Grants will be returned to thegovernment. Keep in mind that you pay sales charges up front. If you cancel your plan in the first few years,you could end up with much less than you put in.

Table of ContentsIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Making Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

What is a Unit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Terms used in this Prospectus . . . . . . . . . . . . . . . . . . . . . . 2Your Contribution Options . . . . . . . . . . . . . . . . . . . . . . . 17Overview of our Scholarship Plans . . . . . . . . . . . . . . . . . . . 3Contribution Schedule . . . . . . . . . . . . . . . . . . . . . . . . . 17

What is a Scholarship Plan? . . . . . . . . . . . . . . . . . . . . . . . . 3If you have difficulty making Contributions . . . . . . . . . . . . 20

Types of Plans We Offer . . . . . . . . . . . . . . . . . . . . . . . . . . 3Your options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

How our Plans work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Withdrawing your Contributions . . . . . . . . . . . . . . . . . . . . 20

Enrolling in a Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Costs of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 21

If your Beneficiary does not have aFees you pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Social Insurance Number . . . . . . . . . . . . . . . . . . . . . 5Fees the Plan Pays . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Government Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Transaction Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Contribution Limits . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Fees for Additional Services . . . . . . . . . . . . . . . . . . . . . . 23Additional Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Refund of Sales Charges . . . . . . . . . . . . . . . . . . . . . . . . 24Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Making Changes to your Plan . . . . . . . . . . . . . . . . . . . . . 24Eligible Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Changing your Contributions . . . . . . . . . . . . . . . . . . . . . 24Payments from the Plan . . . . . . . . . . . . . . . . . . . . . . . . 8Changing the Maturity Date . . . . . . . . . . . . . . . . . . . . . . 25Return of Contributions . . . . . . . . . . . . . . . . . . . . . 8Changing your Beneficiary’s Year of Eligibility . . . . . . . . . . 25Educational Assistance Payments . . . . . . . . . . . . . . . 8Changing the Subscriber . . . . . . . . . . . . . . . . . . . . . . . . 25Unclaimed accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Changing your Beneficiary . . . . . . . . . . . . . . . . . . . . . . . 26How We Invest your Money . . . . . . . . . . . . . . . . . . . . . . . . 9Death of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . 26Investment Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . 9Disability of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . 26Investment Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Transferring your Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . 10Transferring to Individual Savings Plan orRisks of Investing in a Scholarship Plan . . . . . . . . . . . . . . . 11Family Savings Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Investment Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Transferring to Another RESP provider . . . . . . . . . . . . . . . 27

How Taxes Affect your Plan . . . . . . . . . . . . . . . . . . . . . . . . 12Transferring to this Plan from Another RESP provider . . . . . 27

How the Plan is taxed . . . . . . . . . . . . . . . . . . . . . . . . . . 12Default, Withdrawal or Cancellation . . . . . . . . . . . . . . . . . . 28

How you are taxed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12If you withdraw from or cancel your plan . . . . . . . . . . . . . 28

Return of Contributions at the Maturity Date . . . . . . . 12If your plan goes into default . . . . . . . . . . . . . . . . . . . . . 28

Withdrawal of Contributions before the Maturity Date . 12If we cancel your plan . . . . . . . . . . . . . . . . . . . . . . . . . 28

Refund of sales charges or other fee . . . . . . . . . . . . . 12Re-activating your plan . . . . . . . . . . . . . . . . . . . . . . . . . 28

Any other distributions to the Subscriber in the form ofIf your plan expires . . . . . . . . . . . . . . . . . . . . . . . . . . . 28income, capital or otherwise . . . . . . . . . . . . . . . . . . 12

What Happens when your Plan Matures . . . . . . . . . . . . . . . 29Cancellation of units prior to the maturity date . . . . . . 12If your Beneficiary does not enroll in Eligible Studies . . . . . 29Purchase of additional units . . . . . . . . . . . . . . . . . . . 12

Receiving Payments from the Plan . . . . . . . . . . . . . . . . . . . 29Transfer between plans . . . . . . . . . . . . . . . . . . . . . . 12

Return of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . 29Additional Contributions made to address backdatingof a plan or to cure defaults under the plan . . . . . . . . 12 Educational Assistance Payments . . . . . . . . . . . . . . . . . . 29A Contribution beyond the limit set by How we determine EAP amounts . . . . . . . . . . . . . . . 30Income Tax Act (Canada) . . . . . . . . . . . . . . . . . . . . . 12 Payments from the EAP Account . . . . . . . . . . . . . . . 31If you receive an Accumulated Income Payment (AIP) . . 12 Payments from the General Fund . . . . . . . . . . . . . . . 32

How your Beneficiary is Taxed . . . . . . . . . . . . . . . . . . . . 13 If your Beneficiary does not complete Eligible Studies . . . . . 32Who is Involved in Running the Plans . . . . . . . . . . . . . . . . . 13 Accumulated Income Payments . . . . . . . . . . . . . . . . . . . 32

Discretionary Payments . . . . . . . . . . . . . . . . . . . . . . . . . 33Your Rights as an Investor . . . . . . . . . . . . . . . . . . . . . . . . . 14

Attrition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Specific information about our plans –Group Savings Plan 2001 . . . . . . . . . . . . . . . . . . . . . . . . . 15 Pre-maturity Attrition . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Post-maturity Attrition . . . . . . . . . . . . . . . . . . . . . . . . . 35Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Other Material Information . . . . . . . . . . . . . . . . . . . . . . . . 36Who this Plan is for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Your Beneficiary Group . . . . . . . . . . . . . . . . . . . . . . . . . 15 Specific information about our plans –Individual Savings Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Summary of Eligible Studies . . . . . . . . . . . . . . . . . . . . . . . 15Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38What’s eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

What’s not eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Who this Plan is for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Risks of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 16 Summary of Eligible Studies . . . . . . . . . . . . . . . . . . . . . . . 38

Plan risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 What’s eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Investment risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 What’s not eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

How the Plan has Performed . . . . . . . . . . . . . . . . . . . . . . . 17 Risks of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 38

Plan risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Transferring to Individual Savings Plan . . . . . . . . . . . . . . . 51

Investment risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Transferring to Another RESP provider . . . . . . . . . . . . . . . 51

Transferring to this Plan from Another RESP provider . . . . . 51How the Plan has Performed . . . . . . . . . . . . . . . . . . . . . . . 39

Making Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Default, Withdrawal or Cancellation . . . . . . . . . . . . . . . . . . 51

Your Contribution Options . . . . . . . . . . . . . . . . . . . . . . . 39 If you withdraw from or cancel your plan . . . . . . . . . . . . . 51

If we cancel your plan . . . . . . . . . . . . . . . . . . . . . . . . . 52Withdrawing your Contributions . . . . . . . . . . . . . . . . . . . . 39

Re-activating your plan . . . . . . . . . . . . . . . . . . . . . . . . . 52Costs of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 39If your plan expires . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Fees you pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40If your Beneficiary does not enroll in Eligible Studies . . . . . 52Fees the Plan pays . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Transaction Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Receiving Payments from the Plan . . . . . . . . . . . . . . . . . . . 52

Return of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . 52Making Changes to your Plan . . . . . . . . . . . . . . . . . . . . . . 42

Educational Assistance Payments . . . . . . . . . . . . . . . . . . 52Changing your Contributions . . . . . . . . . . . . . . . . . . . . . 42

Changing the Subscriber . . . . . . . . . . . . . . . . . . . . . . . . 42 How EAP amounts are determined . . . . . . . . . . . . . . 52

Changing your Beneficiary . . . . . . . . . . . . . . . . . . . . . . . 42 If your Beneficiary does not complete Eligible Studies . . . . . 53

Death of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . 42 Accumulated Income Payments . . . . . . . . . . . . . . . . . . . 53

Disability of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . 42 About C.S.T. Consultants Inc. and theTransferring your Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Canadian Scholarship Trust Foundation . . . . . . . . . . . . . . . . 54

Transferring to Family Savings Plan . . . . . . . . . . . . . . . . . 43 An Overview of the Structure of our Plans . . . . . . . . . . . . 54

Transferring to Another RESP provider . . . . . . . . . . . . . . . 43 Manager of the Plans . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Transferring to this Plan from Another RESP provider . . . . . 43 Duties and services to be provided by the manager . . . 55

Details of the management agreement . . . . . . . . . . . 55Default, Withdrawal or Cancellation . . . . . . . . . . . . . . . . . . 43

Officers and Directors of the Manager . . . . . . . . . . . . 56If you withdraw from or cancel your plan . . . . . . . . . . . . . 43

Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56If we cancel your plan . . . . . . . . . . . . . . . . . . . . . . . . . 44

The Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Re-activating your plan . . . . . . . . . . . . . . . . . . . . . . . . . 44

Independent Review Committee . . . . . . . . . . . . . . . . . . . 58If your plan expires . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

The C.S.T. Committee . . . . . . . . . . . . . . . . . . . . . . . . . . 59If your Beneficiary does not enroll in Eligible Studies . . . . . 44

Third Party Dispute Resolution Service . . . . . . . . . . . . . . . 59Receiving Payments from the Plan . . . . . . . . . . . . . . . . . . . 44Compensation of Directors, Officers, Trustees, andReturn of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . 44Independent Review Committee Members . . . . . . . . . . . . 60Educational Assistance Payments . . . . . . . . . . . . . . . . . . 44Portfolio Managers . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61How EAP amounts are determined . . . . . . . . . . . . . . 44

Details of the portfolio management agreements . . . . 64If your Beneficiary does not complete Eligible Studies . . . . . 45Principal Distributor . . . . . . . . . . . . . . . . . . . . . . . . . . . 64Accumulated Income Payments . . . . . . . . . . . . . . . . . . . 45Dealer Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . 64Specific information about our plans – Family Savings Plan . . 46

Dealer compensation from management fees . . . . . . . 64Type of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Custodian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Who this Plan is for . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Summary of Eligible Studies . . . . . . . . . . . . . . . . . . . . . . . 46 Transfer Agent and Registrar . . . . . . . . . . . . . . . . . . . . . 65

What’s eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Promoter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65What’s not eligible . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Other service providers . . . . . . . . . . . . . . . . . . . . . . . . . 65

Risks of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 46 Ownership of the Manager and Other Service Providers . . . 65Plan risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Experts who contributed to this prospectus . . . . . . . . . . . . 65Investment risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Subscriber Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65How the Plan has Performed . . . . . . . . . . . . . . . . . . . . . . . 47

Meetings of Subscribers . . . . . . . . . . . . . . . . . . . . . . . . 65Making Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Matters Requiring Subscriber Approval . . . . . . . . . . . . . . . 65Your Contribution Options . . . . . . . . . . . . . . . . . . . . . . . 47

Amendments to the Declaration of Trust . . . . . . . . . . . . . 65Withdrawing your Contributions . . . . . . . . . . . . . . . . . . . . 47

Reporting to Subscribers and Beneficiaries . . . . . . . . . . . . 65Costs of Investing in this Plan . . . . . . . . . . . . . . . . . . . . . . 47

Business Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Fees you pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Our Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Fees the Plan pays . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Valuation of Portfolio Investments . . . . . . . . . . . . . . . . . . 66Transaction Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Proxy Voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Making Changes to your Plan . . . . . . . . . . . . . . . . . . . . . . 50

Conflicts of Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Changing your Contributions . . . . . . . . . . . . . . . . . . . . . 50Interests of Management and Others in MaterialChanging the Subscriber . . . . . . . . . . . . . . . . . . . . . . . . 50Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Changing your Beneficiary . . . . . . . . . . . . . . . . . . . . . . . 50Key Business Documents . . . . . . . . . . . . . . . . . . . . . . . . . . 67Death of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . . . 50

Disability of the Beneficiary . . . . . . . . . . . . . . . . . . . . . . 50 Legal matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Transferring your Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Exemptions and Approvals under Securities Laws . . . . . . . . 68

performance that contains information that is required byIntroductionlaw. These documents must be filed with the regulators

This Detailed Plan Disclosure contains information to help (through the SEDAR filing system).you make an informed decision about investing in our

Along with the Plan’s prospectus, the Plan’s financialscholarship plans and to understand your rights as an

statements and management report of fund performanceinvestor. It describes the Plans and how they work,

provide information that will help you assess the Plan, itsincluding the fees you pay, the risks of investing in a Plan

past operations, its financial condition, its future prospectsand how to make changes to your Plan. It also contains

and its risks. These documents contain information that isinformation about our organization. The prospectus is

required by law and, in the case of the financialcomprised of both this Detailed Plan Disclosure and each

statements that meet applicable accounting standards.Plan Summary that was delivered with it.

The Plan’s annual and interim financial statements includeYou can find additional information about each Plan in

statements of net assets available for EAPs (Educationalthe following documents:

Assistance Payments), statements of investment• the Plan’s most recently filed annual financial

operations, statements of changes in net assets availablestatements,

for EAPs and statements of cash flows. These statements• any interim financial reports filed after the annual

include information about the amount of EAPs that havefinancial statements,

been paid to students in past years, how much of the• the Plan’s most recently filed annual management

EAPs have been made up of Discretionary Payments fromreport of fund performance, and

the Foundation, as well as the funding of the sales charge• the undertaking to the Ontario Securities

refund account. The financial statements notes are anCommission and each other provincial and

integral part of the financial statements.territorial securities regulator concerninginvestments of the Plans and other matters. How scholarship funds are managed can say much about

the Plans’ ability to withstand market changes andThese documents are incorporated by reference into the

unexpected events. The Plans’ management reports ofprospectus. That means they legally form part of this

fund performance are prepared each year by thedocument just as if they were printed as part of

investment fund manager and describe the objectives,this document.

strategies and risk management considerations applied toYou can get a copy of these documents at no cost by investing Plan assets. The reports discuss events that havecalling us toll-free at 1-877-333-7377 or by contacting us affected the Plans’ investment performance and set outat [email protected]. the investment fund manager’s expectations for the

coming year. They also describe the investments made byYou will also find the financial statements, management

the Plans and how those investments have performed.reports of fund performance and the undertaking on our

You can get a list of the investments in each Plan bywebsite at www.cst.org.

reviewing the Plan’s latest management report of fundThese documents and other information about the Plans performance and financial statements.are also available at www.sedar.com.

The Plans are managed in accordance with theAny financial statements and management reports of investment restrictions set out in National Policyfund performance, if filed by a scholarship plan after the Statement No. 15 Conditions Precedent to Acceptance ofdate of the prospectus and before the termination of the Scholarship or Educational Plan Prospectuses and thedistribution, are deemed to be incorporated by reference administrative policies of the Canadian Securitiesin the prospectus. Administrators. The investment fund manager has also

provided an undertaking to the Ontario SecuritiesEach Plan is required to prepare annual audited financial

Commission as well as each securities regulatory authoritystatements and semi-annual unaudited financial

in the provinces and territories of Canada to modify thesestatements that comply with applicable laws and

restrictions as outlined in the prospectus.accounting standards. Each Plan is also required toprepare annually a management report of fund

1

Educational Assistance Payment (EAP): In general, anTerms used in this ProspectusEAP is a payment made to your Beneficiary after the

In this document, ‘‘we’’, ‘‘us’’ and ‘‘our’’ refer to the Maturity Date for Eligible Studies. An EAP consists of yourCanadian Scholarship Trust Foundation (the Foundation) Income and your Government Grants. For Group Savingsand C.S.T. Consultants Inc. (CSTC). ‘‘You’’ refers to potential Plan 2001 (a group plan), an EAP consists of yourinvestors, Subscribers and Beneficiaries. Government Grants, Income on your Government Grants,

your Beneficiary’s share of the EAP Account and theThe following are definitions of some key terms you willGroup Plan Bonus (please refer to page 32 for morefind in this prospectus:information). EAPs do not include sales charge refunds or

Accumulated Income Payment (AIP): the Income ondiscretionary payments.

your Contributions and/or Government Grants that youEligible Studies: a post-secondary educational programmay get from your Plan if your Beneficiary does notthat meets the Plan’s requirements for a Beneficiary topursue post-secondary education and you meet certainreceive EAPs.conditions set by the federal government or by the Plan.

AIP: see Accumulated Income Payment. Government Grant: any financial grant, bond orincentive offered by the federal government, (such as theApplication Date: the date you opened your Plan withCanada Education Savings Grant, or the Canada Learningus, which is the date you sign your Contract.Bond), or by a provincial government, to assist with

Attrition: under Group Savings Plan 2001 (a group plan), saving for post-secondary education in an RESP.a reduction in the number of Beneficiaries who qualify for

Grant Contribution Room: the amount of GovernmentEAPs in a Beneficiary Group. See also Pre-maturityGrant you are eligible for under a federal or provincialAttrition and Post-maturity Attrition.government grant program (also known as grant room).

Beneficiary: the person you name to receive EAPs underIncome: has the same meaning as Earnings.your plan.

Beneficiary Group: Beneficiaries in Group Savings Plan Maturity Date: the date on which the Plan matures. In2001 (a group plan) who have the same Year of Eligibility. general, it is in the year your Beneficiary is expected toThey are typically born in the same year. enroll in their first year of post-secondary education.

Contract: the agreement you enter into with us when Plan: means the Canadian Scholarship Trust Plan Groupyou open your Plan which includes your application form Savings Plan 2001, Individual Savings Plan, or Familyand education savings plan agreement. Savings Plan (collectively, the Plans), each a scholarship

plan that provides funding for a Beneficiary’sContribution: the amount you pay into a Plan. Salespost-secondary education.charges and other fees are deducted from your

Contributions and the remaining amount Post-maturity Attrition: under Group Savings Plan 2001(net Contribution) is invested in your Plan. (a group plan), a reduction in the number of Beneficiaries

who qualify for EAPs in a Beneficiary Group after theDiscretionary Payment: a payment, other than a feerefund, that Beneficiaries may receive in Group Savings Maturity Date. See also Attrition.Plan 2001 (a group savings plan) which is added to their Pre-maturity Attrition: under Group Savings Plan 2001EAPs, as determined by the Canadian Scholarship Trust

(a group plan), a reduction in the number of BeneficiariesFoundation in its discretion.

who qualify for EAPs in a Beneficiary Group before theEAP: see Educational Assistance Payment. Maturity Date. See also Attrition.

EAP Account: for Group Savings Plan 2001 (a group Subscriber: the person who enters into a Contract withplan), an account that holds the Income earned on the Canadian Scholarship Trust Foundation to makeContributions made by Subscribers. There is a separate Contributions to a Plan.EAP account for each Beneficiary Group. An EAP Account

Unit: under Group Savings Plan 2001 (a group plan), aalso includes the Income earned on Contributions ofUnit represents your Beneficiary’s proportionate share ofSubscribers who have cancelled their Plan or whose Planthe EAP Account. The terms of the Contract you signwas cancelled by us. The money in this account isdetermine the value of the Unit.distributed to the remaining Beneficiaries in the

Beneficiary Group as part of their EAPs. Year of Eligibility: the year in which a Beneficiary is firsteligible to receive EAPs under a Plan. For Group SavingsEarnings: any money earned on your (i) ContributionsPlan 2001 (a group plan), it is typically the year theand (ii) Government Grants, such as interest and capitalBeneficiary will enter his or her first academic year ofgains. For Group Savings Plan 2001, it does not includeEligible Studies. For Individual and Family Savings Plans,any Income earned in the General Fund (please refer tothe Year of Eligibility is the year when your Beneficiarypage 32 for more information), such as interest earned on

Income after the Maturity Date. enrolls in Eligible Studies.

2

Overview of our Scholarship PlansTypes of Plans We OfferWhat is a Scholarship Plan?The Canadian Scholarship Trust Foundation offers theA scholarship plan is a type of investment fund that isfollowing Plans:designed to help you save for a Beneficiary’s

• Group Savings Plan 2001post-secondary education. Your plan must be registered• Individual Savings Planas a Registered Education Savings Plan (RESP) in order to• Family Savings Planqualify for Government Grants and tax benefits. To do

this, we need Social Insurance Numbers for you and the There are differences in the enrolment criteria,person you name in the plan as your Beneficiary. Contribution requirements, fees, payments to Beneficiaries,

options for receiving EAPs and options if the BeneficiaryYou sign a Contract when you open a plan with us. Youdoes not pursue Eligible Studies among the scholarshipmake Contributions under the Plan. We invest yourPlans offered. The Plan-specific disclosure for eachContributions for you, after deducting applicable fees. Youscholarship Plan is provided on pages 15, 38 and 46 forwill get back your net Contributions whether or not yourGroup Savings Plan, Individual Savings Plan and FamilyBeneficiary goes on to post-secondary education. YourSavings Plan, respectively.Beneficiary will receive Educational Assistance Payments

from us if they enroll in Eligible Studies and all the termsof the Contract are met.

Please read your Contract carefully and make sure youunderstand it before you sign. If you or your Beneficiarydo not meet the terms of your Contract, it could result ina loss and your Beneficiary could lose some or all oftheir EAPs.

3

19MAY201515350485

How our Plans workMake sureyour contactinformation isup to date

It is importantthat you keepyour address andcontactinformation upto date. We willneed tocommunicateimportantinformation toyou throughoutthe life of yourplan. We will alsoneed to find youand theBeneficiary whenthe plan maturesso we can returnyourContributionsand makepayments to theBeneficiary.

Terminations

Your Principal1 Income earnedon Principal

Government Grants

Income earned onGovernment Grants

is returned to you tax-free at maturityIndividual/Family Savings PlanGroup Savings Plan 2001

+1stEAP

2ndEAP

3rdEAP

4thEAP

1/4 SC 3

1/4 SC 3

1/4 SC 3

1/4 SC 3

+

+

+

+

+/or

+/or

+

+

+

Your child becomes a quali�ed student – withdraw as a single education

assistance payment or spread it out as per your child’s needs

Child does not pursue post-secondary education

Funds can be used from the time of transfer up until the 36th

year of the plan

Your child becomes a quali�edstudent – four installments,

one per year

Funds can be used from the time of maturity (age 17/18)

up until the 36th year of the Plan

Stay in the Group Savings Plan or transfer to the Individual/Family Savings Plan

Government Grants

Transfer to RRSP2

Transfer to RDSP2

Withdraw as Income2

Education AssistancePayment

Income on Grants

Income on Principal

Group Plan Bonus

Foundation Discretionary Donation5

Maturity.

Now it’s time to decide the best payout option based on your child’s choice for post-secondary education.

If your child wants to attend 3 or more years of post-secondaryeducation – we recommendstaying in the Group Savings Plan.

If your child wants to attend 2 years or less, isn’t attending post-secondaryeducation or you want to control thetiming of the payout – we recommendtransferring to the Individual/FamilySavings Plan.4

If you terminate your plan within 60 days of enrolling, you will receive back all of your

Otherwise, you may terminate your plan at any time and receive your principal1. You will forfeit your income and governmentgrants will be returned to the government.

contributions

Contributions to a Group Savings Plan are applied to the sales charge until one-half of the sales charge is paid. Afterthat, one half of the contributions are applied to the sales charge until it is fully paid. For the Individual and FamilySavings Plans, sales charges are fully paid at the time of enrolment.

Your Principal1

Make Contributions

Enrolment and Registration

1 Principal: a Subscriber’s accumulated contributions less sales charges, optional insurance premiums (if applicable) and account maintenance fees. 2 Additional requirements apply. If Principal is withdrawn prior to Bene�ciary enrolling in Eligible Studies, Government Grants will be forfeited and repaid to the Government. 3 We return at least 50% of your sales charge (SCR), as long as you make all your Contributions and your Bene�ciary quali�es for and receives all four EAPs.

Conditions apply. Transfer to Individual/Family Savings Plan will lead to loss of rights as a Group Savings Plan 2001 subscriber. 5 Discretionary Payments are not guaranteed. 4

4

in an unregistered education savings account andEnrolling in a Planinvested in money market securities and bonds pending

To enroll: our receipt of the Beneficiary’s SIN. An unregistered• Complete an application and any applicable education savings account is not eligible for tax benefits

Government Grant applications and supply your Social or grants. However, as long as you provide theInsurance Number. Spouses or common-law partners Beneficiary’s SIN by our deadline it will:may apply as joint Subscribers. Each Subscriber’s Social • permit the Year of Eligibility for your BeneficiariesInsurance Number is required at the time of enrolment to be determined based on your Application Date;to register the Plan as an RESP under the Income • prevent you having to make higher ContributionsTax Act (Canada). for the same amount of EAPs due to a child

• Designate a Beneficiary for Group Savings Plan 2001 or moving into the next age bracket while waiting forIndividual Savings Plan. Designate one or more a SIN (see Group Savings Plan 2001 ‘‘ContributionBeneficiaries for Family Savings Plan. Each Beneficiary Schedule’’ on page 18);must be a Canadian resident. Multiple Beneficiaries • permit the Contributions deposited in themust be (i) all siblings; (ii) all family members of the unregistered education savings account to beSubscriber; and (iii) all under the age of 21. eligible for Government Grants once your plan is

• Provide your Beneficiary’s Social Insurance Number registered; andwithin 24 months of your Application Date so that we • permit Income earned on amounts deposited intocan register your plan. the unregistered education savings account to not

• If your Beneficiary qualifies for Canada Learning Bond be taxed in your hands, but in the hands of yourand/or Additional Canada Education Savings Grant, Beneficiaries when it is paid out as part of an EAP.have the Beneficiary’s primary caregiver complete the

If we receive the required SIN within 24 months of yourform designating your plan as the one to receiveApplication Date, we will contribute the original amountthese grants.of your Contributions to the applicable Plan and we will• Group Savings Plan 2001:also transfer the Income earned on your Contributions to� Choose the amount you wish to contribute (whichthe Plan. The date of this transfer will be considered thewill determine the number of Units you purchase)date of the Contribution into the Plan.� Select a Contribution schedule

• Individual/Family Savings Plan: If we have not received the required SIN within� Choose an initial Contribution amount 12 months of your Application Date (or any extended� Establish a Contribution schedule of your choice deadline, if applicable) we will refund all amounts

• Submit the application to us through your sales contributed to an unregistered education savings accountrepresentative except for sales charges, account maintenance fees and

• When we accept the application, you will have entered any insurance premiums. Any Income earned on theseinto an education savings plan agreement which will Contributions will be taxed in the Subscriber’s hands. Thebe your Contract. We will provide a copy of the tax benefits described in this prospectus do not apply toContract to you. an unregistered education savings account and

Government Grants are not payable on ContributionsIf your Beneficiary does not have a Socialmade to such an account.

