welcome! ottawa chapter fall meeting october 28, 2010
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TRANSCRIPT
October 28, 2010 2
Meeting Agenda
9:30 a.m. Meeting call to order & review of agenda
9:35 President’s Report: Pension update
10:00 Wills & Estate Planning – Eric Honey
11:30 ~ Break ~
11:50 Chapter Update & New Business
12:20 p.m. Question & answer session
12:30 Adjournment
October 28, 2010 4
Bell Pension Plan Performance
Plan Valuation (31 Dec 2009)
2008 Plan Return: -19.5%
2009 Plan Return: +15.1%
2010 (Jan-June) Return: +1.2%
October 28, 2010 5
Plan Surplus/Deficit
Solvency: assumes plan wind-up Negative numbers (deficit) means plan under-funded Recovery from 2008 underway, but will take time
Plan Surplus
-3000
-2000
-1000
0
1000
2000
3000
4000
1998 2000 2002 2004 2006 2008 2010
Su
rplu
s
Solvency
Ongoing
October 28, 2010 6
Actuarial vs Market
Actuarial (smoothed) values used for plan funding purposes
Actuarial values lag actual market values Currently, solvency deficiency greater when market
values consideredSolvency Deficiency
-3000
-2500
-2000
-1500
-1000
-500
0
500
1000
2003 2004 2005 2006 2007 2008 2009 2010
Su
rplu
s
Actuarial
Market
October 28, 2010 7
Solvency Ratio
Tests whether plan can deliver pensions even if plan is wound-up
Measures proportion of liabilities that can be covered Market value: actual value of assets used
Solvency Ratio
0.750
0.800
0.850
0.900
0.950
1.000
1.050
1.100
2003 2004 2005 2006 2007 2008 2009 2010
Su
rplu
s
Actuarial
Market Value
October 28, 2010 8
Achieving Full Funding
Bringing the Plan back to Health over time Asset growth; liability decrease; funding
With Minimum Funding Requirements Only
-2000
-1500
-1000
-500
0
2006 2008 2010 2012 2014 2016 2018 2020
Su
rplu
s
Solvency
October 28, 2010 9
Pension Advocacy
BPG very active in advocating changes to pension rules
Legislative amendments passed by House in 2010
Some regulatory amendments in place, others to follow
October 28, 2010 10
Pension Advocacy
Recent Improvements No voluntary plan termination unless plan fully funded
(within five years) Contribution holiday only if 5% surplus remains Annual plan valuations and funding reset Smoothing over 3 years Solvency ratio based on market value of assets Deviations from funding rules only with consent of
pensioners Maximum surplus increased to 25% from 10%
October 28, 2010 11
Pension Advocacy
A disappointing rule change Old rules required plan deficiency to be
eliminated in five years (or ten years as an exception)
New rules give sponsors more time one-third of deficiency remains after 5 years one-tenth of deficiency remains after 10 years
Must be experience tested
October 28, 2010 12
Pension Advocacy - Current
Federal: Review amendments to regulations as they are
announced Enhance protection of pensioners whose plans fail
Business Insolvency Act; CCAA
Ontario: With Canadian Federation of Pensioners Influence Ontario pension legislation/regulation
CFP objective: protect the pension promise for members of Ontario pension plans
BPG objective: help Ontario be a positive model for Federal rules
October 28, 2010 13
BPG Board
André BergeronBob BartlettMichèle BoyerSue DawesMichel DoyonBob FarmerBetty GauthierJean-Luc GehaLinda GervaisRobert Guay
Gwen GuilletLancy HumRon HuntPam Went
Frank BibleAl BowcottYvan DutrisacMarlyn EasterbrookYvan Pacaud
October 28, 2010 17
Ottawa Chapter Update
Membership growth Circle of Friends results PayPal launch Benefits Audit of Bell retirees Treasurer’s update Chapter changes Circle of Friends draw
October 28, 2010 18
Our # 1 Priority: Increase Membership Growing our membership is critical to the success of
our organization We have implemented many initiatives
Meetings outside Ottawa: Kingston, Sudbury & Pembroke 4 newsletters per year Email “blasts” Online payment of membership dues (PayPal) Circle of Friends membership drive
Our strength is in our numbers & you can help! Check your In Touch magazine for the recent retirees and
if you know any of the people listed, please contact them and encourage them to join BPG
October 28, 2010 19
Circle of Friends
2010 Membership Drive results
Referrals received: 247 Members already 67 Non-Members (potential) 180
Of the 180 potential members: 54 said will join (30%) 13 verified joined (8%)
October 28, 2010 2020
Our strength in numbers
The following summarizes the BPG Membership Count:
Dec 2008 Dec 2009 Oct 15, 2010
Ottawa 1,206 1,332 1,269
BPG Total 9,944 10,213 10,256
We are committed to a minimum of 5% yr/yr growth We need your help to ensure that we exceed our total
from last year
20
October 28, 2010 21
PayPalTM Launch
Our Ottawa trial was very successful As of Sept: 91 members paid 2010 dues using
PayPal, including 21 new members A Corporate PayPal application has now been
developed and it will be rolled out to all Chapters as of November 1, 2010
This could not have happened without the great work and leadership of our Ottawa webmaster, Terry Acker and our Ottawa treasurer, Don Dutton
October 28, 2010 22
Benefits
Dental: Retired prior to July 2000: rates paid are from the 1988
Dental Schedule and are unlikely to be updated Retired after July 2000: rates paid are at a 2-year lag in
rates (i.e., rates paid in 2010 are from the 2008 schedule)
Plans A & B: Rates for the Plan B reflect only the rates charged by the
insurance company These rates are not used to defray the costs for Plan A
October 28, 2010 23
Audit of Bell Retirees
A sample audit is planned for the Spring 2011 Used by Bell to verify pensioner information
The last audit was a census (audit of every retiree) but this time the plan is a sample only
If you are not part of the audit, don’t worry your pension cheque will not be affected
Ottawa ChapterFinancial Report
Note: due to the confidentiality of the financial information, these slides have been excluded from this
web version.
Don Dutton
Ottawa Chapter Treasurer
October 28, 2010 26
Communications Director
Our BPG Board is looking for a person to replace André Bergeron as Communications Director
If you would be interested in this position or know someone who may be interested, please contact me or see me at the end of the meeting
October 28, 2010 27
Ottawa Chapter Changes
Secretary: Geraldine Foot is replacing Lancy Hum who is becoming the
Corporate Secretary
Membership Coordinator: John Campbell has retired as our Membership Co-ordinator
& we have split the job Ed Wilton becomes our Membership Co-ordinator Betty Gauthier is responsible for Membership Communications
On behalf of our Executive Committee, I wish to thank Lancy and John for their dedication and outstanding contribution to BPG. Both have agreed to stay on and help our Ottawa executive.
I am happy to welcome George McDougall to our Ottawa Executive
October 28, 2010 28
Next Meetings
Ottawa: Tuesday, May 24, 2011
Nepean Sportsplex
Kingston: Wednesday, May 25, 2011
Kingston Curling Club
Pembroke: TBA
October 28, 2010 30
Circle of Friends Draw
Prizes: three free BPG membership for 2011
Three winners from our membership campaign: Person with the most referrals
Don Wilson provided 103 referrals Draw for 2 more winners
We are all winners!