1. President's Report Spring 2018
Welcome to our 2018 Spring Annual General Meeting. I am pleased to be here to share the President’s Report with you.
We are on our regular spring tour and sharing this presentation at 7 other AGM and Chapter meetings across Ontario and Quebec.
Next year we will be in Newfoundland too!

2. Agenda Protecting your Pensions Bell Canada Pension Plan Status
Risk Report Card
2017 Indexation Issue Update
Sears Bankruptcy Update
BPG Board of Directors
Here is today’s agenda.
The Bell Pensioners’ Group is here to Protect Your Pensions.
Today I will share some updates with you on these 5 topics
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3. Bell Canada DB Pension Plan Status
$ Billions
Year End results
2017
Prelim
2016
2015
2014
2013
2012
Market Value of Assets
(Net of Wind-Up Expenses)
15.5
15.2
15.0
13.8
13.3
Liability, assuming Plan is wound up
16.2
16.1
14.9
15.9
Surplus/(Shortfall)
($0.7)
(1.0)
(1.2)
(2.5)
Solvency Ratio (%)
99.0
95.7
93.8
92.8
93.0
84.0
This is the slide that we use to show the financial status of our Bell Canada Pension Plan.
We met with Bell In late April and they shared the 2017 Preliminary Solvency Ratio with us,
The actual report is not issued to the regulator until June.
BPG focuses on the Solvency Ratio to answer the question – is our plan fully funded today, assuming the company were to wind up now?
But there is a second measure called a Going Concern Measure that assumes the company is going to continue to exist into the future. The Bell Canada Going Concern ratio is 108%
Bell did top up the plan with a $14m payment at the end of December 2017.
It is safe to say that today our Bell Canada Plan is nearly fully funded.
These are the preliminary results that Bell provided for the other plans that we monitor:
BCE shows the greatest improvement – Bell did top up the BCE plan by $86m at the end of 2017.
Solvency for BCE has been calculated using the new Ontario regulations – It is 100%
BCE Going Concern ratio is somewhere between 112% and 120% depending on the calculation that is used. (PFAD in or out)
So much improved position
Bell Aliant’s Solvency is at 98% with Letters of Credit included, and 93% excluding them and the Going Concern ratio at 106%
Telebec Solvency is at 90% and Going Concern at 110%
Today, all the plans that BPG monitors are in pretty solid shape.
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4. Risk Report Card Risk Rating 1 Plan Funding A - 2
Bell’s Financial Health A 3
Bankruptcy Legislation F 4
Pension Legislation D 5
Bell’s Investment Policy 6
The Economy B
In the past we have talked about the 6 Risks that we routinely monitor.
Here they are and how we would rate each risk …
On Plan Funding – the best protection for pensioners is a full funded plan – we are in pretty good shape.
On Bell’s Financial Health – one read of the BCE Annual report or the Q1 media release and you see they are in strong financial condition and they have a solid plan for growth.
Bankruptcy and Pension Legislation are really the concerns. This is where we concentrate our efforts and our funds. These are the 2 risks that I am going to talk about.
Bell’s Investment Policy continues to work well for us – 70% low risk (fixed income) and 30% higher risk (equities)
And on the Economy - interest rates have been creeping upwards - this is good news for plan funding valuations (higher interest rates improve valuations). 
This explains in part the excellent numbers for our plans.
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5. Our Alliances The louder our voice – the more we are heard
Canadian Federation of Pensioners (CFP)
Represents more than 250k DB pensioners
CARP
Over 300k members over age of 50
Canadian Labour Congress (CLC)
Representing 3.3 million Canadian workers.
Canadian Coalition for Retirement Security (CCRS)
More than 21 member associations
Pionairs (Air Canada)
Over 15k members
Before I get into those two risks I thought I would take a minute and talk about the organizations that we are collaborating with in our advocacy efforts. We are not in this alone.
BPG realized a number of years ago, that the more retirees that we represent – the louder our voice. We have over 10,000 members, but when you are lobbying governments for change, that voice is just not loud enough.
So the Canadian Federation of Pensioners was formed in 2005 with BPG as a founding member with an advocacy focus to protect DB pensions.