Insurance NumberIn the event circumstances make it difficult for you to

Your education savings plan does not qualify as an RESP obtain SINs for your Beneficiaries, we can extend theuntil it is registered under the Income Tax Act (Canada). 12-month deadline by up to a further 12 months. ShouldWe will apply to register your plan with Canada Revenue you wish to extend your deadline, you need to completeAgency on your behalf, but we cannot register an an Application for Extension of Deadline to Submit Socialeducation savings plan agreement without Social Insurance Number available from us.Insurance Numbers (SINs) for both the Subscriber and any

If we close your unregistered education savings accountBeneficiaries. You must normally supply SINs for anybecause we did not receive SINs for your Beneficiaries byBeneficiaries within 24 months of your Application Date.our deadline, you can reinstate your plan by providingYou have the option to wait until the Beneficiary has athe required SIN within two years of termination andSIN to purchase a scholarship plan.making any Contributions (plus Income that would have

Any Contributions (less sales charges and fees) made for a accrued) that were missed prior to reinstatement.child whose SIN we have not received will be deposited

5

Saskatchewan Advantage Grant for Education SavingsGovernment Grants(SAGES)

The following is a brief summary of the various The SAGES is a grant of up to $4,500 ($250 per year,Government Grants. To receive any applicable commencing in 2013) from the Government ofGovernment Grants, you are required to complete the Saskatchewan paid into the RESP of a Beneficiary who isappropriate application form and we will apply to the a Saskatchewan resident. The amount of grant yourapplicable government on your behalf. Beneficiary receives is based on the Contributions you

make and any available Grant Contribution Room youAny Government Grants you receive are owned by yourmay have. For more information about SAGES, please visitBeneficiary and invested on their behalf in your plan.http://ae.gov.sk.ca/sagesGovernment Grants for your Beneficiary are pooled with

the Government Grants of other Beneficiaries. Alberta Centennial Education Savings (ACES) PlanGovernment Grants are invested separately from your GrantContributions. Government Grants of your Beneficiary, and The Government of Alberta has announced the closure ofany Income on them, are paid to your Beneficiary when the Alberta Centennial Education Savings Plan (ACES)he/she collects his/her EAPs. One-quarter of the grant program. Children of Alberta residents born beforeGovernment Grant invested in Group Savings Plan 2001 is April 1st, 2015 who are under the age of 6 may still bepaid with each EAP along with one-quarter of the Income eligible to receive the $500 grant in their RESP. As well,earned on the Government Grants. With the Individual grants of $100 are available to children of AlbertaSavings Plan and the Family Savings Plan, the residents who turned 8, 11 and/or 14 on or beforeGovernment Grants are paid in proportion to the amount March 31st, 2015, provided that the children are attendingof Income withdrawn as an EAP. school and a new application is submitted. All grant

applications must be received by July 31st, 2015 to beCanada Education Savings Grant (CESG)eligible. You must be a resident of Alberta when theThe CESG is a grant of up to $7,200 from the federalapplication for an ACES Grant is made and all grantgovernment, paid into the RESP of an eligible Beneficiary.applications must be received by July 31st, 2015 to beThe amount of grant your Beneficiary receives is based oneligible. For more information about ACES please visitContributions you make until the end of year in whichhttp://eae.alberta.ca/funding/aces.aspxthe Beneficiary turns 17 years of age and any available

Grant Contribution Room the Beneficiary may have up to British Columbia Training and Education Savings Grantthat time. Families with an annual income below certain (BCTESG)income levels are entitled to an additional 10% to 20% The BCTESG is a one-time grant of $1,200 from theCESG on the first $500 they contribute each year. For Government of British Columbia (B.C.) paid directly intomore information about CESG, please visit the RESP of a Beneficiary who (i) has been born on orhttp://www.canlearn.ca/eng/savings/cesg.shtml after January 1, 2007 and (ii) is a B.C. resident.

Beneficiaries are eligible for the BCTESG on their sixthCanada Learning Bond (CLB)birthday up until the day before their ninth birthday. NoThe CLB is a grant of up to $2,000 from the federalmatching or additional Contributions are required in ordergovernment, paid into the RESP of an eligible Beneficiaryto receive the grant. Applications for this Grant areborn on or after January 1, 2004. In any given year, yourexpected to be available in August 2015 and the GrantBeneficiary may receive the CLB up to the end of thewill be retroactive to 2013 for eligible children. For morecalendar year in which they turn 15 and must qualify forinformation about BCTESG, please visitthe National Child Benefit Supplement. Repayment of CLBhttp://www.gov.bc.ca/BCTESPdoes not result in a loss of entitlements. For more

information about CLB, please visithttp://www.canlearn.ca/eng/savings/clb.shtml

Quebec Education Savings Incentive (QESI)The QESI is a Quebec government program that paysrefundable tax credits of up to $3,600 into the RESP of aQuebec resident Beneficiary. The amount of grant yourBeneficiary receives is based on Contributions you makeand any available Grant Contribution Room you mayhave. Families with an annual income below certain levelsare entitled to an additional 5% to 10% QESI on the first$500 they contribute each year. For more informationabout QESI, please visit http://www.revenuquebec.ca/en/citoyen/situation/parent/autres_infos/iqee/default.aspx

6

7

The following table summarizes various Government Grants including when we are required to return your Government Grants to the applicablegovernment.

CESG Federal $7,200 $500, provided you pay • You withdraw Contributions from your plan and the Beneficiary is not enrolled in EligibleGovernment $2,500 in Contributions Studies;

$1,000 with carry forward room • Your plan is terminated before grant is paid out or its registration as an RESP is revoked;provided you pay $5,000 in • You add a Beneficiary to your plan that has received Additional CESG, and the additionalContributions Beneficiary is not a sibling of the other Beneficiaries;

• You change the Beneficiary of your plan and the new Beneficiary is not under the age of21 years or not a sibling of the former Beneficiary;

• You transfer an amount from one RESP to another and the transfer is not an eligible transfer;• Accumulated Income Payments are made; or,• Payment to a Designated Educational Institution.

CLB Federal $2,000 $500 in the first year; • Your plan is terminated before grant is paid out or its registration as an RESP is revoked;Government $100 every qualifying year thereafter • You change the Beneficiary;

until the Beneficiary turns 15 • You must repay grant received for a Beneficiary who has received CLB and ceases to be aYou are not required to make any Beneficiary;Contributions. • Accumulated Income Payments are made; or,

• Payment to a Designated Educational Institution.

QESI Quebec $3,600 $250, provided you pay • You withdraw Contributions from your RESP before the Beneficiary enrolls in Eligible Studies;Government $2,500 in Contributions • You add a Beneficiary to your plan who has received Additional QESI, and the additional

$500 with carry forward room Beneficiary is not a sibling of the other Beneficiaries;provided you pay • You change the Beneficiary of your plan and the new Beneficiary is not under the age of$5,000 in Contributions 21 years or not a sibling of the former Beneficiary;

• Accumulated Income Payments are made; or,• Payment to a Designated Educational Institution.

SAGES Saskatchewan $4,500 $250, provided you pay • Your plan is terminated before grant is paid out or its registration as an RESP is revoked;Government $2,500 in Contributions • You withdraw Contributions from your plan and the Beneficiary is not enrolled in Eligible

$500 with carry forward room, Studies;provided you pay • You transfer your RESP to an ineligible promoter;$5,000 in Contributions • You change the Beneficiary of your plan and the new Beneficiary is not under the age of

21 years or not a sibling of the former Beneficiary;• Accumulated Income Payments are made; or,• Payment to a Designated Educational Institution.

ACES Alberta $800 $500 initially (Minimum • Your plan is terminated before grant is paid out or its registration as an RESP is revoked;Government $100 contribution required); or,The Alberta $100 at age 8, 11 and 14 (At least • You change the Beneficiary to a non-sibling.Government $100 contribution in the 12 monthshas announced prior to applying)the closure ofthis program.

BCTESG British $1,200 One-Time payment of $1,200 at age 6 • Your plan is terminated or its registration is revoked before grant is paid out as part of an EAP;Columbia to be collected before the Beneficiary • You withdraw Contributions from your plan and the Beneficiary is not enrolled in EligibleGovernment turns age 9 Studies; or,

No matching or additional • Application for the grant contained false information.Contributions required

Lifetime Annual Maximum Examples of conditions under which Government GrantsGrant Provider Maximum per Beneficiary must be returned to the Government

Plan will generally go to your Beneficiary. If yourContribution LimitsBeneficiary does not qualify to receive the Income from

While none of our Plans imposes a limit on Contributions your Plan, you may be eligible to get back some of thethat can be made, the total of all Contributions for anyIncome as an ‘‘Accumulated Income Payment (AIP)’’. SeeBeneficiary is subject to a lifetime limit of $50,000 underthe ‘‘Accumulated Income Payments’’ section in thisthe Income Tax Act (Canada). Government Grants are notDetailed Plan Disclosure for more information about AIPs.included in calculating Contribution limits. If you make

Contributions that exceed this limit, there are tax Educational Assistance Paymentsconsequences (please see ‘‘How you are taxed’’ on We will pay EAPs to your Beneficiary if you meet thepage 12 for details). terms of your plan, and your Beneficiary qualifies for theYou can make Contributions to your plan that exceeds payments under the plan. The amount of each EAPthe amount that would result in you receiving the depends on the type of plan you have, how much youmaximum annual amount in Government Grants. These contributed to it, the Government Grants in your planadditional Contributions do not allow you to receive and the performance of the plan’s investments.additional Government Grants. All Contributions you

You should be aware that the Income Tax Act (Canada)make are invested in your plan in the same way.has restrictions on the amount of EAPs that can be paid

Additional Services out of an RESP at a time. A full-time student may notOptional Group Insurance receive more than $5,000 as an EAP unless he or she has(Group Savings Plan 2001 only) completed at least 13 consecutive weeks of study in theYou can apply for an optional group insurance policy previous 12 months. A part-time student can collect EAPsoffered by Sun Life Assurance Company that will allow of up to $2,500 for each 13-week period of study.you, upon payment of the applicable premiums, to ensure

Unclaimed accountsthat your plan continues if you are unable to make theContributions due to disability or death. Under this Your plan is considered unclaimed when a payment isinsurance program, if you or a joint Subscriber dies before due to you and we are unable to locate either you orage 70, or are totally and permanently disabled before your Beneficiary. We will mail letters to you and/or yourage 65, your Contributions will be paid out under the Beneficiary at the address on file. If our letters areinsurance policy until the Contribution schedule for your returned as undeliverable, we will make reasonable effortsplan is complete. to locate you or your Beneficiary using other availableIf you purchase insurance, the applicable premiums public services.(see ‘‘Insurance Premiums’’ on page 36) will be added to

If we cannot locate you or your Beneficiary, we willyour Contributions and remitted to Sun Life Assurancecontinue to invest your net Contribution and GovernmentCompany. We receive one-third of the premiums fromGrants in your plan.Sun Life Assurance Company in return for providingIf your plan is in Group Savings Plan 2001, we willadministrative services related to the insurance program.transfer the Income earned on your net Contribution atFees and Expenses the Maturity Date into the EAP Account for your

There are costs for joining and participating in our Plans. Beneficiary’s Year of Eligibility. At the end of the 36th yearYou pay some of these fees and expenses directly from of your plan, we will transfer any Income earned on youryour Contributions. The Plans pay some of the fees and net Contribution after the Maturity Date into the Generalexpenses, which are deducted from the Plans’ Income. Fund and we will pay Income earned on GovernmentSee ‘‘Costs of Investing in this Plan’’ on pages 21, 39 Grants to a post-secondary educational institution weand 47 of this prospectus for a description of the fees choose. Any Government Grants received will be returnedand expenses of each of our Plans. Fees and expenses

to the applicable government.reduce the Plan’s returns which reduces the amountIf your plan is in the Individual Savings Plan or Familyavailable for EAPs. There are different fees and expensesSavings Plan, at the end of the 36th year of your plan weassociated with each of the Plans we offer. The choice ofwill pay any Income within the plan to a post-secondaryPlan also affects the amount of compensation that is paideducational institution we choose. Any Governmentto us in our capacity as dealer as well as the amount ofGrants received will be returned to the applicablecompensation paid to your sales representative.government.Eligible StudiesIf we have sent any payments to you or your BeneficiaryEAPs will be paid to your Beneficiary only if he or shethat have not been claimed or cashed, we will transferenrolls in Eligible Studies. For a summary of thethose payments to the Foundation six years after they areeducational programs that qualify for EAPs under ourmade or by December 31st of the 36th year of your plan,Plans, see ‘‘Summary of Eligible Studies’’ on pages 15, 38whichever is earlier. The only exceptions are Governmentand 46.Grants that we repay to the applicable governments.

Payments from the Plan You can claim your Contributions and/or your EAPs untilReturn of Contributions December 31st of the 36th year of your plan by contacting

us. You will forfeit your unclaimed Contributions and EAPsWe always return your Contributions, less sales chargesand fees to you or to your Beneficiary. Income from the after the expiry of the plan.

8

Currently there are six portfolio managers that manageHow We Invest your Moneythe Plans’ investments. To gain the benefit ofdiversification, we employ portfolio managers that haveInvestment Objectivestheir own unique strengths and strategies. Those

The Plans’ investment objectives are to protect strategies encompass sector selection, yield curve andSubscribers’ principal (net Contribution) and to deliver a duration positioning, credit analysis and security selection.reasonable positive return on investments over a Our objective is to employ portfolio managers who excellong-term investment horizon within prudent risk in their own area of specialization and at the same timetolerances. fulfill a role within the overall Plan investment objectives.

We monitor the performance of the portfolio managersThe fundamental investment objectives of the Plans mayon an on-going basis. CSTC’s Chief Investment Officernot be changed without the consent of a two-thirds voteconducts this monitoring and manages the variousof a Plan’s Subscribers represented at a meeting in personportfolio managers.or by proxy.

Principal and amounts representing Government GrantsTo meet our responsibilities to Subscribers and strive topaid into each Plan are invested only in one or more ofachieve the Plans’ investment objectives, the Foundationthe following types of securities in accordance with theand its Investment Committee establish investmentundertaking:policies for the Plans, and select and monitor portfolio

(1) Debt securities of Canadian federal andmanagers. The Plans invest primarily in debt securities ofprovincial governments or debt securities ofCanadian governments, financial institutions andfederal and state governments in thecorporations. The Plans also invest Income from the PlansUnited Statesin exchange traded equity securities including certain

(2) Certain guaranteed mortgagesexchange traded funds that replicate the performance of(3) Mortgage-backed securities, where all of thea broad market index of equity securities of Canadian or

underlying mortgages are guaranteed mortgagesUS companies.(4) Cash equivalents(5) Guaranteed investment certificates (GICs) andInvestment Strategies

other evidences of indebtedness of CanadianWe understand there is an inherent conflict in the goals financial institutions where such securities or thestated above – that often, to achieve a competitive return, financial institution have an approvedwe need to assume a certain amount of risk which might credit rating.conflict with our first goal, protecting Subscribers’

In addition to the above-noted securities, Income of eachprincipal (net Contributions). At least every three years,Plan can be invested also in one or more of the followingwe undertake an asset-liability modeling exercise with thetypes of securities in accordance with the requirements ofassistance of our investment consultants to establish thethe undertaking:nature and amount of Plan liabilities or obligations to

(1) Debt securities of corporations, provided thoseSubscribers, and to determine the asset classes andcorporate bonds have a minimum credit rating;portfolio composition best suited to achieving the

(2) Exchange-traded equity securities listed on ainvestment objectives. The risk budgeting exercisestock exchange in Canada such as the TSX; and,determines how best to manage the conflict described

(3) ‘‘Index participation units’’ provided that (a) theabove by establishing a minimum risk position andindex participation units are securities of ameasuring how different investment strategymutual fund (exchange traded fund or ETF),combinations might contribute to enhance investment(b) the ETF trades only on a stock exchange inreturns and to reduce risk. By calculating each Plan’sCanada such as the TSX, (c) the ETF’s investmentinvestment horizon or duration and investment returnobjective is to replicate the performance of apotential (including returns earned to date) we determinespecified widely quoted market index ofhow best to optimize risk and return characteristics toCanadian or U.S. equity securities, and (d) theensure that the Plan’s investment objectives are met.ETFs may only use derivatives for the purpose of

The result of this work is set out in a statement of currency hedging.investment policies and goals and includes Plan asset

As investment fund manager, we can change themixes, asset classes, and performance objectives. Theinvestment strategies and activities of the Plans withoutPlan’s investment portfolios are managed by portfoliothe consent of Subscribers, subject to any requiredmanagers. The mandates and benchmarks of eachapprovals of the Canadian Securities Administrators andportfolio manager are designed to support and enhancethe Foundation and/or its Investment Committee.the Plan’s return and risk objectives.

9

Investments in exchange-traded equity securitiesInvestment RestrictionsThe Plans may invest in exchange-traded equity securities,

The investment of your Contributions, Grants and the including index participation units of exchange tradedIncome earned on them must comply with restrictions funds provided that:contained in the Income Tax Act (Canada) and the • no principal or Government Grants may beadministrative policies of the Canadian Securities invested in such securities; and,Administrators. The Plans are managed in accordance • any ETF held must trade only on a Canadian stockwith the investment restrictions set out in National Policy exchange and have as its investment objective toStatement No. 15 Conditions Precedent to Acceptance of replicate the performance of a broad market indexScholarship or Educational Plan Prospectuses as modified of equity securities of Canadian or U.S. companiesby the undertaking to the Ontario Securities Commission by directly investing in the same equity securitiesand every other securities regulatory authority in the in the same proportions as the representativeprovinces and territories of Canada where the Plans are index; and,managed and distributed to the public. The undertaking • the Plans will not purchase a security of an issueris incorporated by reference into this prospectus and is if immediately after the purchase, the Plans wouldavailable for review on our website www.cst.org or the hold securities representing more thanSEDAR website www.sedar.com. 10 percent of

� the votes attached to the outstandingThe undertaking describes the specific investments whichvoting securities of that issuer; or,may be made by the Plans and also sets out the specific

� the outstanding equity securities of thatinvestment restrictions as noted below. Unless permittedissuer;by the undertaking, no other investments can be made

• no more than 10% of the net assets of the Plan,by the Plans.taken at market value at the time of the

Investments in corporate bonds transaction, may be invested in the securities of aThe Plans may invest in debt securities issued by single issuer.corporations as noted in the section above. These

General restrictionsinvestments are permitted subject to the followingThe Plans must also invest in accordance with therestrictions:restrictions set out in the undertaking including• no principal or Government Grants may bethe following:invested in such securities;

• the Plans will not purchase a security for the• investments may only be made in debt securitiespurpose of exercising control over or managementwith a minimum credit rating of BBB; from aof the issuer of the security;designated credit rating organization and,

• the Plans cannot purchase any illiquid assets;• no more than 10% of the net assets of the Plan,• investments in real estate and physicaltaken at market value at the time of the

commodities are not permitted; and,transaction, may be invested in the securities of a• purchasing securities on margin, short selling,single corporate issuer.

securities lending, or repurchase or reverserepurchase agreements are prohibited.

We are required to confirm our compliance with theundertaking annually to the Ontario SecuritiesCommission. We are only able to deviate from therestrictions set out in the undertaking with theagreement of the Canadian Securities Administrators andsubject to any required approval of the Board of Directorsof the Foundation.

10

Liquidity RiskRisks of InvestingThe Plans must repay net Contributions to Subscribers

in a Scholarship Plan and make EAP payments to Beneficiaries as described inthis prospectus and in accordance with the Plan rules.

If you or your Beneficiary do not meet the terms of yourThe risk that the funds may not be available to make

Contract, it could result in a loss and your Beneficiarythese payments is managed through the Plans’

could lose some or all of their EAPs. Please read theinvestment strategies. The Plans primarily invest in

description of the plan-specific risks under ‘‘Risks ofsecurities that are traded in active markets and can be

investing in this plan’’ in this Detailed Plan Disclosure.readily bought and sold. The Plans retain sufficient cashand cash equivalents to meet liquidity requirements byInvestment Risksusing cash forecasting models that incorporate the aging

The prices of the investments held by the Plans can go of Contributions and accumulated Income.up or down. Below are some of the risks that can cause

Other Price Risk – Equitiesthe value of the Plans’ investments to change, which willThis risk includes a financial instrument’s fluctuations inaffect the amount of EAPs available to Beneficiaries.value resulting from changes in market prices. IncomeUnlike bank accounts or guaranteed investmentearned on each Plan’s assets can be invested in exchangecertificates, your investment in the Plan is not covered bytraded equity securities including certain broad marketthe Canada Deposit Insurance Corporation or any otherCanadian and US equity listed ETFs. The return on thesegovernment deposit insurer.equity securities can vary based on both market

Interest Rate Risk sentiment and the value and prospects of the underlyingInterest rate risk is the risk of a lower return from interest- issuer or, in the case of ETFs, the broad market indexes.bearing fixed income securities as a result of fluctuations Prices of equity securities and exchange traded securitiesin market interest rates. Generally an increase in interest can go up or down and may have greater risk and pricerates causes bond values to decline, while a decline in volatility than fixed income investments. Each Plan’sinterest rates will increase bond values. Our portfolio equity price risk is managed primarily by limits on themanagers manage this risk by analyzing and employing total amount of equity in the Plan, not allowing anyduration, yield curve, sector, credit and security selection principal or Government Grants to be invested in equitystrategies. securities and additional risk controls set out in the

mandates of the portfolio managers.Credit RiskPlan assets are mainly invested in bonds issued or The sales charge refund account (see Refund of Salesguaranteed by federal or provincial governments, Charges on page 24) is a separate portfolio where thealthough a portion can be invested in corporate debt. Foundation makes funding payments and does notOur Plans are concentrated in government and include investor deposits. This account is invested ingovernment-guaranteed bonds which are considered to equities as well as bonds and equity values may varybe high credit quality, thereby moderating credit risk. according to issuer, industry or market. We provide ourCorporate credit risk reflects the risk of the underlying portfolio managers with investment policies, riskissuers and is moderated by setting credit quality tolerances and guidelines for selecting and managingstandards and concentration limits. these securities.

11

Additional Contributions made to addressHow Taxes Affect your Planbackdating of a plan or to cure defaults

Your plan is registered with the Canada Revenue Agency under the planto become a Registered Education Savings Plan, whichprovides you with certain tax benefits described below. If you are enrolled in the Group Savings Plan 2001, a

portion of your Contributions may be allocated to theHow the Plan is taxed Income balance in your Plan under certain circumstances.

This could occur if you backdate your Plan on enrolment,Each Plan qualifies as a registered education savings planif you change your deposit frequency, if you are inand assuming such status is maintained, no tax is payabledefault and need to make payments to bring your Planunder Part I of the Income Tax Act (Canada) on theback to good standing or if you need to advance yourIncome of the Plans.Maturity Date to an earlier date. See ‘‘Making changes toyour Plan’’ on page 24 for more details. Any ContributionsHow you are taxedallocated to Income becomes taxable when paid as an

Your Contributions to an RESP are not deductible by you Educational Assistance Payment or Accumulatedfor income tax purposes. As such, your Contributions are Income Payment.not taxable when withdrawn from the Plan, either at theMaturity Date or another time. A Contribution beyond the limit set by

Income Tax Act (Canada)Return of Contributions at the Maturity DateThe total of all Contributions to all RESPs for anyContributions refunded to you after the Maturity Date willBeneficiary is subject to a lifetime limit of $50,000. If thenot be taxable.$50,000 limit is exceeded, the Subscriber will be subjectto a 1% per month penalty tax on the Subscriber’s shareWithdrawal of Contributions before theof the excess.Maturity DateWhere there has been a change of Beneficiary,Contributions withdrawn before the Maturity Date will notContributions made for the old Beneficiary are deemed tobe taxable.have been made for the new Beneficiary (and are

Refund of sales charges or other fee therefore taken into account in determining compliancewith the lifetime limit) unless:Any refunded portion of the sales charges paid will not

• the new Beneficiary is under age 21 and is abe taxable as income to you as they are part of yoursibling of the old Beneficiary; orContributions.

