11-K 1 form11k2007.htm Unassociated Document

 

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 11-K


(MARK ONE)

x
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 

 
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007

OR

p
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 

 
FOR THE TRANSITION PERIOD FROM _______________ TO _______________

Commission file number 001-15014


A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

UNITED STATES EMPLOYEES' SUN ADVANTAGE
SAVINGS AND INVESTMENT PLAN
(Full title of the Plan)

One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
(Address of the Plan) (Zip Code)

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

SUN LIFE FINANCIAL INC.
(Name of the Issuer)

150 King Street, West, Suite 1400
Toronto, Ontario Canada M5H 1J9
(Address of the Issuer's Principal Executive Office) (Zip Code)

 


 
 
 

REQUIRED INFORMATION

The following financial statements shall be furnished for the plan:

Items 1-3. The audited statement of financial condition and the audited statement of income and changes in plan equity are omitted pursuant to Item 4 of Form 11-K.

Item 4. Financial statements and schedules prepared in accordance with the financial reporting requirements of ERISA:

SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
UNITED STATES EMPLOYEES' SUN ADVANTAGE
SAVINGS AND INVESTMENT PLAN

INDEX TO FORM 11-K

 
Page(s)
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
3
   
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2007
     AND 2006:
  
   
     Statements of Net Assets Available for Benefits
4
   
     Statements of Changes in Net Assets Available for Benefits
5
   
     Notes to Financial Statements
6-11
   
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 2007:
  
   
     Form 5500, Schedule H, Part IV, Line 4i - Schedule of Assets (Held at End of Year)
12
   
SIGNATURES
13
   
INDEX TO EXHIBITS
14

Note: All other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.


 
 
 


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Plan Administrator and Participants of the
Sun Life Assurance Company of Canada (U.S.)
United States Employees’ Sun Advantage Savings and Investment Plan
Wellesley Hills, Massachusetts

We have audited the accompanying statements of net assets available for benefits of the Sun Life Assurance Company of Canada (U.S) United States Employees’ Sun Advantage Savings and Investment Plan (the “Plan”) as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the years then ended.  These financial statements are the responsibility of the Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2007 and 2006, and the changes in its net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental schedule of assets (held at end of year) as of December 31, 2007 is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  This schedule is the responsibility of the Plan's management.  Such schedule has been subjected to the auditing procedures applied in our audit of the basic 2007 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.


/s/Deloitte & Touche LLP
Boston, Massachusetts
June 27, 2008

 
 
 


SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
UNITED STATES EMPLOYEES' SUN ADVANTAGE
SAVINGS AND INVESTMENT PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 2007 AND 2006

 
2007
  
2006
ASSETS:
      
Participant-directed investments, at fair value:
      
Mutual funds
$  189,735,150 
  
$  154,163,242
Vanguard Retirement Savings Trust II
50,959,949 
  
-
Vanguard Retirement Savings Trust III
- 
  
50,803,693
Sun Life Financial Inc. Stock Fund
10,529,362 
  
6,788,663
Assets held in Self-Managed Accounts
1,825,794 
  
-
Participant loans
3,332,882 
  
3,033,937
Cash
447,483 
  
297,379
       
Total investments
256,830,620 
  
215,086,914
       
Contributions receivable
427,594 
  
249,824
       
NET ASSETS AVAILABLE FOR BENEFITS AT FAIR VALUE
257,258,214 
  
215,336,738
       
Adjustment from fair value to contract value for fully
benefit-responsive investment contract
 
(474,592)
  
 
488,866
       
NET ASSETS AVAILABLE FOR BENEFITS
$  256,783,622 
  
$  215,825,604
       
       
See notes to financial statements.
      


