A Newsletter is Born

~ "Necessity is the mother of all inventions"

There has been quite a lot of activity since you indicated an interest in being kept up to date on pension matters. We now have a total of 411 pensioners who have expressed an interest in receiving information (148 on our e-mail list). Those of you on our e-mail list will probably have received a number of status reports, but for those on our regular mailing list, this will likely be your first update. The cost of sending information by mail (approximately $500 per mailing) has been an inhibiting factor.

We thought that a regular newsletter would be the best way to keep you informed on developments. For those with e-mail, this will be an e-newsletter to keep costs down. Graphics will be kept to a minimum for e-mailing ease, at the risk of producing a boring publication.

We sincerely apologize for the lack of bilingual content in this first newsletter. Both time and cost have limited our ability to have all articles translated for this mailing. We thank those volunteers who have assisted on the material that we have been able to translate at this time. One of the guiding principles of the new association is that all key documents should be bilingual.

Nous nous excusons vivement de ce que le contenu bilingue de cette première communication demeure limité. Un des principes directeurs de la nouvelle association sera de produire tous ses principaux documents en format bilingue. Seules des contraintes de temps et de coûts nous ont empêchés de traduire l’ensemble de ce premier document avant sa mise à la poste. Nous remercions les bénévoles qui nous ont assistés dans la traduction d’une partie de cette première communication.

~

In this Issue:

Pension Surplus Update 1
Pensioners’ Association Planned 2
Proposal for Pensioners’ Association 2
Executive Committee Duties 5
Procedures for Inaugural Elections 6
Nominations 7
Initial Slate of Candidates 8
The Inaugural Meeting 9
Key Dates 9
Final Comments 9
Chronology 10


~

Pension Surplus Update

~ What’s been happening, man?

To recap developments, the Bank’s decision in September 2000 to provide a two-year contribution holiday for current staff without any equivalent consideration for pensioners, has given rise to a blizzard of letters to the Bank from individual pensioners and the formation of an informal Pensioners’ Group, based in Ottawa. The Pensioners’ Group has lobbied hard for a more equitable treatment of pensioners by means of a presentation to the Bank on February 27, 2001, four separate letters to the Bank, numerous calls to selected Bank contacts and statements tabled at the focus group meetings signed by the majority of pensioners present. The Chronology starting on page 10 of this newsletter provides a more detailed account of recent events.

As more assertive actions, we have sent a letter to the Superintendent of Financial Institutions seeking clarification of whether the Bank’s removal of funds from the Pension Trust in 2000 was proper. We have received an acknowledgment of our letter from OSFI, but have not yet received a ruling from them. We have also requested the Bank to set up a Pension Council with pensioner representation for the broad oversight of the Pension Fund. To date, we have certainly got the attention of the Bank’s management and Board of Directors, but there has not yet been any appreciable change in the Bank’s position.

The Bank’s position is:

• All benefits of the pension surplus should accrue solely to the Bank since it is responsible to cover any future funding risk.

Our position is:

• The Bank has over-charged Pension Plan Members for the pension they are entitled to and an appropriate portion of the surplus should be rebated to Members in proportion to their contributions plus interest.

• Immediate need for an organized entity that the Bank would recognize as being truly representative of pensioners’ views. This organization would focus on the removal of the present inequity between current and retired employees and press for an equitable sharing of the pension fund surplus
• Il y a un besoin immédiat pour qu’un groupe organisé soit reconnu par la Banque comme représentant les points de vue des pensionné(e)s. Cette association s’attachera en premier lieu à remédier au traitement inéquitable actuel des retraité(e)s par rapport aux employés actifs, nommément à une distribution équitable des surplus du Régime de pension
• Continuing need for an organized entity to follow changes in competitive benefit packages and to advocate for improvements to pensioners’ benefits package as warranted
• Il est essentiel qu’un groupe organisé puisse suivre l’évolution des bénéfices offerts par d’autres fonds à leurs bénéficiaires, de façon à revendiquer des améliorations au régime de la Banque au moment opportun
• Need for improved communications between the Bank and pensioners
• Il y a un besoin évident pour de meilleures communications entre la Banque et ses pensionné(e)s
• Interest expressed by pensioners to maintain contacts with former Bank colleagues and friends across the country
• Les pensionné(e)s ont exprimé le souhait de meilleurs contacts avec leurs ancien(ne)s collègues de travail et leurs ami(e)s partout au pays

• To represent all Bank pensioners in advocating for an equitable share of the Pension Plan surplus and for the equitable treatment of all Pension Plan Members
• Représenter tous les pensionné(e)s de la Banque dans leur revendication d’une répartition équitable des surplus du Régime de pension et d’un traitement équitable de tous les bénéficiaires du Régime de Pension de la Banque
• To advocate for the maintenance and improvement of their pension and other benefits on an ongoing basis
• Assurer un suivi pour la continuité et l’amélioration des pension et des autres bénéfices
• To maintain contacts with other similar pensioners' organizations
• Garder le contact avec d’autres associations de pensionné(e)s
• To provide a vehicle for maintaining pensioner contacts
• Offrir une façon pour les pensionné(e)s de garder contact entre eux, elles
• To serve as a vehicle for ensuring ongoing communications between the Bank and Pensioners on pension and retiree matters
• Servir d’intermédiaire pour assurer des communications suivies entre la Banque et les pensionné(e)s en ce qui a trait aux pensions et à tous les sujets touchant les retraité(e)s

