LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND IQALUIT, NUNAVUT FINANCIAL STATEMENTS March 31, 2024 Management’s Responsibility for Financial Reporting 1 Independent Auditors’ Report 2 - 4 Statement of Net Assets Available for Benefits and Accrued Pension Benefits and Surplus 5 Statement of Changes in Net Assets Available for Benefits 6 Statement of Obligations for Pension Benefits 7 Notes to the Financial Statements 8 - 14

2 Independent Auditors' Report To the Members of the Legislative Assembly of Nunavut Report on the Audit of the Financial Statements Opinion We have audited the financial statements of the Legislative Assembly Retiring Allowances Fund (the Fund), which comprise the statement of net assets available for benefits and accrued pension benefits and surplus as at March 31, 2024 and the statements of changes in net assets available for benefits, and obligations for pension benefits for the year then ended, and a sum mary of significant accounting policies and other explanatory information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Fund as at March 31, 2024 and its financial performance and its cash flows for the year then ended in accordance with Canadian accounting standards for pension plans. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements

section of our report. We are independent of the F und in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and f air presentation of the financial statements in accordance with Canadian accounting standards for p ension plans, and for such internal control as management determines is necessary to enable the pr eparation of the financial statements that are free of material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intend s to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Fund’s financial reporting process.

3 Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of as surance, but is not a guarantee that an audit condu cted in accordance with Canadian generally accepted audi ting standards will always detect a material misstatement when it exists.

Misstatements can aris e from fraud or error and are considered material i f, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit.

We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit pro cedures responsive to those risks, and obtain audit evidence that is sufficient and approp riate to provide a basis for our opinion.

The risk of not detecting a material misstatement r esulting from fraud is higher than for one resulting from error, as fraud may involve coll usion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevan t to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signi ficant doubt on the Fund’s ability to continue as a going concern.

If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report.

However, future events or conditions may cause the Fund to cease to continue as a going concern. • Evaluate the overall presentation, structure and co ntent of the financial statements, including the disclosures, and whether the financia l statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independenc e, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

4 Report on Other Legal and Regulatory Requirements We further report, in accordance with the Legislative Assembly Retiring Allowances Act , in our opinion, the financial statements are in agreement therewith and the transactions that have come under our notice have, in all significant respects, been within the statutory powers of the Legislative Assembly Retiring Allowances Fund. Iqaluit, Nunavut Chartered Professional Accountants July 2, 2024 Lester Landau Accounting Professional Corp.

2024 2023 ASSETS Investments (Note 3) 20,965,548 $ 18,370,770 $ Contributions receivable - Members of the Legislative Assembly 42,233 41,199 Accounts receivable 13,722 11,965 TOTAL ASSETS 21,021,503 18,423,934 LIABILITIES Accounts payable 28,343 5,184 Benefits payable - - TOTAL LIABILITIES 28,343 5,184 NET ASSETS AVAILABLE FOR BENEFITS 20,993,160 18,418,750 ACTUARIAL VALUE OF ACCRUED PENSION BENEFITS 13,345,400 11,996,300 SURPLUS 7,647,760 $ 6,422,450 $ AS AT MARCH 31, 2024 STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS AND ACCRUED PENSION BENEFITS AND SURPLUS LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND 5

2024 2023 INCREASE IN ASSETS Investment income Interest and dividends 597,183 $ 951,852 $ (Loss) gain on sale of investments 3,665 (2,452) 600,848 949,400 Change in fair value of investments 1,271,040 (294,976) 1,871,888 654,424 Other income Other income 1,757 1,602 Contributions Sponsor 841,200 879,500 Members of the Legislative Assembly 338,262 329,840 1,179,462 1,209,340 TOTAL INCREASE IN ASSETS 3,053,107 1,865,366 DECREASE IN ASSETS Payment of benefits 371,374 845,629 Investment management fees 107,323 98,242 TOTAL DECREASE IN ASSETS 478,697 943,871 INCREASE (DECREASE) IN NET ASSETS 2,574,410 921,495 NET ASSETS AVAILABLE FOR BENEFITS, OPENING 18,418,750 17,497,255 NET ASSETS AVAILABLE FOR BENEFITS, CLOSING 20,993,160 $ 18,418,750 $ LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED MARCH 31, 2024 6