• both the old and the new Beneficiaries are underage 21 and are family members of the Subscriber.Any other distributions to the Subscriber in

the form of income, capital or otherwise If you receive an Accumulated IncomeNo distributions are made to you. You may only receive Payment (AIP)an AIP. For information on the tax consequences of

This only applies to the Individual Savings Plan and thereceiving an AIP, please see ‘‘If you receive anFamily Savings Plan or to your post-maturity Income andAccumulated Income Payment (AIP)’’.Income on Government Grants in the Group SavingsPlan 2001.Cancellation of units prior to the maturity

date If certain conditions are met (See Accumulated IncomePayments on pages 32, 45, and 53), Income from an RESPContributions refunded to you as a result of themay be paid to the Subscriber or certain personscancellation of units prior to the Maturity Date are notreplacing the Subscriber as an AIP.taxable. If the units are cancelled prior to registration of

the plan with the Canada Revenue Agency, any Income The full amount of an AIP will be subject to regularearned in the plan will be taxable in your hands. income tax in the year that it is received, plus an

additional federal tax of 20% (In the case of QuebecPurchase of additional unitsresidents, the additional tax is a federal tax of 12% and a

Contributions made to purchase additional units are not provincial tax of 8%).tax deductible by you for income tax purposes.

Relief from this tax may be available where the recipientof the AIP is:Transfer between plans

• the original Subscriber,The amounts transferred between plans are not taxable. • the spouse or former spouse of the original

Subscriber who acquired the Subscriber’s rightsupon marriage breakdown, or

• the spouse or former spouse of a deceasedSubscriber where there was no replacementSubscriber.

12

A recipient may, to the extent he/she has unused How your Beneficiary is TaxedRegistered Retirement Savings Plan (RRSP) contribution

Amounts paid as EAPs under a Plan (including anyroom, transfer up to $50,000 of the AIP into an RRSP orDiscretionary Payment), will be taxable income of thespousal RRSP without being subject to tax. This transferBeneficiary at their marginal tax rate. Beneficiaries whomust be made in the year the AIP is received or in theare non-residents of Canada may be subject to Canadianfirst 60 days of the following year. Once an AIP is madewithholding tax of up to 25%. If a Beneficiary receivesfrom an RESP, the plan must be terminated by the end ofmore than $7,200 of CESGs, the excess must be repaid toFebruary of the year after the year in which the first AIPthe federal government and deducted from the taxableis made.income of the Beneficiary.

Who is Involved in Running the Plans

Investment Fund Manager and C.S.T. Consultants Inc., a wholly-owned subsidiary of the Foundation,Principal Distributor: directs the business, operations and affairs of the Plans, and

provides administrative services, including the maintenance ofC.S.T. Consultants Inc.

Subscriber records, to the Plans and Foundation. CSTC also2235 Sheppard Avenue East, Suite 1600

distributes the Plans.Toronto, Ontario M2J 5B8

Plan Sponsor: The Canadian Scholarship Trust Foundation enters into the educationsavings plan agreements with Subscribers and provides governance

Canadian Scholarship Trust Foundationoversight by supervising the administration of the Plans.

Toronto, Ontario

Trustee and Custodian: The Plans are trusts for which RBC Investor Services Trust is theTrustee. The Trustee also acts as Custodian for the Plans and

RBC Investor Services Trustperforms valuation services.

Toronto, OntarioRBC Investor Services Trust is unrelated to CSTC and theFoundation.

Portfolio Managers: Each portfolio manager manages a portion of the assets of thePlans according to specific mandates including the provision of

Beutel, Goodman & Company Ltd.investment analysis or investment recommendations and making

Toronto, Ontarioinvestment decisions. The portfolio managers are responsible for

BlackRock Asset Management making brokerage arrangements relating to their portfolio.Canada Limited

The portfolio managers are unrelated to CSTC and the Foundation.Toronto, Ontario

CSTC’s Chief Investment Officer manages and monitors the portfolioBMO Asset Management Inc.

managers.Toronto, Ontario




Auditor: The auditor is responsible for auditing the financial statements ofthe Plans and expressing an opinion based on their audits as to

Deloitte LLPwhether the financial statements comply, in all material respects,

Toronto, Ontariowith either Canadian generally accepted accounting principles orInternational Financial Reporting Standards, whichever standardswere in effect at the time of the report.

Independent Review Committee: The Independent Review Committee provides independent reviewToronto, Ontario and oversight of conflicts of interest relating to the management of

the Plans.

13

In several provinces and territories, securities legislationYour Rights as an Investoralso gives you the right to withdraw from a purchase and

You have the right to withdraw from your Contract and get back all of your money, or to claim damages, if theget back all of your money (including any fees or prospectus or any amendment contains aexpenses paid with the exception of optional insurance misrepresentation or is not delivered to you. You must actpremiums which are non-refundable), within 60 days of within the time limits set by the securities legislation inyour Application Date. If your plan is cancelled after your province or territory.60 days, you will only get back your net Contributions.

You can find out more about these rights by referring toAny Government Grants you’ve received will be returned

the securities legislation of your province or territory orto the government.

by consulting a lawyer.

14

Beneficiary Group will receive a proportionate share ofSpecific information about ourthe EAP Account according to the number of Units

plans – Group Savings Plan 2001 purchased on their behalf.

Once your Plan is established, you will be notified of theType of Planactual Beneficiary Group your Beneficiary is in. Howeverthe table below can help you estimate your BeneficiaryGroup. In general, the Beneficiary Group is determined byGroup Scholarship Plan April 27, 2001the age of the Beneficiary when you sign your Contract.

Who this Plan is forYou are eligible to enroll in this Plan if: 12 years old 2021

• your child is under 13 years of age;11 years old 2022• your child is a Canadian resident within the

meaning of the Income Tax Act (Canada). 10 years old 2023

This Plan is suitable if: 9 years old 2024• you are comfortable making Contributions on a

8 years old 2025regular basis and on time;

7 years old 2026• you intend to stay in the Plan until the MaturityDate; 6 years old 2027

• you are planning for your child to attend three or5 years old 2028four years of post-secondary education.4 years old 2029If this doesn’t describe you, then this Plan may not be3 years old 2030appropriate for you and an Individual Savings Plan or

Family Savings Plan may be more suitable for you. 2 years old 2031

1 year old 2032Your Beneficiary GroupNew born 2033A Beneficiary Group is a group of Beneficiaries who are

expected to start their post-secondary education in thesame year (known as the Year of Eligibility). Beneficiaries Summary of Eligible Studiesare generally grouped based on their age. The amount of

The following is a description of the post-secondaryEAPs received by your Beneficiary will be based, in part,programs that are Eligible Studies and qualify for EAPson the experience of your Beneficiary Group.under the Group Savings Plan 2001.

The Maturity Date is the date at which the IncomeContact us or your sales representative to find out if theearned on a Subscriber’s Contributions is transferred intoeducational programs your Beneficiary is interested in arethe EAP Account (unless they have exercised their optionEligible Studies. We can provide you with a current list ofto transfer into the Individual or Family Savings Plan priorqualifying institutions and programs on request. This listto that date). Maturity generally occurs within 6 monthsis also available on our website at www.cst.org.of a Beneficiary’s 18th birthday. The Maturity Date is

calculated as: For more information about receiving EAPs, see‘‘Educational Assistance Payments’’ on page 29.Start date Beneficiary age

+ 17.5 years �of Plan at enrolment What’s eligible

The Year of Eligibility is the year in which your BeneficiaryBeneficiaries must be enrolled in any post-secondaryis first eligible to receive EAPs under the plan. This isprogram that qualifies under the Income Tax Act (Canada).initially set to be equal to the year that the plan reachesFor full-time programs at eligible Canadian schools thisthe Maturity Date.means a program of at least 3 consecutive weeks

EAPs are paid based on the funds available in the EAP duration with at least 10 hours of instruction work eachAccount for each Beneficiary Group. The EAP Account will week. For part-time studies, it means a program of atalso receive Income earned on Contributions of least 3 consecutive weeks with at least 12 hours perSubscribers who have cancelled their plans or whose month spent on courses. For eligible schools outsideplans were cancelled by us. Beneficiaries in the same Canada, the program must be at least 13 consecutive

Group Savings Plan 2001 15

Type of scholarship plan Start Date

Age of Beneficiary when Beneficiarythe Plan is purchased Group

weeks duration, or for Beneficiaries enrolled full-time at a Contributions Allocated to Incomeuniversity, the program must be at least 3 consecutive Certain changes to your plan may require that a portionweeks in duration. of your Contributions need to be allocated to your

accumulated Income balance. This can occur if you:Qualifying post-secondary institutions may include

• backdate your plan;universities, community colleges, trade schools, vocational

• change your Contribution schedule;schools, technical schools, religious schools, CEGEPs, as

• advance your Beneficiary’s Year of Eligibility to awell as distance learning or correspondence learning

date prior to Maturity; orprograms.

• change the Beneficiary to an older child.

What’s not eligible This allocation may result in certain adverse tax and otherfinancial consequences to you and/or your Beneficiary asAny post-secondary program that would not qualify fordescribed in ‘‘Making Changes to your Plan’’ on page 24.an EAP under the Income Tax Act (Canada) would not be

considered Eligible Studies under the Plan. Risk of Missing a Notification DeadlineIf your Beneficiary will not be enrolling in Eligible Studies,Beneficiaries who don’t enroll in Eligible Studies underor if he or she will be enrolling in less than 3 years ofthe requirements of the Plan will also not receiveEligible Studies, you have the option of transferring to thepayments of Government Grants.Individual Savings Plan or Family Savings Plan prior to theMaturity Date. If you fail to notify us of your intent toRisks of Investing in this Plantransfer the plan prior to the Maturity Date, you willremain in the Group Savings Plan 2001 and yourPlan risksBeneficiary will need to qualify for payments from the

You sign a Contract when you open a plan with us. Read plan based on the requirements of the Group Savingsthe terms of the Contract carefully and make sure you Plan 2001.understand the Contract before you sign. If you or your

Qualification for Beneficiaries to collect EAPsBeneficiary does not meet the terms of your Contract, itYou may not be entitled to any Income earned on yourcould result in a loss and your Beneficiary could losenet Contribution, if your Beneficiary does not qualify tosome or all of his or her EAPs.receive EAPs and if you are not eligible to take an

Keep in mind that payments from the plan are not Accumulated Income Payment. If your Beneficiary attendsguaranteed. We cannot tell you in advance if your fewer than four years of Eligible Studies, he or she willBeneficiary will qualify to receive any EAPs from the plan not be eligible for all four EAPs or for all four installmentsor how much your Beneficiary will receive. We do not of the refund of the sales charges paid.guarantee the amount of any payments or that the

Level of EAPspayments will cover the full cost of your Beneficiary’sWe cannot predict the actual amounts of EAPs, which arepost-secondary education.impacted by a number of factors including:

In addition to the investment risks described underi. The amount of Income earned. The amount‘‘Investment Risks’’ on page 11, the following is a

of Income earned on your net Contribution maydescription of the risks of participating in this Plan:vary from year to year and past performance is

Termination of your Plan Before the Maturity Date not necessarily indicative of what will be earnedIf you withdraw from the Group Savings Plan 2001 more in the future.than 60 days after your Application Date but before the

ii. Change in Attrition. The amount of AttritionMaturity Date, or if your plan is terminated for failure towill change from year to year and cannot bemake required Contributions, you will forfeit your Income,predicted. As a result, the amount of EAPsGovernment Grants and Income on Government Grants.available to Beneficiaries will be affected andIn addition, you will not be eligible for a refund of salescan be more or less than what is being paidcharges. Any Government Grants received will beout today.returned to the applicable government. The Income

earned on your Contributions will be transferred to the iii. Discretionary Payments. The amount of theEAP Account for your Beneficiary Group to be shared with EAPs is increased by funds the Foundationother Beneficiaries. Income earned on Government Grants donates on a discretionary basis. Discretionarywill be paid to a post-secondary institution chosen by us. Payments are based on the Foundation’s annual

assessment of available surplus revenues.Discretionary Payments are not guaranteed.

Group Savings Plan 200116

You must not count on receiving a Discretionary Units held by beneficiaries that qualify for a paymentPayment. The Foundation decides if it will make from the EAP Account.a Discretionary Payment in any year and how

Your Contribution Optionsmuch the Discretionary Payment will be. If theFoundation makes a Discretionary Payment, you The Plan offers the following 9 Contribution options:may get less than what has been paid in 1. Monthlythe past. 2. Monthly for 10 years

3. Monthly for 5 yearsInvestment risks4. Monthly for 2 years

The prices of the investments held by the plan can go up 5. Annualor down. You can find a list of risks that can cause the 6. Annual for 10 yearsvalue of the Plan’s investments to change under 7. Annual for 5 years‘‘Investment risks’’ on page 11. 8. Annual for 2 years

9. Single ContributionHow the Plan has Performed

Contribution ScheduleThe table below shows how the investments in Group

The Contribution schedule below shows how much youSavings Plan 2001 performed in each of the past fivehave to contribute to buy one Unit. The price of a Unitfinancial years ending on October 31. Returns are afterdepends on your Beneficiary Group and whether you payexpenses have been deducted. These expenses reducefor your Units all at once or make periodic Contributionsthe returns you get on your investment.to pay for your Units. The prices of a Unit for the various

It’s important to note that this doesn’t tell you how the Contribution options are determined so that thePlan’s investments will perform in the future. Contributions of each Subscriber for a Beneficiary Group

will generate the same Income per Unit.

Certain fees and expenses are deducted from yourAnnual Return 3.9% (0.5)% 2.5% 3.5% 5.0%Contributions. For more information, see ‘‘Fees you pay’’on page 21.Making ContributionsThe Contribution schedule was prepared in 2001 by a

The minimum required investment in the Group Savingsmember of the Canadian Institute of Actuaries.

Plan 2001 is the greater of $9.50 per month or 1/10th of aUnit. The maximum length of time the Contributions can How to use this tablebe made for is 17 years or 204 months. For example, let’s assume your Beneficiary is a newborn. If

you want to make monthly Contributions until maturity, itWhat is a Unit? will cost $9.50 each month for each Unit you buy. You

would have to make 204 Contributions over the life ofA Unit represents a share of the EAP Account for anyyour plan, for a total investment of $1,938.00.given Beneficiary Group. The number of Units you have in

your plan depends on how much, how often and for how If your child is five years old and you want to makemany years you contribute to your plan. The number of annual Contributions until maturity, it will cost $210.00Units you hold will determine your Beneficiary’s each year for each Unit you buy. You would have to makeproportionate share of the EAP Account for his or her 12 Contributions over the life of your plan, for a totalBeneficiary Group. investment of $2,520.00.

The value of a Unit is based on the total size of the EAPAccount for your Beneficiary Group and the number of


2014 2013 2012 2011 2010

Contribution Schedule

Contributions Per Unit (in Canadian dollars)

MONTHLY 0M 1M 2M 3M 4M

Contribution Amount $9.50 $10.70 $12.15 $13.95 $16.20

Number of Contributions 204 192 180 168 156

Total Amount of Contributions $1,938.00 $2,054.40 $2,187.00 $2,343.60 $2,527.20

MONTHLY FOR 10 YEARS 0U 1U 2U 3U 4U




MONTHLY FOR 5 YEARS 0K 1K 2K 3K 4K




MONTHLY FOR 2 YEARS 0E 1E 2E 3E 4E



Total Amount of Contributions $900.00 $973.20 $1,058.40 $1,156.80 $1,276.80

ANNUAL 0A 1A 2A 3A 4A




ANNUAL FOR 10 YEARS 0T 1T 2T 3T 4T




ANNUAL FOR 5 YEARS 0J 1J 2J 3J 4J




ANNUAL FOR 2 YEARS 0D 1D 2D 3D 4D



Total Amount of Contributions $870.00 $938.00 $1,016.00 $1,108.00 $1,220.00

SINGLE CONTRIBUTION 0L 1L 2L 3L 4L

Contribution Amount $829.00 $894.00 $969.00 $1,054.00 $1,158.00


Total Amount of Contributions $829.00 $894.00 $969.00 $1,054.00 $1,158.00


CONTRIBUTION OPTION Newborn 1 Year of Age 2 Years of Age 3 Years of Age 4 Years of Age

5M 6M 7M 8M 9M 10M 11M 12M

$19.00 $22.65 $27.45 $33.90 $42.80 $55.80 $75.40 $107.00

144 132 120 108 96 84 72 60

$2,736.00 $2,989.80 $3,294.00 $3,661.20 $4,108.80 $4,687.20 $5,428.80 $6,420.00

5U 6U

$19.75 $23.10 N/A N/A N/A N/A N/A N/A

120 120 N/A N/A N/A N/A N/A N/A

$2,370.00 $2,772.00 N/A N/A N/A N/A N/A N/A

5K 6K 7K 8K 9K 10K 11K

$28.75 $32.40 $37.10 $43.20 $51.40 $62.50 $80.00 N/A

60 60 60 60 60 60 60 N/A

$1,725.00 $1,944.00 $2,226.00 $2,592.00 $3,084.00 $3,750.00 $4,800.00 N/A

5E 6E 7E 8E 9E 10E 11E 12E

$58.90 $65.60 $74.40 $85.10 $98.75 $116.80 $141.60 $177.80

24 24 24 24 24 24 24 24

$1,413.60 $1,574.40 $1,785.60 $2,042.40 $2,370.00 $2,803.20 $3,398.40 $4,267.20

5A 6A 7A 8A 9A 10A 11A 12A

$210.00 $249.00 $301.00 $368.00 $461.00 $593.00 $790.00 $1,100.00

12 11 10 9 8 7 6 5

$2,520.00 $2,739.00 $3,010.00 $3,312.00 $3,688.00 $4,151.00 $4,740.00 $5,500.00

5T 6T

$218.50 $254.00 N/A N/A N/A N/A N/A N/A

10 10 N/A N/A N/A N/A N/A N/A

$2,185.00 $2,540.00 N/A N/A N/A N/A N/A N/A

5J 6J 7J 8J 9J 10J 11J

$323.00 $362.00 $413.00 $478.00 $563.00 $676.00 $845.00 N/A

5 5 5 5 5 5 5 N/A

$1,615.00 $1,810.00 $2,065.00 $2,390.00 $2,815.00 $3,380.00 $4,225.00 N/A

5D 6D 7D 8D 9D 10D 11D 12D

$674.00 $746.00 $843.00 $959.00 $1,105.00 $1,297.00 $1,554.00 $1,916.00

2 2 2 2 2 2 2 2

$1,348.00 $1,492.00 $1,686.00 $1,918.00 $2,210.00 $2,594.00 $3,108.00 $3,832.00

5L 6L 7L 8L 9L 10L 11L 12L

$1,275.00 $1,410.00 $1,586.00 $1,796.00 $2,057.00 $2,393.00 $2,835.00 $3,450.00

1 1 1 1 1 1 1 1

$1,275.00 $1,410.00 $1,586.00 $1,796.00 $2,057.00 $2,393.00 $2,835.00 $3,450.00


5 Years of Age 6 Years of Age 7 Years of Age 8 Years of Age 9 Years of Age 10 Years of Age 11 Years of Age 12 Years of Age

The Contribution schedule was prepared on the basis that your beneficiary is under the age of 13. SeeUnits within each Beneficiary Group will earn ‘‘Changing your Contributions’’ on page 24 forapproximately an equal amount of Income by the more details.Maturity Date, including provision for Income transferred

2. Change your Contribution scheduleto the EAP Account on early termination, regardless of

You can change your Contribution schedule tothe Beneficiary’s age at the time of enrolment or thereduce, delay or eliminate future Contributions.selected Contribution frequency. The primary assumptionsUnder some circumstances, this may result in anused in the preparation of the Contribution scheduleallocation of your net Contribution to the Incomeinclude lapse assumptions selected to reflect the overallportion of your plan. See ‘‘Changing yourAttrition rates experienced by the Plans, an effectiveContributions’’ on page 24 for details. There are noannual interest rate of 6.0%, and the sales charges andservice fees to exercise this option.account maintenance fees at the rates disclosed in the

‘‘Costs of Investing in this Plan’’ on page 21. 3. Transfer to the Individual Savings Plan or theFamily Savings PlanYou can set up your plan based on an age younger thanOnce you have paid the sales charges in full you canthe current age of your Beneficiary, which allows you totransfer to the Individual Savings Plan or the Familypurchase more Units. You can do this for a monthlySavings Plan. On transfer, 100% of your ContributionsContribution Plan for a maximum of 6 months, and for an(net of fees), Government Grants and Income earnedannual or single Contribution Plan for a maximum ofwithin the Plan is transferred. There is no service fee11 months. If you choose to do this for your plan, youto exercise this option. After transfer, you will nowill need to contribute the amount of Contributions andlonger hold Units in the Group Savings Plan 2001,Income that would have accumulated had you actuallyand will forego the opportunity to receive anystarted your plan on the earlier date. Income owing isAttrition, Discretionary Payment or to collect thecalculated at an annual rate of 6% on the amount ofrefund of sales charges paid. See ‘‘Transferring toContributions owing.Individual Savings Plan or Family Savings Plan’’ on

If you have difficulty making page 26 for details.

Contributions 4. Cancel your planOn cancellation, you will receive a refund of yourIf you miss one or more Contributions, you may be inContributions (net of fees). Any Government Grantsdefault of your plan. To stay in the plan, you’ll have toreceived will be repaid to the applicable government,make up the Contributions you missed. You’ll also have toand your Income will remain in the EAP Account formake up what the Contributions would have earned ifyour Beneficiary Group. Repayment of Governmentyou had made them on time. This can be costly.Grants will result in the loss of the Beneficiary’s Grant

For information about the steps you have to take to stay Contribution Room, which cannot be restored. Therein the plan after missing Contributions, see ‘‘Default, are no service fees to cancel your plan.Withdrawal or Cancellation’’ on page 28.

Withdrawing your ContributionsYour optionsYou are entitled to withdraw the net Contribution, at anyYou must make all Contributions required to completetime before the Maturity Date of your plan by cancellingyour Contribution schedule in order for your Beneficiaryyour plan. Please see ‘‘Default, Withdrawal or Cancellation’’to be eligible for EAPs.on page 28 for detailed information on the process and

If you feel that you cannot continue making implications associated with cancelling your plan.Contributions over the long term, you have several

The Plan does not allow for partial withdrawal of youroptions:Contributions. However, you may transfer your plan to the

1. Reduce the number of Units Individual Savings Plan or the Family Savings PlanYou can reduce the number of Units in your plan provided you qualify for such a transfer, and withdraw(provided you maintain at least 1/10 of a Unit) to some of your Contributions. Please see ‘‘Transferring todecrease the amount of future Contributions. This Individual Savings Plan or Family Savings Plan’’ onoption will reduce your Beneficiary’s share of the EAP page 26 for detailed information on the process andAccount by the number of Units you cancel. There

implications associated with transferring to the Individualare no service fees charged to exercise this option.

Savings Plan or Family Savings Plan.Sales charges paid to date on cancelled Units are

There are no service fees to process the withdrawal ofkept in the plan as a credit which can be used topurchase additional Units at a future date provided your Contributions.


expenses of this Plan. You pay some of these fees andCosts of Investing in this Planexpenses directly from your Contributions. The Plan pays

There are costs for joining and participating in the Group some of the fees and expenses, which are deducted fromSavings Plan 2001. The following tables list the fees and the Plan’s Income.

Fees you payThese fees are deducted from your Contributions. They reduce the amount that gets invested in your plan, which willreduce the amount available for EAPs.

Paying off the Sales charge1 $200 per Unit This is for paying A portion is paid to thesales charges commissions to your sales charge refund

This can be between 3.1% andsales representative, account and the

24.1% of the cost of a Unit,Assume, forand covering the costs balance is paid to C.S.T.

depending on theexample, you of selling your plan Consultants Inc. as aContribution option you selectbuy one Unit of distribution feefor your plan and how oldthe Groupyour Beneficiary is at the timeSavings Planyou open your plan2001 on behalf

of your All of your Contributions gonewborn child, toward this fee until half of itand you commit has been paid off, and thento paying for half of each of yourthat Unit by Contributions afterwards goesmaking monthly toward this fee until it has

been paid in fullContributionsuntil your Plan’s

Beneficiaries enrolled inMaturity Date. Eligible Studies who collect allAll of your first four EAPs will receive a refund11 Contributions of at least 50% of salesgo toward the charges paid. See Refund ofsales charges Sales Charges on page 24until half of the

Account • $10.00 per year for monthly This is for processing Canadian Scholarshipsales chargesmaintenance Contributions your Contributions and Trust Foundationare paid off. Halffee2 • $6.50 per year for annual for maintaining your

of your nextContributions plan

21 Contributions• $4.00 per year for annual

go toward the Contributions over 2 yearssales charges • $3.50 per year for singleuntil they are Contributionsfully paid off. • plus applicable taxes3

Altogether, itNotes:will take1 Sales charges may not be increased without Subscriber approval.32 months to2 Subject to change upon 60 days prior written notice by us.pay off the sales3 The Harmonized Sales Tax (HST) applies in lieu of the federal Goods and Services Tax (GST) incharges. During

the provinces of Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Princethis time, 34%

Edward Island.of yourContributionswill be investedin your plan.


