Bell Pensioners' Group Spring 2016 President's Report

2 Agenda Bell Valuation report Federal and Provincial Legislation under review Survey National action plan Proposed BPG Board

3 Bell Plan Solvency Ratio $ Million Year-End 2014 Year-End 2013 Year-End 2012 Year-End 2011 Market Value of Assets (Net of Wind-Up Expenses) 14, , , ,322.8 Liability, assuming Plan is wound up 16, , , ,457.4 Surplus/(Shortfall)(1160.0)(991.3)(2,532.7)(3,134.6) Solvency Ratio92.8%93.1%84.0%79.7% Note: These numbers represent Bell Canada results only, the 2015 Pension Plan results to be published in June The solvency ratio for December 2015 is 93.8%

Pension Security Greatest Risks The greatest risks facing defined benefit plan (DB) pensioners are that: A: rules would be changed to allow reductions to pensions already earned  Target Benefit Pension plans, being considered by Finance Canada and others, could/do permit the conversion of earned DB pensions and the reduction of pension benefits already earned

Pension Security Greatest Risks The greatest risks facing defined benefit plan (DB) pensioners are that: B: their plan would be wound up when it is underfunded  Funding rules, particularly for provincially-regulated DB plans, allow deficits to persist  Insolvency legislation provides little protection for the greatest amounts owed to a pension plan  A good example is Nortel, pensioners losing up to 40% of their pension

Working to Ensure Pension Commitments are Honoured At the federal level BPG is proactively meeting with the key players in the new Liberal government to ensure they are sensitive to the concerns of pensioners, while attempting to ascertain the government’s priorities and schedule for pension initiatives It is clear that CPP reform is a top priority for the government

Working to Ensure Pension Commitments are Honoured At the Federal level The March budget signalled that the government is also intending to proceed with other pension-related initiatives, which we understand to include: Legislation to further permit Target Benefit plans A review of the “30% rule” for pension investments

Working to Ensure Pension Commitments are Honoured With each of those initiatives, we will ensure that our views are clearly and persuasively presented proactively, and in response to action on these files We are collaborating with the Canadian Federation of Pensioners (CFP) and are closely tying our lobbying efforts with the Air Canada Pionairs on these files

Working to Ensure Pension Commitments are Honoured At the provincial level We are supporting the efforts of CFP to ensure that pensioner concerns are heard, as changes to pension legislation are considered In particular, Ontario has announced that it will be launching initiatives to: further enable Target Benefit Plans review the use of Solvency funding review the “30% rule” for plan investments BPG and CFP are increasingly considered by governments to be credible and informed organizations who represent pensioners’ needs for income security in their retirement years

BPG Members 2015 Survey National Action Plan Communication : Increase awareness of our Social Media and web sites Reach out to more and younger retirees Be clear on our mandate: Protect the Pension Promise: No member should lose benefits promised at retirement Improve on timing and type of information on our Website Improve communication for legislation changes Simplify explanations on Pension Plan Financial results Be clear about the BPG mandate … We would not go back to Bell and attempt to negotiate any increase in benefits We do not negotiate with suppliers for Benefit services

BPG Board Changes Departures Jean Lamer (Chapter Quebec) Louise Touchette (Nomination Prime) Yvan Dutrisac (Benefit Prime) Roberte Cadieux (Communication Prime) Penny Gilray (Treasurer) Proposed Candidates Diane Holgate (VP Ontario) Denis Marquis (VP Quebec) Marjolaine Gilbert (Chapter Quebec) Raynald Wilson (Benefit Prime) Carol Lacroix (Communication Prime) Michelle Pilon (Treasurer) Denis Henry (PC Committee & CFP) Hélène Lefèbvre (Nomination Prime)

12 Proposed BPG Board Patte Seaton (President) Diane Holgate (VP Ontario) Denis Marquis (VP Quebec) Michelle Pilon (Treasurer) Gayle Duchene (Secretary) Carol Lacroix Raynald Wilson Marg Eades Peter Dilworth Sue Dawes Dave Palmer Denis Henry Hélène D. Lefèbvre Daniel Mc Donald (Past President) Chapter Chairs Marlyn Easterbrook(Ottawa) Titus Ramkhalawansingh (Ontario Central) Don Graham (SW Ontario) Jean-Luc Taschereau (Montréal) Marjolaine Gilbert (Québec) Claude Vachon (Télébec)

Q & A

Pension Security Greatest Risks (additional comments) The greatest risks facing defined benefit plan (DB) pensioners are that: A: rules would be changed to allow reductions to pensions already earned  Target Benefit Pension plans, being considered by Finance Canada and others, could/do permit the conversion of earned DB pensions and the reduction of pension benefits already earned