 
 
 


SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
UNITED STATES EMPLOYEES' SUN ADVANTAGE
SAVINGS AND INVESTMENT PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 2007 AND 2006

 
2007
  
2006
       
ADDITIONS:
      
Investment activity:
      
Net (depreciation) appreciation in fair value of investments
$      (218,124)
  
$      9,001,959
Interest
2,418,661 
  
2,405,007
Dividends
15,662,429 
  
7,345,079
       
Total investment activity
17,862,966 
  
18,752,045
       
Contributions:
      
Employer
19,489,990 
  
16,636,625
Participants
19,521,392 
  
16,313,621
Participant rollovers
4,307,212 
  
2,245,345
       
Total contributions
43,318,594 
  
35,195,591
       
       
Total additions
61,181,560 
  
53,947,636
       
       
DEDUCTIONS:
      
Benefits paid directly to participants
20,223,542 
  
19,952,855
Purchase of annuity contract
- 
  
148,936
       
Total deductions
20,223,542 
  
20,101,791
       
       
NET INCREASE
40,958,018 
  
33,845,845
       
NET ASSETS AVAILABLE FOR BENEFITS:
      
Beginning of year
215,825,604 
  
181,979,759
       
End of year
   $  256,783,622 
  
   $  215,825,604
       
       
See notes to financial statements.
      


 
 
 

SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
UNITED STATES EMPLOYEES' SUN ADVANTAGE
SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2007 AND 2006


1.
DESCRIPTION OF THE PLAN
   
 
The following brief description of the Sun Life Assurance Company of Canada (U.S.) United States Employees' Sun Advantage Savings and Investment Plan (the "Plan") is provided for general information purposes only.  Participants should refer to the Plan document for a more complete description of the Plan's provisions.
   
 
General - The Plan was originally established on April 1, 1986 by Sun Life Assurance Company of Canada (the "Corporation") for the benefit of its U.S. employees and the U.S. employees of its subsidiaries that elected to become participating employers under the Plan.  The purpose of the Plan is to permit eligible employees of the Corporation and participating employers to defer and receive employer-matching contributions in order to provide funds for employees in the event of death, disability, unemployment and retirement.  Any employee, 21 years or older, is eligible to become a participant in the Plan as soon as administratively feasible after his or her first day of employment.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA").
   
 
Effective January 1, 2002, the Corporation transferred sponsorship of the United States Employees' Sun Advantage Savings and Investment Plan to its then wholly-owned subsidiary Sun Life Assurance Company of Canada (U.S.) (the "Company" or "Plan Sponsor").
   
 
On January 1, 2006 the Plan was amended and restated to establish a Retirement Investment Account (“RIA”) for the participants of the Plan, including certain participants of the United States Employees' Retirement Income Plan ("Defined Benefit Plan") whose benefits under the Defined Benefit Plan were frozen as of December 31, 2005.  The participants of the Plan will now have future additional employer contributions made to the Plan as discussed below.
   
 
Effective May 31, 2007, eligible employees who transferred as part of Sun Life Financial Inc.’s acquisition of Genworth Financial, Inc.’s U.S. Employee Benefits Group were credited with prior Genworth service for the purpose of vesting in the Plan and for RIA credited service used in calculating RIA contributions under the Plan.
   
 
Effective August 29, 2007, the Plan was amended to include a Self-Managed Account for participants who desire to actively manage and select external investments through the use of a brokerage account.
   
 
Effective November 7, 2007, Independent Financial Marketing Group, Inc. (“IFMG”) ceased to be an Affiliated Employer under the Plan because of the acquisition of IFMG's capital stock by LPL Holdings, Inc. As of that date, the Plan was amended to allow IFMG to continue as a participating employer. As of November 7, 2007, there were ninety-two active IFMG participants in the Plan with net assets available for benefits of $4,035,260.
   
 
Contributions - Once an employee becomes eligible to participate in the Plan, he or she may elect to become a participant in the 401(k) account by entering into a salary reduction agreement.  The agreement provides that the participant agrees to accept a reduction in compensation in an amount equal to 1% to 60% of his or her compensation.  During 2002, the Plan adopted Age 50 Catch Up Contributions as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001.  Contributions are subject to certain Internal Revenue Code (“IRC”) limitations. Participants also may contribute amounts representing distributions from other qualified defined benefit or defined contribution plans.
   
 
Participating employers contribute an amount equal to 50% of the first six percent of compensation that a participant contributes to the 401(k) Plan.
   