2024 2023 CHANGE IN ACCRUED BENEFITS Benefits earned 1,170,200 $ 1,367,700 $ Interest accrued on benefits 634,000 595,700 Benefits paid out (455,100) (1,092,000) Experience gains - (2,946,400) NET DECREASE IN ACCRUED BENEFITS 1,349,100 (2,075,000) 11,996,300 14,071,300 13,345,400 $ 11,996,300 $ ACTUARIAL PRESENT VALUE OF ACCRUED PENSION BENEFITS, OPENING ACTUARIAL PRESENT VALUE OF ACCRUED PENSION BENEFITS, CLOSING LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND STATEMENT OF OBLIGATIONS FOR PENSION BENEFITS FOR THE YEAR ENDED MARCH 31, 2024 7

8 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 1 DESCRIPTION OF PLAN The Fund was established on April 1, 1999 pursuant to the Legislative Assembly Retiring Allowances Act and is administered by the Management and Services Board. The following description of the Legislative Assembly Retiring Allowances Fund is a

summary only. For a complete description of the Plan, reference shoul d be made to the Legislative Assembly Retiring Allowances Act . Assets to provide benefits under the Retiring Allow ances Act are held in trust by RBC Investor & Treasury Services. In January 2010 the M anagement and Services Board terminated its arrangement with its investment fund manager (UBS Global Asset Management (Canada)) and on January 11, 2010, appointed Beutel Goodman & Company Limited as its Fund Manager.

a) General The Legislative Assembly Retiring Allowances Fund i s a contributory defined benefit pension plan for all Members of the Legislative Ass embly (“MLA”) of Nunavut for credited service after March 31, 1999. Under the P lan, the Plan Members and the Legislative Assembly, Government of Nunavut, the fund’s sponsor, make contributions.

b) Funding Current service costs are funded by Members of the Legislative Assembly contributions and the Sponsor at rates that are expected to provide for all benefits payable under the plan. The rate in effect at March 31, 2024 is 6.5% of pen sionable salary for Members to the maximum of the defined benefit limit divided by 2% (as prescribed under the Income Tax Act of Canada). In addition, if a member has filed an election in accordance with

section 7 of the Supplementary Retiring Allowances Act , the member shall contribute to the Fund, in each month, 9% of pensionable salary subject to the same Income Tax Act (Canada) limits noted above. Employer contributions require d are equal to the amount certified by an actuary as being necessary to fully fund the ben efits accruing under the Plan, less the amount of Members’ contributions. The rates are to be reviewed by the Management and Services Board based on recommendations of the Plan’s actuary as part of th e valuation completed April 1 st , following each general election.

9 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 1 DESCRIPTION OF PLAN (continued)

c) Retirement Benefits A retirement pension is payable to a Member, based on 2% of the average best earnings over four consecutive years as an MLA multiplied by credited service as an MLA. PLUS Two percent of the average best earnings over four consecutive years in each position of Minister, Speaker or Chairperson multiplied by cred ited service for each position. A position must be held for at least one year for a pension to be paid, and the pension for each position is calculated separately.

d) Normal Retirement Age The earliest of: Age 60 30 years of service Age plus service equals 80

e) Early Retirement A Member may retire at any time upon ceasing to be a Member of the Assembly. A Member retiring prior to Normal Retirement Age shall receive a pension reduced by 0.25% for each month a Member Retires before the Normal Retirement Age.

f) Late Retirement Up to age 69.

g) Maximum Allowance For benefits earned, the annual retirement pension payable shall not exceed the lesser of: (

i) The defined limit as prescribed under the Income Tax Act of Canada for the year in which the pension commences, times the years of credited service; or (ii) 2% of the average annual indexed pensionable remuneration, times the years of credited service.

h) Form of Pension The normal form of payment for service is joint between the Member and their spouse and is payable at 66 2/3% to the survivor on the death of the Member with a guarantee of 100% of the first 60 monthly payments in any event. Each dependent will receive a pension of 10% of the retirement pension (to a maximum total of 25%) if the spouse survives. If there is no surviving spouse, a benefit of 100% shall be divided by the number of children for the first 60 monthly payments after the Member’s pension commencement and then 25% of the benefit thereafter.