Fee What you pay What the fee is for Who the fee is paid to

Fees the Plan PaysThe following fees are payable from the Plan’s Income. You don’t pay these fees directly. These fees affect you becausethey reduce the Plan’s returns which reduces the amount available for EAPs.

All-Inclusive Fee consists of: Operating and administering Canadian Scholarship TrustManagement (i) Administration fee1: Each year, your plan, including portfolio Foundation, which paysFee 0.50% of the total amount of net management, trustee, record- applicable fees to the portfolio

Contributions, Government Grants keeping and custodial services managers who manage theand Income earned on these Plan’s investments and theamounts. The Administration fee trustee as trustee, recordis subject to applicable taxes2 keeper and custodian. The

(ii) Trustee and Custodian fees: Foundation pays amounts outBased on the current agreement of the administration fee toin place with the trustee. In 2014, CSTC for its managementthe fees were 0.01% of assets plus servicesapplicable taxes2

(iii) Portfolio management fees andexpenses:Based on the current portfoliomanager fee agreements in placewith the portfolio managers. In2014, the annual weightedaverage fees were 0.12% of theaverage market value of assets inthe Plan plus applicable taxes2.CSTC’s expenses incurred tomonitor and manage theportfolio managers are includedin the portfolio manager fees.

For year ended October 31, 2014, thetotal All-Inclusive Management Feewas 0.63% of assets plus applicabletaxes2

Independent $10,000 to the Chair, $7,500 to each This is for the services of the Independent ReviewReview member, $1,000 for each meeting Plan’s Independent Review CommitteeCommittee attended, $500 for meetings held by Committee. The committee

teleconference plus secretariat fee of reviews conflict of interest$38,500 and other expenses matters between the

investment fund manager andFor the year ended October 31, 2014,

the Plan$78,610 shared by all Plans, includingthe Discontinued Plans

Notes:1 Administration fee may not be changed without Subscriber approval.2 The Harmonized Sales Tax (HST) applies in lieu of the federal Goods and Services Tax (GST) in the provinces of Ontario,

New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island.


Fee What the Plan pays What the fee is for Who the fee is paid to

Transaction FeesWe will charge the following fees for the transactions listed below.

Returned (N.S.F.) $15 per item Directly by the Subscriber Canadian Scholarship Trust Foundationpayments

Transfer to $50 per transfer Deducted from your Contributions Canadian Scholarship Trust Foundationanother RESPprovider

Lost cheque $15 per item Deducted from the new cheque amount Canadian Scholarship Trust Foundationreplacement orStop Payment

Special $50 per hour Directly by the Subscriber Canadian Scholarship Trust FoundationInformationRequest andResearch Fee

Note: Transaction fees may be changed with a 60 day written advance notice to Subscribers.

We do not charge for the following services: changing your Contributions, Beneficiary, or Maturity Date; however, theremay be an Income adjustment if the Maturity Date is advanced.

Fees for Additional ServicesThe following fees are payable for the additional services listed below:

Optional Premiums vary from $0.30 per month Payable by you with your 2/3rd to Sun Life AssuranceGroup Life per Unit for a new born and single Contributions Company, 1/3rd to Canadianand Disability Subscriber to $26.40 per year per Unit Scholarship Trust FoundationInsurance for a newborn and joint Subscriber

with 2 year annual Contribution. Thefee is subject to applicable taxes suchas GST or HST.


Fee Amount How the fee is paid Who the fee is paid to

Fee What you pay How the fee is paid Who the fee is paid to

account will be allocated at our discretion to SubscribersRefund of Sales Chargeswith Beneficiaries eligible to receive an EAP.

The Foundation will refund a minimum of 50% of thesales charges you paid for your Units if you make all Making Changes to your Planrequired Contributions, your plan reaches maturity and

Changing your Contributionsyour Beneficiary receives all four EAPs. You are alsoeligible for a potential additional amount which could You may change your Contribution schedule at any time.increase your refund up to 100% of your sales charges To do so, you may be required to:depending on the amount of surplus (if any) in the sales • make additional Contributions; and/orcharge refund account. The amount refunded will not • allocate part of your Contributions to the Incomeinclude Income on the sales charges. portion of your plan. Allocating Contributions toTo meet its commitment to refund 50% of sales charges Income is sometimes necessary to ensure that yourpaid, the Foundation has established a segregated plan earns approximately the same amount ofaccount into which a portion of the sales charges is Income per Unit, by the Maturity Date, as othertransferred. Deposits into the sales charge refund account Units held by Subscribers with the sameare made when you purchase Units and your Beneficiary Group. This re-allocation may result inContributions are paid into the Plan. These amounts are certain adverse tax and other financialdeposited according to a funding policy approved by the consequences to you and/or your Beneficiary asFoundation based on conservative assumptions regarding described in ‘‘How taxes affect your plan’’ oninvestment returns. The funding policy’s objective is to page 12.make sure money is available in future years to refund a There are three ways you can change your Contributions:minimum of 50% of sales charges to eligible Subscribers.

1. Change your Contribution frequencyThe policy also addresses the issue of sales charge refund You may contact us at any time and ask to changeaccount surpluses and confirms the Foundation’s your Contribution frequency. We will provide youobligation to fund any deficits in the sales charge refund with a summary of the changes, including:account. Finally, the policy requires that an actuarial • any additional Contribution required to change tovaluation be done on the sales charge refund account the new frequency;every two years with the results reported to • any allocation of your Contributions to the Incomethe Foundation. portion of your plan;Any surplus in the sales charge refund account will be • any future Contributions required under the newcalculated based on an actuarial valuation of the 50% Contribution schedule; andsales charge refund obligation compared to the value of • any change to the Maturity Date of the plan.assets in the sales charge refund account. We will utilize There is no service fee to change your Contributionany surplus funds solely for the purpose of returning the schedule. You will need to complete, sign and return asales charges paid by Subscribers to a maximum of the form agreeing to the changes.remaining 50%.

2. Adding UnitsWe pay your refund of sales charges to your Beneficiary Until your Beneficiary reaches age 13, and providedin four installments along with EAPs unless you instruct that Units continue to be offered on the same termsus to pay the refunds directly to you. You cannot collect a as described in this prospectus, you may add Units ingreater number of sales charge refund installments than increments of 1/1000th of a Unit. You can:the number of EAPs your Beneficiary receives. You will • increase the amount of each Contribution, keepingreceive at least 12.5% of the sales charges paid per Unit the same frequency as your original Contributionas a refund with each EAP your Beneficiary receives. If Schedule, based on the current age of theyour Beneficiary does not qualify to receive an EAP, you Beneficiary; orwill not receive a sales charge refund. The amount • add Units at any time by making a lump sumrefunded is not taxable to the Subscriber or Beneficiary. Contribution of at least $100 without increasingWe are committed to returning at least 50% of the sales your monthly or annual payments.charges paid. There is no assurance there will be a To add Units to your plan, you will need to meetsurplus in the sales charge refund account or that a with your sales representative who will complete thesurplus will be available for distribution in the particular application to purchase additional Units. You will payyear in which you are entitled to a sales charge refund additional sales charges of $200 per Unit purchasedinstallment. Any surplus in the sales charge refund as described in this prospectus.


3. Reducing Units Changing your Beneficiary’s Year ofYou may reduce Units purchased under your plan

Eligibilitywithout terminating the plan as long as the numberof Units does not fall below 1/10th of a Unit and you If your Beneficiary enrolls in Eligible Studies earlier ormaintain a minimum monthly Contribution of $9.50. later than expected, you can change the Year of Eligibility

to allow your Beneficiary to collect EAPs at the time theyIf you reduce Units:are needed. The earliest you can advance the Year of• the net Contribution for your reduced Units will beEligibility is two years prior to Maturity and the latest youused to reduce future Contributions on thecan postpone the Year of Eligibility is the year in whichremaining Units;your Beneficiary turns age 21. When you change the Year• Income from the reduced Units remains in theof Eligibility, the Income earned on your Contributionsplan; andwill be pooled with that of other Beneficiaries in the• sales charges you paid on reduced Units can beBeneficiary Group associated with the new Year ofused proportionally towards the sales charges ofEligibility and your Beneficiary’s first EAP will beany Units you add at a future date provided yourcalculated in the new Year of Eligibility.Beneficiary is under the age of 13. Sales charges

paid on reduced Units will not be applied towards To postpone the Year of Eligibility: You need to notify usthe sales charges for your remaining Units. by the Maturity Date that your Beneficiary does not

expect to enroll in Eligible Studies that year.To make this change, contact us and we will provide youwith a form that you will need to complete, sign and To advance the Year of Eligibility: Simply advise us of thereturn to us. You must agree with the terms of the date the Beneficiary expects to enroll in Eligible Studieschange. You will forfeit the right to receive any refund of prior to Maturity Date of the year in which thethe sales charges on the Units that you have cancelled. Beneficiary wishes to collect his or her first EAP. In orderThere is no service fee for reducing Units. to advance the Year of Eligibility to a date before

Maturity, you need to advance the Maturity Date of theChanging the Maturity DatePlan (see ‘‘Changing the Maturity Date’’).

You may change your Maturity Date based on the specific To make this change, please contact us with the new Yearcircumstances of your Beneficiary to ensure that the plan of Eligibility and we will make the change free of charge.aligns with their post-secondary education.

Changing the SubscriberIf your Beneficiary enrolls in Eligible Studies later thananticipated, or if your Beneficiary is uncertain of what The Plan allows the Subscribers to be changed at anythey wish to do after secondary school, you may time during the life of your plan if:postpone your Maturity Date by providing us with written 1. the original Subscriber(s) passes away;notice before your plan’s Maturity Date. You may 2. there is a court order requiring a change ofpostpone the Maturity Date for periods of up to one-year Subscriber arising from marital breakdown; oruntil the year in which the Beneficiary turns age 20. This 3. another individual or Public Primary Caregivergives you more time to consider transferring to an has been appointed and granted rights asIndividual or Family Savings Plan, an option that expires a Subscriber.at the Maturity Date.

The new Subscriber must meet the requirements in theIf your Beneficiary enrolls in Eligible Studies earlier than Income Tax Act (Canada) including:anticipated, you may advance your plan’s Maturity Date. If • the new Subscriber is the spouse or common-lawyou select this option, we will deduct an amount equal to partner, or ex-spouse or former common-lawour estimate of the Income that would have normally partner of the original Subscriber and gets thebeen earned between the early withdrawal date and the original Subscriber’s rights under the RESP as aoriginal Maturity Date from your Contributions. The funds result of a court order or written agreement fordeducted will be added to the amount transferred to the dividing property after a breakdown of theEAP Account for your Beneficiary Group. relationship; or

• the new Subscriber acquired the Subscriber’s rightsTo make this change, please contact us and we willunder the RESP, or the new Subscriber continuesprovide you with a form that you will need to complete,to make Contributions into the RESP for thesign and return to us. You must agree with the terms ofBeneficiary, after your death; orthe change. There is no service fee for this change.

• the new Subscriber is your estate that acquired theSubscriber’s rights under the RESP, or that


continues to make Contributions into the RESP for including any sales charges and fees paid. Any insurancethe Beneficiary, after your death. premiums and applicable taxes will not be refunded. If

there is Income in the plan, it can be taken out as an AIPTo make the change, we will require:(see ‘‘Accumulated Income Payments’’ on page 32• original or notarized copy of the court order, iffor details).applicable;

• original or notarized death certificate and, if To cancel the plan, please contact us and provide us withapplicable, your will; or an original or notarized death certificate of the

• original or notarized copies of any other applicable Beneficiary. There is no service fee for the change.legal documents.

Disability of the BeneficiaryTo make this change, please contact us and we will

If your Beneficiary becomes disabled such that it isprovide a form to be completed, signed and returned toexpected to prevent your Beneficiary from pursuingus. There will be no losses incurred by the Subscriber orpost-secondary education (as verified in writing by athe Beneficiary if the change is made. There is no servicequalified third-party practitioner), please contact us. Duefee for the change.to significant variation in disability types, each situation is

Changing your Beneficiary treated on a case-by-case basis.

You may change your Beneficiary any time before the Pre-Maturity: You may name another Beneficiary or cancelMaturity Date as long as the new Beneficiary is under the your plan. If you cancel your plan you will receive aage of 18 and you provide the new Beneficiary’s Social refund of all Contributions including any sales chargesInsurance Number. If the new Beneficiary is not a sibling and fees paid. Any insurance premiums and applicableof the former Beneficiary, Government Grants will be taxes will not be refunded. If there is Income in the plan,returned to the government. If the ages of the new and it can be taken out as an AIP (see ‘‘Accumulated Incomeoriginal Beneficiary are different, your Contribution Payments’’ on page 32 for details) or transferred to aschedule will change to correspond to the new Registered Disability Savings Plan (RDSP).Beneficiary’s Year of Eligibility. If the new Beneficiary is Post-Maturity: You may name another Beneficiary. If youolder, you may need to: decide not to name another Beneficiary, any remaining

• make additional Contributions; and post-maturity income or income earned on Government• allocate some of your Contributions to Income so Grants in the plan can be taken out as an AIP

that your plan will earn approximately the same (see ‘‘Accumulated Income Payments’’ on page 32 foramount of Income by the Maturity Date as other details) or transferred to a Registered Disability SavingsSubscribers in the same Beneficiary Group. Plan (RDSP).

If the new Beneficiary is younger, you may be entitled to To name another Beneficiary or cancel the plan, pleasea refund of Contributions. If you take the refund of contact us and we will let you know the documents weContributions before your Beneficiary enrolls in Eligible require such as notarized or original evidence of disabilityStudies, a portion of your Government Grants will be of the Beneficiary. There is no service fee for the change.repaid to the applicable government. If you don’t takethe refund, the refund amount will remain in the plan Transferring your Planand continue to earn Income, however such Income willbe transferred to the EAP Account on the Maturity Date. Transferring to Individual Savings PlanAccumulated Government Grants, with the exception of or Family Savings Planthe CLB will be transferred to the new Beneficiary subject

Once the sales charges have been fully paid, you mayto any legal restrictions on such a transfer.

transfer to the Individual Savings Plan or the FamilyTo make this change, please contact us and provide new Savings Plan. This option is available until the MaturityBeneficiary’s name, date of birth and SIN. We will provide Date of your plan. On transfer, 100% of your accumulatedyou with a form that you will need to complete, sign and net Contributions, Government Grants, and Incomereturn to us. You must agree with the terms of the earned on your Contributions and Government Grants willchange. There is no service fee for the change. be transferred into the applicable Plan.

If your Beneficiary is a family member, you may transferDeath of the Beneficiaryto either the Individual Savings Plan or the Family Savings

If your Beneficiary dies before the plan’s Maturity and a Plan. Most Subscribers choose the Family Savings Plansubstitute Beneficiary is not named, you are entitled to because of its flexibility in naming additional Beneficiaries.cancel your plan and receive a refund of all Contributions


If the Beneficiary is not a family member, you may only (ii) an individual RESP that was entered intotransfer to the Individual Savings Plan. before the Beneficiary was 21 years old;

• a Canada Learning Bond transfer is only made toYou should consider transferring to the Individual Savingsan account for the same Beneficiary; andPlan or the Family Savings Plan if you wish to control the

• the RESP complies with Canada Revenue Agencyamount and timing of Contributions, as there is no fixed(CRA) and Employment and Social DevelopmentContribution schedule with these Plans.Canada (ESDC) requirements.

You should also consider transferring to the IndividualWe will transfer your net Contributions, your GovernmentSavings Plan or Family Savings Plan if you wish to controlGrants and Income earned on your Government Grantsthe amount and timing of EAPs, or if you believe your(subject to the rules contained in applicable legislation) toBeneficiary:the receiving institution. On transferring, you will lose:• may never enroll in Eligible Studies (as the

• sales charges, and any fees paid to us;Individual and Family Savings Plans allow you to• all Income earned on your Contributions – thereceive your Income as an AIP); or

Income will remain in the plan to benefit• may pursue Eligible Studies of two years or lessBeneficiaries who remain in your Beneficiary(as the Individual or Family Savings Plan allowsGroup.you to withdraw all of your Income and

Government Grants after just 13 consecutive weeks To start the transfer, please contact the receiving RESPof full-time study). provider to prepare the necessary transfer form. We will

charge a transfer-out fee of $50 per plan.When you transfer to the Individual Savings Plan or theFamily Savings Plan, you no longer hold any Units and Transferring to this Plan from Anotheryour rights as a Subscriber under Group Savings Plan

RESP provider2001 (including the right to a refund of at least 50% ofyour sales charges) no longer apply. Upon transferring, You may purchase Units using Contributions transferredyou become bound by the terms and conditions of the from another RESP provider to the scholarship plan, if:Individual Savings Plan or the Family Savings Plan’s • it is for the same Beneficiary, or a sibling of thateducation savings plan agreement. Beneficiary;

• the Beneficiary is under 13 years of age; andYou can transfer back to Group Savings Plan 2001 until• an AIP has not been made from the transferringyour original Maturity Date. To do this, you will need to

RESP.provide us with a Contribution which covers:• all missed Contributions prior to the transfer to the When transferring Contributions, you also need to transfer

Individual Savings Plan or Family Savings Plan; proportionate amounts of Government Grants into the• all Contributions that would have been made after plan. Income you have earned that is being transferred

the transfer date had you stayed in Group Savings into the plan will be placed in your account and cannotPlan 2001; and be used to purchase Units. The plan will expire on

• any Income that would have been earned on these December 31st of the 36th year of the earlier of the startContributions. dates of the transferring RESP and the receiving RESP.

To transfer your plan, please contact us and we will To start the transfer, please see one of our salesprovide you a form to complete, sign and return to us. representatives. The sales representative will complete aThere is no service fee for this change. new plan application form and other necessary paper

work along with transfer-in documents.Transferring to Another RESP providerWe will not charge any fee for the transfer; however,

If you have been in the Group Savings Plan 2001 for there will be sales charges on the Units purchased. Youmore than 60 days, you may terminate your plan and might incur loss of sales charges and fees paid to thedirect us to transfer your RESP to another RESP provider, sending RESP provider or any other amount. The sendingas long as: RESP provider may also charge you a transfer-out fee.

• the receiving RESP is for the same Beneficiary or Please check with your sending RESP provider forthe Beneficiary named under the receiving RESP is more details.a sibling of the Beneficiary named under theexisting RESP and,

• the receiving RESP is(i) a family RESP; or,


Income earned in the plan will remain in the EAPDefault, Withdrawal orAccount to benefit your Beneficiary Group.

Cancellation If your plan was opened without a Social InsuranceNumber for your Beneficiary, and if you do not provide usIf you withdraw from or cancel yourwith a Social Insurance Number for your Beneficiary

plan within 12 months of your Application Date (or any longerperiod as agreed to by us), your plan will automaticallyYou may cancel your plan at any time before the Maturitybe cancelled and your Contributions, less sales chargesDate by providing us with a written notice of yourand fees will be returned to you. Any Income earned oncancellation. If you cancel your plan within the firstyour Contributions will be paid to you and will be taxable60 days after you enroll, you will receive a refund of allin your hands.Contributions. If you cancel your plan more than 60 days

after the Application Date, you are entitled to a return of We will not charge a service fee for the cancellation ofContributions, less sales charges and fees. On cancelling your plan.your plan, any Income earned in the plan will remain for

Re-activating your planthe benefit of the remaining Beneficiaries in yourBeneficiary Group. There is no service fee for the You may contact us at any time while your plan is incancellation. default to bring your plan into good standing. You may

need to make a Contribution to cover the missedIf your plan goes into defaultContributions and accrued Income. We will not charge

Your plan can go into default if an expected Contribution any fee for this process. If your plan is brought to goodis not received by us within 4 months of the due date. standing, you and your Beneficiary will qualify for theWe will send you at least one notice advising you of the same payments under your Plan as if the default hadmissed Contribution asking you to contact us to make not occurred.arrangements to make the Contribution(s). If your plan If your plan has been cancelled and you have receiveddefaults, we will refund your net contributions. There is and cashed your refund of Contributions, it is no longerno service fee for the cancellation of your plan. possible to re-activate your plan. If you did not receive orIf your plan goes into default and you have paid your cash a refund of Contributions, you can re-activate yoursales charges, we will transfer your plan to the Individual plan provided you make all the missed ContributionsSavings Plan or the Family Savings Plan. You will then and Income.have until the Maturity Date to decide whether to If your plan was an unregistered plan, you can re-activatetransfer back to Group Savings Plan 2001 or to remain in the plan by providing your Beneficiary’s SIN and makingthe Individual Savings Plan or the Family Savings Plan. If all the missed Contributions and Income.you do not advise us in writing prior to Maturity, you will

Re-activating your plan will qualify you and yourremain in the Individual Savings Plan or Family SavingsBeneficiary for the same payments under the Plan as ifPlan and be bound by the terms and conditions of thatthe cancellation had not occurred.Plan. By remaining in the Individual Savings Plan or

Family Savings Plan, you will lose your entitlement to any If your plan expiresrefund of the sales charges, and any group Plan benefits.

Your plan expires on December 31st of the 36th year ofYou should contact us to bring your plan into good

the plan. If your plan expires, it cannot be re-instated. Onstanding. You may need to make up the missed

expiry of your plan, you will forfeit:Contributions and accrued Income. We will not charge

• any unclaimed Income earned on your netany fee for this process. If your plan is brought to good

Contributions after the Maturity Date to thestanding, you and your Beneficiary will qualify for the

General Fund;same payments and sales charge refund under the Plan

• any unclaimed Government Grants as the grantsas if the default had not occurred.

will be returned to the applicable governments;• any unclaimed Income earned on yourIf we cancel your plan

Government Grants which will be paid to aIf your plan goes into default and the sales charges have post-secondary educational institution of ournot been fully paid, we will cancel your plan. On choice; andcancellation we will refund your Contributions, less sales • any remaining entitlement to a sales chargecharges and fees to you. Any Government Grants received refund.will be returned to the applicable government. Any


What Happens when your Plan Receiving Payments from the PlanMatures Return of ContributionsPrior to the Maturity Date, we will mail you a letter Your net Contribution is available to you (or to anotheradvising you of the upcoming maturity of the plan. The person as you may direct) after the Maturity Date. Yourletter will provide details on options available to net Contribution is returned on your request or when weyou, including: receive evidence that the Beneficiary is enrolled in Eligible

• postponing the Maturity Date; Studies. We will return the funds as directed by you.• remaining in the Plan; or There is no service fee for the return of your net• transferring to the Individual Savings Plan or Contribution.

Family Savings Plan.If you withdraw your net Contribution after maturity but

On the Maturity Date, if the plan is not transferred to the before your Beneficiary enrolls in Eligible Studies, we willIndividual Savings Plan or Family Savings Plan, the repay to the applicable government:Income in the plan is transferred to the EAP Account for • CESGs ranging from 20% to 40% of thedistribution to qualified Beneficiaries. Contribution amount withdrawn (depending on

whether you received additional CESG);When we receive evidence that your Beneficiary is• If applicable, QESIs ranging from 10% to 20% ofenrolled in Eligible Studies, we will return your net

the Contributions withdrawn (depending onContribution to you. Grants and Income on grants arewhether you received Additional QESI); andavailable for distribution to the Beneficiary as a part

• If applicable, SAGES grants of 10% of theof EAPs.Contributions withdrawn.

If your Beneficiary does not enroll inEducational Assistance PaymentsEligible StudiesYour Beneficiary is eligible for up to four EAPs of

If you do not anticipate that your Beneficiary will enroll inapproximately equal amounts paid over four years

Eligible Studies, you may change to a new Beneficiarystarting in his or her Year of Eligibility. Twenty-five

(see ‘‘Changing your Beneficiary’’ on page 26), or transferpercent of EAPs are paid generally in the months of

to the Individual Savings Plan or Family Savings PlanAugust and September each year. The latest that a

(see ‘‘Transferring to Individual Savings Plan or FamilyBeneficiary can receive an EAP is December 31st in the

Savings Plan on page 26).36th year of the plan (or a later date if permitted by the

A Beneficiary who does not enroll in Eligible Studies will Income Tax Act (Canada)).not receive EAPs from the Plan.

Starting in a Beneficiary’s Year of Eligibility, we will sendA Beneficiary may defer an EAP for a particular year by instructions to all eligible Beneficiaries in February of eachgiving us written notice. In this case, we will include the year. You should advise us by August 1st of each year ofBeneficiary in calculating the EAP values for a given year, your Beneficiary’s intentions for the coming yearbut the actual payment will not be made until he or she regarding the collection of an EAP. If your Beneficiary willbecomes eligible to receive the deferred EAP. be qualifying for an EAP in any given year, he or she will

need to provide us with proof of enrolment in EligibleDeferred payments must be collected by the Beneficiary

Studies once available to ensure that he or she receivesbefore the plan expires. Any EAPs, excluding Government

the payment in advance of the traditional schoolGrants, that are deferred and not collected by these

payment deadline usually on or about September 1st.deadlines will be reallocated to other Beneficiaries in thesame Beneficiary Group, or transferred to the General However if your Beneficiary will not be collecting an EAPFund if all EAPs for the group have been paid. Any in a given year, there are options available to him or her.Government Grants remaining in the EAPs must be repaid It is important that they continue to notify us on anto the government. annual basis about their intentions for the coming year. If

you or the Beneficiary do not notify us by the end of anyYou are always entitled to a return of your Contributions,

given year of his or her intentions, we will discontinueless sales charges and fees.

mailing another EAP application to your Beneficiary untilhe or she requests one. Your Beneficiary will not lose hisor her EAP entitlement until the plan expires, as long ashe or she applies for EAPs while enrolled in EligibleStudies.