 
The Company also contributes to the RIA a percentage of participant’s eligible compensation as determined per the following chart based on the sum of the participant’s age and service on January 1 of the applicable plan year–

Age Plus Service
Company Contribution
Less than 40
3%
At least 40 but less than 55
5%
At least 55
7%

 
For RIA participants who are at least age 40 on January 1, 2006 and whose age plus service on January 1, 2006 equals or exceeds 45, the Company also contributes to the RIA from January 1, 2006 through December 31, 2015, a percentage of the participant’s eligible compensation as determined per the following chart based on the participant’s age and service on January 1, 2006 –

 
Service
Age
Less than 5 years
5 or more years
At least 40 but less than 43
3.0%
5.0%
At least 43 but less than 45
3.5%
5.5%
At least 45
4.5%
6.5%

 
For RIA participants who did not become participants in the Defined Benefit Plan before January 1, 2006, the Company made a one-time RIA contribution in January 2006 based on the applicable percentage from the first chart above as of January 1, 2006 and their eligible compensation paid during the period beginning on their hire date and ending on December 31, 2005.
   
 
Participant Accounts - Individual accounts are maintained for each Plan participant.  Each participant's account is credited with the participant's contribution, the participating employer's matching contribution, and allocations of Plan earnings, and charged with an allocation of Plan losses and investment related expenses.  Allocations are based on participant earnings or account balances, as defined in the Plan document.  The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account.
   
 
Investments - Participants direct the investment of their contributions into various investment options offered by the Plan.  Participant selections of one or more of the investment options must be in multiples of 1%. Participating employer matching contributions are invested in accordance with participant investment allocations.  The Plan currently offers several mutual funds, the Sun Life Financial Inc. Stock Fund (a party-in-interest), a Self-Managed Account and a stable value fund as investment options for participants.
   
 
Vesting - Participants are vested immediately in their contributions plus actual earnings thereon.  Vesting in the participating employer's contribution portion of their accounts is based on years of continuous service.  A participant vests at the rate of 20 percent per year of credited service and is 100 percent vested after five years of credited service. A participant is fully vested in his or her share of the participating employer contributions upon retirement at normal retirement age or older, disability, or death, regardless of the length of service.
   
 
Participant Loans - A participant may borrow up to 50% of his or her vested account balance with a minimum loan balance of $1,000 and a maximum loan balance of $50,000.  Repayment is effected through payroll deductions over a period of one to five years for non-mortgage loans and over a period of one to 15 years for mortgage loans.  Loan repayments are credited against investments, as allocated in the participant's account.  The loans are secured by the balance in the participant's account and bear interest at local prevailing rates at the time funds are borrowed. At December 31, 2007 interest rates range from 4% to 8.5%.  Maturity dates are through August 31, 2022.
   
 
Payment of Benefits - The Plan provides for normal retirement benefits to be paid to participants who have reached the age of 65.  If the participant's service with the participating employer terminates, other than by reason of retirement, the participant may elect to receive his or her distribution following his or her termination of employment.  Distributions will be made in installments or in a lump sum, except if the participant's account balance is $5,000 or less, in which case payment will only be made in a lump sum.
   
 
Forfeitures - In the event that a participant terminates service prior to completing five years with the participating employer, the nonvested portion of his or her account will be forfeited.  At December 31, 2007 and 2006 forfeited nonvested accounts totaled $47,490 and $1,069,269, respectively.  These accounts will be used to reduce future participating employer matching contributions.  Employer contributions were reduced by $2,330,245 and $3,279,046 from forfeited nonvested accounts for the years ended December 31, 2007 and 2006, respectively.
   
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   
 
Basis of Accounting - The financial statements of the Plan are prepared in accordance with accounting principles generally accepted in the United States of America.
   
 
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan Administrator to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein.  Actual results could differ from those estimates.
   
 
Risks and Uncertainties - The Plan invests in various investment instruments, including mutual funds, collective trusts, and stocks.  Investment securities in general, are exposed to various risks, such as interest rate, credit, and market risk.  Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
   
 
Investment Valuation and Income Recognition - The Plan's investments are stated at fair value. Shares of mutual funds are valued at quoted market prices which represent the net asset value of shares held by the Plan at year end.  Common stock is valued at quoted market prices. Assets held in the Self-Managed Accounts are stated at fair value based on quoted market prices of the assets held in the accounts. Common collective trust funds are stated at fair value as determined by the issuer of the common collective trust funds based on the fair market value of the underlying investments. Common collective trusts with underlying investments in investment contracts are valued at fair market value of the underlying investments and then adjusted by the issuer to contract value.  Participant loans are stated at the outstanding loan balances.
   
