WELCOME!

Ottawa Chapter

Fall Meeting

October 28, 2010

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

Bell Pensioners' GroupOctober 2010

President's Report

Presented by Bob Farmer

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

Wills and Estate Planning

Eric HoneyHoney MacMillan Gilhooly & Baldwin

BREAKMeeting resumes in 20

minutesOttawa Chapter Meeting

October 28, 2010

Ottawa ChapterUpdate

Marlyn Easterbrook

Ottawa Chapter Chair

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

Ottawa ChapterNew Business

Marlyn Easterbrook

Ottawa Chapter Chair

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

THANK YOUMARC DAVIDSON

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!

QUESTIONS & ANSWERS

NEXT MEETING

Tuesday, May 24, 2011

9:30 a.m. - 12:30 p.m.

Nepean Sportsplex