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PENSION COMMITTEE 010 04 15 11

http://archives.anglican.ca/en/permalink/official10521
Date
2015 November 13-15
Source
Council of General Synod. Minutes
Record Type
Resolution 08-15-11 [sic i.e. 08-11-15]
Date
2015 November 13-15
Source
Council of General Synod. Minutes
Record Type
Resolution 08-15-11 [sic i.e. 08-11-15]
Mover
Canon, David Jones, Chancellor
Seconder
Mr. David Embury
Prologue
Ms. Jane Osler, a member of the Pension Committee, discussed and presented two motions:
Text
Be it resolved:
That The Council of General Synod approve the recommendation of the Pension Committee to amend Regulations 1, 4, 5, 10 and 14 of Canon VIII as follows with effect from December 31, 2015.
CARRIED #08-15-11 [sic i.e. 08-11-15]
Notes
[Text of revised regulations found in Appendix B, pages 16-20]
Appendix B
010-05-15-11 Revised 2
REPORT OF THE PENSION COMMITTEE TO THE COUNCIL OF GENERAL SYNOD
1. MATTERS FOR ACTION
GENERAL SYNOD PENSION PLAN
1.1 REGULATIONS OF THE GENERAL SYNOD PLANS
Be it resolved that The Council of General Synod approves the recommendation of the Pension Committee to amend Regulations 1, 4, 5, 10 and 14 of Canon VIII as follows with effect from December 31, 2015:
Bolded text is new and strikeout is removed [In electronic database, "bolded" text is indicated by > brackets and "strikeout" text is indicated by {} brackets.]
Amendments to Regulation 1 (“Definitions”)
Section 1 (b) of Regulation 1 is edited to read as follows:
- 1. “Active Member” means a person who:
-- (a) is a Member accruing Active Service, or
-- (b) is a Member who has been granted a leave of absence of one of the following types:
--- (i) study ,
--- (ii) pregnancy ,
--- (iii) parental ,
--- (iv) family medical/compassionate care leave, or
--- (v) any other type of leave required to be granted by the Ontario Employment Standards Act .
Rationale: To broaden the reference to incorporate other provincial legislation and maintain consistency between the GSPP and LTD plan provisions
Amendments to Regulation 4 (“Retirement”)
Section 2 of Regulation 4 is edited to read as follows:
A Member may retire at any time within the ten-year period preceding the Member's Normal Retirement Date. Such member shall receive a Pension calculated in accordance with Regulation 5.2 accruing from the first day of the month following the Member’s retirement date.
Rationale: This is to clarify that a member who has not attained age 55 can retire following 30 years of contributory membership.
Amendments to Regulation 5 (“Retirement Benefit”) - Effective December 31, 2015
Bolded text is new and strikeout is removed
Sections 9 (c) and (d) of Regulation 5 are deleted in their entirety:
- (a) The provisions of this Regulation 5.9 apply to a Member in receipt of Pension who enters the employment of a Participating Employer (herein referred to as a "Re-employed Member"), and take precedence over the provisions of the Plan that would otherwise apply.
- (b) {Subject to Regulation 5.9(c), n}o Contributions shall be made by a Re-employed Member or by such Member's employer, and no additional Pension shall accrue to such Member as a result of employment after the commencement of receipt of Pension.
- (c) {Where both the Re-employed Member and the Member's Employer so request in writing, and subject to Regulation 3.4, the Re-employed Member and the Member's Employer may contribute to the Plan in accordance with Regulation 3, and in such event the following provisions apply:}
-- {(i) The Pension otherwise payable to the Member shall be suspended for any month in respect of which Contributions are payable to the Plan by the Member and the Member's Employer.}
-- {(ii) When the Member's employment by a Participating Employer ceases, or Contributions cease to be paid by the Member and the Member's Employer, payment of the Member's Pension shall be reinstated accruing from the beginning of the month next following the cessation of Contributions, and the amount of Pension otherwise payable shall be increased to an amount equal to:}
--- {(A) the amount of Pension payable to the Member immediately before the suspension of the Member's Pension pursuant to Regulation 5.9(c)(i); plus}
--- {(B) any increase in such amount of Pension which would have applied during the period of re-employment if the Member's Pension had not been suspended; plus}
--- {(C) an amount with respect to Salary in the period of re- employment during which Contributions were paid, determined in accordance with Regulation 5.}
-- {(iii) A Member's re-employment shall not adversely affect the entitlement of any person to any Surviving Partner's Allowance pursuant to Regulation 8, in respect of the Pension payable with respect to the Member's membership in the Plan prior to re-employment.}
-- {(iv) In the event of the death of a Member during the period of re-employment, the death benefits payable, if any, shall be determined as though the Member had ceased to be employed and had resumed receipt of Pension immediately prior to the Member's death.}
- {(d) The foregoing provisions shall not affect any Pension payable to a person as a Surviving Partner's Allowance in the event of such person's employment by a Participating Employer.}
Rationale: This amendment eliminates the option for a Member returning to work after retirement to cease pension payments and accrue additional pension for their future retirement. Tax law prohibits earning and collecting a Defined Benefit pension from the same plan at the same time. The plan still needs to stipulate what happens when a retired member returns to work, but the option provided for in subsection (c) is not required, and the pension office feels it is usually not beneficial for the Member to forfeit pension payments while re-employed. Subsection (d) is no longer required once (c) has been removed as a Re-employed Member’s only option is to continue to receive pension payments while re-employed - there is no adjustment to a Member’s pension, or to any Surviving Partner’s Allowance.