As the EAPs are paid out in four installments, your including forfeited Income from terminated plans.Beneficiary will need to qualify for the installments over a The number of Beneficiaries in the Beneficiary Groupfour year period by enrolling in Eligible Studies. This does who qualify to share in the EAP Account will have annot necessarily mean a four year program, but could impact on what your Beneficiary’s share of the EAPinclude any combination of programs or years that total Account will be. Beneficiaries may not receive EAPs iffour years. For example, your student could pursue four their plans are terminated prior to Maturity or theyone-year programs or two two-year programs and collect do not qualify for all four EAPs before theirthe maximum number of EAPs. Beneficiaries who enroll in plan expires.Eligible Studies of less than four years, or who do not 2. Your qualified Beneficiary’s Government Grantspursue four years of Eligible Studies, will not qualify for and Income earned on those Government Grantsthe maximum number of EAPs and will receive a lower

The Government Grants and Income earned on themtotal amount of EAPs over the duration of their Eligible

received by your Beneficiary are paid in quarterlyStudies than Beneficiaries who complete four years of

installments with each EAP.study. For this reason, we encourage you to carefully

3. Income Earned in Your Plan after Maturityconsider your options as your plan approaches theIncome is earned on your net Contributions after theMaturity Date to determine if you wish to remain in theMaturity Date until it is repaid to you and is paid inGroup Savings Plan 2001, or transfer to an Individual orquarterly installments with each EAP.Family Savings Plan.

4. Group Plan BonusHow we determine EAP amountsEach year we allocate the available balance of the

We cannot predict or guarantee the amount of the EAPs General Fund as a Group Plan Bonus to the eligiblethat will be available to Beneficiaries in a given year. EAPs Beneficiaries collecting EAPs that year. While wepaid to your qualified Beneficiary include the following cannot predict the balances in the General Fund, wecomponents: allocate amounts from it annually on a pro rata basis

according to the number of Units held by each1. Your qualified Beneficiary’s share of the EAPBeneficiary. This ensures that all Beneficiaries eligibleAccount

The EAP Account includes Income earned on the to collect an EAP in a particular year are treated on aContributions for all plans in your Beneficiary Group, consistent basis.

The following table shows how EAP values are determined:

Educational One-quarter of the EAP One-third of the balance One-half of the balance The remaining balanceAssistance Account for the of the EAP Account for of the EAP Account for of the EAP Account forPayments are Beneficiary’s Year of the Beneficiary’s Year of the Beneficiary’s Year of the Beneficiary’s Year ofyour qualified Eligibility divided by the Eligibility divided by the Eligibility divided by the Eligibility divided by theBeneficiary’s total Units owned by total Units owned by total Units owned by total Units owned byshare of the qualified Beneficiaries qualified Beneficiaries qualified Beneficiaries qualified BeneficiariesEAP Account

PLUS...

Your qualified One-quarter of the One-quarter of the One-quarter of the One-quarter of theBeneficiary’s Government Grants Government Grants Government Grants Government GrantsGovernmentGrants

Income One-quarter of the One-third of the balance One-half of the balance The remaining balanceearned in your amount in your Income of your Income account of your Income account of your Income accountplan after accountyour MaturityDate

Group Plan Available balance of the Available balance of the Available balance of the Available balance of theBonus General Fund allocated General Fund allocated General Fund allocated General Fund allocated

to supplement EAP to supplement EAP to supplement EAP to supplement EAPdivided by the total divided by the total divided by the total divided by the totalUnits owned by qualified Units owned by qualified Units owned by qualified Units owned by qualifiedBeneficiaries Beneficiaries Beneficiaries Beneficiaries


Year 1 Year 2 Year 3 Year 4

The Income Tax Act (Canada) does not allow an EAP to who enrol in Eligible Studies that do not qualify for theexceed $5,000 for a student who has not completed at maximum total amount of EAPs is transferred to theleast 13 consecutive weeks of study in the previous General Fund after the expiry of the plan and paid out as12 months. If a student is subject to this $5,000 cap but a part of the Group Plan Bonus.entitled to an EAP that exceeds this amount, we will pay

Government Grants and Income on Government Grantsit in two installments – $5,000 in August or Septemberare maintained individually for each Subscriber and areand the balance after we receive proof that the studentpaid out with each EAP. Any unpaid portion ofhas completed 13 weeks of consecutive study. A

Beneficiary with expenses exceeding $5,000 in the first Government Grants is returned to the applicable13 weeks may contact us to apply to ESDC on his or her government and Income on Government Grants is paid tobehalf to have the limit increased. For part-time study, a post-secondary institution of our choosing.the student may access up to $2,500 of his or her income

Payments from the EAP Accountand Government Grants for each 13 week period of study.

Unrealized capital gains or losses on investments are not A portion of each EAP consists of a Beneficiary’s share ofallocated to your plan until they are realized. the EAP Account. The rest of an EAP is made up of theIncome attributable to units cancelled before the Maturity Beneficiary’s Government Grants and the Income on thoseDate is transferred to the EAP Account where it is Government Grants and the Group Plan Bonus paid fromallocated on pro-rata basis based on the number of units the General Fund.held by the remaining Beneficiaries in the same

The EAP Account holds the Income earned onBeneficiary Group. Income earned on the EAP Account isContributions made by Subscribers. This includes thetransferred to the General Fund and is paid out as a partIncome earned on Contributions of Subscribers who haveof the Group Plan Bonus on pro-rata basis based on the

number of units of all Beneficiaries collecting EAPs. cancelled their plan or whose plan was cancelled by us.There is a separate EAP Account for each BeneficiaryThe difference between the maximum total amount ofGroup.EAPs and the lower amount collected by Beneficiaries

Past breakdown of Income in the EAP Accounton the performance of the plan’s investments. TheThe table below shows the breakdown of Income in the

EAP Account at the Maturity Date for the five Beneficiary amount of Income from cancelled plans depends on howGroups that most recently reached their Year of Eligibility. many plans were cancelled, as well as the investment

performance of those funds.The breakdown of Income can vary by Beneficiary Group.The amount of Income earned on Contributions depends

2014 2013 2012 2011 2010

Income earned on Contributions 99.3% 99.4% 99.5% 99.4% 99.1%

Income from cancelled plans 0.7% 0.6% 0.5% 0.6% 0.9%

EAP Account Total 100% 100% 100% 100% 100%

Past payments from the EAP Account Keep in mind that this Plan is generally a long-termThe table below shows how much was paid from the EAP investment. The payments shown largely reflectAccount per Unit for the five Beneficiary Groups that investments made years ago. It’s important to note thatmost recently reached their Year of Eligibility and includes this doesn’t tell you how much a Beneficiary will receivethe Group Plan Bonus. in the future.

Year of studies 2014 2013 2012 2011 2010

First year $149.90 $171.26 $189.10 $164.26 $189.02

Second year Note 1 $191.58 $194.50 $213.57 $192.67

Third year Note 1 Note 1 $231.34 $227.96 $294.33

Fourth year Note 1 Note 1 Note 1 $270.63 $308.22

Note 1: The amount is not shown because the Beneficiaries in this Beneficiary Group are not yet enrolled in thatyear of studies.


Beneficiary Group

Payments (per Unit) from EAP Account and Group Plan Bonus fromGeneral Fund by Beneficiary Group

Because Beneficiaries in the plan may collect up to fourPayments from the General FundEAPs over four years, each year we allocate the available

The General Fund is an account in the Group Savings General Fund balance across:Plan 2001 held in trust into which Income earned on the • Beneficiaries whose Year of Eligibility is the currentEAP Account is deposited and unclaimed net year and are eligible to collect their first EAP;Contributions and Income are transferred. The • Beneficiaries whose Year of Eligibility is the priornon-discretionary Group Plan Bonus is paid from year who are collecting their second EAP;this account. • Beneficiaries whose Year of Eligibility is 2 years

prior who are collecting their third EAP; andGroup Plan Bonus• Beneficiaries whose Year of Eligibility is 3 yearsThe Group Plan Bonus is a non-discretionary payment

prior who are collecting their fourth EAP.that Beneficiaries receive in addition to their EAPs. Eachyear we allocate the available balance of the General There may be timing differences in allocating amounts inFund as a Group Plan Bonus to the eligible Beneficiaries the General Fund to eligible Beneficiaries who do notcollecting EAPs that year. The General Fund is a separate take immediate payment of their EAPs. As a result thereaccount within the Group Savings Plan Trust with the may be amounts within the General Fund at any pointfollowing funding sources: that are being held for prior years’ Beneficiaries until

1. Income earned on amounts transferred to the December 31st of the 36th year of the plan.EAP Account at the Maturity Date of each

The table below shows the amount of Group Plan BonusSubscribers’ Education Savings Plan Agreement;paid per Unit for the five Beneficiary Groups that most2. Income earned on amounts transferred to therecently reached their Year of Eligibility.EAP Account through Pre-Maturity Attrition;

3. Income set aside for future EAPs which is not While we cannot predict the balances in the Generalcollected by Beneficiaries before Fund, we allocate amounts from it annually on a pro rataDecember 31st of the 36th year of the plan; and basis according to the number of Units held by each

4. Unclaimed net Contributions, and Income. Beneficiary. This ensures that all Beneficiaries eligible tocollect an EAP in a particular year are treated on aconsistent basis.

Year of studies 2014 2013 2012 2011 2010

First year $13.94 $10.46 $17.06 $11.75 $30.17

Second year Note 1 $11.24 $10.66 $16.40 $11.53



Note 1: The amount is not shown because the Beneficiaries in this Beneficiary Group are not yet enrolled in thatyear of studies.

Beneficiaries or withdrawn as an AIP by December 31st ofIf your Beneficiary does not completethe 36th year of the plan. After that date, we will pay any

Eligible Studies remaining Income in the EAP Account for your BeneficiaryGroup to the General Fund and Income on GovernmentIf your Beneficiary does not complete their program, theyGrants to a post-secondary institution chosen by us. Allmay still claim all 4 EAPs provided they continue to enrollremaining Government Grants must be repaid to thein Eligible Studies. This can happen if your beneficiarygovernment.drops out of school before completing their program.

Your Beneficiary may lose one or more EAPs if they do Accumulated Income Paymentsnot enroll in Eligible Studies for 4 years. Your Beneficiarymay defer a payment if they enroll in a qualifying If your Beneficiary decides not to pursue post-secondaryprogram. Deferrals are at your Beneficiary’s discretion and education and you did not exercise your option toEAPs can be claimed until your plan expires. transfer to the Individual Savings Plan or the Family

Savings Plan before the Maturity Date, you may withdrawYou may defer receiving EAPs from your plan andIncome earned on Government Grants and post-Maturitycontinue to accumulate Income on a tax-deferred basis,

provided that all amounts are paid to qualified


Group Plan Bonus (per Unit) payments by Beneficiary Group

Income in your Plan as an Accumulated Income Payment, Discretionary Paymentsprovided that:

Beneficiaries may receive a Discretionary Payment as a• the AIP is made to only one person;part of their EAPs. The Foundation decides whether a• the recipient is a resident of Canada at the time ofDiscretionary Payment will be made. To receive thethe payment; andDiscretionary Payment, your Beneficiary must qualify to• the recipient is a Subscriber under the plan unlessreceive an EAP.the Subscriber has died;

The Foundation makes Discretionary Payments that areand one of the following conditions is met:allocated to Beneficiaries eligible to collect an EAP in a(a) each person who is or was a Beneficiary (otherparticular year on a pro rata basis according to thethan a deceased Beneficiary) has reachednumber of Units held by each Beneficiary. Foundation21 years of age and is not enrolled in Eligiblerevenues not required for operating purposes are used toStudies at that time, and the plan has existedsupport the Foundation’s mission of improving access tofor at least 10 years;post-secondary education. It has been the Foundation’s(b) the payment is made in the 36th year of thepast practice, current intention and its policy as aplan; ornot-for-profit organization, to donate any incidental(c) each Beneficiary under the plan has died.surplus revenues to the Plan to further enhance the

You may request the Minister of Revenue issue a waiver amount of the EAPs Beneficiaries enrolled in Eligiblefrom condition (a) if your Beneficiary suffers from severe Studies collect.and prolonged mental impairment that prevents the

Discretionary Payments are not guaranteed. You mustBeneficiary from enrolling in eligible studies at anot count on receiving a Discretionary Payment. Thequalifying post secondary institution.Foundation decides if it will make a payment in any year

If you qualify for an AIP, you may: and how much the payment will be. If the Foundation• transfer up to $50,000 of RESP Income makes a payment, you may get less than what has been

(per Subscriber) to your RRSP or your spousal RRSP paid in the past. You may also get less than what is paidas long as you have unused RRSP contribution to beneficiaries in other Beneficiary Groups.room; or

Past Discretionary Payments• receive RESP Income as taxable income for theThe table below shows the amount of Discretionaryyear, and pay an additional tax of 20% (for QuebecPayments paid per Unit for the five Beneficiary Groupsresidents, this additional tax is comprised of 12%that most recently reached their Year of Eligibility.federal tax and 8% provincial tax) on the RESP

Income for that year. It’s important to note that this doesn’t tell you if aBeneficiary will receive a payment or how much they willEntitlement to EAPs, Government Grants, sales chargereceive. We may decide not to make these payments inrefund and Income accumulated on Contributions will befuture years. If we do make payments, they could be lesslost. There is no service fee for taking an AIP. For the taxthan what we’ve paid in the past.consequences of receiving an AIP, refer to ‘‘If you receive

an Accumulated Income Payment (AIP)’’ on page 12.

Year of studies 2014 2013 2012 2011 2010

First year $60.10 $93.74 $115.90 $180.74 $205.98

Second year Note 1 $48.42 $95.50 $111.43 $177.33



Note 1: The amount is not shown because the Beneficiaries in this Beneficiary Group are not yet enrolled in thatyear of study.


Discretionary Payments (per Unit) by Beneficiary Group

Pre-maturity AttritionAttritionIf you leave the plan before it matures, you will get backYou and your Beneficiary must meet the terms of theyour net Contributions. You will not get back any Income.plan in order for your Beneficiary to qualify for all of theThe Income on your Contributions up to the time yourEAPs under the plan. If Beneficiaries fail to qualify forplan is cancelled will go to the EAP Account and be paidsome or all of their EAPs, there will be fewer Beneficiaries

remaining in the Beneficiary Group to share the amount to the remaining beneficiaries in your Beneficiary Groupof money available for paying EAPs. This is known as part of their EAPs.as ‘‘Attrition’’.

You may, however, be eligible to receive an AIP on theYour Beneficiary may not qualify for some or all of their Income from the Government Grants in your plan. SeeEAPs if: ‘‘Accumulated Income Payments’’ for information on how

• before the Maturity Date of the Plan, you cancel to determine if you are eligible for an AIP from the plan.your plan or transfer your plan to another RESP, or

Income from cancelled Unitswe cancel your plan because you failed to makeThe table below shows the current value of the IncomeContributions on schedule and did not take actionfrom cancelled Units by Beneficiary Group. The amount ofto keep your plan in good standing. This is knownIncome from cancelled plans available to beneficiariesas ‘‘Pre-maturity Attrition’’; orafter the Maturity Date will depend on how many• after the Maturity Date of the plan, yourSubscribers cancel their plan, how many beneficiariesBeneficiary decides not to pursue a post-secondaryqualify for EAPs and the investment performance ofeducation, does not attend Eligible Studies, orthe Plan.does not attend Eligible Studies for the maximum

period provided for in the plan or does not qualifyfor all 4 EAPs. This is known as ‘‘Post-maturityAttrition’’.

2015 7% $113,680 $ 3.38

2016 7% $144,086 $ 3.23

2017 7% $176,360 $ 3.17

2018 6% $189,463 $ 2.23

2019 5% $351,052 $ 2.14

2020 8% $444,790 $ 2.42

2021 8% $357,609 $ 1.87

2022 8% $281,769 $ 1.42

2023 7% $215,250 $ 1.11

2024 6% $168,601 $ 0.84

2025 7% $120,126 $ 0.63

2026 7% $ 72,260 $ 0.39

2027 6% $ 35,461 $ 0.20

2028 5% $ 14,366 $ 0.08

2029 4% $ 5,319 $ 0.03

2030 2% $ 599 $ – Nil –

2031 0% $ 39 $ – Nil –

2032 0% $ 3 $ – Nil –

Note 1: Calculation only includes those units cancelled which contributed Income to be shared amongstbeneficiaries in the same Beneficiary Group.


Percentage of Units Total Income from Income from cancelledBeneficiary that have been cancelled Units available Units available to eachGroup cancelled1 to remaining Units remaining Unit

Maturity Date of Percentage of plans thatPlans that did not reach maturityBeneficiary Group did not reach maturityThe table below shows the percentage of plans that did

not reach maturity for each of the five Beneficiary Groups 2014 10%shown below. The most common reasons why plans did

2013 11%not reach maturity were because the Subscriber cancelled

2012 9%their plan, we cancelled their plan due to a default, theSubscriber transferred to another type of Plan we offer, or 2011 8%the Subscriber transferred to another RESP provider.

2010 9%Of the last five Beneficiary Groups of the Group Savings

Average 9.4%Plan 2001, an average of 9.4% of the plans in each groupwere cancelled before their Maturity Dates.

Post-maturity AttritionIf your Beneficiary does not pursue or complete Eligible Studies, you will get back your Contributions, less salescharges and fees. You will not get back any Income. A Beneficiary may lose one or more EAPs if they do not enroll infour years of Eligible Studies.

Past payments of EAPs – four years of Eligible StudiesThe table below shows the percentage of Beneficiaries who received the maximum of four EAPs under the Plan andthose who received some or no EAPs, for each of the five Beneficiary Groups that would have most recentlycompleted their Eligible Studies.

Beneficiary Group

2011 2010 2009 2008 2007

Beneficiaries who received all 4 EAPs 51% 65% 66% 67% 73%

Beneficiaries who received only 3 out of 4 EAPs 22% 12% 11% 12% 11%



Beneficiaries who received no EAPs 1% 1% 2% 1% 0%

Total 100% 100% 100% 100% 100%

Note: Students may collect EAPs until the 36th year of their plan.


Other Material Information

Insurance Premiums

If you are a Subscriber to Group Savings Plan 2001 and you choose to purchase optional group insurance, you will remit theapplicable insurance premiums below together with your Contributions:

Single Subscriber Coverage (Premiums per Unit)*

MONTHLY $0.30 $0.30 $0.30 $0.30 $0.30

MONTHLY FOR 10 YEARS $0.20 $0.20 $0.20 $0.20 $0.20



ANNUAL $3.60 $3.60 $3.60 $3.60 $3.60

ANNUAL FOR 10 YEARS $2.40 $2.40 $2.40 $2.40 $2.40

ANNUAL FOR 5 YEARS $4.80 $4.80 $4.80 $4.80 $4.80

ANNUAL FOR 2 YEARS $15.60 $14.40 $12.00 $9.60 $7.20

Joint Subscriber Coverage (Premiums per Unit)*

MONTHLY $0.50 $0.50 $0.50 $0.50 $0.50




ANNUAL $6.00 $6.00 $6.00 $6.00 $6.00

ANNUAL FOR 10 YEARS $3.60 $3.60 $3.60 $3.60 $3.60

ANNUAL FOR 5 YEARS $8.40 $8.40 $8.40 $8.40 $8.40

ANNUAL FOR 2 YEARS $26.40 $24.00 $20.40 $15.60 $12.00

*Subscribers in certain provinces will be required to pay provincial sales tax on the insurance premiums with the contributions.




$0.30 $0.30 $0.30 $0.40 $0.40 $0.40 $0.40 $0.40

$0.20 $0.20 N/A N/A N/A N/A N/A N/A

$0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 N/A

$0.50 $0.30 $0.10 $0.10 $0.10 $0.10 $0.10 $0.10

$3.60 $3.60 $3.60 $4.80 $4.80 $4.80 $4.80 $4.80

$2.40 $2.40 N/A N/A N/A N/A N/A N/A

$4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 N/A

$6.00 $3.60 $1.20 $1.20 $1.20 $1.20 $1.20 $1.20

$0.50 $0.50 $0.50 $0.60 $0.60 $0.60 $0.60 $0.60

$0.30 $0.30 N/A N/A N/A N/A N/A N/A

$0.70 $0.70 $0.70 $0.70 $0.70 $0.70 $0.70 N/A

$0.90 $0.50 $0.20 $0.20 $0.20 $0.20 $0.20 $0.20

$6.00 $6.00 $6.00 $7.20 $7.20 $7.20 $7.20 $7.20

$3.60 $3.60 N/A N/A N/A N/A N/A N/A

$8.40 $8.40 $8.40 $8.40 $8.40 $8.40 $8.40 N/A

$10.00 $6.00 $2.40 $2.40 $2.40 $2.40 $2.40 $2.40




schools, technical schools, religious schools, CEGEPs, asSpecific information about ourwell as distance learning or correspondence learning

plans – Individual Savings Plan programs.

What’s not eligibleType of PlanAny post-secondary program that would not qualify foran EAP under the Income Tax Act (Canada) would not be

Individual Savings Plan October 1, 1999 considered Eligible Studies under the Plan.

Beneficiaries who don’t enroll in Eligible Studies underWho this Plan is forthe requirements of the Plan will also not receive

You are eligible to enroll in this Plan if your Beneficiary is payments of Government Grants.a Canadian resident within the meaning of the IncomeTax Act (Canada). Risks of Investing in this PlanThis Plan is suitable if: Plan risks

• you want to save for one Beneficiary;You sign a Contract when you open a plan with us. Read• you want flexibility over when and how much tothe terms of the Contract carefully and make sure youcontribute to your plan;understand the Contract before you sign. If you or your• you are planning for your Beneficiary to attendBeneficiary does not meet the terms of your Contract, itEligible Studies;could result in a loss and your Beneficiary could lose• you want control over when and how much tosome or all of his or her EAPs.withdraw from your plan for your Beneficiary’s

education. Keep in mind that payments from the Plan are notguaranteed. We cannot tell you in advance if yourSummary of Eligible Studies Beneficiary will qualify to receive any EAPs from the Planor how much Income your plan will earn. We do notThe following is a description of the post-secondaryguarantee the amount of any payments or that theprograms that are Eligible Studies and qualify for EAPspayments will cover the full cost of your Beneficiary’sunder the Plan.post-secondary education.

Contact us or your sales representative to find out if theIn addition to the investment risks described undereducational programs your Beneficiary is interested in are‘‘Investment risks’’ on page 11, the following is aEligible Studies. We can provide you with a current list ofdescription of the risks of participating in this Plan:qualifying institutions and programs on request. This list

is also available on our website at www.cst.org. Termination of your planIf you cancel your Plan more than 60 days after yourFor more information about receiving EAPs, seeApplication Date but before your Beneficiary becomes‘‘Educational Assistance Payments’’ on page 44.eligible for his/her EAPs and you are not eligible to

What’s eligible receive an Accumulated Income Payment, you will forfeityour Income, Government Grants and Income on

Beneficiaries must be enrolled in any post-secondaryGovernment Grants. The Government Grants will be

program that qualifies under the Income Tax Act (Canada).returned to the applicable government. The Income

For full-time programs at eligible Canadian schools thisearned on your Contributions and Government Grants will

means a program of at least 3 consecutive weeksbe paid to a post-secondary educational institution

duration with at least 10 hours of instruction work eachchosen by us.

week. For part-time studies, it means a program of atleast 3 consecutive weeks with at least 12 hours per Qualification for students to collect EAPsmonth spent on courses. For eligible schools outside You may not be entitled to any Income earned on yourCanada, the program must be at least 13 consecutive investment if your Beneficiary does not qualify to receiveweeks duration, or for Beneficiaries enrolled full-time at a EAPs and if you are not eligible to take an AIP, transferuniversity, the program must be at least 3 consecutive Income to an eligible RRSP or an RDSP.weeks in duration.

Qualifying post-secondary institutions may includeuniversities, community colleges, trade schools, vocational

Individual Savings Plan38

Type of scholarship Plan Start Date

Investment risks Withdrawing your ContributionsThe prices of the investments held by the Plan can go up You are entitled to a return of Contributions, less salesor down. You can find a list of risks that can cause the charges and fees at any time. Your plan will not bevalue of the Plan’s investments to change under cancelled provided you maintain a minimum balance of‘‘Investment risks’’ on page 11. $100. We do not charge for the first withdrawal in any

given year, but a withdrawal fee of $10 applies to theHow the Plan has Performed second and each subsequent withdrawal in a given

calendar year.The table below shows how the investments in theIndividual Savings Plan have performed in each of the You may withdraw from the Plan at any time bypast five years ending on October 31. Returns are after contacting us. We will provide you with a form for you toexpenses have been deducted. These expenses reduce complete, sign and return to us confirming thethe returns you get on your investment. cancellation of your plan. If you withdraw all of your

Contributions and don’t maintain a minimum balance ofIt’s important to note that this doesn’t tell you how the$100, your plan will be cancelled.Plan’s investments will perform in the future.