10 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 1 DESCRIPTION OF PLAN (continued)

i) Increase in Pension Pensions in pay and deferred pensions are increased every January 1 based on increases in the Consumer Price Index up to the preceding September 30.

j) Pre-Retirement Death Benefits If a Member or former Member dies before retirement and is not eligible to receive a pension, their accumulated contributions with inter est will be returned to the beneficiary. If a Member was eligible to receive a pension, it w ill be assumed that the Member retired on the day preceding their death and elected the normal form of pension.

k) Withdrawal Benefit A Member who terminates with four or more years of service or serves at least one full term as a Member of the Assembly is entitled to a r etirement pension. Benefit payment options include: immediate pension, deferred pensi on, lump sum payment, or a combination of pension and lump sum. All other Mem bers who terminate will receive a lump sum payment of their accumulated contributions with interest. Note 2 SIGNIFICANT ACCOUNTING POLICIES

a) Basis of Presentation These financial statements are prepared on the goin g concern basis and present the aggregate financial position of the Plan as a separate financial reporting entity independent of the sponsor and plan Members. The financial sta tements are prepared to assist plan Members and others in reviewing the activities of the plan for the fiscal period but they do not portray the funding requirements of the plan or the benefit security of individual plan Members. The financial statements have been prepare d in accordance with Canadian accounting standards for pension plans.

The Plan invests in units of pooled investment fund s established and administered by Beutel, Goodman & Company Ltd. Pooled investment f unds have a market-based unit value that is used to allocate income to pool parti cipants and to value purchases and sales of pool units. Pooled investment funds include fina ncial instruments, investment receivables and liabilities, and cash.

b) Valuation of Investments Investments in units of pooled investment funds are recorded in the financial statements at fair value. The fair value of the units is based o n the fair value of the underlying investments in the pooled investment funds. Fair va lue is the amount of consideration agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act.

11 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 2 SIGNIFICANT ACCOUNTING POLICIES (continued)

c) Fair Value Hierarchy Investment assets are classified and disclosed in one of the following categories reflecting the significance of inputs used in making the fair value measurement: • Level 1 – quoted prices (unadjusted) in active mark ets for identical assets or liabilities; • Level 2 – inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly; and • Level 3 – unobservable inputs.

d) Foreign Exchange Foreign currency transactions are translated into C anadian dollars using average rates of exchange. At year-end, the fair value of investment s and any other assets and liabilities denominated in a foreign currency are translated at the year-end exchange rate. Exchange differences are included in the determination of net investment income.

e) Revenue Recognition Interest income is recognized on an accrual basis o ver the term of the interest-bearing instrument. Dividends are recognized as revenue on the declaration date of the respective amounts. Realized gains and losses on the sale of investments are reported as the net amount.

Note 3 INVESTMENTS 2024 2023 Fair Value Fair Value % % Cash and cash equivalents $ 553,490 1.88 $ 484,988 2.7 Fixed income 6,298,051 30. 31 5, 518,579 30.0 Equities Canadian equities 6,088,395 29.30 5,334,872 29.0 US equities 4,591,455 24.11 4,023,299 21.9 Other international equities 3,434,157 14.39 3,009,132 16.4 14,114,007 67. 8 12,367,203 67.3 Total investments $ 20,965,548 100.0 $ 18,370,770 100.0

12 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 3 INVESTMENTS (continued) The fair values of all investments held by the Plan have been determined with inputs as described under the Level 1 category of the fair va lue hierarchy. The investments have a cost base at March 31, 2024 of $19,413,296 (2023 - $18,089,557). Note 4 INVESTMENT RISK MANAGEMENT The Plan is exposed to financial risks associated w ith its investment activities. These financial risks include credit risk, market risk an d liquidity risk.

Credit risk relates to the possibility that a loss may occur from the failure of another party to perform according to the terms of a contract. Market risk is comprised of foreign currency risk, interest rate risk and price risk. Liquidity risk is the risk the Plan will not be able to meet its obligations as they fall due.

a) Credit Risk Counterparty credit risk is the risk of loss arising from the failure of a counterparty to fully honour its financial obligations with the Plan. The credit quality of financial assets is generally assessed by reference to external credit ratings. Credit risk can also lead to losses when issuers and debtors are downgraded by credit rating agencies usually leading to a fall in the fair value of the counterparty’s obligations . Credit risk exposure for financial instruments is measured by the positive fair value of the contractual obligations with counterparties. The majority of the Plan’s investm ents in debt securities are with counterparties considered to be investment grade.

b) Foreign Currency Risk The Plan is exposed to foreign currency risk associated with the underlying securities held in pooled investment funds that are denominated in currencies other than the Canadian dollar. Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in for eign exchange rates. The fair values of investments denominated in foreign currencies are t ranslated into Canadian dollars using the reporting date exchange rate.

