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Regina Civic Employees’ Superannuation and Benefit Plan

Regina Civic Employees’ Superannuation and Benefit Plan. April 14, 2011. Our Recommendations:. Respect the legal and fiduciary obligations set out in By-law 3125 - it’s the law! Respect the existing governance structure, allow us to continue to bargain a resolve

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Regina Civic Employees’ Superannuation and Benefit Plan

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  1. Regina Civic Employees’Superannuation and Benefit Plan April 14, 2011

  2. Our Recommendations: • Respect the legal and fiduciary obligations set out in By-law 3125 - it’s the law! • Respect the existing governance structure, allow us to continue to bargain a resolve • Respect the legal obligations set out in the various collective agreements

  3. Our Recommendations: • Get back to the table • Direct the Admin Board to: - release the 2010 plan membership data to the unions’ actuary - proceed with the preparation of a 2010 draft valuation, and - release the findings of the 2010 draft valuation

  4. Our Position • The plan IS sustainable • 2010 will show a significantly better financial picture than 2009, unless the plan actuary and the Administrative Board make decisions to apply the gains elsewhere • It’s not bargaining when only one side has access to the information

  5. Understanding What We Have • 1.35% up to Years’ Maximum Pensionable Earnings (YMPE) • 2% on earning above YMPE • .65% bridge benefit payable to age 65 • Early retirement without reduction when age + service = 80 • Adjustments to protect you from inflation, 50% to a maximum of 4.25%

  6. Understanding What We Have • Retirement security – the benefit you earn must be funded • Each pay period you set aside a portion of your wages today to collect in retirement as a monthly pension benefit • The employer’s share of pension costs form part of our compensation

  7. Understanding What We Have • Plan design changes can’t legally be made without your approval • You have a say in how much you pay • Surplus in the plan must be used for benefit improvements • You decide who has your voice and vote through the members you elect to represent you on the Admin Board

  8. Understanding What We Have • 53.8% of pensioners receive less than $12,000 • 78.6% of pensioners receive less than $24,000 • 12.5% of pensioners receive more than $30,000 • Average Canada Pension Plan benefit in Saskatchewan = $485.27 • Average Old Age Security = $493.34

  9. What’s at Risk? • Loss of your retirement security • The cost of your pension promise in the current defined benefit pension plan must be funded over the long term • Every pay period, you agree to take a portion of your wages and defer them until retirement

  10. What’s at Stake? • No more early retirement • No more bridge benefit • No more inflation protection unless the plan can afford it

  11. What’s at Stake? • The right to bargain your pension is lost • Loss of use of surplus to improve the plan • New hires are no longer permitted to join the plan • Inequitable “two-tier” system • No plan at all?

  12. What’s at Stake? • A “target benefit” plan is a major shift away from your existing benefit security • A “target benefit” is determined based on a set contribution rate • If the “target benefit” is not adequately funded by the fixed contribution rate and investment returns, benefits are reduced

  13. Our Position • Defined benefit must be maintained • Expand participation in the plan • No two-tier system • Inflation protection must be maintained – think of no salary adjustments for the past 20 years! • We have already agreed to remove overtime from the benefit calculation

  14. Our Position • These high costs are only a snap shot in time, the funding has already improved • The employers’ proposals to close the plan to new hires will put our retirement security at risk • In the last two rounds, you have sent us a clear message, our plan is important and you want to hold on to it!

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