If you withdraw any of your Contributions and yourBeneficiary is not enrolled in Eligible Studies, we will

Annual Return 0.8% 0.0% 0.3% 1.7% 1.6% repay Government Grants on the withdrawn Contributionsto the applicable governments. Repayment ofGovernment Grants will result in the loss of theMaking ContributionsBeneficiary’s Grant Contribution Room, which cannot be

The minimum initial investment in the Plan is $150.00. We restored. On cancellation, we will pay you any Incomewill waive the minimum investment if your Beneficiary earned in your plan as an AIP provided you qualify underqualifies for a Canada Learning Bond. You may make the Income Tax Act (Canada). If you do not qualify, we willContributions into the plan until the end of the 31st year pay all of your Income to a post-secondary educationalafter the plan is established or any other date permitted institution chosen by us.by the Income Tax Act (Canada).

Costs of Investing in this PlanYour Contribution OptionsThere are costs for joining and participating in the Plan.

Other than meeting the minimum initial investmentThe following tables list the fees and expenses of this

requirement, you decide the amount and timing of yourPlan. You pay some of these fees and expenses directly

Contributions.from your Contributions. The Plan pays some of the feesand expenses, which are deducted from thePlan’s Income.

Individual Savings Plan 39

2014 2013 2012 2011 2010


Sales charge1 $50 per Plan. No charges for Plans This is the commission for C.S.T. Consultants Inc.only opened for children to collect the selling your planCanada Learning Bond

Paid with the first Contribution

1 Sales charges may not be increased without Subscriber approval

Fees the Plan paysThe following fees are payable from the Plan’s Income. You don’t pay these fees directly. These fees affect you becausethey reduce the Plan’s returns which reduce the amount available for EAPs.



(ii) Trustee and Custodian fees: Based Foundation pays amounts outon the current agreement in of the administration fee toplace with the trustee. In 2014, CSTC for its managementthe fees were 0.07% of assets plus servicesapplicable taxes2

(iii) Portfolio management fees andexpenses: Based on the currentportfolio manager fee agreementsin place with the portfoliomanagers. In 2014, the annualweighted average fees were 0.10%of the average market value ofassets in the Plan plus applicabletaxes2. CSTC’s expenses incurred tomonitor and manage the portfoliomanagers are included in theportfolio manager fees.












Withdrawal No charge for first Deducted from your Contributions Canadian Scholarship Trust FoundationFee withdrawal each

year. $10 for eachsubsequentwithdrawal of netContributionsand/or Income

Returned $15 per item Directly by the Subscriber Canadian Scholarship Trust Foundation(N.S.F.)payments







new Beneficiary is under the age of 21 and a sibling ofMaking Changes to your Planformer Beneficiary. Otherwise, we must repay theGovernment Grants to the applicable government. WeChanging your Contributionscannot transfer Canada Learning Bonds to the new

You may change or stop the amount of your Beneficiary under any circumstances.Contributions at any time. There are no service fees to

Provided the new Beneficiary is i) under the age of 21make this change nor are any losses incurred by you orand a sibling of the original Beneficiary or ii) is connectedyour Beneficiary.to the original Subscriber by adoption or blood relation,and both Beneficiaries (original and new) are under theChanging the Subscriberage of 21, Contributions made on behalf of the original

Your plan allows the Subscriber(s) to be changed at any Beneficiary will not be included in determining whethertime during the life of the plan if: an over-contribution has been made for the new

1. the original Subscriber(s) passes away; Beneficiary in past years.2. there is a court order requiring a change of

To make this change, please contact us and we willSubscriber arising from marital breakdown; orprovide you with a form that you will need to complete,3. another individual or Public Primary Caregiversign and return to us. You must agree with the terms ofhas been appointed and granted rights asthe change. There is no service fee for this change.a Subscriber.

The new Subscriber must meet the requirements in the Death of the BeneficiaryIncome Tax Act (Canada) including:

If your Beneficiary dies and you do not name a substitute• the new Subscriber is your spouse or common-lawBeneficiary, you are entitled to cancel your plan andpartner, or ex-spouse or former common-lawreceive a refund of all Contributions (less any previouspartner and gets your rights under the RESP as aprincipal refunds) including any sales charges paid. Ifresult of a court order or written agreement forthere is Income in the plan, it can be taken out as an AIPdividing property after a breakdown of the(see ‘‘Accumulated Income Payments’’ on page 45relationship;for details).• the new Subscriber acquired the Subscriber’s rights

under the RESP, or the new Subscriber continues To make the change, please contact us and provide usto make Contributions into the RESP for the with an original or notarized death certificate of theBeneficiary, after your death; or Beneficiary. There is no service fee for this change.

• the new Subscriber is your estate that acquired theSubscriber’s rights under the RESP, or that Disability of the Beneficiarycontinues to make Contributions into the RESP for

If your Beneficiary becomes disabled such that it isthe Beneficiary, after your death.

expected to prevent your Beneficiary from pursuingTo make the change, we will require: post-secondary education (as verified in writing by a

• original or notarized copy of the court order, if qualified third-party practitioner), please contact us. Dueapplicable; to significant variation in disability types, each situation is

• original or notarized death certificate and, if treated on a case-by-case basis.applicable, your will; or

You may name another eligible Beneficiary or cancel your• original or notarized copies of any other applicable

plan. If you cancel your plan, you will receive a refund oflegal documents.

all Contributions (less any previous principal refunds)To make this change, please contact us and we will including any sales charges paid. If there is Income in theprovide a form to be completed, signed and returned to plan, it can be taken out as an AIP (see ‘‘Accumulatedus. There will be no losses incurred by the Subscriber or Income Payments’’ on page 45 for details) or transferredthe Beneficiary if the change is made. There is no service to a Registered Disability Savings Plan (RDSP).fee for this change.

To make the change, please contact us and we will letyou know the documents we require such as notarized orChanging your Beneficiaryoriginal evidence of disability of the Beneficiary. There is

You may change your Beneficiary as long as you provide no service fee for this change. the new Beneficiary’s Social Insurance Number. We willtransfer Government Grants to the new Beneficiary if the


Transferring to this Plan from AnotherTransferring your PlanRESP provider

Transferring to Family Savings PlanYou may transfer amounts from another RESP into the

You can transfer to the Family Savings Plan if the Plan if an AIP has not been made from theBeneficiary is your child, grandchild or great grandchild transferring RESP.provided all Beneficiaries are siblings and under the age of

Amounts transferred into the Plan from another RESP21 years. On transfer, 100% of your accumulated netremain as Contributions, Income and Government Grants.Contributions, Government Grants, and Income earned onContributions retain their original date of Contributionyour net Contributions and Government Grants will beand the plan will expire on December 31st of thetransferred into the applicable Plan.36th year of the starting date of the earlier of the

When you transfer to the Family Savings Plan, you two RESPs.become bound by the terms and conditions of the Family

Government Grants may be transferred to the Plan fromSavings Plan’s education savings plan agreement.another RESP if:

To make this change, please contact us and, if you are • a Beneficiary is also a Beneficiary under thechanging the Beneficiary, provide the new Beneficiary’s transferring RESP; orname, date of birth and Social Insurance Number. We will • the Beneficiary is under 21 years of age and aprovide you a form to be completed, signed and returned sibling of every other Beneficiary under theto us. There is no service fee for this change. transferring RESP.

Transferring to Another RESP provider The Canada Learning Bond may be transferred into thenew plan provided that all the funds are for the same

You may cancel your plan and direct us to transfer yourBeneficiary.

RESP to another RESP provider if an AIP has not beenYou might incur loss of Income, Government Grants,made from the RESP. Government Grants may beGrant Contribution Room, sales charges and fees paid.transferred as long as:The sending RESP provider may also charge you a fee to• the receiving RESP is for the same Beneficiary orprocess the transfer. Please check with your sending RESPthe Beneficiary named under the receiving RESP isprovider for more details.a sibling to every other Beneficiary named under

the existing RESP and To enroll in the Plan, please contact one of our sales• the receiving RESP is representatives. The sales representative will complete a

i) a family RESP; or. new plan application form and other necessary paperii) an individual RESP that was entered into work along with transfer-in documents. We will not

before the Beneficiary was 21 years old; charge a service fee for the transfer. There are sales• a Canada Learning Bond transfer is only made to charges of $50 to open the Plan.

an account for the same Beneficiary; and• the receiving RESP complies with CRA and ESDC Default, Withdrawal or

requirements.Cancellation

We will transfer your net Contributions, your GovernmentGrants and Income earned on your net Contributions and If you withdraw from or cancel yourGovernment Grants (subject to the rules contained in planapplicable legislation) to the receiving institution. ACanada Learning Bond can only be transferred to an You are entitled to a return of Contributions, less salesaccount for the same Beneficiary. On transferring, you will charges and fees at any time by contacting us. We willforfeit the sales charges. provide you with a form for you to complete, sign and

return to us for cancellation of your plan. We do notTo start the transfer, please contact the receiving RESPcharge for the first withdrawal in any given year, but aprovider. We will charge a transfer-out fee ofwithdrawal fee of $10 applies to the second and each$50 per plan.subsequent withdrawal in a given calendar year. If youwithdraw all of your Contributions, your plan will becancelled. You can avoid cancellation of your plan bymaintaining a minimum balance of $100.


You may cancel your plan at any time by providing us If you withdraw your Contributions before yourwith written notice of your cancellation. If you cancel the Beneficiary enrolls in Eligible Studies, we will repay CESGsplan within the first 60 days after you enroll, you will ranging from 20% to 40% of the Contribution amountreceive a refund of all Contributions made into the plan. withdrawn, QESIs ranging from 10% to 20% of theIf you cancel your plan more than 60 days from the Contributions withdrawn (if you received Additional CESGApplication Date, you are entitled to a return of and Additional QESI) and SAGES grants of 10% of theContributions, less sales charges and fees. Any Income Contributions withdrawn to the applicable government.earned in your plan will be paid to a post-secondary

There is no charge for the first withdrawal in a year and aeducational institution we choose unless you qualify for$10 per withdrawal charge for each subsequentan AIP or your education savings plan has not beenwithdrawal.registered. There is no service fee to cancel your plan.

If we cancel your plan Educational Assistance PaymentsIf your plan was opened without a Social Insurance Your Beneficiary is eligible for EAPs as soon as proof ofNumber for your Beneficiary, and if you do not provide us enrolment in an eligible program is provided. The latestwith a Social Insurance Number for your Beneficiary

that a Beneficiary can receive an EAP is the end of thewithin 12 months of signing your application (or any36th year of the plan or a later date if permitted by thelonger period as agreed to by us), your plan will beIncome Tax Act (Canada).automatically cancelled and your Contributions, less sales

charges and fees will be returned to you. Any Income EAPs are made up of Income on your Contributions,earned on your Contributions will be paid to you and will Government Grants and Income on Government Grants.be taxable in your hands. We will not charge a service fee Government Grants and Income on Government Grantsfor the cancellation of your plan. are paid to your Beneficiary in proportion to Income on

your Contributions. To receive an EAP, please contact usRe-activating your planand we will provide a form to you to complete, sign and

If your plan was unregistered, you can re-activate thereturn to us.

plan by providing your Beneficiary’s Social InsuranceNumber and maintaining a minimum balance of $100 in How EAP amounts are determinedyour plan.

You decide the amount and timing of EAPs based on theIf your plan expires Income in your account. To receive an EAP, contact us

and we will provide you with a form to be completed,Your plan expires on December 31st of the plan’ssigned and returned to us. The amounts of Contributions,36th year. If your plan expires, it cannot be re-instated.less sales charges and fees, Income, Government GrantsYour Contributions, less sales charges and fees will be

returned to you. If the Income is not paid as EAPs or an and Income on Government Grants are maintainedAIP, the Income will be paid to a post-secondary individually. Unrealized capital gains or losses oneducational institution chosen by us. Any unclaimed investments in the plan are not allocated to your planGovernment Grants will be returned to the applicable until they are realized. Government Grants and Income ongovernments. Government Grants are paid out proportionate to amount

of Income withdrawn from the Plan as EAP. Any unpaidIf your Beneficiary does not enroll inportion of Government Grants is returned to theEligible Studies applicable government and Income on Government

A Beneficiary who does not enroll in Eligible Studies will Grants is paid to a post-secondary educational institutionnot receive EAPs from the plan. of our choosing.If the Beneficiary is not eligible, the Income on The Income Tax Act (Canada) does not allow an EAP toContributions and Government Grants can be paid out as

exceed $5,000 for a student who has not completed atAIPs or transferred to an eligible RRSP or RDSP. The

least 13 consecutive weeks of study in the previousGovernment Grants are returned to the applicable12 months. If a student is subject to this $5,000 cap, yougovernments.may withdraw the balance after the student has

You are always entitled to a return of your Contributions, completed 13 weeks of consecutive study. A student withless sales charges and fees.

expenses exceeding $5,000 in the first 13 weeks maycontact us to apply to ESDC on his or her behalf to haveReceiving Payments from the Planthe limit increased. For part-time study, the students may

Return of Contributions access up to $2,500 of their Income and GovernmentGrants for each 13 week period of study.Your net Contribution is available to you or to another

person as per your instructions.


(b) the payment is made in the 36th year of theIf your Beneficiary does not completeplan; or

Eligible Studies (c) each Beneficiary under the plan has died.

You may defer having EAPs made from your plan You may request the Minister of Revenue issue a waiverprovided that all amounts are paid to Beneficiaries from condition (a) if your Beneficiary suffers from severeenrolled in Eligible Studies or withdrawn as an AIP by and prolonged mental impairment that prevents yourDecember 31st of the 36th year of the plan. After that Beneficiary from enrolling in eligible studies at adate, we will pay any Income in your plan to a qualifying post secondary institution.post-secondary educational institution we choose.

If you qualify for an AIP, you may:• transfer up to $50,000 of RESP IncomeAccumulated Income Payments

(per Subscriber) to your RRSP or your spousal RRSPIf your Beneficiary decides not to pursue post-secondary as long as you have unused RRSP Contributioneducation, you may withdraw Income earned in your room; orRESP as an AIP, provided that: • receive RESP Income as taxable income for the

• the AIP is made to only one person; year, and pay an additional tax of 20% (for Quebec• the recipient is a resident of Canada at the time of residents this additional tax is comprised of a 12%

the payment; and federal tax and 8% provincial tax) on the RESP• the recipient is a Subscriber under the plan unless Income for that year.

the Subscriber has died;For the tax consequences of receiving an AIP, please refer

and one of the following conditions is met: to ‘‘If you receive an Accumulated Income Payment (AIP)’’(a) each person who is or was a Beneficiary (other on page 12.

than a deceased Beneficiary) has reached21 years of age and is not enrolled in EligibleStudies at that time, and the plan has existedfor at least 10 years;


Qualifying post-secondary institutions may includeSpecific information about ouruniversities, community colleges, trade schools, vocational

plans – Family Savings Plan schools, technical schools, religious schools, CEGEPs, aswell as distance learning or correspondence learning

Type of Plan programs.

What’s not eligibleFamily Savings Plan March 1, 1997 Any post-secondary program that would not qualify for

an EAP under the Income Tax Act (Canada) would not beWho this Plan is for considered Eligible Studies under the Plan.

You are eligible to enroll in this Plan if: Beneficiaries who don’t enroll in Eligible Studies under• your Beneficiary is your child, grandchild or great the requirements of the Plan will also not receive

grandchild and is under the age of 21 years; payments of Government Grants.• your Beneficiary is a Canadian resident within the

meaning of the Income Tax Act (Canada). Risks of Investing in this PlanThis Plan is suitable if: Plan risks

• you want to save for one or more children whoYou sign a Contract when you open a plan with us. Readare siblings;the terms of the Contract carefully and make sure you• you want flexibility over when and how much tounderstand the Contract before you sign. If you or yourcontribute to your plan;Beneficiary do not meet the terms of your Contract, it• you are planning for one or more of yourcould result in a loss and your Beneficiary could loseBeneficiaries to attend Eligible Studies;some or all of his or her EAPs.• you want control over when and how much to

withdraw from your plan for your Beneficiary’s Keep in mind that payments from the Plan are noteducation. guaranteed. We cannot tell you in advance if your

Beneficiary will qualify to receive any EAPs from the PlanSummary of Eligible Studies or how much Income your plan will earn. We do notguarantee the amount of any payments or that theThe following is a description of the post-secondarypayments will cover the full cost of your Beneficiary’sprograms that are Eligible Studies and qualify for EAPspost-secondary education.under the Plan.

In addition to the investment risks described underContact us or your sales representative to find out if the‘‘Investment risks’’ on page 11, the following is aeducational programs your Beneficiary is interested in aredescription of the risks of participating in this Plan:Eligible Studies. We can provide you with a current list of

qualifying institutions and programs on request. This list Termination of your planis also available on our website at www.cst.org. If you cancel your Plan more than 60 days after your

Application Date but before your Beneficiary becomesFor more information about receiving EAPs, seeeligible for his/her EAPs and you are not eligible to‘‘Educational Assistance Payments’’ on page 52.receive an Accumulated Income Payment, you will forfeit

What’s eligible your Income, Government Grants and Income onGovernment Grants. The Government Grants will be

Beneficiaries must be enrolled in any post-secondaryreturned to the applicable government. The Income

program that qualifies under the Income Tax Act (Canada).earned on your Contributions and Government Grants will

For full-time programs at eligible Canadian schools thisbe paid to a post-secondary educational institution

means a program of at least 3 consecutive weekschosen by us.

duration with at least 10 hours of instruction work eachweek. For part-time studies, it means a program of at Qualification for students to collect EAPsleast 3 consecutive weeks with at least 12 hours per You may not be entitled to any Income earned on yourmonth spent on courses. For eligible schools outside investment if your Beneficiary does not qualify to receiveCanada, the program must be at least 13 consecutive EAPs and if you are not eligible to take an AIP, transferweeks duration, or for Beneficiaries enrolled full-time at a Income to an eligible RRSP or RDSP.university, the program must be at least 3 consecutiveweeks in duration.

Family Savings Plan46

Type of scholarship Plan Start Date

Investment risks Withdrawing your ContributionsThe prices of the investments held by the Plan can go up You are entitled to a return of Contributions, less salesor down. You can find a list of risks that can cause the charges and fees at any time. Your plan will not bevalue of the Plan’s investments to change under cancelled provided you maintain a minimum balance of‘‘Investment risks’’ on page 11. $100. We do not charge for the first withdrawal in any

given year, but a withdrawal fee of $10 applies to theHow the Plan has Performed second and each subsequent withdrawal in a given

calendar year.The table below shows how the investments in the FamilySavings Plan have performed in each of the past five You may withdraw from the Plan at any time byyears ending on October 31. Returns are after expenses contacting us. We will provide you with a form tohave been deducted. These expenses reduce the returns complete, sign and return to us confirming theyou get on your investment. cancellation of your plan. If you withdraw all of your

Contributions and do not maintain a minimum balance ofIt’s important to note that this doesn’t tell you how the$100, your plan will be cancelled.Plan’s investments will perform in the future.

If you withdraw any of your Contributions and yourBeneficiary is not enrolled in Eligible Studies, we will

Annual Return 0.9% 0.1% 0.7% 1.7% 1.6% repay Government Grants on the withdrawn Contributionsto the applicable governments. Repayment ofGovernment Grants will result in the loss of theMaking ContributionsBeneficiary’s Grant Contribution Room, which cannot be

The minimum initial investment in the Plan is $150.00. We restored. On cancellation, we will pay you any Incomewill waive the minimum investment if your Beneficiary earned in your plan as an AIP provided you qualify underqualifies for a Canada Learning Bond. You may make the Income Tax Act (Canada). If you do not qualify, we willContributions into the plan until the end of the 31st year pay all of your Income to a post-secondary educationalafter your plan is established or any other date permitted institution chosen by us.by the Income Tax Act (Canada).

Costs of Investing in this PlanYour Contribution OptionsThere are costs for joining and participating in the Plan.

Other than meeting the minimum initial investmentThe following tables list the fees and expenses of this

requirement, you decide the amount and timing of yourPlan. You pay some of these fees and expenses directly

Contributions.from your Contributions. The Plan pays some of the feesand expenses, which are deducted from thePlan’s Income.

Family Savings Plan 47

2014 2013 2012 2011 2010


Sales charge1 $50 per Plan. No charges for Plans This is the commission for C.S.T. Consultants Inc.only opened for children to collect the selling your planCanada Learning Bond

Paid with the first Contribution1 Sales charges may not be increased without Subscriber approval

Fees the Plan paysThe following fees are payable from the Plan’s Income. You don’t pay these fees directly. These fees affect you becausethey reduce the Plan’s returns which reduce the amount available for EAPs.



(ii) Trustee and Custodian fees: Based Foundation pays amounts outon the current agreement in of the administration fee toplace with the trustee. In 2014, CSTC for its managementthe fees were 0.02% of assets plus servicesapplicable taxes2

(iii) Portfolio management fees andexpenses: Based on the currentportfolio manager fee agreementsin place with the portfoliomanagers. In 2014, the annualweighted average fees were0.11% of the average marketvalue of assets in the Plan plusapplicable taxes2. CSTC’s expensesincurred to monitor and managethe portfolio managers areincluded in the portfolio managerfees.












Withdrawal No charge for first Deducted from your Contributions Canadian Scholarship Trust FoundationFee withdrawal each

year. $10 for eachsubsequentwithdrawal of netContributionsand/or Income

Returned $15 per item Directly by the Subscriber Canadian Scholarship Trust Foundation(N.S.F.)payments







new Beneficiary is under the age of 21 and a sibling ofMaking Changes to your Planthe former Beneficiary. Otherwise, we must repay theGovernment Grants to the applicable government. WeChanging your Contributionscannot transfer Canada Learning Bonds to the new

You may change or stop the amount of your Beneficiary under any circumstances.Contributions at any time. There are no service fees to

Provided these conditions are met, Contributions mademake this change nor are any losses incurred by you oron behalf of the original Beneficiary will not be includedyour Beneficiaries.in determining whether an over-contribution has beenmade for the new Beneficiary in past years.Changing the SubscriberTo make this change, please contact us and we willYour plan allows the Subscriber(s) to be changed at anyprovide you with a form that you will need to complete,time during the life of your plan if:sign and return to us. You must agree with the terms of1. the original Subscriber(s) passes away;the change. There is no service fee for this change.2. there is a court order requiring a change of

Subscriber arising from marital breakdown; orDeath of the Beneficiary3. another individual or Public Primary Caregiver is

appointed and granted rights as the Subscriber. If all of your Beneficiaries die, you are entitled to cancelyour plan and you will receive a refund of allThe new Subscriber must meet the requirements in theContributions (less any previous principal refunds)Income Tax Act (Canada) including:including any sales charges paid. If there is Income in the• the new Subscriber is your spouse or common-lawplan, it can be taken out as an AIP (see ‘‘Accumulatedpartner, or ex-spouse or former common-lawIncome Payments’’ on page 53 for details).partner and gets your rights under the RESP as a

result of a court order or written agreement for If one or more Beneficiaries survive, Income in your plandividing property after a breakdown of the will be shared among the remaining Beneficiaries asrelationship; directed by the Subscriber. Some Government Grants may

• the new Subscriber acquired the Subscriber’s rights have to be repaid.under the RESP, or the new Subscriber continues

To make the change, please contact us and provide usto make Contributions into the RESP for theoriginal or notarized death certificate of theBeneficiary, after your death; orBeneficiary(ies). There is no service fee for this change.• the new Subscriber is your estate that acquired the

Subscriber’s rights under the RESP, or that Disability of the Beneficiarycontinues to make Contributions into the RESP forthe Beneficiary, after your death. If one of your Beneficiaries becomes disabled such that it

is expected to prevent your Beneficiary from pursuingTo make the change, we will require:

post-secondary education (as verified in writing by a• original or notarized copy of the court order, if

qualified third-party practitioner), please contact us. Dueapplicable;

to significant variation in disability types, each situation is• original or notarized death certificate and, if

treated on a case-by-case basis. The Income in your planapplicable, your will; or

will be shared among the remaining Beneficiaries. You• original or notarized copies of any other applicable

may name another child to replace the Beneficiary orlegal documents.

cancel your plan. If you cancel your plan, you will receiveTo make this change, please contact us and we will a refund of all Contributions (less any previous principalprovide a form to be completed, signed and returned to refunds) including any sales charges and fees paid. Ifus. There will be no losses incurred by the Subscriber or there is Income in the plan, it can be taken out as an AIPthe Beneficiary if the change is made. There is no service (see ‘‘Accumulated Income Payments’’ on page 53 forfee to make the change. details), or transferred to a Registered Disability Savings

Plan (RDSP).Changing your Beneficiary

To make the change, please contact us and we will letYou may change your Beneficiary to another child under you know the documents we require such as notarized orthe age of 21 years as long as the new Beneficiary is a original evidence of disability of the Beneficiary. There issibling of the existing Beneficiary and you provide the no service fee for this change.new Beneficiary’s Social Insurance Number. We willtransfer Government Grants to the new Beneficiary if the


Transferring to this Plan from AnotherTransferring your PlanRESP provider

Transferring to Individual Savings PlanYou may transfer amounts from another RESP into the

You can transfer to the Individual Savings Plan if your Plan if an AIP has not been made from theFamily Savings Plan has only one Beneficiary. You may transferring RESP.also substitute a new Beneficiary under the Individual

Amounts transferred into the Plan from another RESPSavings Plan who is not a sibling of the existingremain as Contributions, Income and Government Grants.Beneficiary. On transfer, 100% of your accumulated netContributions retain their original date of ContributionContributions, Government Grants (excluding CLB), andand the plan will expire on December 31st of theIncome earned on your net Contributions and36th year of the starting date of the earlier of theGovernment Grants will be transferred into the applicabletwo RESPs.Plan. If the new Beneficiary is not a sibling and is under

21 years of age, you will forfeit Government Grants. Government Grants may be transferred to a FamilySavings Plan from another RESP if:When you transfer to the Individual Savings Plan, you

• the Beneficiary is also a Beneficiary under thebecome bound by the terms and conditions of thetransferring RESP; orIndividual Savings Plan’s education savings

• the Beneficiary is under 21 years of age and aplan agreement.sibling to every other Beneficiary under the

To make this change, please contact us and, if you are transferring RESP.changing the Beneficiary provide the new Beneficiary’s

The Canada Learning Bond may be transferred into thename, date of birth and Social Insurance Number. We willnew plan provided that all the funds are for the sameprovide you a form to be completed, signed and returnedBeneficiary.to us. There is no service fee for this change.