As a result, fluc tuations in the relative value of the Canadian dollar against these foreign currencies ca n result in a positive or negative effect on the fair value of investments. Approximately 38 .5% (2023 – 38.3%) of the Plan’s investments, or $8,025,612 (2022 - $7,032,331) are denominated in currencies other than the Canadian dollar.

13 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 4 INVESTMENT RISK MANAGEMENT (continued)

c) Interest Rate Risk The Plan is exposed to interest rate risk associate d with the underlying interest-bearing fixed income securities held in pooled investment f unds. Interest rate risk relates to the possibility that the investments will change in value due to future fluctuations in market interest rates. In general, investment returns from bonds and mortgages are sensitive to changes in the level of interest rates, with longer term interest bearing securities being more sensitive to interest rate changes than shorter-term bonds.

Approximately 30.3% (2023 – 30.0%) of the Plan’s investments, or $6,298,051 (2022 - $5,518,579) are held in fixed income instruments which are exposed to interest rate risk.

d) Price Risk Price risk relates to the possibility that equity investments will change in value due to future fluctuations in market prices caused by factors specific to an individual equity investment or other factors affecting all equities traded in the market. The Plan is exposed to price risk associated with the underlying equity investments h eld in pooled investment funds. The Plan’s investments are recorded at fair value on th e statements of net assets available for benefits and accrued pension benefits. Approximately 67.8% (2023 – 67.3%) of the Plan’s investments, or $14,114,007 (2023 - $12,367,203) ar e held in equities exposed to price risk.

e) Liquidity Risk Liquidity risk is the risk that the Plan will encou nter difficulty in meeting obligations associated with its financial liabilities. Liquidity requirements of the Plan are met through income generated from investments, employee and emp loyer contributions, and by investing in publicly traded liquid assets traded in an active market that are easily sold and converted to cash. These sources of cash are used to pay pension benefits and operating expenses, and purchase new investments.

The Plan’s future liabilities include the accrued pension benefits obligation and exposure to net payables to counterparties. Note 5 ACTUARIAL VALUATION An actuarial valuation of the plan was performed at April 1, 2018 and at April 1, 2022, by AON using the projected accrued benefit method pror ated on service and the plan administrator’s best estimate assumptions. The rep ort was prepared in accordance with accepted actuarial practice. The liabilities are extrapolated from the April 1, 2023 actuarial valuation.

Each plan’s liabilities have been estimated at April 1, 2024 by increasing the April 1, 2023 liabilities by the cost of accruing benefits and interest and subtracting the estimated benefit payments.

14 LEGISLATIVE ASSEMBLY RETIRING ALLOWANCES FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2024 Note 5 ACTUARIAL VALUATION (continued) The assumptions and methods used in the calculation of accounting costs for the 2024 fiscal year are based on the funding valuations performed at April 1, 2018, with two exceptions. The discount rate used to calculate the liabilities has been determined based on the yields on high quality Canadian corporate bonds as a proxy for the Government of Nunavut’s cost of borrowing. At March 31, 2024, this discount rate has been determined to be 4.9% per annum.

The previous year used a discount rate of 4. 9%. Secondly, the expected return on assets was determined to be 5.85% per annum for the year ending March 31, 2024. The previous year used a discount rate of 5.1%. Other a ssumptions include inflation rate of 2.8% and an increase in pensionable earnings commensurate with annual increases per the Collective Bargaining Agreement between the Nunavut Employees Union and the Minister Responsible for the Public Service Act as approved by the Management and Services Board.

Note 6 RELATED PARTY TRANSACTIONS The Fund’s sponsor incurred $96,847 (2022 - $72,296) in actuary fee expense and $8,115 (2023- $7,920) in audit fees expense on behalf of the Fund Note 7 CAPITAL MANAGEMENT The purpose of the Fund is to provide benefits to plan members. As such, when managing capital, the objective is to preserve assets in a manner that provides the Fund with the ability to continue as a going concern, to have sufficient assets to meet future obligations for benefits and to have sufficient liquidity to meet a ll benefit and expense payments. The capital of the Fund consists of its surplus.

Excluding the impact of investment income, the Fund is financed through member contributions. The surplus represents the difference between the net assets available for benefits and the actuarially determined accrued pension benefits on a going-concern basis. Actuarial valuat ions, which aid in the determination of the extent of the Fund’s capital, are performed Apr il 1 st following each general election. Surpluses, as well as other relevant aspects of the Plan, are managed in order to comply with the externally imposed requirements of the Income Tax Act and the PBSA.

As at March 31, 2024, the Plan is not in violation of any externally imposed legal or regulatory requirements.