HBT Business Update

July 3, 2012

Jan K. Grude, CEO

Sarah Hoffman, CFO

Agenda

• 2012 Priorities

• 2013 Contribution Rates

• Benefit Cost Drivers

• Finance Update

• Exit Levy Status

• Benefits Administration Notices

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Key Priorities for 2012

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• Bargaining & Benefits Costs• Client and Stakeholder support

• PBC Enrolment & Billing Systems – Healthcare & Community Employers 2012-2013

• Client Satisfaction Survey• LTD claims adjudication & payment services provided by

GWL

HBT Rate Setting

• Closely resembles insurance industry practice

– Life/AD&D............Broad Across Trust

– EHC/Dental/LTD...Experience and Demographic Adjustments

• Increased stability over time protect against large changes due to LTD experience and investment performance fluctuations

• Limited subsidies; while respecting insurance principles of pooling

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Benefits Cost Drivers

• Plan Design

• Benefits Utilization

• LTD Management – Early Intervention

– HBT Rehabilitation Services

– Collaboration with GWL

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2013 Contribution Rates

Early Guidance:

• Continued stability in LTD experience

• Extended health and dental experience has been better than expected

• 2013 Rates available in Fall 2012

• Rates supported by additional information on

benefits utilization.

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Financial Update

July 3, 2012

Sarah HoffmanChief Financial Officer

HBT 2011 Annual Report

• Financials Audited by KPMG

• Reporting Changes

• HBT Administrative Costs

• Actuarial Report

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Finance Update

Finance Update

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Decreasing Deficit Position

Funded Position Factors

1. LTD Active Claims

2. Investment Performance

3. Contribution Rates

4. Deficit Recovery & Exit Levy Payments

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Four Key Factors

Active LTD Claims by Pool 2006-2011(as at December 31st)

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Investment Performance 2011

• Return Expectation is set at 6% annualized

• Actual returns ~ 3.3% for 2011 net of fees.

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bcIMC INVESTMENT UPDATE

Deficit Recovery

– 2009 funding policy introduction of assumptions to provide support, increased stability over time via incorporation of margins

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Exit Levy Update

– Current members are not paying for exit levies owed to the Trust.

– HBT has received payments recently and also collected payments.

– Payment plans are available to pay levy over time.

– Returning Members - appropriate payment provisions in place for exit levy owed and deficit recovery

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Other News & Update

• Bill C-13 CPP & EI

• Group Life & AD& D

•MSP

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Q&A

•Questions?

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