CCRetirees 6th Annual Meeting & 9 th Information Update

Transcription

1 CCRetirees 6th Annual Meeting & 9 th Information Update November 6th, 2014

2 Introduce Current Board of Directors Formal Annual General Meeting (AGM) Approval of Agenda Break Approval of Minutes of 2013 AGM Chair s Report Financial Statement Appointment of Auditors Election of Directors Other Business Annual Meeting Adjournment Chairman s Remarks Pension Status Report Membership & Recruiting Guest Speaker Life After 50 Summary Q&A Today s Full Agenda

3 First A Few Housekeeping Items

4 Current Directors Joe Bevacqua Cody Cooper Harold Dawe Jim Dunn Kathy Hartig Lou Ienna Don Kreibich John Mann Walt McCall Dan Minello Andy Moro Arthur Wolfram

5 CCRetirees Committees Membership/Recruiting & Communication Lou Ienna Joe Bevacqua Terry Desjardins Don Kreibich Dan Minello Ken Unwin Andy Moro Ivo Spadotto Ken Unwin Finance Committee Kathy Hartig Arthur Wolfram Member Programs Cody Cooper Jim Dunn Social Events Roy Henly Don Kreibich Walt McCall Andy Moro Regulatory & Strategy John Mann Cody Cooper Jim Dunn Arthur Wolfram Nominations Committee John Mann Cody Cooper

6 Field Representatives Atlantic Quebec West Ontario Dan Pambrun Richard Leblanc TBD TBD

7 Business Item #1 Approval of AGM Agenda Approval of Agenda Approval of 2013 AGM Minutes Chair s Report Financial Statement Appointment of Auditors Election of Directors Continuance Update Other Business Annual Meeting Adjournment

8 Business Item #2 Approval of 2013 AGM Minutes

9 Business Item #3 Chair s Report Cody Cooper

10 Selected Accomplishments Continued effective member communications President s message by & Direct Mail, Simplified Complex Pension Issues for all of us AGM (Nov th ) and Toronto Meeting (Dec 11 th ) Opened Facebook page Strengthened our network of contacts in US & Canada Canadian Federation of Pensioners, NCRO, and other Pension Groups Reviewed our strategic plan to achieve Regulatory Change Changing business environment and pension focus Membership Represent 50% of retirees Canada Not-for-Profit Act Compliance measures approved Obtained Ongoing Pension Funding Information Ride & Drive Events Chrysler 200 & Dodge Products Membership Cards

11 Business Item #4 Financial Statements Jim Dunn

12 Financial Summary

13 Balance Sheet as at April 30, 2014 Assets: Cash in bank Accounts Receivable $33,830 1,900 $29,173 1,951 Total Assets Liabilities: Accounts Payable and Accrued Liabilities Deferred Revenue Total Liabilities Equity: Unrestricted from operations $35,730 $3, $4,577 $31,153 $35,730 $31,124 $3, $4,765 $26,359 $31,124

14 Income Statement for the 12 months ended April 30, Revenue: membership dues and contributions Expenses: AGM expenses Insurance Membership Office expenses Professional fees Audit Mailing Travel Website Total expenses Revenue exceeds expenses $14,519 $2,633 1, , $9,725 $4,794 $17,833 $1,584 1, ,277 1, $9,998 $7,835

15 Business Item #5 Appointment of Auditors Jim Dunn

16 Appointment of Auditors Motion to Appoint: Miles & Co. Chartered Accountants as Auditors (1601 Wyandotte Street East, Windsor, Ontario) Background: Miles & Co. Chartered Accountants is a Windsor Based Firm with small business and tax expertise.

17 Business Item #6 Election of Directors Cody Cooper

18 Candidates for Directors (Three Year Terms) Re-Election Harold Dawe Jim Dunn Lou Ienna Don Kreibich Walt McCall Dan Minello

19 Business Item #7 Other Business

20 Business Item #8 Adjournment

21 Information Session

22 Board Chair s Remarks Cody Cooper

23 CCRetirees Major Objectives Recruit 50% of NBU Retirees of Chrysler Canada Work Together to Improve Provincial and Federal Pension Legislation

24 Pension Landscape 2010 Statistics Canada (source) Registered Pension Plans, 17.5% of the population public plans (52%) private sector plans (48%) (8% of total population) Statistics Canada Definition: a defined Pension plan is a promised pension plan. Move from Defined Pension to Defined Contribution Targeted Benefit Initiative No one will speak for us, but us! We need to speak up to protect what was promised.

25 CCRetirees Objectives Full Solvency sustain funds for pensioners at a minimum of 90% on a solvency basis maintained over a three year period Full Transparency full information provided to plan members within six months of fund evaluation Top Tier Protection from Bankruptcy pension income should be protected as super priority ahead of creditors of a bankrupt business. Safe Haven Alternative a gov t managed safe haven for the continued administration of any pension plan in the event of bankruptcy.