 
During 2007, the Vanguard Retirement Savings Trust III stable value fund was replaced by the Vanguard Retirement Savings Trust II which is also a stable value fund but with lower expenses.  The fund may invest in fixed interest insurance investment contracts, money market funds, corporate and government bonds, mortgage-backed securities, bond funds, and other fixed income securities.  Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.  Contract value represents contributions made to the fund, plus earnings, less participant withdrawals.
   
 
Purchases and sales of securities are recorded on the trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.
   
 
Management fees and operating expenses charged to the Plan for investments in mutual funds are deducted from income earned on a daily basis and are not separately reflected.  Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.
   
 
The financial statements reflect the retroactive adoption of Financial Accounting Standards Board Staff Position, FSP Nos. AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (the “FSP”).  As required by the FSP, the statements of net assets available for benefits presents investment contracts at fair value with an adjustment shown separately to adjust fully benefit-responsive contracts from fair value to contract value. The statements of changes in net assets available for benefits are presented on a contract value basis and were not affected by the adoption of the FSP. The adoption of the FSP did not impact the amount of net assets available for benefits at December 31, 2007 or 2006.
   
   New Accounting Guidance - In September 2006, the Financial Accounting Standards Board (FASB) issued Financial Accounting Standard No. 157, Fair Value Measurements (“SFAS No. 157”). SFAS No. 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements. The provisions of SFAS No. 157 are effective for fiscal years beginning after November 15, 2007. The Plan will adopt SFAS No. 157 effective January 1, 2008 and will apply the provisions of the statement prospectively to assets and liabilities measured and disclosed at fair value.  The Plan’s management is evaluating the impact SFAS No. 157 will have on the Plan’s financial statements.
   
   In February 2007, the FASB issued Financial Accounting Standard No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (“SFAS No. 159”) which permits entities to choose to measure many financial assets and financial liabilities at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reporting earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The Plan did not elect the fair value option for eligible items that had not previously been required to be measured at fair value as of January 1, 2008.
   
 
Payment of Benefits - Benefit payments to participants are recorded upon distribution.
   
 
Administrative Expenses - Administrative expenses of the Plan are paid by the Plan Sponsor except for certain fees which are paid by the participants. These fees include loan fees, advisory fees, and fund redemption fees. For the years ended December 31, 2007 and 2006 these fees which totaled $46,772 and $12,049, respectively are included in benefits paid directly to participants.
   
 
Excess Contributions Payable - The Plan is required to return contributions received during the Plan year in excess of IRC limits.
   
3.
PLAN ADMINISTRATOR AND TRUSTEE
   
 
The U.S. Benefit Plans Committee (the "Committee") is the named Plan Administrator of the Plan.  At December 31, 2007, the Committee consisted of seven members:  Janet V. Whitehouse, Keith Gubbay, Robert J. De Clercq, John T. Donnelly, Teresa A. Vellante Ham, Philip G. Malek and Michael E. Shunney.  State Street Bank and Trust Company is the named Trustee of the Sun Life Assurance Company of Canada (U.S.) United States Employees' Sun Advantage Savings and Investment Trust.
   
4.
FEDERAL INCOME TAX STATUS
   
 
The Plan obtained its latest determination letter dated October 29, 2002, in which the Internal Revenue Service stated that the Plan and related trust as then designed were in compliance with the applicable regulations of the IRC.  The Plan has been amended since receiving the determination letter.  However, the Committee believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC.  Therefore, no provision for income taxes has been included in the Plan's financial statements.
   
5.
PLAN TERMINATION
   
 
Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA.  In the event that the Plan is terminated, participants would become 100 percent vested in their accounts.
   
