That the Council of General Synod approve amendments to Regulation 8.5 of the Lay Retirement Plan effective January 1, 2003.
Renumber the current Regulation 8.5 as 8.5(a) and add a new section (b).
(Bold denotes addition) [In electronic database bold indicated by pointed brackets i.e. ]
Where a Member's employment by a Participating Employer terminates upon the Member becoming an employee of another Participating Employer, the Member's Active Service shall be deemed not to have terminated.
Archbishop Morgan drew attention to Section 1.4 of the report, which read:
"The Pension Committee is recommending to the Council of General Synod that prior to approving the resolution, which is being presented by EcoJustice Committee with respect to Socially Responsible Investment Procedures, that it be referred to the Pension Committee for consultation and to report back to the next meeting of COGs."
Ms. Mason, who is retiring after 40 years of service to the Pension Plan, extended best wishes to Council and acknowledged that she will miss everyone. She has no doubts that the right choice was made when Council appointed Ms. Judy Robinson to be her successor.
Pursuant to notice, Mr. J.P. Bell moved, seconded by Canon H.F.D. Woodcock that Parts I and II of Canon IX (Department of Finance) be repealed and the following enacted in its stead:
PART I - BOARD OF FINANCE
(1) The Department of Finance shall be administered under the direction of a Board consisting of:
(a) The Primate
(b) The Prolocutor
(c) The Honorary Treasurer of the General Synod
(d) Six members of the Synod elected by the Synod of whom one shall be a member of the Upper House.
(2) Four members of the Board shall form a quorum.
(3) Any vacancy by reason of death, resignation, or otherwise among the members of the Board from the Upper House shall be filled by the Primate, and among the members of the Lower House shall be filled by the Prolocutor, and all members so appointed shall hold office until the next session of the General Synod.
(1) Subject to the provisions of any legislation affecting the investment of trust funds of the funds held by the Board, and subject to the provisions of Part II, the Board shall have the management and control of the Consolidated Trust Fund and of all property, securities, and moneys, which now are or which may hereafter become vested in, held by, or entrusted to the General Synod for management or investment, and may make such lawful investments of the same in such sums and at such rates of interest and on such terms as the said Board shall in its direction deem advisable, provided that, except those securities set out in sub-section (a) of Section 63 in Chapter 46 of the Act of the Parliament of Canada, 22/23 George V, dealing with Canadian or British insurance companies, or in amendments thereto, no more than $25,000 shall be invested in any one security, and no mortgage loans shall exceed fifty per cent of the appraised value of the property.
(2) The Board shall have power to sell, convey, assign, transfer, or exchange securities from time to time as the Board may deem expedient and to receive the consideration therefor, and accept transfers, and to take such legal or other proceedings as they may deem necessary.
(3) The Board may appoint an advisory investment Committee and any other committees deemed necessary by the Board which may include persons not members of the Board.
It shall be the duty of the Board, and it is hereby authorized and empowered:
(a) To appoint a chairman, secretary, assistant-secretary, assistant-treasurer, comptroller, accountants and such other officers as the Board may deem necessary and to define their duties and remunerations.
(b) To appoint a bank or banks, trust company or trust companies to act as bankers of the Synod.
(c) To make provision for the signature and countersignature of all cheques, orders for money, acceptances, transfers, conveyances, and proxies and documents required for the delivery or receipt of securities as may be necessary.
(d) To take such proceedings as may be necessary to give effect to the provisions of this Canon.
(e) To supervise, coordinate and harmonize the accounting systems of the various departments of the Synod.
(f) To appoint such auditors, being chartered accountants, as it may deem necessary from time to time, and to determine their remuneration.
4. Duties of the Honorary Treasurer
(1) Subject to the provisions of this Canon, the Honorary Treasurer shall, under the supervision of the Board, make and deal with all investments of the funds held in trust by the Synod or its departments.
(2) He shall present statements of account duly audited by the Synod Auditors at each annual session of the Executive Council and at each session of the Synod, and shall discharge such other duties which shall be required of him by the Constitution or any Canons of the Synod, or by the Board.