26 Chrysler Canada Inc. Salaried Employees Retirement Plan (SERP) Update Jim Dunn

27 Latest Actuarial Valuation for SERP Towers Watson, the preparing actuary, has recently completed a valuation of the plan as of January 1, 2014 on behalf of the company The valuation is prepared under three scenarios for three purposes: Going Concern - assumes the company continues to make normal contributions Solvency - assumes no further funding from the company Windup liquidation view where all available assets are paid out to members less administrative and legal costs

28 Funded status of SERP as of Jan 1,2014 Going Concern (normal business and markets) Solvency (conservative funding rules) Wind-Up (pay-out plan via liquidation) 102% (95% prior year) 97% (80% prior year) 92% (75% prior year) If the plan was wound-up, as of January 1, 2014, you would get 92% of your current pension.

29 What happened to SERP last year? Going Concern January 1, 2014 January 1, 2013 Assets (smoothed) Future pensions Surplus (deficit) 13 (37)

30 What happened to SERP last year? Solvency January 1, 2014 January 1, 2013 Assets (Jan. 1 st ) Future pensions & costs Surplus (deficit) (21) (179) The company is required to fund $109 million (present value of solvency deficiency as at Jan 1, 2012) over the next 10 years with annual payments of $20 million. These annual payments may be reduced by any special funding payments made by the company in this period.

31 What happened to SERP assets last year? Solvency Assets January 1, Employer contributions - special Employer contributions - regular Employee contributions Market gains Pension payments (50) Assets January 1, The plan had market gains of 9.4% for the year ending January 1, 2014.

32 Wind-Up Deficit $300 $250 $260 Wind-Up Deficit (millions) $254 $240 $200 $171 $150 $100 $129 $73 Wind-Up Deficit (millions) $50 $

33 Wind-Up Funded Status 95% 90% 85% 80% 75% 70% 65% 60% Wind-Up Payout 92% 84% 79% 73% 75% 70% Wind-Up Payout

34 What is the asset mix of SERP? Asset Mix Target Equity 39% 44% 33% Bonds 54% 50% 63% Real estate & Other 4% 4% 4% Cash 3% 2% 0% Total 100% 100% 100% The plan mix has moved to a conservative position in 2014; and is continuing to move to a more conservative mix in 2015.

35 What are the SERP demographics? Group Number of members Average Age Retired 1, Surviving spouses Active 1, Other Disabled& Terminated Total 3,479 Memo: Retirements in There are 1,964 retirees, including surviving spouses, which is 56% of total plan members

36 In Summary The funded position of the plan has improved significantly due to: Special company contribution of $37 million Continued strong asset returns Increase in the solvency liability discount rate to 3.80% from 3.00% in the prior year; resulting in a decrease in the solvency liability of approximately $61 million.

37 Key Conclusions We are in the enviable position of having a well-funded pension fund A number of CFP member pension funds are facing significant pension cuts Air Canada, Stelco, Nortel and Sears Canada We need to continue to work with the Canadian Federation of Pensioners on important issues which affect our pension security: Proposed introduction of target benefit plans Improved protection for pension plans under Canadian Bankruptcy Laws (CCAA) Improved reporting and funding under Ontario Pension Benefit Act regulations We simply want every company to play by the same rules; to ensure pensions are adequately funded in good times and in bad times. We cannot afford to be complacent We need to get more of our pensioners engaged!

38 Membership, Recruitment and Communications 2014 Lou Ienna

39 Membership/Recruitment & Communications Committee Committee Members Terry Desjardins Don Kreibich Ken Unwin Joe Bevacqua Lou Ienna Andy Moro Ivo Spadotto GTA Support Dan Minello

40 Membership Penetration Projected 2014 total of 791 represents 50% of our retirees (1,579) and 40.3% of available retirees (1,964), including surviving spouses (385)

41 November 2014 Penetration By Regions Atlantic 22 Quebec 42 West 46 Ontario 675» Windsor Area (480)» GTA (195) Other 6 Total 791

42 791 Members Distribution Alberta Arizona BC Man Mich New Bruns Nova Scotia Ohio Quebec Australia Ontario

43 ONTARIO Membership Distribution Total Windsor Essex GTA 480

44 Membership & Communications Actions Continue displays in Service Garage and all local Chrysler Vehicle Dealerships with business cards Held Sponsorship drive program using Member s personal invites letters to potential candidates. Developed Membership Card Merged the Membership Recruiting team with Communications team Opened Facebook page for CCRetirees members Planned Complete additional discount from local business by using new Membership Card Ongoing 2015 NOTE: More input and names from members are welcomed Blitz non members with Committee s letter -1 st quarter 2015

45 How can youhelp as a member When you meet your workplace friends at the store, golf course or on the street, talk to them and tell them about the organization Tell them the advantages of being a member 20% discount on insurance from HUB We are a point of contact with the company Frequent information distribution on Chrysler and Government Legislation that will effect your future pension status Not all pensions are fully funded, this is a cause for concern Attend the quarterly social events

46 SUMMARY Financial market forecasts show continued downward pressure on interest rates for the next several years Companies should be expected to fund any pension fund shortfalls quickly Chrysler Canada retirees cannot be complacent on this issue! We need more retirees engaged in the discussion (become members and support us) We need to work with the CFP to have a stronger voice with government

47 Questions & Answers