Today it represents over 250k DB pensioners and their families.
In addition to BPG, its membership includes associations that represent retirees from Air Canada, Chrysler Canada, Dupont, General Motors, Algoma, Nortel, MacMillan Bloedel Weyerhaeuser, Municipal Retirees Ontario, Society of Energy Professionals, Stelco, and more.
You hear us mention CARP – they work closely now with CFP as CFP has a large reach – so most of the things that we do with or for CARP – the other CFP member organizations are also doing.
CARP advocates for improved healthcare and financial security for older Canadians. As a non-partisan association, CARP is committed to working with all parties in government to advocate for older Canadians. They have taken on protecting pensioners as a current focus.
CFP is also a member of the Canadian Labour Congress representing unions across Canada and more than 2 million Canadians workers
We are also a member of the Canadian Coalition for Retirement Security (CCRS) – This is a coalition of over 20 retiree associations focusing on protecting DB pensions in the federal arena, with a particular emphasis on fighting Target Benefit Plan initiatives. Associations include those that represent Retired Teachers, Navy and Air Force, postal workers, CBC, and many more
The Pionairs represent over 15k members who are retirees of Air Canada and Canadian airlines.
We are in good company!
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6. Risk #3 - Bankruptcy Legislation
Canada’s current Bankruptcy regime does not protect pensioners
Sears bankruptcy triggered wide public awareness
NDP and Bloc parties tabled private members bills
BPG and others pressing the federal government
Federal Consultation process promised
Super-priority status for pensions proposed
Risk #3 - Canada’s current Bankruptcy regime does not protect pensioners.
The Bankruptcy and Insolvency Act, and the Companies’ Creditors Arrangement Act are the two acts that govern bankruptcy and insolvency and they provide little, if any, security for the underfunded portion of a pension plan.
Canada’s insolvency and bankruptcy regime is one that needs reform and that’s our focus.
But reforming the bankruptcy rules and regulations is a daunting challenge.
The Sears bankruptcy has triggered a broad awareness of the treatment of pensioners in cases of employer insolvency and bankruptcy,
There is more support for pension protections right now. That support is welcome and helpful to our cause ….
On Oct 17, the Bloc party tabled a Private Members bill and on Nov 6, the NDP’s Pensions Critic Scott Duvall tabled his bill in support of pensioners
Now private members bill’s don’t very often make a difference. But they get media attention and it’s a start.
Other advocacy groups like CARP are taking an interest in how pensioners are treated by the bankruptcy rules – it is their petition that we asked you all to support last fall.
They are also promoting measures such as a new federal cabinet position to promote Seniors’ interests and sponsored a Day of action in February which some of you may have participated in by visiting or writing your MP. Thank you for that. Over 1000 individuals met with 80 MPs across Canada.
BPG is collaborating with our alliances, and talking to MPs, MPPs, and senior policy advisors and bureaucrats at both the federal and provincial levels to underscore the need for changes to the federal legislation that governs insolvency and bankruptcy.
And, we will participate in the consultation process promised in the federal budget.
The 27 February 2018 federal budget stated
“… we will be looking to obtain feedback from pensioners, workers, and companies. We will take a whole-of- government, evidence-based approach towards addressing retirement security for all Canadians.”
And at the The Federal Liberal party policy convention in Halifax in April – the CFP President, Mike Powell, presented a resolution to give pensioners super-priority status in bankruptcy and insolvency situations and it was adopted as one of the top 5 policy proposals to guide Liberal work over the next 8 years.
Currently underfunded pension plans are at the back of the line for obtaining funds from a bankrupt company
Super priority would bump them to near the front of the line, ahead of most other creditors. Given that federal and provincial funding rules permit plans to be underfunded, it is only fair as a quid pro quo that pensioners be protected through the bankruptcy rules in those (fortunately) rare cases when companies go under.
