Our Pension Is in Good Shape
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May 18, 2021 PNA Virtual National Convention May 21, 2021 PNA National Elections Check CBC Pensioners’ website for details https://www.cbcpensioners.ca/ May, 2021 Our Pension is in good shape By Dan Oldfield to provide pensions and with a file from Alain Pineau meet the promise made to existing employees against The CBC Pension Plan has the assets of the plan. had an impressive year In simple terms. going finishing 2020 with its best concern is basically the results in more than 20 book value of the assets. years. It’s total assets now On that front the surplus In this issue... sits at more than $8 billion represents 161% of assets and reported a going against liabilities. The Pension Sharing concern surplus of $3.3 solvency calculation is theoretical and based on an billion and a solvency Agreement pg. 2 surplus of $381 million. assumption the plan is being wrapped up and SAF Changes pg. 3 The results of the annual existing assets are sold Pres.’ Report pg. 4 valuation were verified at and long-term investment vehicles purchased. The the March 29th meeting of Killing Time pg. 4 the Pension Board of current low interest rates Trustees. will yield a lower return. Talking to Plants However, in both cases the pg. 5 plan is reporting a surplus. By way of background, the Ditching the big house performance of the plan is pg.6 measured in two ways – Why does this matter? going concern and solvency. RIP pg.7 Both represent the This latest report is important for a couple of Share a Memory pg. 8 difference between what assets the plan needs Pension Plan contd. on pg. 2 1 Pension Plan from pg 1 reasons. First, it One final note of caution PENSION demonstrates the overall comes from Alain Pineau, health of the plan. In this the PNA’s representative on SURPLUS case the results the Pension Board of demonstrate the plan is in Trustees who notes, SHARING solid financial shape due in “Markets continue to show large part to its competent a lot of volatility, and AGREEMENT plan management and the according to some, cannot application of its long-term continue to go up like they UPDATE have over the past several By Dan Oldfield, investment strategies. PNA Representative to the CCSB months, especially if the Reprinted from Durham Buzz Secondly, the results are current health crisis goes A dispute with the CBC over important in terms of the on. It is therefore totally the status of the Memorandum of possible that the year-end Memorandum of Agreement Agreement signed between results for 2021 will not be regarding the sharing of any the Pensioners National so stellar, but one thing is surplus in our pension plan Association, the Unions and sure: you can rest confident is headed to arbitration. The the CBC on the sharing of about you pension cheques parties are working on the pension surpluses. The coming in! All our thanks appointment of an agreement reached in 2009 go to the Pension Plan staff arbitrator acceptable to provides for a sharing of who work in difficult both sides. surplus once the lower of circumstances because of the two calculations Covid.” The process of getting an exceeds 105% of liabilities. arbitrator is taking We aren’t quite there yet In other words, there is no considerably longer than but in this case the lower of guarantee the past will rep- anticipated but it is hoped the two figures now sits and resent the future. We will that this issue will be 104.6%. keep you apprised on the status of the plan and with resolved soon. In December of 2019, the CBC A couple of notes of regards to progress on our dispute with the CBC over unilaterally declared the caution the surplus sharing MOA was concluded and no agreement. longer in effect. While the current overall picture is positive there are Pension On a related matter, the a couple of things that need CBC is refusing to provide to be appreciated. Administration an accounting of the funds held for the purpose of The CBC is attempting Centre Have a question about your offsetting health care costs. to renege on the deal it pension? signed in 2009. The PNA Need to make changes to While the use of the funds and Unions have advised your pension payments? is not directly relevant for the Corporation that they Need to sort out survivor the PNA, it is another intend to take the dispute benefits and estate major element of the MOA. to binding arbitration and settlements? At last report there is the process of selecting an Get in touch around $40-million held in arbitrator has begun. We www.pensionadmin-cbc- trust. are confident the deal will src.ca survive the challenge. 1-888-604-9258 2 CHANGES COMING TO THE MANAGEMENT OF THE SPECIAL ASSISTANCE FUND By Dan Oldfield, PNA Representative to the CCSB Reprinted from Durham Buzz Last May, the CBC advised the Consultative Committee on Staff Benefits (the CCSB) that it would no longer handle the administration of the Special Assistance Fund. This unilateral decision has caused some havoc in ensuring that those seeking assistance are actually getting it. The difficulties became obvious around the time of the scheduled September CCSB meeting. People who had applied, and ultimately been deemed eligible for payment from the fund, did not receive their cheques until December. The PNA was facing a similar scenario this month but forced an ad-hoc special sub-committee meeting. Thanks to the efforts of Dianne St. Germain and Suzie Bougie in the PNA National office, most of the requests submitted for approval were ratified at the March meeting of the CCSB. The PNA will be watching to ensure cheques are sent in a timely fashion. The main reason for the delays is the CBC’s decision to stop handling SAF claims. The CBC wanted to hand the entire process over to Canada Life where it would be treated more as an insurance fund. But that was never the intent when the fund was created. The PNA has offered to take over the administration of the fund and in December, the CCSB instructed the CBC and PNA to begin discussions on how that would work. A meeting involving the PNA, CBC and a co-chair of the CCSB was held on March 1st and the PNA committed to providing a detailed proposal for the take-over of the administration. A follow up meeting is scheduled for April 7th. It is hoped that a transfer of administrative duties will take place in time to deal with SAF requests at the June CCSB meeting. Dialogue to end CBC PNA Website A one year pilot project allowing CBC retirees and employees to have access to virtual health services is coming to an end. Dialogue’s aim was to provide virtual health care services to its users. Among the services it offered, were the filling and renewal of prescriptions, getting blood work done and or referral to a specialist. With 75% of its funding coming from a special fund managed by the the Consultative Committee on Staff Benefits (CCSB) and only one percent of retirees signing up to use Dialogue, it was deemed not to be cost effective to continue running it. 3 President’s Report Killing time By Raj Narain By Gerry Head that objective”. A year later, spiders are now an endangered The National Board met on What the last part of that species in our house. Our April 17th and spent two motion is saying is that we big adventure is going to and a half hours wish to have more women the grocery store (we live in discussing the issues raised and minorities participate Toronto), once a week. And by the article in the in leadership roles at the we have graduated to Golden Horseshoe Chapter, Regional and minimalist living from Chapter’s Newsletter. The National level. A decluttering. end result was a motion committee is currently In the midst of stating that “The Board of working on a plan for decluttering last fall, we Directors is on record as gender equality and came across an unopened supporting the integrity and diversity. This report will be jigsaw puzzle. Not having a intentions of the presented to the triennial table to work on it, it took Nominating Committee convention in May. The over the dining table, after regarding the application of Ontario Board supports this all, no one was coming for Article 8.1 (Bylaws) to the initiative and encourages dinner. In one of those rear current election process. everyone to consider windows when you could Additionally, the Board of becoming involved. go to a store, we went to Directors will undertake Canadian Tire to get some to review and resolve any Covid has changed the way batteries and saw a folding ambiguity in Article 8.1 and we function and destroyed card table on sale. any other election related the social aspect of our articles. The Board of Association. Directors further This will pass. Social events acknowledges the will return giving us all a importance of the principle chance to interact with each of gender equality and other again. diversity within its governing structures and Until that day returns keep that it is the responsibility in touch and stay safe. of every member to achieve “Aha, the perfect table for the jigsaw!” OAS payments to increase “Where are we going to put By Raj Narain it?” In this year’s Budget, Ottawa is proposing a one-time It ended up in the payment of $500 this August to OAS pensioners who will living room, after all, no be 75 or older as of June, 2022.