Amendments to Regulation 5 (“Retirement Benefit”)
Section 2 of Regulation 5 is edited to read as follows:
The amount of annual Pension payable on early retirement pursuant to Regulation 4.2 shall be the amount determined in accordance with section 1 of this Regulation but reduced as follows:
{(a) for Pension accrued by the Member to December 31, 2015,}
{(i)} if the Member was an Active Member immediately prior to retirement,
{(A)}
(A) one quarter of one percent for each month or part of a month not exceeding 60 months by which the actual date of retirement precedes the earlier of
(I) the Member's Normal Retirement Date, or
(II) the date on which the Active Member would have completed thirty-five Years of Contributory Membership, if the Member’s Contributory Membership in the Plan had continued until that date,
plus
(B) one half of one percent for each month or part of a month in excess of 60 months by which the actual date of retirement precedes the earlier of the two dates referred to in (A) above;
{(ii) if the Member had become an Inactive Member and had not returned to Active Service, by one half of one percent for each month or part of a month by which the actual date of retirement precedes the Member's Normal Retirement Date.}
{b) for Pension accrued by the Member after December 31, 2015, by one half of one percent for each month or part of a month by which the actual date of retirement precedes the Member's Normal Retirement Date.}
Rationale: This amendment allows for members to retire from active membership at an early retirement date referencing when the member would have reached forty years of service had they continued working. The early retirement reductions for pensions accrued after 2015 will also reference this date. Terminated members, however, will not have early retirement reductions in reference to the date they would have reached forty years of service incorporated into commuted value calculations
Amendments to Regulation 10 (“Termination of Active Service”) - Effective December 31, 2015
Section 4 (b) of Regulation 10 is edited to read as follows:
(b) Where a Member's employment by a Participating Employer terminates upon the Member becoming an employee of a participating employer in the Lay Retirement Plan of the Anglican Church of Canada, the Member's Active Service shall be deemed not to have terminated, However, the Member shall become an Inactive Member in the event the Member subsequently ceases to be employed either by such an employer or by any Participating Employer.
Rationale: This amendment clarifies the intent that a Member who becomes an employee of a participating employer in the LRP is not eligible to terminate membership in the GSPP until the Member terminates employment with any participating employer of the GSPP or LRP.
Amendments to Regulation 14 (“RETIREMENT SAVINGS FUND (Additional Voluntary Contributions)” – Effective December 31, 2015
Section 3 (a) of Regulation 14 is edited to read as follows:
(a) The Member may use these accumulated additional savings to purchase additional Pension or may elect any other option permitted under the Income Tax Act (Canada), provided the savings are so applied no later than the December 31 coincident with or next following the Member’s attainment of the age of {sixty-nine} years.
Rationale: To align this Regulation with current legislative restrictions.
Subjects
Pensions - Anglican Church of Canada - Regulations
Anglican Church of Canada. General Synod. Constitution. Canon VIII
Less detail

PENSION COMMITTEE 010 04 15 11

http://archives.anglican.ca/en/permalink/official10522
Date
2015 November 13-15
Source
Council of General Synod. Minutes
Record Type
Resolution 09-15-11 [sic i.e. 09-11-15]
Date
2015 November 13-15
Source
Council of General Synod. Minutes
Record Type
Resolution 09-15-11 [sic i.e. 09-11-15]
Mover
Canon, David Jones, Chancellor
Seconder
Mr. David Embury
Prologue
Ms. Jane Osler, a member of the Pension Committee, discussed and presented two motions:
Text
Be it resolved:
That The Council of General Synod approved the recommendation of the Pension Committee to amend Section A.21 of Long Term Disability Plan Regulations as follows with effect from December 31, 2015.
CARRIED #09-15-11 [sic i.e. 09-11-15]
Notes
[Text of revised regulations found in Appendix B, pages 20-25]
Appendix B
010-05-15-11 Revised 2
REPORT OF THE PENSION COMMITTEE TO THE COUNCIL OF GENERAL SYNOD
1. MATTERS FOR ACTION
GENERAL SYNOD PENSION PLAN
1.2 LONG TERM DISABILITY PLAN
[In electronic database, "bolded" text is indicated by > brackets and "strikeout" text is indicated by {} brackets.]