Separate and detailed account of each and every trust fund, showing the capital of the same, and all interest thereon shall be kept under the direction of the Board.
The Board shall make a report containing a statement of the appropriate accounts, with a certificate of the Auditors of the Synod attached.
(a) To each session of the General Synod and each annual session of the Executive Council.
(b) To the annual meeting of the Board of Management of the Missionary Society of the Church of England in Canada.
(c) To the annual meeting of such other departments, synods, boards, councils, other than the above from which funds for investment have been received.
PART II - CONSOLIDATED TRUST FUND
7. Consolidated Trust Fund
All trust funds, securities and cash on hand or in banks received on capital account vested in or held by the General Synod or by the Missionary Society and all other trust funds received and all accretions thereon, shall be held, managed and invested as one general trust fund in the name of the Consolidated Trust Fund of the Church of England in Canada.
8. Other Investments
The Board may receive for investment, subject to the terms of this Canon any trust or other fund vested in or held by any corporation, department, board, council or committee of the General Synod, or vested in or held by any Provincial or Diocesan Synod in Canada or any committee thereof, to form part of the Consolidated Trust Fund on such terms as the Board shall decide, provided that the acceptance of such funds is not inconsistent with the terms on which said funds are held nor with the laws of the Province applicable to said funds.
9. Custody of Securities
(1) The debentures, bonds, certificates and other securities belonging to the said Consolidated Trust Fund shall be deposited in such chartered banks or bank, trust company or trust companies as the Board shall from time to time arrange, subject to such dual control as the Board may direct.
(2) The Board shall give full directions to the bank or banks, trust company or trust companies, acting as custodians and to the Honorary Treasurer as to the care and custody of all funds and securities.
10. No Variation of Trusts
Nothing herein contained shall authorize the Board to vary or alter the trusts upon which the capital funds or securities are now respectively vested in or held by the Board or entrusted to it.
11. Borrowing Powers
(1) The Board may from time to time borrow by way of a revolving credit of seventy-five thousand dollars ($75,000) from any chartered bank upon the credit of the General Synod of the Board either by way of promissory note, overdraft or otherwise and on such terms as it may deem advisable.
(2) As security for such promissory notes, overdraft or other indebtedness it may assign, hypothecate, mortgage or pledge any of the bonds, debentures or negotiable instruments which it holds being the property of General Synod.
(3) Any notes or documents required by the bank shall be signed by the Primate, or the Chairman, or acting Chairman, and also by the Honorary Treasurer, or any other member of the Board.
12. Default and Depreciation
In the event of any default in payment of the principal of or the interest on any security held, or if, in the opinion of the Board there has been sufficient depreciation in the value of any security, the Board shall have the power from time to time to deduct the amount of such default or depreciation from the total of interest and profits to be distributed for that year or to direct that it be spread over a period not exceeding three years.
13. Distribution of Revenue
The interest deemed to be earned by the securities of the Consolidated Trust Fund, after deducting therefrom the expenses of management, office expense, and the expenses of investment and administration, including clerical assistance, the travelling expenses of members of the Board, any any deductions authorized by Section 12 hereof, shall be distributed at the rate per cent authorized and approved by the Board, pro rata among the corporations, synods, departments, councils, committees, or trusts entitled thereto in proportion to the capital of each trust as determined by the Board.
(1) Subject to the terms of any trust upon which moneys may be held, the Board may make loans from the Consolidated Trust Fund to any corporation, department, board, council, committee or fund of the Synod, or to any Provincial or Diocesan Synod, or committee or part thereof for which the Board may hold funds invested, or which may have an interest in the said Consolidated Trust Fund, on such terms as to collateral security, rates of interest, repayment, and other conditions as may be mutually agreed upon, provided no more than 75% of the capital of any particular trust may be loaned.
(2) Any depositor of a trust fund may request the Board in writing to lodge securities with its bankers to pledge for loans it may require, and if the Board approves, the following conditions will govern.
(a) The Board will withdraw an agreed amount of securities from safekeeping, and the capital of such trust fund shall be reduced by the amount at which said securities stand in the books of the Consolidated Trust Fund, and the trust fund in question shall be entitled to its proportionate share only of the remainder.