6.
INVESTMENTS
   
 
The Plan's investments that represented 5% or more of the fair value of the Plan's net assets available for benefits as of December 31 were as follows:

 
 
2007
2006
 
Mutual funds:
    
 
MFS Massachusetts Investors Growth Stock Fund
$ 13,485,369
$                  -
 
MFS Growth Opportunities Fund
-
12,355,104
 
MFS Total Return Fund
18,167,292
16,401,768
 
Fidelity Blue Chip Growth Fund
21,142,522
18,693,228
 
JP Morgan Capital Growth Fund
16,701,706
13,688,431
 
T Rowe Price International Stock Fund
13,944,712
-
 
Vanguard Institutional Index
27,620,458
-
 
Vanguard 500 Index Fund Shares
-
22,418,109
 
T. Rowe Price Mid-Cap Value Fund
12,109,659
-
 
Fidelity Advisor Diversified International
17,121,437
11,982,673
 
Common collective trust:
    
 
Vanguard Retirement Savings Trust II
50,959,949
-
 
Vanguard Retirement Savings Trust III
-
50,803,693

 
During 2007 and 2006, the Plan's investments (including gains and losses on investments bought and sold, as well as held, during the year) (depreciated) appreciated in value by ($218,124) and $9,001,959, respectively, as follows:

 
Fund Name
Investment Type
2007
  
2006
           
 
Vanguard Retirement Savings Trust III
Stable Value
$      (27,668)
  
$       25,953 
 
Vanguard Retirement Savings Trust II
Stable Value
(46,421)
  
- 
 
Vanguard Total Market Bond Index (Institutional)
Shares
 
Fixed Income
 
181,231 
  
 
9,076 
 
Vanguard Total Market Bond Index (Admiral)
Shares
 
Fixed Income
 
(26,975)
  
 
- 
 
MFS Government Securities Fund
Fixed Income
95,774 
  
(42,086)
 
MFS High Income Fund
Fixed Income
(344,017)
  
  139,351 
 
MFS Total Return Fund
Balanced
(1,058,180)
  
843,580 
 
T. Rowe Price Equity Income Fund
Equity
(485,071)
  
712,711 
 
Vanguard 500 Index Fund Shares
Equity
253,898 
  
2,331,919 
 
Vanguard Institutional Index
Equity
585,248 
  
- 
 
Selected American Shares
Equity
162,671 
  
437,806 
 
Fidelity Blue Chip Growth Fund
Equity
(67,620)
  
494,743 
 
MFS Growth Opportunities Fund
Equity
787,895 
  
748,589 
 
MFS Massachusetts Investors Growth Stock
Fund
 
Equity
 
508,473 
  
 
- 
 
T. Rowe Price Mid-Cap Value Fund
Equity
(1,526,324)
  
418,123 
 
JP Morgan Capital Growth Fund
Equity
613,460 
  
312,735 
 
Fidelity Low-Priced Stock Fund
Equity
(393,064)
  
487,847 
 
Fidelity Small Cap Value Fund
Equity
(746,889)
  
45,393 
 
Vanguard Growth Fund Index
Equity
(7,288)
  
- 
 
Self-Managed Accounts
Equity
(64,884)
  
- 
 
Fidelity Advisor Diversified International
International Equity
(899,097)
  
472,408 
 
T. Rowe Price International Stock Fund
International Equity
(138,011)
  
1,225,586 
 
Sun Life Financial Inc. Stock Fund
Common Stock
2,424,735 
  
338,225 
 
Total
  
$    (218,124)
  
$  9,001,959 

7.
EXEMPT PARTY-IN-INTEREST
   
 
An affiliate of the Plan Sponsor manages several mutual fund investment options within the Plan.  These investments include MFS Massachusetts Investors Growth Stock Fund, MFS High Income Fund, MFS Government Securities Fund and MFS Total Return Fund, each of which is an investment company registered under the Investment Company Act of 1940. Investment advisory fees are paid from the funds to the affiliate.
   
 
At December 31, 2007 and 2006, the Plan held 188,226 and 160,299 shares, respectively, of common stock of Sun Life Financial Inc., an affiliate of the Plan Sponsor, with cost bases of $6,692,629 and $5,163,273, respectively.  During the years ended December 31, 2007 and 2006, the Plan recorded dividend income from such securities of $148,776 and $117,616, respectively.  These transactions qualified as permitted party-in-interest transactions.
   
8.
RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
   
 
The following is a reconciliation of total investments per the financial statements to the Form 5500 as of December 31, 2007 and 2006.