Overall, All of this is progress
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7. Risk #4 – Pension Legislation
Provincial
2013 – Quebec eliminated their solvency measure
December 2017 – Ontario
Reduced the solvency target from 100% to 85%
Increased the ‘insurance fund’ from $1000 to $1500
2018 – Nova Scotia and Manitoba consultations underway
Federal
Bill C27 & Target Benefit Plan
Proposed Federal Minister responsible for Seniors
Risk #4 Pension Legislation
BPG closely monitors pension-related activity at both the federal and provincial levels in Canada.
Proposed changes may be – and often are – unfavorable to pensioners. What happens at the provincial level – may occur at the federal level.
Just to remind you that our plans – except for BCE – are federally regulated. BCE is regulated by Ontario.
Changes to the regimes in Quebec and Ontario, and current consultations in Manitoba and Nova Scotia illustrate that solvency funding based rules are under attack.
Quebec totally eliminated the need for a solvency measure
During the Ontario consultation process BPG, through CFP, advocated for pensioner interests. Our recommendations were well received, but only partially implemented.
Ontario reducing the solvency funding target from 100 % to 85%. In other words, a plan will be considered to be “fully funded” if it has 85% of the required funds.
I will add that there was something on the positive side for Ontario. They have a Pension Benefits Guarantee Fund – like an insurance policy – that was slightly enhanced, providing some protection that should cover some of the shortfall (i.e., the coverage increased from $1000 to the first $1500 of a monthly pension)
And now the Nova Scotia and Manitoba governments are examining options to reduce sponsor funding requirements, and are looking at introducing target benefit plans
We are actively working on these proposed legislative changes. We are responding to the consultations, and planning strategies with other advocacy groups.
Here is what’s happening at the federal level …
Just in case you are wondering about the Federal Bill C27 that was about introducing Target Benefit Plans – the Labour unions and other CCRS members continue to voice a very loud opposition – and we believe that Bill will just be allowed to die a quiet death
CARP is proposing the appointment of a Federal Minister responsible for Seniors – which we totally support! There is an on line petition and that link is available on our website and facebook pages
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8. Risk Report Card Risk Rating Outlook Plan Funding1
Plan Funding A- 2
Bell’s Financial Health A 3
Bankruptcy Legislation F 4
Pension Legislation D 5
Bell’s Investment Policy 6
The Economy B
Back to the Risk Report Card … thanks to all of the attention the issues are getting – we are cautiously optimistic that we may see some movement on bankruptcy legislation and that is key for each and everyone of us.
And for Pension Legislation – at the Federal level, we remain at a 100% target for Solvency and we have the attention of the Feds – so that’s good … and the rest of the card is pretty solid!
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9. 2017 Indexation Issue - Update
Members questioned why the 2017 increase was only 1%
BPG investigated and sought a legal opinion
Advised Bell’s interpretation would likely be upheld
Concluded no further action was warranted
On 16 January 2018, a retiree initiated a class action suit:
On behalf of all Bell Canada DB pensioners
Arguing that Bell’s approach to indexation was incorrect
Seeking $150 million in damages
Just to review the background on the Indexation issue …
We heard from some Bell Canada members at the beginning of last year that they expected a 2% increase in 2017 rather than the 1% we all received.
We considered it important to investigate and consult on your behalf with a legal firm.
Our Legal Counsel advised that Bell’s interpretation would likely be upheld if legally challenged
We were satisfied that no further action was warranted
One of the Bell retirees decided differently and on January 16, 2018 initiated a class action suit on behalf of all Bell DB pensioners – seeking $150m in damages.
Class actions proceed in two phases.
First, the court must determine whether to certify the claim and the defined class of beneficiaries as the proper subjects of a class action.
This has been scheduled for April 24-25, 2019.
Second - Should the action be certified by the court, the lawsuit then proceeds on the merits to determine the validity of the claim.
Should the suit ultimately be successful, all members of the class would be eligible to proceeds as determined by the court, after legal costs of course.
There is a twist in this case in that whether and how this case proceeds is subject to the outcome of an other proceeding that is scheduled on June 25, to explore whether this claim should be dealt with by OSFI (the federal pension regulator) or the courts.
We will keep you informed about developments.
The Bell Canada Pension Plan provides for an annual automatic indexation increase each January 1
based on the percentage increase in the Consumer Price Index (CPI)
over the 12 month period ending October 31 of the year immediately before the increase,
rounded to the nearest whole number, to a maximum of 2%.
