CCRetirees 8th Annual Meeting & 11 th Information Update

Transcription

1 CCRetirees 8th Annual Meeting & 11 th Information Update November 09, 2016

2 Introduce Current Board of Directors Formal Annual General Meeting (AGM) Approval of Agenda Approval of Minutes of 2015 AGM Chair s Report Financial Statement Appointment of Auditors Election of Directors Other Business Annual Meeting Adjournment Break Chairman s Remarks Pension Status Report Membership & Recruiting Guest Speaker Summary Q&A Today s Full Agenda

3 First A Few Housekeeping Items

4 Current Directors Joe Bevacqua Cody Cooper Jim Dunn Kathy Hartig Lou Ienna Jim Kenney Don Kreibich Walt McCall Dan Minello Andy Moro Ron Sitarz

5 CCRetirees Committees Membership, Recruitment & Communications Lou Ienna Terry Desjardins Don Kreibich Ken Unwin Joe Bevacqua Dan Minello Ivo Spadotto Member Programs Jim Kenney Social Events Roy Henly Don Kreibich Walt McCall Andy Moro Ron Sitarz Finance Committee Kathy Hartig Nominations Committee Cody Cooper Regulatory & Strategy Joe Bevacqua Cody Cooper Jim Dunn

6 Field Representatives Atlantic Quebec West GTA Dan Pambrun Richard Leblanc TBD Dan Minello (BoD)

7 Business Item #1 Approval of AGM Agenda Approval of Agenda Approval of 2015 AGM Minutes Chair s Report Financial Statement Appointment of Auditors Election of Directors Other Business Annual Meeting Adjournment

8 Business Item #2 Approval of 2015 AGM Minutes

9 Business Item #3 Chair s Report Cody Cooper

10 Selected Accomplishments Continued effective member communications President s message by , Direct Mail and Facebook Simplified Complex Pension Issues for all of us AGM and Toronto Meetings Revised website and political contact tool Maintained contacts in US & Canada Canadian Federation of Pensioners, NCRO, and other Pension Groups Continued political contacts per our strategic plan Face to face contact with party representatives and bureaucrats Maintained membership representing over 50% of retirees Obtained Ongoing Pension Funding Information Ride & Drive Events

11 Business Item #4 Financial Statements Kathy Hartig

12 Balance Sheet as at April 30, 2016 Assets: Current Assets Cash in bank Accounts Receivable Deposits Capital Assets Intangible Asset $35,915 1, ,619 $36,899 2,000 Total Assets Liabilities: Current Liabilities Accounts Payable and Accrued Liabilities Deferred Revenue Total Liabilities Equity: Unrestricted from operations $42,034 $3,277 1,425 $4,702 $37,332 $42,034 $38,899 $4,327 1,350 $5,677 $33,222 $38,899

13 Income Statement for the 12 months ended April 30, Revenue: membership dues and contributions Expenses: AGM expenses Bank Charges Insurance Membership Office expenses Amortization Professional fees Audit Professional fees Legal Mailing Travel Website Total expenses Revenue exceeds expenses $15,758 $1,383 1,664 1,031 1,305 1,540 2, , $11,648 $4,110 $13,872 $1, , ,277 3,000 1, $11,803 $2,069

14 Business Item #5 Appointment of Auditors Kathy Hartig

15 Appointment of Auditors Motion to Appoint: MCO Partners Chartered Accountants (1601 Wyandotte Street East, Windsor, Ontario) Background: MCO Partners Chartered Accountants is a Windsor Based Firm with U.S. & Canadian Tax and small business services expertise

16 Business Item #6 Election of Directors Cody Cooper

17 Candidates for Directors (Three Year Terms) Tim Hebert - new Anna Petrozzi new Gary Roe - new Cody Cooper - re-elect Kathy Hartig - re-elect

18 Business Item #7 Other Business

19 Business Item #8 Adjournment 15 Minute Break

20 Part #2 Information Session

21 Board Chair s Remarks Cody Cooper

22 CCRetirees Major Objectives Maintain over 50% of NBU Retirees Achieved and Sustainable Legislative Change at Federal and Provincial Level Unachieved and at Risk

23 Pension Landscape Continued movement from Defined Pension to Defined Contribution Unifor Contract of 2016 is the latest example Targeted Benefit Plan Individual Consent Federal Finance Minister agreement per CFP Ontario Solvency Funding Consultation and Targeted Benefit Plan regulations concerns We continue to speak up to protect what was promised.

