Sun Life 2012 Annual Report Download - page 158

26. Related Party Transactions
SLF Inc. and its subsidiaries transact business worldwide. All transactions between SLF Inc. and its subsidiaries have been eliminated
on consolidation. Transactions between the Company and related parties are executed and priced on an arm’s-length basis in a
manner similar to transactions with third parties.
26.A Transactions with Joint Ventures
Principal joint ventures as at December 31, 2012 are listed below:
Name of Joint Venture Company
%of
Ownership
Birla Sun Life Asset Management Company Limited 49
PT CIMB Sun Life 49
Sun Life Grepa Financial Inc. 49
Birla Sun Life Insurance Company Limited 26
Sun Life Everbright Life Insurance Company Limited 24.99
Income earned from our investments in joint ventures are as follows:
For the years ended December 31 2012 2011
Joint ventures $34 $17
26.B Transactions with Key Management Personnel, Remuneration and Other
Compensation
Key management personnel have been defined as the executive team and Board of directors of SLF Inc. during the year. These
individuals have the authority and responsibility for planning, directing and controlling the activities of the Company. The aggregate
compensation to the executive team and directors are as follows:
For the years ended December 31, 2012 2011
Executive team Directors Executive team Directors
Number of individuals 12 14 10 14
Base salary and annual incentive compensation $14 $ – $9 $–
Additional short-term benefits and other $1 $1 $1 $1
Share-based long-term incentive compensation $18 $ 1 $18 $ 1
Value of pension and post-retirement benefits $2 $– $1 $–
Severance $2 $– $– $–
26.C Indebtedness of Directors, Executive Officers and Employees
The following sets out the aggregate indebtedness outstanding to the Company incurred by all its executive officers, directors and
employees, and former executive officers, directors and employees.
As at December 31, 2012 2011
Indebtedness $3 $3
26.D Other Related Party Transactions
We provide investment management services for our pension plans. The services are provided on substantially the same terms as for
comparable transactions with third parties.
27. Pension Plans and Other Post-Retirement Benefits
We sponsor non-contributory defined benefit pension plans for eligible qualifying employees. The material defined benefit plans are
located in Canada, the U.S. and the U.K. The defined benefit pension plans offer benefits based on length of service and final average
earnings and certain plans offer some indexation of benefits. The specific features of these plans vary in accordance with the employee
group and countries in which employees are located. In addition, we maintain supplementary non-contributory pension arrangements
for eligible employees, primarily for benefits which do not qualify for funding under the various registered pension plans. On January 1,
2009, the Canadian defined benefit plan was closed to new employees. Canadian employees hired before January 1, 2009 continue to
participate in the previous plan, which includes both defined benefit and defined contribution components, while new hires since then
are eligible to join a defined contribution plan. As a result, all of our material defined benefit plans worldwide are closed to new hires,
with new hires participating in defined contribution plans (one small defined benefit plan in the Philippines remains open to new hires).
We also established defined contribution pension plans for eligible qualifying employees. Our contributions to these defined
contribution pension plans are subject to certain vesting requirements. Generally, our contributions are a set percentage of employees’
annual income and matched against employee contributions.
In addition to our pension plans, in Canada and the US, we provide certain post-retirement healthcare and life insurance benefits to
eligible qualifying employees and to their dependants upon meeting certain requirements. Eligible retirees may be required to pay a
156 Sun Life Financial Inc. Annual Report 2012 Notes to Consolidated Financial Statements