Be it resolved that The Council of General Synod approves the recommendation of the Pension Committee to amend Section A.21 of Long Term Disability Plan Regulations as follows with effect from December 31, 2015:
A.21 Leave of Absence, Approved Leave of Absence
An arrangement registered with the Administrator whereby a Participating Employer and Employee agree that the Employee will be absent from Active Work for a specific period of time which is not a casual absence or vacation, and where it is anticipated that the Employee will return to Active Work with the Participating Employer on a specified date when the Leave of Absence ends. The following are the types of Leave of Absence and the maximum period of time for which Coverage may be maintained during such Leave of Absence:
(a) pregnancy and parental leave: 12 months
(b) study leave: 12 months
(c) lay-off: 6 months
(d) family medical {emergency}: 8 weeks
Rationale: To broaden the reference to incorporate other provincial legislation and maintain consistency between the GSPP and LTD plan provisions.
2. MATTERS FOR INFORMATION
2.1
The Trustees and the Pension Committee continue to hold visioning sessions with Mercer (Asset Consultant) and Eckler Ltd. (Actuary), to discuss the impact of current economic events on the General Synod Pension Plan (GSPP) and the Lay Retirement Plan (LRP).
2.2
The market value of the assets of the GSPP at September 30, 2015 was $752.2million.
-
- The investment returns for the total fund including currency overlay (for the 4 and 10 years only) and the benchmark returns are as follows:
2015-Q3 1 year 4 years 10 years
Total Portfolio -2.2% 7.1% 13.4% 7.3%
Benchmark -2.2% 6.1% 10.7% 6.3%
Excess Return 0.0% 1.0% 2.7% 1.0%
Quartile in the Mercer’s Universe of Balanced Fund Manager Q2 Q1 Q1 Q1
=============
The returns of the Fund Managers as of September 30, 2015 were as follows:
Managers 2015-Q3 Benchmark 1 year 4 Years 10 Years
Letko Brosseau
- Canadian Equity Fund -7.9% -7.9% -3.6% 13.5% 9.1%
- Global Equity -3.8% -1.6% 6.8% 18.7% 6.1%
Bentall Kennedy 1.4% 0.8% 4.8% 8.9% 10.3%
Baillie Gifford -2.7% -2.6% 16.3% 20.5% N/A
CGOV
- Canadian Equity Fund -3.7% -7.9% -8.3% 9.0% N/A
- Global Equity -2.1% -1.6% 14.5% 19.6% N/A
Canso Investment 0.3% -0.2% 6.1% 9.9% N/A
PH and N -0.1% -0.1% 7.8% N/A N/A
Greystone 1.3% 0.8% 5.7% N/A N/A
Macquarie 6.1% 1.0% N/A N/A N/A
2.3 Lay Retirement Plan (LRP)
The following table summarizes the investment options and the amount invested in each fund as at September 30, 2015:
AMOUNT INVESTED ($) ALLOCATION (%)
Great-West Life Continuum (Conservative) 2,214,114 4.9
Great-West Life Continuum (Moderate) 13,041,935 28.7
Great-West Life Continuum (Balanced) 22,808,338 50.2
Great-West Life Continuum (Advanced) 2,126,056 4.7
Great-West Life Continuum (Aggressive) 1,645,962 3.6
Canadian Bonds - McLean Budden 1,688,818 3.7
Money Market - McLean Budden 657,805 1.4
GICs - Great West Life – Daily,1,3 & 5 year 1,215,247 2.7
Total Plan Assets 45,398,295 100.0
2.4 2014 Actuarial Valuation
Cameron Hunter, the actuary has completed and filed the 2014 valuation.
Valuation results: Going Concern ($000s)
Dec 31, 2013 Dec 31, 2014
Actuarial value of assets $611,441 $655,428
Total liabilities $632,771 $642,125
Going concern excess / (deficiencies) ($21,330) $13,303
Funded ratio 96.6% 102.1%
Valuation Results: Wind-Up ($000s)
Dec 31, 2013 Dec 31, 2014
Wind-Up assets $688,874 $748,936
Wind-Up liabilities $761,675 $879,780
Wind-up excess / (deficiencies) ($72,801) ($130,844)
Transfer ratio 90.7% 85.3%
Valuation Results: Solvency ($000s)
Dec 31, 2013 Dec 31, 2014
Solvency assets $620,594 $654,178
Total solvency liabilities $773,174 $810,817
Total solvency excess / (deficiencies) ($152,580) ($156,639)
Legislative Update - Ontario Multi-Employer Pension Plans (MEPPs) Funding Rules
1. Target Benefit MEPPs
- Consultation paper released by Ontario Ministry of Finance in July
-- Submissions due September 25th
- Reflects recent recommendations/proposals from
-- 2008 report “A Fine Balance” from Expert Commission on Pensions
--- “Arthurs Report” (written by Harry Arthurs)
-- 2010 Technical Pension Backgrounder (framework for TBP MEPPs)
- Suggests aspects of regulatory framework for TBP MEPPs
-- Funding
-- Governance and Risk Management
-- Disclosure of Information
-- Regulatory Oversight
- 2. Target Benefit MEPPs – Eligibility
-- Current SOMEPPs are the focus of the consultant paper
-- Other MEPPs and single employer target benefit plans will be considered later
--- Paper requests input on MEPPs not in unionized environment
Cameron Hunter, the Actuary prepared the submission to the Ministry of Finance and the Pension Office submitted the same.
