BPG General Meetings Oshawa, October 26 Mississauga ... · Background Pension plans are subject to...

Pension Information Committee Report

BPG General Meetings

Oshawa, October 26th, 2015

Mississauga, October 28th, 2015

1

Pension Information Committee (PIC)

Effective January 1st 2016

Bell Canada PIC meeting was held on September 29th, 2015

2015 PIC Report: Provided the Pension Fund Status as of Dec 2014

PIC report will be mailed, if requested, or available on both the InTouch and Benefits Websites

by the beginning of November

2

Representing Ontario & Western Canada Quebec & Atlantic Region

Pensioners Peter Dilworth (Substitute:

Suzanne Dawes)

Michel Doyon ( Substitute:

Yvan Dutrisac)

Management Jeannette Wiens Danny Rosler (Substitute:

Benson Themidor)

UNIFOR (appointed)

Mike Nicoloff Olivier Carriere

33,880 Retirees and Survivors Age Distribution

3

Pension Information Committee (PIC)

4

DB and DC Plan Disbursements

5

DB Plan Disbursements Past 10 years

6

Market value of

assets includes

Bell’s advanced

voluntary

pension

contribution of

$343 Million

7

Financial Position

Bell Required Contribution Evaluation as of December 31, 2014

( $ Millions)

Current Service Costs

-Defined Benefit $132

-Defined Contribution (Estimated) 77

Total $209

Defined Benefit Amortization

Payments

$374

Total Required Contribution

$583

As of December 31, 2014, Bell has $ 343 Million of unused

advance contributions that are available to be used to satisfy the

deficit amortization requirements of $374M

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9

DB Fund Investments

10

Pension Plan Investment Risk Management

Low Risk

Portfolio

Mimics Future

Obligations

Revenue

Generating

Portfolio at

acceptable risk

11

Background

Pension plans are subject to longevity risk, meaning an increase in

pension payments if pensioners live longer than expected

Life expectancy beyond age 65 has been increasing at an increasing

rate.

Current expectancy is 84 years.

The agreement signed between Bell and Sun Life

Insurance on Feb 23rd , 2015 is the 1st of its kind in

North America

The Presidents Report will cover the detail that is in

the PIC report. 12

Pension Plan Longevity Risk Management

Retiree Audit

2014

3500 Audited

Payments to 72 Pensioners postponed Nov, 2014

11 Pensioners have had no contact to resume

2015

10,000 Audited

500 received final reminder in Sept

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