Notably, if the change in the CPI is negative in a given year, your pension will not be reduced.
While Statistics Canada published the change in the CPI for that period as 1.5%, the actual CPI published by Statistics Canada was for October and for October 2015
This amounts to an annual increase of 1.49% which rounds to 1% as a whole number.
Delete the following – you’ve already said it above…
We understand that has been scheduled for April
Should the action be certified by the court, the lawsuit would then proceed on the merits to determine the validity of the claim.
Should the suit ultimately be successful, all members of the class (in this case, all Bell Canada defined benefit plan pensioners) would be eligible to proceeds as determined by the court, after legal costs of course.
However, there is a proceding scheduled for Jun 25, 2018 to explore whether this claim can or should be dealt with by OFSI – the pension regulator – rather than the courts.
That will determine the next steps in this case.
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10. Sears Bankruptcy Update
The Sears DB pension plan is underfunded by about 20%
Update – March 2018
Superior Court has appointed a litigation investigator to review $3B in payments made to Sears Canada Shareholders, while the company’s Pension Fund had a shortfall of nearly $300M
Sears Update
Sears will not be able to keep its pension promise for their employees and pensioners. Their plan is about 20% underfunded.
The Sears plan is regulated in Ontario so - a bit of good news for some Sears pensioners - Ontario retirees are covered by Ontario's insurance fund which I mentioned was just increased from $1000 to $1500 and the Ontario government did make that change retroactive so that the Sears retirees could take advantage of that change.
There was a Superior Court action taken in March 2018
Superior Court has appointed a litigation investigator to review $3B in payments made to Sears Canada Shareholders, while the company’s Pension Fund had a shortfall of nearly $300M
The Sears situation has been pivotal in bringing organizations together across Canada to speak out on the issue of protecting pensioners in the event of sponsor failure.
And It is a wake up call for Legislators
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11. BPG Board Departures
A very special thank you to those Directors who are
leaving our Board.
We will miss them, their hard work, and many contributions!
And we wish them well!
Titus Ramkhalawansingh (Ontario Central)
Don Graham (Southwest Ontario)
Claude Vachon – (Télébec)
Hélène Lefebvre – (Nominating Committee)
The BPG Board of Directors is today a group of 19 Bell Retirees that come from many different areas of Bell.
We are so very fortunate to have such talented Board Members.
Three of these Board Members are leaving this June, whereas Claude Vachon, left last November.
We will miss them.
Spring 2018 President's Report

12. 2018-19 Proposed Board of Directors
Executive & Officers
Patte Seaton (President)
Diane Holgate (VP Ontario /Atlantic)
Denis Marquis (VP Québec)
Lee-Anne Mackey (Treasurer)
Gayle Duchene (Secretary)
Directors at Large
Carol Lacroix (Communications)
Raynald Wilson (Benefits)
Marg Eades (Pension Committee)
Peter Dilworth (Audit & Finance)
Dave Palmer (Pension Committee)
Denis Henry (PC & CFP Rep)
Christianne Chabauty (Nominating)
Chapter Chairs
Marlyn Easterbrook (Ottawa)
Carol Ann Cole (Ont. Central)
Steve Longeway (SW Ontario)
Lucie St-Arnault (Montréal)
Marjolaine Gilbert (Québec)
Roger Gauthier (Télébec)
Bob Noseworthy (Aliant Atlantic)
These are the Board Directors who represent you starting in June The names in blue are all new Board Members.
Your Chapter has a similar list of dedicated executives who support each Chapter.
It warms my heart to work with such a talented and committed team of volunteers.
We do this because it’s important work – and because it is great to be working for a purpose with people you have a lot of respect for.
In addition to the Board members, today we have about 130 volunteers working with us on a regular basis.
At the Board level we have 2 critical positions to fill over the next few months. A Recording Secretary; President for our Ottawa Chapter; and we are also looking for volunteers in the area of communications and administration.
If you would be interested in helping us with this cause at the National or the Chapter Level – please volunteer!
Spring 2018 President's Report