24 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.

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

26 Latest Actuarial Valuation for SERP The last actuarial valuation of the plan was as of January 1, 2014 The valuation was prepared by Towers Watson under three different scenarios: 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

27 SERP Actuarial Valuation not prepared for January 1, 2015 or January 1, 2016 Pension Benefits Act of Ontario Section 14(1),14(3) If Solvency Ratio is greater than than 85 percent, actuarial valuation may be prepared every 3 years If Solvency Ratio is less than 85 percent, actuarial valuation must be prepared annually FCA Canada elected not to prepare a valuation for January 1, 2015 & January 1, 2016 Met Solvency Ratio test of 85 percent Cost savings FCA Canada provided internal financial reporting information on SERP for January 1, 2015 & January 1, 2016 Asset performance Liability adjustments

28 Funded status of SERP as of Jan 1, 2016 Going Concern (normal business and markets) Solvency (conservative funding rules) Wind-Up (pay-out plan via liquidation) 108% (102% prior year) 89% (91% prior year) 85% (85% prior year) If the plan was wound-up, as of January 1, 2016, you would get 85% of your current pension.

29 What happened to SERP last year? Going Concern January 1, 2016 January 1, 2015 Assets (smoothed) Future pensions Surplus (deficit) 50 15

30 What happened to SERP last year? Solvency January 1, 2016 January 1, 2015 Assets (Jan. 1 st ) Future pensions & costs Surplus (deficit) (108) (105) 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 5.3% for the year ending January 1, 2016.

32 Wind-Up Deficit $300 $250 $260 Wind-Up Deficit (millions) $254 $240 $200 $150 $100 $171 $129 $73 $136 $145 Wind-Up Deficit (millions) $50 $

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

34 What is the asset mix of SERP? Target Equity 27.3% 30.8% 30% Bonds 61.7% 62.5% 65% Real estate & Other 9.3% 4.1% 5% Cash 1.7% 2.6% 0% Total 100% 100% 100% The plan mix has moved to a conservative position.

35 What are the SERP demographics? (no additional information for 2016) 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 decreased: Asset returns have declined (5.3% vs. 10.8%) Solvency deficit of $108 millions Wind-up deficit of $145 millions and funded status of 85%, similar to last year.

37 Challenges for 2017 Work with the Canadian Federation of Pensioners on important issues which affect our pension security: Introduction of target benefit plans at the provincial level in B.C., Alberta, Manitoba, Ontario & Quebec Federal Target Benefit Plan regulations Protection for pension plans in bankruptcy /restructuring Improved reporting and Pension Advisory Committees in Ontario Elimination of solvency-based funding requirements Pressure on plan funding in low interest environment

38 Membership, Recruitment and Communications 2016 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 total of 850 represents 54% of our retirees (1,579) and 44% of available retirees (1,964), including surviving spouses (385)

41 Penetration By Regions Atlantic Quebec West Ontario >> Windsor Area (500) >> GTA (203) Other Total

42 Membership & Communications Actions Continue displays in Service Garage and some local Chrysler Vehicle Dealerships with business cards Held 2 nd Sponsorship drive program (letters to potential candidates). Completed additional discount from local business by using new Membership Card Facebook page for CCRetirees members has 124 followers Held our 2nd membership golf outing (May 2016) Co authored the development of our new Web page. Planned for 2017 Second annual golf outing May 2017 Continue to pursue non-members to join Expand Committee membership (need new volunteers).

43 How can you help as a member Promote the Organization to your workplace friends Tell them the advantages of being a member 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 Discount on insurance (HUB) and other businesses Get involved in our events (social & non social) Use the Web site to convey messages to politicians

44 Guest Speaker Brent Allen GreenShield Canada

45 SUMMARY Continued Movement From & Erosion of Defined Benefit Plans Introduction of target benefit plans at the provincial level will only increase this trend with language impacting ancillary items such as surviving spouse benefits. Government complacency is particularly concerning Ontario regulations which control your pension in respect of funding, accountability and transparency wherever you live. Our legislative goals remain unchanged and unmet. Companies are only doing what is required by the government. Politicians, not the bureaucrats are holding us back. We have provided you with the tools and the message to communicate. We need your help to do this and stay at 50% or more of the retiree group.

46 Questions & Answers