2.5 Non-Pension Funds Investment Returns as of June 30, 2015
These funds were transferred to Letko Brosseau on January 31, 2007. Letko Brosseau’s investment review report showed that the returns as of June 30, 2015 and the market value of the funds are as follows:
Market Value June 30, 2015 Returns
1 Year Benchmark 4 Years Benchmark
Long Term Disability Fund $3,443,329 7.3% 9.7% 11.9% 10.1%
Self-Insured Death Benefit Fund $3,332,375 7.2% 9.7% 12.0% 10.9%
Endowment Fund $6,011,314 7.2% 9.7% 12.2% 10.9%
Continuing Education Fund $5,238,086 7.2% 9.7% 11.8% 10.1%
2.6 Transaction Summary – GSPP
The Pension Committee reviewed a transaction summary for the GSPP for the period January 1, 2014 to June 30, 2015. The non-retired membership at January 1, 2015 was 2,281 compared to 2,248 at June 2015. The number of pensioners and survivors as of January 1, 2015 was 2,778 compared to 2,798 as of June 30, 2015. The Pension Committee noted that the non-retired membership continues to decline and the number of pensioners is increasing. We continue to have more retirees and fewer contributing members in the GSPP.
2.7 Long Term Disability Plan – (Members who are disabled Jan. 1, 2005 or later)
The Pension Committee reviewed a report on the LTD Plan for members who became disabled after January 1, 2005. The report summarized the LTD claims under this plan for the period January 1, 2015 to June 30, 2015. The Claims report showed that as of June 30, 2015, there were 23 claims in the self-insured portion of the plan. During this period, five claims were transitioned to Standard Life. The monthly payout from the LTD Plan as of June 2015 was $69,372 compared to $56,873 in December 2015.
2.8 Group Employee Benefits
Effective June 1, 2015 the Diocese of Ontario added a drug card with no deductible for their active members.
2.9 Continuing Education Plan
- Transactions of the Plan - For the period January 1 to June 30, 2015:
-- Summary of Benefits Paid: 398 applications for benefits were received: 124 for computers; 57 for books, 191 for courses and 9 for educational trips, 8 sabbatical grants and 9 others for a total payout of $237,432.
- Bonus for Use and Salary Source account
-- On the recommendation of the Administrative Unit of the CEP, the Pension Committee approved that allocation to Salary Source Account be continued for one year effective January 1, 2016 and that the Bonus for Use be continued at 5% for 2016. Both Salary Source and Bonus for Use will be revisited in September 2016.
2.10 Endowment Funds
- The Pension Committee approved the recommendation of the Trustees that the endowment fund distribution rate for 2015 be maintained at 5%.
2.11 Pension Fund Advisors and Mandates - September 2015
- Letko Brosseau: Canadian/Global Equity Mandate
- Philips Hager & North: Enhanced Long Bonds
- Macquarie: Infrastructure Investment
- Bentall Kennedy: Open-end and Close- end Real Estate Mandates
- Baillie Gifford: Global Alpha Fund Mandate
- CGOV: Canadian & Global Equity Mandate
- Canso Investment: Corporate Credit Mandate
- Neuberger Berman: Private Debt Mandate
- CIBC Asset Management : Currency Hedging
- Asset Consultant: Mercer Canada
- Custodian: State Street Global Services
- Actuary: Eckler Ltd.
- Legal Counsels: Koskie Minsky LLP
- Auditor: BDO Canada LLP
2.12 Appreciation
Bishop Poole expressed sincere appreciation to the members of the Pension Committee for their dedication and contribution to the pension and benefit plans. He also thanked the Trustees, the Asset Mix Sub-Committee, the Audit Committee, the Central Advisory Group, CEP Administrative Unit, Judy Robinson, Cameron Hunter, and the Pension Office staff for their heavy workload and for their support and dedication to the work of the Pension Committee.
The Right Rev. Philip Poole
Chair, Pension Committee
Subjects
Pensions - Anglican Church of Canada - Regulations
Anglican Church of Canada. General Synod. Constitution. Canon VIII
Less detail