(b) An account of the securities loaned to the depositor of the trust fund in question shall be kept, and any loss sustained in respect of any such securities shall be borne by the borrower.
(c) The borrower shall execute any hypothecations or other documents required to obtain the loan, and shall agree punctually to pay the interest and the principal as said become due, and to have the lender send a statement of such loan quarterly to the Board.
(d) No obligation in respect of such loan shall be assumed by the Consolidated Trust Fund, or the Board.
(e) The principal and interest on the said securities must be paid to the Consolidated Trust Fund as received by the lender, and when no longer required as collateral, delivered to it at the same valuation as when received from it.
(f) If any securities are sold by the lender, the capital of the trust fund in question shall be reduced by such an amount as the Board determines.
That the following addition be made to Section 2 "Powers" sub-section (1) "Nor shall any mortgage loan exceed $10,000.00." CARRIED
The motion to adopt the amendment to Canon IX as amended was then put and CARRIED. Message K
(1) To amend section (2) (Powers) of Canon IX (Finance) Part I, p.97, by striking out all words after the word "security" in the second last line, so that the section will read as follows:
(1) Subject to the provisions of any legislation affecting the investment of trust funds or the funds held by the Board, and subject to the provisions of Part II, the Board shall have the management and control of the Consolidated Trust Fund and of all property, securities and moneys, which now are or which may hereafter become vested in, held by, or entrusted to the General Synod for management or investment, and may make such lawful investments of the same in such sums and at such rates of interest and on such terms as the said Board shall in its discretion deem advisable, provided that, except those securities set out in subsection (a) of Section 63 in Chapter 46 of the Act of the Parliament of Canada (22-23 George V) dealing with Canadian or British insurance companies, or in amendments thereto, no more than $50,000 shall be invested in any one security.
AUDITED FINANCIAL STATEMENTS #007-16-18-06 to 007-22-18-06
Chair of the Financial Management Committee (FMC), Mr. Robert Saffrey, and the Most. Rev. Colin Johnson, Chair of the Audit Committee, presented FMC’s report and the audited financial statements for The Anglican Church of Canada Resolution Corporation, The Anglican Church of Canada Consolidated Trust Fund, and the General Synod of The Anglican Church of Canada. Ms. Hanna Goschy, Treasurer and CFO, was on hand to address questions from Council. Highlights from the presentation included the following:
- Archbishop Johnson reviewed the process for the audited financial statements and reminded Council that they approved the appointment of Grant Thornton LLP as auditor for General Synod fiscal 2017 at their June 23-25, 2017 meeting (see document #004-01-17-11, page 12). FMC recommends reappointment of Grant Thornton LLP for General Synod fiscal 2018.
- The audited financial statements were reviewed in detail and Council had the opportunity to ask questions.
- The overall revenue for General Synod of The Anglican Church of Canada for 2017 was $11,938,059, which is a decrease of $449,487 from 2016. Overall expenses totaled $11,416,845, which is $1,245,961 less than 2016. The resulting surplus of core revenues over expenses was $521,214.
- The operating fund surplus (before transfers to reserves) is $1,519,736. While the total investment income was $998,523, realized and unrealized capital gains amounted to $729,057 and do not form part of the operating budget as they fluctuate from year to year based on financial market returns. The surplus was still $790,639 after factoring out these gains. Staff vacancies have been filled and as a result, it is expected that the 2018 actual expenditures will be in line with budget and it is not expected a significant surplus will be seen again in 2018.
- Proportional giving from dioceses was slightly higher than budgeted, but $70,000 lower than 2016. Council was reminded that proportional giving is the largest source of revenue for General Synod.
- The Investment Sub-Committee has reviewed investment performance, as well as the asset mix, ranges, and benchmark indices within the current Statement of Investment Policy. Overall performance for the year ended December 31, 2017 was 8.1% versus a benchmark of 7.2%.
Questions and comments were welcomed. Among the questions asked, Council members inquired about: how many dioceses are net contributors (twenty); whether the Anglican Fund for Healing and Reconciliation and the Ministry Investment Funds are part of the totals for internally designated net assets in the Consolidated Trust Fund (they are not); the difference between governance and administration (governance includes CoGS, boards, committees, councils, and Council of the North while administration includes salaries and benefits); and General Synod’s administrative cost (thirteen percent, a very low cost for not-for-profit organizations).