   
2007
  
2006
         
Total investments, at fair value, per the financial statements
  
 $   256,830,620 
  
 $   215,086,914
Adjustment from fair value to contract value for fully
        
   benefit-responsive investment contract
  
(474,592)
  
488,866
Total investments per Form 5500
  
$   256,356,028 
  
$   215,575,780

 
* * * * * *
 


 
 
 

SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
  
UNITED STATES EMPLOYEES' SUN ADVANTAGE
  
SAVINGS AND INVESTMENT PLAN
    
         
FORM 5500, SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2007
      
(a)
(b) Identity of Issue,
(c) Description of Investment,
(d)  Cost**
(e) Current
 
      Borrower, Lessor
      Including Collateral, Rate
  
       Value
 
      or Similar Party
      of Interest, Maturity Date,
    
   
      Par or Maturity Value
    
 
Vanguard
Vanguard Retirement Savings Trust II -
    
   
    50,485,357  shares
  
50,959,949
   
Mutual funds:
    
*
Massachusetts Financial Services
MFS High Income Fund - 
    
   
    1,520,076.542 shares
  
5,578,681
   
MFS Government Securities Fund - 
    
   
    455,017.922 shares
  
4,386,373
   
MFS Total Return Fund - 
    
   
    1,192,079.542 shares
  
18,167,292
   
MFS Massachusetts Investors Growth Stock Fund -
    
   
    879,671.847 shares
  
13,485,369
 
Fidelity Investments
Fidelity Blue Chip Growth Fund - 
    
   
     479,857.502 shares 
  
21,142,522
   
Fidelity Low-Priced Stock Fund - 
    
   
    182,757.997 shares 
  
7,516,836
   
Fidelity Small Cap Value Fund -
    
   
    461,553.420 shares
  
8,044,876
   
Fidelity Advisor Diversified International -
    
   
    771,583.492 shares
  
17,121,437
 
Vanguard
Vanguard Growth Index Fund
    
   
      14,895.877 shares
  
458,346
   
Vanguard Institutional Index -
    
   
    205,907.695 shares 
  
27,620,458
   
Vanguard Total Market Bond Index -
    
   
    880,004.231 shares 
  
8,940,843
 
JP Morgan
JP Morgan Capital Growth Fund -
    
   
    398,608.727 shares
  
16,701,706
 
T. Rowe Price
T. Rowe Price International Stock Fund - 
    
   
    832,520.102 shares
  
13,944,712
   
T. Rowe Price Equity Income Fund - 
    
   
    314,411.071 shares
  
8,834,951
   
T. Rowe Price Mid-Cap Value Fund -
    
   
    539,165.569 shares
  
12,109,659
 
Selected American Shares
Selected American Shares -
    
   
    118,900.984 shares
  
5,681,089
   
Total Mutual Fund
  
189,735,150
 
Self-Managed Accounts
    Self-Managed Accounts -
1,825,794
*
Sun Life Financial
Sun Life Financial Inc. Stock Fund -
    
   
    188,226 shares
  
10,529,362
*
Plan participants
Loans to participants, secured by underlying
    
   
participant account balances, interest rates
    
   
from 4.00% to 8.50%, maturity dates through 2022
  
3,332,882
 
State Street
Cash - State Street Research Short Term
Investment Fund  - 447,483 shares
  

447,483
   
Total investments at fair value
  
256,830,620
   
Adjustment from fair value to contract value for fully
benefit-responsive investment contract
  
               
 (474,592)
   
TOTAL INVESTMENTS PER FORM 5500
  
$256,356,028
* Party-in-interest. ** Cost is not required for participant directed investments and therefore has not been included.

 
 
 

SIGNATURES

The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.


 
UNITED STATES EMPLOYEES' SUN ADVANTAGE
 
SAVINGS AND INVESTMENT PLAN
 
(Name of Plan)
   
 
By: /s/ Robert J. De Clercq
 
Robert J. De Clercq
 
Member, U.S. Benefit Plans Committee
   


Dated: June 27, 2008



 
 
 


EXHIBIT INDEX


Exhibit Number
Description
   
    23
Consent of Independent Registered Public Accounting Firm