You might incur loss of Income, Government Grants,Transferring to Another RESP providerGrant Contribution Room, sales charges and fees paid.

You may cancel your plan and direct us to transfer your The sending RESP provider may also charge you a fee toRESP to another RESP provider if an AIP has not been process the transfer. Please check with your sending RESPmade from the RESP. Government Grants may be provider for more details.transferred as long as:

To enroll in the Plan, please contact one of our sales• there is a common Beneficiary to both the

representatives. The sales representative will complete areceiving RESP and existing RESP or the Beneficiary

new plan application form and other necessary papernamed under the receiving RESP is a sibling to

work along with transfer-in documents. We will notevery other Beneficiary under the existing

charge a service fee for the transfer. There are salesRESP; and

charges of $50 to open the plan.• the receiving RESP is

i) a family RESP; or. Default, Withdrawal orii) an individual RESP that was entered into

before the Beneficiary was 21 years old; Cancellation• the receiving RESP complies with CRA and ESDC

If you withdraw from or cancel yourrequirements.

planWe will transfer your net Contributions, your GovernmentGrants and Income earned on your Contributions and You are entitled to a return of Contributions, less salesGovernment Grants (subject to the rules contained in charges and fees at any time by contacting us. We willapplicable legislation) to the receiving institution. A provide you with a form for you to complete, sign andCanada Learning Bond can only be transferred to an return to us for cancellation of your plan. We do notaccount for the same Beneficiary. On transferring, you will charge for the first withdrawal in any given year, but aforfeit the sales charges. withdrawal fee of $10 applies to the second and each

subsequent withdrawal in a given calendar year. If youTo start the transfer, please contact the receiving RESPwithdraw all of your Contributions, your plan will beprovider. We will charge a transfer-out fee ofcancelled. You can avoid cancellation of your plan by$50 per plan.maintaining a minimum balance of $100.


You may cancel your plan at any time by providing us AIPs or transferred to eligible RRSP or RDSP. Thewith written notice of your cancellation. If you cancel the Government Grants are returned to the applicableplan within the first 60 days after you enroll, you will governments.receive a refund of all Contributions made into the plan.

You are always entitled to a return of your Contributions,If you cancel your plan more than 60 days from your

less sales charges and fees.Application Date, you are entitled to a return ofContributions, less sales charges and fees. Any Income Receiving Payments from the Planearned in the plan will be paid to a post-secondaryeducational institution chosen by us unless you qualify for Return of Contributionsan AIP or your education savings plan has not been

Your net Contribution is available to you or to anotherregistered. There is no service fee to cancel your plan.person as per your instructions.

If we cancel your planIf you withdraw your Contributions before your

If your plan was opened without a Social Insurance Beneficiary enrolls in Eligible Studies, we will repay CESGsNumber for your Beneficiary, and if you do not provide us ranging from 20% to 40% of the Contribution amountwith a Social Insurance Number for your Beneficiary withdrawn, QESIs ranging from 10% to 20% of thewithin 12 months of signing your application (or any Contributions withdrawn (if you received Additional CESGlonger period as agreed to by us), your plan will be and Additional QESI) and SAGES grants of 10% of theautomatically cancelled and Contributions, less sales Contributions withdrawn to the applicable government.charges and fees will be returned to you. Any Income

There is no charge for the first withdrawal in a year and aearned on your Contributions will be paid to you and will

$10 per withdrawal charge for each subsequentbe taxable in your hands. We will not charge a service fee

withdrawal.for the cancellation of your plan.

Educational Assistance PaymentsRe-activating your planYour Beneficiary is eligible for EAPs as soon as proof of

If your plan was unregistered, you can re-activate theenrolment in an eligible program is provided. The latest

plan by providing your Beneficiary’s Social Insurancethat a Beneficiary can receive an EAP is the end of the

Number and maintaining a minimum balance of $100 in36th year of the plan or a later date if permitted by the

your plan.Income Tax Act (Canada).

If your plan expires EAPs are made up of Income on your Contributions,Government Grants and Income on Government Grants.Your plan expires on December 31st of the plan’sGovernment Grants and Income on Government Grants36th year. If your plan expires, it cannot be re-instated.are paid to your Beneficiary in proportion to Income onYour Contributions, less sales charges and fees will beyour Contributions. To receive an EAP, please contact usreturned to you. If the Income is not paid as EAPs or anand we will provide a form to you to complete, sign andAIP, the Income will be paid to a post-secondaryreturn to us.educational institution chosen by us. Any unclaimed

Government Grants will be returned to the applicable How EAP amounts are determinedgovernments.

You decide the amount and timing of EAPs based on theIf your Beneficiary does not enroll in Income in your account. To receive an EAP, please contact

us and we will provide a form to you to be completed,Eligible Studiessigned and returned to us. The amounts of Contributions,

A Beneficiary who does not enroll in Eligible Studies will less sales charges and fees, Income, Government Grantsnot receive EAPs from the plan. You can add another and Income on Government Grants are maintainedBeneficiary of less than 21 years of age and who is a individually. Unrealized capital gains or losses onsibling of the existing Beneficiary. All Income accumulated investments in the plan are not allocated to your plancan be paid to one Beneficiary as an EAP. The Canada until they are realized. Government Grants and Income onLearning Bond and Government Grants in excess of Government Grants are paid out proportional to amountprogram maximum limits will have to be repaid to the of Income withdrawn from the Plan as EAP for eachapplicable governments. Beneficiary. Any unpaid portion of Government Grants is

returned to the applicable government and Income onIf none of the Beneficiaries is eligible, the Income onContributions and Government Grants can be paid out as


Government Grants is paid to a post-secondary • the recipient is a Subscriber under the plan unlesseducational institution of our choosing. the Subscriber has died;

The Income Tax Act (Canada) does not allow an EAP to and one of the following conditions is met:exceed $5,000 for a student who has not completed at (a) each person who is or was a Beneficiary (otherleast 13 consecutive weeks of study in the previous than a deceased Beneficiary) has reached12 months. If a student is subject to this $5,000 cap, you 21 years of age and is not enrolled in Eligiblemay withdraw the balance after the student has Studies at that time, and the plan has existedcompleted 13 weeks of consecutive study. A student with for at least 10 years;expenses exceeding $5,000 in the first 13 weeks may (b) the payment is made in the 36th year of thecontact us to apply to ESDC on his or her behalf to have plan; orthe limit increased. For part-time study, the students may (c) each Beneficiary under the plan has died.access up to $2,500 of their Income and Government

You may request the Minister of Revenue issue a waiverGrants for each 13 week period of study.

from condition (a) if your Beneficiary suffers from severeand prolonged mental impairment that prevents yourIf your Beneficiary does not completeBeneficiary from enrolling in eligible studies at a

Eligible Studies qualifying post secondary institution.

You may defer having EAPs paid from your plan provided If you qualify for an AIP, you may:that all amounts are paid to Beneficiaries enrolled in • transfer up to $50,000 of RESP IncomeEligible Studies or withdrawn as an AIP by (per Subscriber) to your RRSP or your spousal RRSPDecember 31st of the 36th year of the plan. After that as long as you have unused RRSP contributiondate, we will pay any Income in your plan to a room; orpost-secondary educational institution chosen by us. • receive RESP Income as taxable income for the

year, and pay an additional tax of 20% (for QuebecAccumulated Income Paymentsresidents the additional tax is comprise of 12%

If one of your Beneficiaries decide not to pursue federal tax and 8% provincial tax) on the RESPpost-secondary education, you may withdraw Income Income for that year.earned in your RESP as an AIP, provided that:

For the tax consequences of receiving an AIP, please refer• the AIP is made to only one person;

to ‘‘If you receive an Accumulated Income Payment (AIP)’’• the recipient is a resident of Canada at the time of

on page 12.the payment; and


About C.S.T. Consultants Inc. and theCanadian Scholarship Trust Foundation

An Overview of the Manager of the PlansStructure of our Plans C.S.T. Consultants Inc.

2235 Sheppard Avenue East, Suite 1600Group Savings Plan 2001Toronto, Ontario M2J 5B8Individual Savings Plan

Family Savings Plan 1-877-333-RESP (7377)[email protected] by the Canadian Scholarship Trust Foundationwww.cst.orgManaged and distributed by C.S.T. Consultants Inc.

2235 Sheppard Avenue East, Suite 1600 C.S.T. Consultants Inc. is incorporated under the laws ofToronto, Ontario M2J 5B8 Canada and is a wholly-owned subsidiary of the Canadian

Scholarship Trust Foundation, a not-for-profit organizationThe Plans are trusts established by way of trustwhose primary objective is to promote the benefits ofindentures between the Foundation and RBC Investorhigher education and improve access to post-secondaryServices Trust as Trustee and are subject to the laws ofeducation by reducing barriers and providing wideCanada. In the case of Group Savings Plan 2001, Thedistribution of education savings plan products. CSTCRoyal Trust Company (predecessor to RBC Investorcommenced operations in 1988 as the exclusiveServices Trust) became Trustee by way of a deed ofdistributor of the Plans in addition to providingappointment and retirement dated March 1, 1996. Theadministration services to the Foundation and the Plans.trusts were constituted as the Canadian Scholarship Trust,In 2010, CSTC was appointed investment fund manager ofthe Canadian Scholarship Millennium Trust and thethe Plans and carries out the overall management andCanadian Scholarship Millennium Family Trust. When theadministration of the Plans.names of the trusts were changed in 2003, each of the

trust indentures was amended to update references tothe names of the trusts to Canadian Scholarship GroupSavings Plan Trust, Canadian Scholarship IndividualSavings Plan Trust and Canadian Scholarship FamilySavings Plan Trust, respectively. Each of the trusts isknown as Group Savings Plan 2001, Individual SavingsPlan and Family Savings Plan for the purposes of theirdistribution as scholarship plans.

54

19MAY201520451271

The relationship between CSTC, the Foundation and the Plans is illustrated below:

Canadian Scholarship Trust Foundation

C.S.T. ConsultantsInc.

Bene�ciaries

Sales Charges

Investment FundManager and Distributor

Principal andRefunds

100%Owned

Subsidiary

Plan Sponsorand Governance

Subscribers

Canadian ScholarshipTrust Plans

Fees for Services AdministrativeFees

EAPs andGovernment Grants Contributions

Duties and services to be provided by the Details of the management agreementmanager The specific duties and responsibilities of CSTC and the

Foundation as well as those of the trustee for theCSTC is responsible for the overall management andmanagement of the Plans are set out in the Planadministration of the Plans and provides services to theManagement and Administration Agreement between theFoundation in connection with the duties of the board ofFoundation, CSTC and the trustee made as ofdirectors of the Foundation. As the manager of the Plans,September 28, 2010. CSTC is responsible for the overallCSTC carries out the day-to-day management of the Plans,management and administration of the Plans includingmonitors the investment management of the Plans,the selection of portfolio managers, accounting andprovides all accounting, record-keeping, valuation andadministrative services. The trustee takes direction fromother services for Subscribers, processes transactions,us regarding the settlement of investment trades, theissues account statements and tax reporting information,payment of fees and the disbursement of amounts inadministers the education savings plan agreements, andaccordance with the terms of the education savings plancalculates EAPs for review and payment out of the Plansagreements.by the Foundation.

The Plan Management and Administration AgreementCSTC is registered as an investment fund manager incontinues until the termination of each of the trusts inOntario, Quebec and Newfoundland and Labrador asaccordance with the trust indentures. Any party to therequired by securities law. It receives fees from theagreement may resign and terminate the PlanFoundation for the management and administrativeManagement and Administration Agreement upon threeservices it provides.months notice in which case the provisions of the trustindentures relating to the resignation of the Foundationor the trustee, as the case may be, would apply.

55

CSTC also provides certain administrative services to the the powers of the directors of CSTC to manage orFoundation according to an amended and restated supervise the management of the business and affairs ofServices Agreement made as of September 28, 2010. CSTC have been transferred to the Foundation, as sole

shareholder. Accordingly, the Foundation considers andOfficers and Directors of the Manager executes all legal documents and certificates that are

required to be executed by the board of directorsPursuant to a Unanimous Shareholder Declarationof CSTC.permitted under corporate law that applies to CSTC, all of

Officers and Directors of CSTC

Sherry J. MacDonald, CPA, CA Director, Officer President and Chief Executive OfficerScarborough, Ontario

Peter Bethlenfalvy Officer Chief Investment Officer since February 2014; Senior ViceToronto, Ontario President Financial Regulations, Manulife Financial from 2011

to 2013; Co-President, DBRS from 2006 until 2010

Richard D’Archivio, CPA, CA, CFA Officer Vice President, Chief Financial Officer since October 2014;Vaughan, Ontario Chief Financial Officer, Sentry Select Capital Corp. from

2008-2013 and Chief Financial Officer, SentryInvestments Inc. from 2008-2013

Glenn Hymers Officer Vice President, Sales and Distribution since March 2012;Toronto, Ontario Chief Consultant, Glenn S. Hymers Inc. from 2006 until

March 2012

Peter A. Lewis Officer Vice-President, Regulatory, Risk and Corporate AffairsBrantford, Ontario

Carole Matear, CPA, CA Officer Chief Compliance OfficerVaughan, Ontario

Richard Schuetz Officer Vice President, I.T. and Operations since November 2010;Newmarket, Ontario Managing Director – Client Service, RPM Technologies from

August 2009 until October 2010

Martha Turner Officer Vice President, Marketing since March 2012; Director,Toronto, Ontario Marketing, Bell Mobility 2011 until March 2012; Assistant

Vice President, Marketing, Aviva plc from 2007 to 2011

If CSTC or the Foundation resigned or were unable toTrusteeperform their duties relating to the administration of the

RBC Investor Services Trust Plans, the Trustee would become responsible forToronto, Ontario administering the Plans and would receive the

administration fee. The continued administration of theThe Plans are trusts. RBC Investor Services Trust is thePlans is provided for in the trust indentures, which do nottrustee of the Plans and acts as custodian for the Planallow the trustee to resign unless a successor trusteeassets. We direct the trustee regarding the settlement ofis appointed.investment trades, the payment of fees and Plan

payments under the terms of the education savings plan The Foundationagreements. The trustee holds all amounts in the Plans intrust and, as directed by us, disburses fees, EAPs and The Canadian Scholarship Trust Foundationother amounts in accordance with the terms of the 2235 Sheppard Avenue East, Suite 1600education savings plan agreements, and settles all Toronto, Ontario M2J 5B8investment trades. For this service, the trustee charges

The Foundation is a not-for-profit organization governedfees which are deducted from Income earned on

by an independent Board of Directors. It sponsors andContributions and Government Grants held in the Plans.

provides governance and oversight over the Plans, as well

56

Name

Municipality of Residence Position Principal Occupation

as carries out certain duties as required by the trust supervises and performs specific functions, includingindentures. According to a Unanimous Shareholder entering into the education savings plan agreements withDeclaration permitted under corporate law that applies to the Subscribers, supervising Subscribers’ adherence to theCSTC, all of the powers of the directors of CSTC to terms of the education savings plan agreements,manage or supervise the management of the business supervising the calculation of EAPs by CSTC andand affairs of CSTC have been transferred to the determining the amount of EAPs to be paid, supervisingFoundation, as shareholder. Accordingly, the Foundation the annual audit of the Plans, as well as supervising theconsiders and executes all legal documents and administration of the Plans in such manner as thecertificates that are required to be executed by the board Foundation considers appropriate, in consultation withof directors of CSTC. CSTC. Certain of these duties are required to be

performed by the Foundation under the trust indentures.In its role as plan sponsor and provider of governanceand oversight in respect of the Plans, the Foundation

Directors

David R. Lewis, CFA 1, 2, 3 Chair of the Board, Since Consultant and Corporate DirectorMississauga, Ontario Director October 2011 since 2011; Head of Banking Products,

Barclays Wealth Americas fromJune 2010 to 2011

Elizabeth B. Wright 1 Immediate Past Chair of Since April 2004 Corporate Director and Consultant,Toronto, Ontario the Board, Wright Consulting

Director,Chair of the Governanceand Human ResourcesCommittee

Sherry J. MacDonald, CPA, CA Director, Since President, CSTC and PresidentScarborough, Ontario President and Chief March 2010 Foundation

Executive Officer

Rodney W. J. Seyffert 1, 2 Director From April 1991 Lawyer and Corporate Director;Toronto, Ontario to April 2006 Partner, Gowling Lafleur

Since April 2008 Henderson LLP from 1970 to 2011

Gisele D. Wilson, CFA 3 Director Since July 2008 President and Founder, CorielWestmount, Quebec Capital Inc.

Elaine Bourassa, CPA, CA 2 Director Since June 2009 Corporate DirectorRegina, Saskatchewan

Ted Cadsby, CFA, ICD.D 1, 3 Director Since Consultant and Corporate DirectorToronto, Ontario Chair, Investment October 2009

Committee

Michelle Savoy 3 Director, Since Corporate Director sinceToronto, Ontario January 2010 September 2011; President Capital

Guardian (Canada) Inc. from 2005 toAugust 2011

Colin E. Litton, FCPA, FCA, ICD.D 2 Director, Since Corporate DirectorOakville, Ontario Chair, Audit and Risk March 2010

Management Committee

Andrew Poprawa, CPA, CA, C.Dir 1, 2 Director Since President and Chief Executive Officer,Mississauga, Ontario January 2013 Deposit Insurance Corporation of

Ontario

57

Period(s)Name served asMunicipality of Residence Position director Principal occupation

Amit Chakma, PhD 1 Director Since June 2013 President and Vice-Chancellor,London, Ontario University of Western Ontario

Colleen Sidford, ICD.D 3 Director Since January Corporate Director; Vice President,Toronto, Ontario 2014 Chief Investment Officer from 2011

until 2013 and Vice PresidentCorporate Treasurer from 2005 to2011, Ontario Power Generation Inc.

Robert Pitfield Director Since January President, TravelEdge since 2013;Toronto, Ontario 2015 Group Head, Risk and Chief Risk

Officer, Bank of Nova Scotia from 1983to 2013

1 Member of Governance and Human Resources Committee2 Member of Audit and Risk Management Committee3 Member of Investment Committee

Officers

Sherry J. MacDonald, CPA, CA Officer President and Chief Executive OfficerScarborough, Ontario

Richard D’Archivio, CPA, CA, CFA Officer Vice President, Chief Financial Officer since October 2014;Vaughan, Ontario Chief Financial Officer, Sentry Select Capital Corp. from

2008-2013 and Chief Financial Officer, SentryInvestments Inc. from 2008-2013

Peter A. Lewis Officer Vice-President, Regulatory, Risk and Corporate Affairs andBrantford, Ontario Corporate Secretary

Each year, the Foundation issues an annual report of its • making recommendations with respect to specificactivities. Subscribers can request a copy of the annual conflict of interest matters referred to it by us; and,report, at no cost, by calling us toll-free 1-877-333-7377 • performing other duties as required underor by contacting us at [email protected]. The annual report applicable securities laws such as an annualis also available on our website at www.cst.org. self-assessment.

The current members of the IRC, each of whom isIndependent Review Committeeindependent of the Foundation and CSTC, are:

An Independent Review Committee (the IRC) acts for thePaul Gardner, CFA is a founding partner of AvenuePlans in accordance with NI 81-107 Independent ReviewInvestment Management Inc. and an investment managerCommittee for Investment Funds (NI 81-107).for the Equity Portfolio and the Fixed Income Portfolio of

The mandate of the IRC is to provide independent review the firm. Mr. Gardner has more than 25 years experienceand oversight of the conflicts CSTC faces in our in the investment industry.management of the Plans. This is accomplished

Don McCreesh, C.Dir (Chair) is an experienced boardmainly by:director with more than 30 years of experience as a• reviewing and providing input into our policiesmember of a number of corporate, not-for-profit andand procedures for dealing with matters that posecharitable organization boards. Mr. McCreesh spentan actual or perceived conflict of interest with the11 years as the global head and corporate officerbest interests of the Plans;responsible for Human Resources at several companies.• undertaking an annual review of our written

policies and procedures on conflict matters and Amana Manori is the Managing Director, Chief Legalour compliance with these policies and procedures Officer of Introduction Capital Inc. Previously, she was theand any conditions imposed by the IRC; President and CEO of Lattice Legal, a legal and consulting

58

Period(s)Name served asMunicipality of Residence Position director Principal occupation

Name

Municipality of Residence Position Principal occupation

firm in Toronto. Prior to founding Lattice, Amana served The C.S.T. Committeeas the Chief Legal Officer for one of the world’s largest

The C.S.T. Committee is a policy committee of up tohedge fund providers and has over a decade of10 members appointed as follows: two by the Trusteeexperience in the alternative investment industry.(one of whom is Chair), four by the Foundation, two by a

At least annually, the IRC prepares a report of its activities national Canadian organization or organizations havingfor Subscribers. The report is available on our website at charitable or public objects, and two by a Canadian trustwww.cst.org, or at the Subscriber’s request at no cost, by company or chartered bank. The C.S.T. Committee advisescontacting us at [email protected]. and assists the Trustee and us, and considers and makes

recommendations regarding EAP policies and guidelines,eligibility of Beneficiaries, Eligible Studies and othermatters related to EAPs.

Appointed by RBC Investor Services Trust

Rosemary Demichele Senior Manager, Client Service, Eva Tang Client Service,(Chair) RBC Investor Services Trust Toronto, Ontario Sales & DistributionMississauga, Ontario RBC Investor Services Trust

Appointed by the Foundation

Robert A. Thompson Retired, Former Peter A. Lewis Vice-President, Regulatory, RiskTruro, Nova Scotia Executive Director, Brantford, Ontario and Corporate Affairs,

Operation Dialogue C.S.T. Consultants Inc.

Jill Purcell Senior Investment Consultant,Orono, Ontario Towers Watson

Appointed by Royal Bank of Canada

David Waugh Senior Commercial Account Sylvia MacDonald Associate Account Manager,Toronto, Ontario Manager, Commercial Financial Newcastle, Ontario Business Services & Professionals,

Services, Royal Bank of Canada Royal Bank of Canada

Third Party Dispute Resolution ServiceIf you have a complaint or a concern about our sales representatives or the services you received from us, we willwork with you to resolve your complaint or dispute. However, if you feel that a satisfactory resolution of the matter isnot achieved, you may refer your complaint to the Ombudsman for Banking Services and Investments (OBSI) orAutorite des marches financiers (AMF) (Quebec residents only). Information about our complaint handling process isavailable on our website at www.cst.org

Ombudsman for Banking Services Autorite des marches financiersand Investments Service du traitement des plaintes401 Bay Street, Suite 1505 800, square Victoria, 22e etageP.O. Box 5 C.P. 246, tour de la BourseToronto, Ontario, M5H 2Y4 Montreal (Quebec) H4Z 1G3Toll Free: (888) 451-4519 Telephone: (514) 395-0337Fax: (888) 422-2865 Toll Free: (1-877) 525-0337Website: www.obsi.ca Fax: (514) 873-3090E-mail: [email protected] Toll Free Fax: (1-877) 285-4378

OBSI offers a free, independent and impartial resolution service. Legal representation is not required to participate fullywith any investigation carried out by OBSI. If OBSI investigates a complaint against us and finds in your favour, it willrecommend a course of action to resolve the complaint, which may include compensation.

If you are a resident of Quebec and are not satisfied with the resolution offered or with the handling of yourcomplaint, you may request that we transfer our complaint file to the AMF. The AMF will assess the complaint and ifnecessary, offer mediation services to assist us in reaching a satisfactory settlement.

59

and Government Grants held in the Plans. The amount ofCompensation of Directors, Officers,these fees paid in 2014 by all Plans administered by us

Trustees, and Independent Review (including those no longer being distributed)Committee Members was $664,000.

