Regina Civic Employees’ Superannuation and Benefit Plan April 14, 2011

Our Recommendations: Respect the legal and fiduciary obligations set out in By-law it’s the law! Respect the existing governance structure, allow us to continue to bargain a resolve Respect the legal obligations set out in the various collective agreements

Our Recommendations: Get back to the table Direct the Admin Board to: -release the 2010 plan membership data to the unions’ actuary -proceed with the preparation of a 2010 draft valuation, and -release the findings of the 2010 draft valuation

Our Position -The plan IS sustainable will show a significantly better financial picture than 2009, unless the plan actuary and the Administrative Board make decisions to apply the gains elsewhere - It’s not bargaining when only one side has access to the information

Understanding What We Have 1.35% up to Years’ Maximum Pensionable Earnings (YMPE) 2% on earning above YMPE.65% bridge benefit payable to age 65 Early retirement without reduction when age + service = 80 Adjustments to protect you from inflation, 50% to a maximum of 4.25%

Understanding What We Have Retirement security – the benefit you earn must be funded Each pay period you set aside a portion of your wages today to collect in retirement as a monthly pension benefit The employer’s share of pension costs form part of our compensation

Understanding What We Have Plan design changes can’t legally be made without your approval You have a say in how much you pay Surplus in the plan must be used for benefit improvements You decide who has your voice and vote through the members you elect to represent you on the Admin Board

Understanding What We Have 53.8% of pensioners receive less than $12, % of pensioners receive less than $24, % of pensioners receive more than $30,000 Average Canada Pension Plan benefit in Saskatchewan = $ Average Old Age Security = $493.34

What’s at Risk? Loss of your retirement security The cost of your pension promise in the current defined benefit pension plan must be funded over the long term Every pay period, you agree to take a portion of your wages and defer them until retirement

What’s at Stake? No more early retirement No more bridge benefit No more inflation protection unless the plan can afford it

What’s at Stake? The right to bargain your pension is lost Loss of use of surplus to improve the plan New hires are no longer permitted to join the plan Inequitable “two-tier” system No plan at all?

What’s at Stake? A “target benefit” plan is a major shift away from your existing benefit security A “target benefit” is determined based on a set contribution rate If the “target benefit” is not adequately funded by the fixed contribution rate and investment returns, benefits are reduced

Our Position Defined benefit must be maintained Expand participation in the plan No two-tier system Inflation protection must be maintained – think of no salary adjustments for the past 20 years! We have already agreed to remove overtime from the benefit calculation

Our Position These high costs are only a snap shot in time, the funding has already improved The employers’ proposals to close the plan to new hires will put our retirement security at risk In the last two rounds, you have sent us a clear message, our plan is important and you want to hold on to it!