The following resolutions were placed before Council.
Refer to document # 007-22-18-06
THAT the Council of General Synod approve the changes to the Statement of Investment Policy as recommended by the Investment Committee and Financial Management Committee.
"Oikocredit Canada has announced that, for the first time, people in Ontario can invest in microfinance projects in developing countries as a part of their registered retirement savings plans". "The Oikocredit Global Impact GIC is available only through the Mennonite Savings and Credit Union (MSCU), which purchases shares in Oikocredit with the full amount a member invests in the GIC. A minimum deposit of $500 is invested at a variable interest rate, currently 1.3 per cent, for one year. Oiko then uses the funds to promote sustainable development in about 70 countries around the world by providing loans, capital and technical support to microfinance institutions. Jill Martin, PWRDF's director of finance and administration, served on the Oikocredit's international board from 2002 to 2008 and as its president for the last two years". "Martin said that churches have typically been more focused on what to screen out of their investments -- 'sin stocks' and gambling -- and it has been more difficult to swing their attention to what positive investments they could make. 'This is one way of doing something that makes a huge difference'".
"The church will appoint a task force for social and ecological investment -- including possibly, selling its existing investments in some companies. On July 12 , General Synod passed, by large majorities, two resolutions related to responsible investing. Resolution A171 calls on the church to form a task force 'as soon as possible' to review its investment policies; address governance practices of companies and sectors in which it invests; and develop 'guidelines for constructive dialogue, and where necessary divestment, leading towards a low carbon economy". "The other resolution, A170 calls on General Synod to sign the United Nations Principles for Responsible Investing and to 'make full use of' its affiliate membership of the Shareholder Association for Research and Education (SHARE), while encouraging dioceses to become affiliate members also". "'We're in very different places across the country', said Dean Iain Luke, of the diocese of Athabasca. 'We have different stakes in these issues, so it's important that all those voices be heard'." "In some cases, action against companies deemed to be polluting ends up hurting its employees the most", said Jeremy Munn, a lay member from the diocese of Athabasca, and resident of Fort McMurray, Alberta. "Danielle McKenzie, a lay member also from Athabasca, said that although she favoured a review of the church's investments, she hoped any decisions would carefully take into account their impacts on the people who work in the fossil fuel and other industries".
"A. That Canon IX, Part I, Section 2, "Powers," subsection 1 (Handbook, p.113) be amended by deleting the following words: "provided that, except those securities set out in sub-section (a) of Section 63 in Chapter 46 of the Act of the Parliament of Canada (22-23, George V) dealing with Canadian or British insurance companies, or in amendments thereto, no more than one per cent of the funds held in the Consolidated Trust Fund shall be invested in any one security." RESOLVED Message L-12.
"In mid-December , the diocese of Quebec completed a four-year process of divestment from fossil fuels and resource extraction, making it the first diocese in the Anglican Church of Canada to fully divest from both mining and fossil fuels. In a report to the synod of the diocese of Quebec in November , Bishop Dennis Drainville noted that since the Church Society of the Diocese of Quebec passed a motion to divest from resource extraction holdings at its annual general meeting four years ago, $525,000 has been divested from gold and copper mining operations. Following a subsequent motion in 2014 calling on the investment committee to get out of oil and gas, $1.72 million has been divested from fossil fuels". "In 2006, the diocese of Quebec was hemorrhaging money, with operating losses at almost $800,000, for its church society and almost $100,000 for synod., Drainville noted in his charge to synod. .... Given that the diocese could no longer rely on congregational offerings in order to remain solvent, Drainville said it began to liquidate assets and turn to investment as its main source of revenue". "'Five years, 10 years ago, when people were speaking about ethical investments, you would always hear people .. say things like, "Fine, but you're not going to make any money investing ethically." Well, that's nonsense, absolute nonsense', [Drainville] said. 'There's a world of investment out there -- you just have to be educated and make the kinds of choices that are appropriate'."