The Plans do not have a board of directors, officers or The charter for the IRC provides that the compensationemployees. Oversight of the Plans is carried out by the and permitted expenses of the IRC will be paid by theBoard of Directors of the Foundation. The Director of the Plans, and that we will allocate the costs among the PlansFoundation that is an employee of CSTC receives no on an equitable and reasonable basis. The Plans pay theadditional remuneration for serving as a director. The compensation of the committee members which isremainder of the Board of Directors receives no comprised of annual members’ fees and meetingremuneration directly or indirectly for services provided to attendance fees. Expenses of the IRC include premiumsthe Foundation other than annual directors’ fees and for insurance coverage, legal fees, secretariat fees formeeting attendance fees which totaled $319,500 for the record-keeping, travel expenses and reasonable2014 fiscal year of the Foundation and which were paid out-of-pocket expenses. During the fiscal year of the Plansfrom the Administration Fees received by the Foundation ended October 31, 2014, total fees paid to P. Gardner,from the Plans (including those no longer being D. McCreesh, A. Manori were $8,750, $12,712.50 (includingdistributed). HST) and $9,322.50 (including HST), respectively. Expenses

related to the IRC were $47,825.For the services provided, the trustee charges fees whichare deducted from Income earned on net Contribution

60

Portfolio ManagersBeutel, Goodman & Company Ltd.Toronto, Ontario

BlackRock Asset Management Canada LimitedToronto, Ontario

BMO Asset Management Inc.Toronto, Ontario




Each portfolio manager manages a portion of the assets of the Plans according to specific mandates we have assignedthem. We have established compliance criteria designed to ensure overall compliance with the investment policies,objectives and strategies of each Plan. CSTC monitors the management of the assets of the Plans and manages eachportfolio manager. CSTC’s Chief Investment Officer to carries out this management and oversight. The InvestmentCommittee of the Foundation’s Board of Directors also monitors the portfolio managers’ performance on a quarterlybasis in accordance with the investment policy of the Plans and the mandate of the portfolio managers and mayterminate any of the investment management agreements with appropriate notice in consultation with CSTC.

Beutel, Goodman & Company Ltd. (Toronto, Ontario)Beutel, Goodman & Company Ltd. (Beutel Goodman) is a Canadian company founded in 1967 as a privately-ownedCanadian investment management organization. The firm is majority-owned by its employees who are directly involvedin the management of client assets. Beutel Goodman specializes in the management of Canadian, U.S., andinternational equities, and balanced and fixed income mandates for institutional and individual investors. Its fixedincome style is active, seeking to add value through management of duration, yield curve and credit risk. Its mandateis to invest Plan assets in fixed income debt instruments issued and guaranteed by Canadian federal, provincial andterritorial governments. It also has performance objectives and risk control limit guidelines.


David J. Gregoris, CFA 23 years 29 years Portfolio ManagerManaging Director, Fixed Income

Sue McNamara, CFA 9 years 23 years Portfolio ManagerVice President, Fixed Income

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BlackRock Asset Management Canada Limited (Toronto, Ontario)BlackRock Asset Management Canada Limited (BlackRock) is a premier provider of global investment managementservices. BlackRock manages equity, fixed income, real estate, liquidity, alternatives, and asset allocation/balancedstrategies for institutional and retail clients. Through BlackRock Solutions (‘‘BRS’’), the firm provides risk managementand advisory services that combine capital markets expertise with internally-developed systems and technology. Itsmandate is to invest Plan assets in US and Canadian equities through exchange traded funds that trade on a stockexchange in Canada according to defined asset mixes. It also has performance objectives and risk control limitguidelines.


Greg Savage, CFA 14 years 23 years Managing Director and Head ofManaging Director iShares Equity Portfolio

Management

Creighton Jue, CFA 16 years 18 years Managing Director, PortfolioManaging Director Manager in BlackRock’s

Institutional Equity PortfolioManagement Group

BMO Asset Management Inc. (Toronto, Ontario)BMO Asset Management Inc. is a multi-asset management business characterized by specialized, regional investmentteams providing a range of investment solutions to global clients. BMO Asset Management Inc. is the legal operatingentity in Canada and was originally established in 1982 as Jones Heward Investment Counsel Inc. Now wholly ownedby BMO Financial Group, the company was renamed in 2010 following the amalgamation of the BMO Exchange TradedFunds and Quantamental Investment groups. Its mandate is to invest Plan assets in US and Canadian equities throughexchange traded funds according to defined asset mixes. It also has performance objectives and risk control limitguidelines.


Rob Bechard, CFA, M.Sc. 5 years 16 years Head of Equity and Fixed IncomeSenior Vice President and Head of Portfolio Management for the ETFETF Portfolio Management and Global Structured Investment

Group

Chris McHaney, CFA 5 years 16 years Equity and Derivative PortfolioVice President and Portfolio ManagerManager

Raymond Chan, CFA, FRM Vice 5 years 13 years Equity Portfolio Manager andPresident and Portfolio Manager Currency Hedging Specialist

Chris Heakes, M. Fin. 4 years 6 years Portfolio Manager, Equity andPortfolio Manager Covered-Call portfolios. Previous

experience includes quantitativeequity research, investment fundsproduct support.

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Greystone Managed Investments Inc. (Regina, Saskatchewan)Greystone Managed Investments Inc. (Greystone) has been serving institutional clients across Canada since 1988. It isone of the largest independent money managers in Canada. Utilizing a team-based approach, Greystone offers a fullrange of investment services including fixed income, Canadian equities, U.S. equities and international equities, realestate, mortgages and infrastructure. Its mandate is to invest Plan assets in Canadian fixed income debt instrumentsaccording to defined asset mixes and to add value through security and sector selection as well as yield curve andduration positioning. Greystone’s fixed income team actively participates in the investment decisions made in itsportfolio; the lead portfolio manager has ultimate responsibility for the oversight and approval all the investmentdecisions. The mandate has performance objectives and risk control limit guidelines.


Blaine S. Pho, CFA 20 years 20 years Head of Fixed Income, PortfolioSenior Vice President, Fixed ManagerIncome

Chad Toews, CFA, CMT 17 years 17 years Fixed Income Trading, PortfolioVice President, Fixed Income Manager

Curtis Schimmelmann, CFA 6 years 18 years Portfolio Manager; previouslySenior Portfolio Manager, Fixed Manager, Capital Markets withIncome Viterra

TD Asset Management Inc. (Toronto, Ontario)TD Asset Management Inc. (TDAM) is a wholly-owned subsidiary of the Toronto-Dominion Bank. In January 1996,TDAM was incorporated with the amalgamation of the investment division of Toronto-Dominion Securities Inc. andLancaster Investment Counsel Inc.

Its mandate is to invest Plan assets in fixed income debt instruments issued and guaranteed by Canadian federal orprovincial governments and corporate debt securities according to defined asset mixes. TDAM’s Credit Committeeprovides approval on corporate debt issuer eligibility, and all other decisions, including security selection, sectorselection and yield and duration positioning are the responsibility of the portfolio manager. It also has performanceobjectives and risk control limit guidelines.


Rob Pemberton, CFA 15 years 24 years Head of Fixed Income (PortfolioHead of Fixed Income Management), Lead Portfolio

Manager Institutional Active FixedIncome

Christopher Case 5 years 25 years Senior Fixed Income PortfolioVice President and Director, Fixed ManagerIncome

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Canso Investment Counsel Ltd. (Richmond Hill, Ontario)Canso Investment Counsel Ltd. (Canso) was founded in 1997 and remains an independent firm wholly owned by itsemployees. Canso provides investment management services to institutional and private investors using a disciplinedapproach of both fundamental valuation of financial securities and portfolio construction. It specializes in securityselection based upon its proprietary research which examines default risk and cash flows of issuers to create long-termvalue for their portfolios. Its mandate is to invest Plan assets in Canadian fixed income debt instruments issued byCanadian federal and provincial governments and corporate debt securities issued by Canadian and foreign entitiesdenominated in Canadian dollars, according to defined asset mixes. It also has performance objectives and risk controllimit guidelines.


John Carswell, CFA 17 years 30 years President Canso and ChiefPresident Investment Officer

Timothy Hicks, CFA 5 years 27 years Fixed Income Portfolio Manager;Vice President previously Director North

American Equities, RussellInvestments

approximately 600 sales representatives. As a scholarshipDetails of the portfolio managementplan dealer, CSTC is registered under the applicableagreementssecurities legislation in each province and territory. It

Each of the portfolio managers manages Plan assets receives a portion of the sales charges collected fromaccording to the terms set out in their portfolio Subscribers for these services.management agreement and the specific mandates wehave assigned to them. Those agreements include the Dealer Compensationprovision of investment analysis, recommendations and

In exchange for selling the Plans, CSTC receives a portiondecision-making. The mandates include general

of the sales charges paid by Subscribers which are paidguidelines, permitted investments, constraints and

from the Plans as a Distribution Fee. CSTC uses thisrestrictions, in addition to performance standards. The

money to pay for its costs of distribution and to payportfolio management agreements may be terminated by

compensation to its sales representatives for their servicesCSTC with 30 days written notice or by the portfolio

in distributing the plans.manager with 90 days written notice.

In order for the Foundation to meet its commitment toPrincipal Distributor refund to Subscribers in Group Savings Plan 2001 at least

50% of sales charges paid, it transfers a portion of theC.S.T. Consultants Inc.sales charges paid by Subscribers to a segregated account2235 Sheppard Avenue East, Suite 1600that has been established for this purpose. Subscribers inToronto, Ontario M2J 5B8Group Savings Plan 2001 who meet applicable conditions

According to the provisions of an agreement between the will become eligible to receive a refund of at least 50% ofFoundation and CSTC, dated as of November 1, 1998, as sales charges paid.amended and restated August 26, 1999 and as further

As part of their compensation, sales representatives canamended May 1, 2006 and June 17, 2010earn awards, based on the number of Units and Plans(the ‘‘Distribution Agreement’’), CSTC has the exclusivethey sell. Awards may include trophies, gifts and/or anright to distribute the Plans throughout Canada. Theannual sales conference trip. All costs for these incentivesFoundation may terminate the Distribution Agreement inare paid by CSTC from its own funds, and are notthe event of a material adverse change in the conditioncharged against Subscribers, Beneficiaries, the Foundation(financial or otherwise) of CSTC, or by either party uponor the Plans.the occurrence of certain events of default including

material breaches of the Distribution Agreement or Dealer compensation from management feesvarious insolvency events.

Compensation paid to CSTC in its capacity as distributorCSTC markets and distributes the Plans and operates in comes directly from sales charges paid by Subscribers andevery province and territory with a sales force of is not paid from the management fees charged to the

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Plans. This means that the compensation that CSTC pays Subscriber Mattersto its sales representatives is not derived from themanagement fees charged to the Plans. Meetings of SubscribersCustodian The Foundation or the trustee is required to call a

meeting to consider any amendment to the trustRBC Investor Services Trust

indentures or education savings plan agreements forToronto, Ontario

which Subscriber approval is required. At least 21 daysThe custodian also acts as Plan trustee. notice of a meeting must be given to Subscribers. Each

education savings plan agreement entitles a Subscriber toAuditor one vote. Resolutions may be passed by a two-thirds vote

of Subscribers represented at a meeting in person or byDeloitte LLPproxy. Three Subscribers constitutes a quorum forSuite 1400a meeting.Brookfield Place, 181 Bay Street

Toronto, Ontario M5J 2V1 Matters Requiring Subscriber ApprovalTransfer Agent and Registrar No matters other than the amendments to the trust

indentures and education savings plan agreementsThe Canadian Scholarship Trust Foundationdescribed below require Subscriber approval.2235 Sheppard Avenue East, Suite 1600

Toronto, Ontario M2J 5B8 Amendments to the Declaration ofPromoter TrustC.S.T. Consultants Inc. Certain amendments to an education savings planToronto, Ontario agreement or trust indenture may be made without

consulting Subscribers or Beneficiaries. These consist ofThe promoter also acts as manager and distributor of the

any change that, in the opinion of the Foundation andPlans.

the trustee:• is for the purpose of complying with any statute ofOther service providers

Canada or a province, or any order, rule orTowers Watson regulation made according to the statute;Toronto, Ontario • does not materially adversely affect Subscribers or

Beneficiaries; orTowers Watson provides our Investment Committee with• is necessary to correct a clerical or typographicalinvestment and actuarial consulting services consisting of

error in the trust indentures.asset/liability management, and valuation of sales chargerefund obligations as well as other consulting services. The Foundation, CSTC and the trustee, in consultation

with the C.S.T. Committee, have the power to make rulesOwnership of the Manager and Other and regulations relating to the administration of the PlansService Providers and the Subscriber agreements.

C.S.T. Consultants Inc. (CSTC) is a wholly-owned subsidiary All other amendments require the consent of theof the Canadian Scholarship Trust Foundation. Towers Foundation, the trustee and Subscribers by way of aWatson is a publicly traded company on the New York resolution passed by at least two-thirds of the eligibleStock Exchange and the NASDAQ stock market. votes cast at a meeting of Subscribers.

Reporting to Subscribers andExperts who contributed to thisBeneficiariesprospectusWhen you first enter into your plan, we will send you aDeloitte LLP – Auditorsigned agreement, along with a trade confirmation and a

Personnel associated with these experts have less than a copy of this prospectus, and other information relating to1% ownership interest in the Plans and do not own, your relationship with us and how we will operate yourdirectly or indirectly any ownership interest in CSTC. plan. You should review this information and keep it for

future reference, along with each annual statementreferred to below.

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We send Subscribers an annual statement which shows and exchange traded funds. Bonds, equities and moneythe total amount of your Contributions, Government market securities are valued using quoted bid prices atGrants, Income earned, sales charges, account period end. In the event that quoted market prices aremaintenance fees and other deductions since the date of not available, the fair values are estimated using presentthe last annual statement or the date of your value or other valuation techniques.subscription, if less than one year. Annually we also

Management has determined that the carrying value ofprovide you with information about the direct costs that

payables for securities purchased, Subscribers’ depositsyou paid us in connection with your plan, as well as the

and unclaimed Subscriber funds approximate their fairoutstanding unpaid portion of your sales charges, the

values as these instruments are short term in nature.amount that you contributed to your plan during theyear, and a reasonable projection of the future value of Proxy Votingyour plan.

We view corporate governance and compliance asWe will also send you a form requesting instructions from important to overall corporate performance andyou as to whether you would like to be sent the annual long-term investment returns and as such support thereport of the appropriate Plan with audited financial proxy voting guidelines established by our portfoliostatements including a management report of fund managers. Investment restrictions contained in the Incomeperformance, and/or the semi-annual unaudited financial Tax Act (Canada) and the undertaking, as well as ourstatements. Both the annual and semi-annual financial investment policies result in the Plans primarily investingstatements are accessible in the SEDAR Filings Database in federal and provincial government fixed incomeat www.sedar.com, on our website at www.cst.org and in securities.the online services section of our secure self-service

We review each portfolio manager’s proxy voting policieswebsite.and procedures which guide the portfolio manager indetermining whether and how to vote on any matter forBusiness Practiceswhich the Plans receive proxy materials. Each portfolio

Our Policies manager’s proxy voting policy is available on request, atno cost, by calling 1-877-333-7377 or by contacting us at

As manager of the Plans, CSTC is responsible for [email protected].

day-to-day management, administration and operation ofthe Plans. The proxy voting record for each Plan for the most recent

12-month period ended June 30 of each year will beCSTC has established appropriate policies, procedures,

available at no cost to any Subscriber upon request bypractices and guidelines to ensure the proper

August 31 of that year.management of the Plans, including as required byNI 81-107, policies and procedures relating to conflicts of Conflicts of Interestinterest. The processes and controls used by CSTC inrelation to the Plans monitor and manage the business CSTC, as investment fund manager, is required to refer alland sales practices, risk and internal conflicts of interest conflict of interest matters to the Independent Reviewrelating to the Plans, while ensuring compliance with Committee (‘‘IRC’’) for its review and recommendations.applicable regulatory, compliance and corporate The IRC reviews and provides input on CSTC’s writtenrequirements. CSTC personnel responsible for compliance, policies and procedures that deal with conflict of interesttogether with management of CSTC, ensure that these matters. It reviews conflict of interest matters referred topolicies, procedures, practices and guidelines are it by CSTC and makes recommendations to CSTCcommunicated from time to time to all relevant persons regarding whether the proposed actions in connectionand are updated as necessary to reflect changing with the conflict of interest matter achieve a fair andcircumstances. CSTC also monitors the application of all reasonable result for the Plans. Where required bysuch policies, procedures, practices and guidelines to securities laws, the IRC considers and, if deemedensure their continuing effectiveness. appropriate, approves CSTC’s decision on a conflict of

interest matter that CSTC refers to the IRC for approval.Compliance with the undertaking is monitored by CSTCon a regular basis. The investment strategies, practices Rather than requiring CSTC to refer a matter to the IRCand restrictions for the Plans are outlined on page 9. each time a conflict arises, the IRC has established

standing instructions that allow CSTC to take action onValuation of Portfolio Investments matters within the parameters established by CSTC’s

policies and procedures on conflict matters. CSTC believesThe custodian values the following types of investmentsthat adherence to its policies and related procedures,at fair value: bonds, equities, money market securities,

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provides adequate safeguards against the potential for Key Business Documentsany self-interest to take precedence over the interests ofinvestors in the Plans. The following conflict of interest The following material contracts have been entered into:matters have been considered by the IRC which has • Amended and restated Trust Indenture mademade a positive recommendation to CSTC to follow its March 4, 1992 between us and the trustee formingpolicies in managing these conflicts. the trust which holds the assets of the Original

Group Savings Plan and Group Savings Plan 2001.Fees

• Trust Indenture dated March 24, 1997, asMost fees payable by Subscribers or the Plans cannot be

amended, between us and the trustee forming theincreased without Subscriber approval. However, the

trust which holds the assets of the Individualaccount maintenance fee, transaction fees and other fees

Savings Plan.permitted by your Contract can be increased by the

• Trust Indenture dated April 6, 1999, as amended,Foundation with 60 day advance written notice to the

between us and the trustee forming the trustSubscribers.

which holds the assets of the Family Savings Plan.Sales Charge Refund • Plan Management and Administration AgreementAny changes to the sales charge refund during the effective as of September 28, 2010 between thecurrency of an education savings plan agreement cannot Foundation, CSTC and RBC Investor Services Trustbe made without an amendment to that agreement which sets out the roles and responsibilities ofwhich would require Subscriber approval. each party and under which administrative services

are provided to the trustee in connection withContracts with Related Parties

the Plans.In the event that CSTC or the Foundation wishes to

• Services Agreement as of November 1, 1990reopen the services arrangements between these two

between the Foundation and CSTC, as amendedparties, the Board of Directors of the Foundation will

and restated effective September 28, 2010, inconsider whether there are any alternate arrangements

which CSTC provides certain administrative servicesthat may be in the best interests of Subscribers.

in connection with the duties of the board ofContracts in which an Entity Related to the Manager directors of the Foundation, in addition to itsHas an Interest duties as investment fund manager to the Plans.Agreements between CSTC or the Foundation and a third • Amended and restated Distribution and Licenseparty in which an entity related to the CSTC or the Agreement dated as of November 1, 1998 asFoundation has an interest should be on terms no less further amended and restated, between thefavourable to the Plans than those which would exist in a Foundation and CSTC in which distribution servicescontract with an arm’s length third party. are provided to the Foundation.

• Investment Management Agreement betweenInterests of Management and Others BlackRock Asset Management Canada Limited and

us dated June 20, 2014.in Material Transactions• Investment Management Agreement between BMO

In accordance with the Foundation’s by-laws and Board Asset Management Inc. and us datedPolicy Guidelines on governance, applicable corporate law June 19, 2014.and good governance practices, Ms A. Elaine Bourassa, a • Investment Managed Account Agreement betweenDirector of the Foundation, has declared her directorship Canso Investment Counsel Inc. and us datedon the Board of Greystone Capital Management Inc., the July 21, 2009.parent company of Greystone. Greystone is one of the • Investment Management Agreement between TDinvestment managers for the Plans. On an ongoing basis, Asset Management Inc. and us datedMs Bourassa will not participate in any Board November 30, 2012.deliberations concerning the investment management of • Investment Management Agreement betweenthe Trusts, nor will she vote on any resolutions Beutel, Goodman & Company Ltd. and us datedrecommended by our Investment Committee. April 17, 2012.

• Investment Management Agreement betweenGreystone Managed Investments Inc. and us datedMarch 19, 2004 and amended April 4, 2012.

• Agreement between ESDC (formerly HumanResources and Skills Development Canada(HRSDC)) and the Foundation for the delivery ofthe Canada Education Savings Grant and the

67

Canada Learning Bond dated May 1, 2009 and Group Savings Plan 2001 currently being offered by thisamended effective August 2, 2010 and prospectus with the following significant differences:November 10, 2014. (a) the contribution frequency and amounts were

• Agreement between ESDC (formerly HRSDC) and based on the contribution schedule that was inthe Foundation for the delivery of the Alberta effect at the relevant time;Centennial Education Savings Plan dated May 1, (b) the criteria that must be met by a child to2009 and amended effective August 2, 2010 and qualify for an EAP are different in the case ofNovember 10, 2014. the Discontinued Plans in that the Eligible

• Agreement between ESDC and the Foundation for Studies must be at least two years long and thethe delivery of the Saskatchewan Advantage Grant post-secondary school must be a member of thefor Education Savings dated August 29, 2014. Association of Universities and Colleges of

• Agreement between the Minister of Revenue of Canada, the Association of Canadian CommunityQuebec and the Foundation for the delivery of the Colleges or their equivalent;Quebec Education Savings Incentive dated (c) the age limit to change the Beneficiary isOctober 8, 2008. 10 years old in the case of Plan II and 13 years

• Education Savings Plan Agreements in respect of old in the case of the Founders’ Plan;each of the Plans. (d) Beneficiaries of the Discontinued Plans do not

receive their first EAP until they are in theYou may view copies of all material contracts at our

second year of Eligible Studies and they areoffices, 2235 Sheppard Avenue East, Suite 1600, Toronto,

eligible for a maximum of three EAPs; andOntario M2J 5B8 with 10 days’ notice.

(e) the sales charges (formerly enrolment fees) paidfor Units of Plan II and Founders’ Plan areLegal mattersnot refundable.

Exemptions and Approvals under The terms and conditions of Group Savings Plan 2001 andthe Original Group Savings Plan are identical except withSecurities Lawsrespect to sales charge refunds. A Subscriber who

We were granted relief in all provinces and territories of enrolled in the Original Group Savings Plan is eligible toCanada (except in Prince Edward Island) in a decision receive a refund of their entire sales charges along withdated February 15, 2006 from the requirement to prepare the first EAP paid to his or her Beneficiary. Subscribers toand file an annual information form with respect to Plan Group Savings Plan 2001 are eligible to receive oneII and Founders’ Plan (the ‘‘Discontinued Plans’’) as well as quarter of their sales charge refund with each EAP paidthe Group Savings Plan offered prior to April 27, 2001 to his or her Beneficiary (see ‘‘Refund of Sales Charges’’(the ‘‘Original Group Savings Plan’’). This relief was on page 24 for details of the amount of the refund forgranted on the condition that this prospectus discloses which Subscribers purchasing Units under this prospectusthe material details of the significant differences between may be eligible). The two Group Savings Plans also havethe plans no longer being distributed (the Discontinued different contribution schedules.Plans and the Original Group Savings Plan) and GroupSavings Plan 2001.

The Discontinued Plans are group savings plans thatoperate on substantially similar terms and conditions as

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Certificate of the Scholarship PlansMay 25, 2015

This prospectus, together with the documents incorporated herein by reference, constitutes full, true and plaindisclosure of all material facts relating to the securities offered by the prospectus, as required by the securitieslegislation of each of the provinces and territories of Canada.

C.S.T. CONSULTANTS INC.On Behalf of the Plans

(Signed) (Signed)Sherry J. MacDonald, CPA, CA Richard D’Archivio, CPA, CA, CFA

President and Chief Executive Officer Vice President, Chief Financial Officer


ON BEHALF OF THE PLANS

(Signed) (Signed)Colin E. Litton, FCPA, FCA, ICD.D David R. Lewis, CFA

Director Director

Certificate of the Investment Fund ManagerMay 25, 2015


C.S.T. CONSULTANTS INC.As Manager




AS MANAGER

(Signed) (Signed)Colin E. Litton, FCPA, FCA, ICD.D David R. Lewis, CFA

Director Director

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Certificate of the Principal DistributorMay 25, 2015


C.S.T. CONSULTANTS INC.As Distributor



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Group Savings Plan 2001Individual Savings PlanFamily Savings Plan

C.S.T. Consultants Inc.2235 Sheppard Avenue East, Suite 1600Toronto, Ontario M2J 5B8

You can find additional information about the Plans in the following documents:

• the Plan’s most recently filed annual financial statements,

• any interim financial reports filed after the annual financial statements,

• the most recently filed annual management report of fund performance, and

• the undertaking to the Ontario Securities Commission and each other provincial and territorial securities regulator.

These documents are incorporated by reference into this prospectus. That means they legally form part of this document just as if they were printed as part of this document.

You can get a copy of these documents at no cost by calling us at 1-877-333-RESP (7377) or by contacting us at [email protected].

You’ll also find these financial statements, management reports of fund performance and the undertaking on our website at www.cst.org.

These documents and other information about the Plans are also available at www.sedar.com

Canadian Scholarship Trust Plan is a registered trademark of the Canadian Scholarship Trust Foundation.

Prospectus cover.indd 1 2015-06-04 11:51 AM