WELCOME! Ottawa Chapter Spring Meeting 29 May 2012

AGM Agenda 9:30 Welcome & Review of Agenda 9:35Introduction of Guest Speaker 10:25Treasurer’s Report 10:45 ~ Break ~ 11:05 Pension Update: BPG President’s Report, Q & A 11:55Ottawa Chapter Update, General Q & A 12:30Meeting Close 29 May

Keynote Speaker Larry Elliot Borden, Ladner, Gervais LLP Insurance Issues for Pensioners 29 May

Ottawa Chapter- Financial Report May 29, 2012 Don Dutton Ottawa Chapter Treasurer Presented by Harvey Hillier 29 May

President's Report May 2012 Bob Farmer 29 May

Contents Plan Performance Lowering Pensioner Risk Federal Budget Pension Information Committee BPG Board Q & A 29 May

Plan Performance Plan Valuation Report – as of Dec 31, 2010 Solvency shortfall: $1518M Solvency ratio: 88.5% 11.4% return on assets trend 29 May

Plan Performance Performance for plan valuation available after June Larger costs in 2011, than in 2010, to provide the same pension benefit in future years Increases plan liabilities by about $780M Return on Assets: about 5% (2.8% for Jan-June) Voluntary contributions Prepayments to help manage funding obligations $750M in 2011 $2B total in last three years 29 May

Voluntary Contributions Reduce Solvency Shortfall ($M) Voluntary Contributions: 2009:$500M 2010:$750M 2011:$750M 29 May

Lowering Pensioner Risk The Risk Lower pension payments when sponsor goes out of business and plan is underfunded Sources of Risk Poor plan management Poor market performance Weak legislation/regulation Plan funding Sponsor bankruptcy 29 May

The Legislative/Regulatory Challenge Plan funding rules Improved, but imperfect Sponsor Bankruptcy Pensioners have low priority, so little chance to improve pension funding in bankruptcy proceedings Strong opposition to improving pensioner priority If pensioner priority improved, others are relatively worse off Including lenders, bondholders Political Environment generally unwelcoming to change But there are opportunities for improvements 29 May

Current Opportunities Bill C-331 Private member's bill (NDP) Would put pensioners ahead of all other unsecured creditors Indalex Case in Supreme Court (June 2012) Emphasizes fiduciary obligations of plan sponsor/administrator General application Pensioners ranked ahead of secured creditor Fact dependent BPG, through CFP, intervening 29 May

Federal Budget Old Age Security (OAS) Pension payment can be affected, at pensioner option, due to OAS Change: age of eligibility increased from 65 to 67, starting in 2023 Implications None for current pensioners Pension payments modified for those retiring after 2023 opting for “integrated” payments 29 May

Federal Budget Long Term Disability Currently, LTD payments come from employer revenues If employer ceases, so do payments Change: federally-regulated employers (like Bell) will be required to insure LTD payments LTD payments would not be linked to continued existence of employer Result: Greater security for those retiring with LTD benefits, after legislation is enacted Timing to be determined 29 May

Pension Information Committee June: In Touch will give pensioners chance to nominate PIC reps from July 2 to Aug 3 Aug 13 to Sept 7: voting for nominees October: In Touch provides election results BPG supports election of Quebec: Michel Doyon and Yvan Dutrisac Ontario: Allison Henriques and Sue Dawes Be sure to vote! PIC: committee of employee/pensioner reps to whom Bell provides information regarding the pension plan 29 May

BPG Board Departures André Bergeron (Communications) George Craig (Treasurer) Yvan Dutrisac (Chair: Montreal Chapter) Arrivals Penny Gilray (Treasurer) Roberte Cadieux (Communications) Louise Touchette (at large) Charlie Labarge (at large) 29 May

17 BPG Board Bob Farmer (President) Dan McDonald (Vice-President) Penny Gilray (Treasurer) Lancy Hum (Secretary) Sue Dawes (Pension Committee) Roberte Cadieux (Communications) Bob Bartlett (PC, Nominations) Linda Gervais (PC) Ron Hunt (Governance) Jean Luc Geha (Audit) Michel Doyon (Audit) Louise Touchette (Nominations) Charlie Labarge (at large) PLUS 29 May 2012

BPG Board (cont’d) PLUS:  Chapter Chairs  Marlyn Easterbrook (Ottawa)  Titus Ramkhalawansingh (Toronto)  Frank Bible (SWO)  Robert Guay (Montreal)  Yvan Pacaud (Quebec City) 29 May

Questions? 29 May

Ottawa Chapter Update Presented by Marlyn Easterbrook Ottawa Chapter Chair 29 May

Ottawa Chapter Executive CHAIR Marlyn Easterbrook Vice Chair Ron Hunt Past Chair Marc Davidson Treasurer Don Dutton Secretary Geraldine Foot Membership Coordinator Ed Wilton Webmaster Terry Acker ………..continued 29 May

Ottawa Chapter Executive Members at Large John CampbellLancy Hum Clair CollisGarry Logue John ElliotGeorge McDougall David FairBrian McClean Harvey HillierKeith Thuell Kingston Committee Tina Phillips, Jackie Machin, Donna Anderson, Margaret Bryant, Betty Gauthier 29 May

BPG Election of Board of Directors The current Board of Directors approves and recommends the following Directors for the 2012 / 2013 Board……… 29 May

BPG Election of Board of Directors Existing Members Ontario Bob Bartlett Linda Gervais Sue Dawes Lancy Hum Bob FarmerRon Hunt Quebec Michel Doyon Dan McDonald Jean-Luc Geha ………….continued 29 May

BPG Election of Board of Directors Existing Members (continued) Chapter Chairs Robert GuayMontreal Marlyn Easterbrook Ottawa Yvan Pacaud Quebec City Frank Bible Southwest Ontario Titus RamkhalawansinghToronto 29 May

BPG Election of Board of Directors New Members Ontario Penny GilrayCharlie Labarge Quebec Roberte CadieuxLouise Touchette 29 May

BPG Election of Board of Directors Motion: “That the membership of Bell Pensioners’ Group elect the slate of Directors for the 2012/2013 BPG Board as approved and recommended by the current Board of Directors.” 29 May

STAY INFORMED ! Website New BPG Brochure See website, under “Membership” tab 29 May

PIC NOMINATION AND VOTING Nomination: July 2 to Aug 3 Mail in form with pre-addressed envelope included with your In Touch Voting: Aug 13 to Sept 7 Make sure you read your In Touch for the procedures 29 May

HOMEWORK…… Keep informed ! Visit our website at get the latest news from BPG access the site of your local chapter check for meeting dates read reports from your local PIC reps read and share our brochure 29 May

…….HOMEWORK Keep informed ! Read our newsletters and our s (make sure we have your correct ) Read your In Touch for information on BPG 29 May

QUESTIONS & ANSWERS 29 May

BPG General Meetings Outside of Ottawa KingstonWednesday 30 May 2012 Royal Kingston Curling Club 130 Days Road SudburyFall 2012, TBA North Bay Fall 2012, TBA May

NEXT MEETING Tuesday, 27 November 2012 Nepean Sportsplex Salon B Tax Retirement Planning for Seniors 29 May