• Selection of a small organizing committee to do much of the start-up work ~ June
• Selection of an Elections Committee ~ responsible for obtaining and presenting to the membership a slate of candidates for volunteer executive positions and for managing the vote ~ June
• Obtaining feedback on draft Proposal from pensioners on e-mail list ~ July
• Polling of retirees for their interest in joining an association, their suggestions for its name and nominations for executive positions (president, vice-president, secretary, treasurer, 3 members at large)~ August
• Drafting of constitution and by-laws ~ based on comparable organizations ~ August
• First meeting ~ vote on key officers and ratification of constitution and fee structure ~ October
• Registration / Incorporation ~ probably informal at start, subject to consulting advice on liability issues

• Association to be democratic, open and accountable to its members
• Être démocratique et ouverte à tous; rendre compte de ses actions à ses membres
• Association to be a positive advocate for the interests of Bank Pensioners from all areas of country ~ approved expenditures to reflect national focus and benefit members in all geographic areas equitably
• Représenter les intérêts des retraité(e)s de la Banque résidant dans toutes les régions du pays: son budget de dépenses reflétera cette perspective nationale et bénéficiera équitablement à toutes les régions
• Philosophy of independence from Bank ~ no subsidy from Bank and no concern about advocating for an opposing position on benefits issues
• Demeurer indépendante de la Banque: l’association n’en recevra pas de subventions et se sentira libre d’exprimer sur les bénéfices des retraité(e)s des points de vue qui pourront différer de ceux exprimés par la Banque
• Philosophy of "assertive diplomacy" ~ strive for constructive working arrangements with Bank and use of negotiated agreements where possible, while advocating vigorously for members’ interests
• Adopter une approche de collaboration mais de fermeté: avoir des rapports positifs dans les discussions avec la Banque, négocier lorsque possible, mais défendre vigoureusement les intérêts de ses membres

• Maximum use of volunteers to run the Association and do necessary analysis ~ use paid resources as required based on Association’s budgetary approval process.
• Utiliser dans toute la mesure du possible des bénévoles pour diriger l’association et en effectuer les travaux de recherche; mais avoir recours à des spécialistes rémunérés au besoin, sur une base prévue aux budgets de fonctionnement
• Key documents to be bilingual (e.g. those provided as basis for decision, agendas and minutes for regular meetings) all others to be in language of author (e.g. copies of correspondence to Bank and other organizations, newsletter articles)
• Produire tous ses principaux documents en format bilingue (c’est-à-dire les documents servant à la prise de décisions, les ordres du jour et les compte rendus des réunions régulières); les autres documents seront dans la langue des auteurs (par exemple la correspondance avec la Banque ou avec d’autres organismes, des articles soumis pour le Bulletin des pensionné(e)s)
• Have some fun
• Faire tout cela de façon agréable

• Proposed initial membership fee structure options (to be ratified at first annual meeting) as follows: / Diverses options seront offertes pour la cotisation initiale des membres (sujet à l’approbation de la première assemblée annuelle), soit:
• $50 for first year, payable in one lump sum, or quarterly ($12.50 / quarter)
• 50 $ pour la première année, payable en un versement ou en quatre versements (12,50 $ par trimestre)
• pay what you can, for those who cannot manage the entire annual fee, to ensure that association is affordable for all
• une contribution volontaire moindre, pour ceux qui ne peuvent défrayer la totalité de la cotisation annuelle, de façon à permettre à tous de joindre l’association
• $500 life-time membership for those who would like to help finance the initial start-up costs of the Association
• une cotisation unique de 500 $ à titre de membre à vie, pour aider aux coûts de mise en place de l’association
• Proposed initial annual fee based on best guess as to membership and initial estimated annual funding requirements as follows:
• Range of initial membership: 300 to 400
• Communication with members: $2,900 to $3,900
• Meeting costs: $1,400
• Translation: $2,000
• Start-up consultant: $1,300
• Benefits consultant: $1,600
• Legal/actuarial consult. $4,000
• Contingency $1,800
• Total $15,000 to $16,000
• Proposed membership fee range:
• $50 (based on 300 members)
• $40 (based on 400 members)
• Proposed initial fee range is higher than other organizations, reflecting initial start-up costs and expenses related to the pension surplus issue, as well as the desire for independence from the Bank (no employer funding). Subsequent annual membership fees are expected to be reduced significantly after completion of start-up and resolution of pension surplus issue
• Assumptions:
• Total number of pensioners (including deferred pensioners) is 1100 to 1200, based on 1999 actuarial review ~ range of initial membership is based on initial survey of pensioner interest.
• 33% of members receive "issues" communications by e-mail, 67% by regular mail ~ newsletters mailed out to all and eventually migrated to web site
• Communications estimates based on 3 "issues" papers and 4 newsletters sent to members in first year, resulting in 22,000 to 29,000 duplicated pages @ 5¢ per copy and 1,800 to 2,400 mailed large envelopes @ $1 each.
• Meeting costs assumes 4 open meetings in first year @ $350 hall rental cost per meeting; executive meetings assumed to be cost free
• Translation fees for key information for members, if volunteer help unavailable.
• All consultant costs are rough estimates for basic professional analysis of the Association’s position and assumes that issues can be resolved without litigation ~ assume 2 days each for start-up consultant @ $80/hr., benefits consultant @ $100/hr., legal / actuarial @ $250/hr.
• Any change in membership fee would have to be approved by members.

• Membership open to any person in receipt of a pension, deferred pension, or survivor benefits from the Bank of Canada, who pays dues as established by the constitution
• Est éligible toute personne recevant une pension, ou qui est éligible à une pension différée, ou qui bénéficie de prestations au conjoint ou aux enfants à charge du Régime de pension de la Banque, et qui paie la cotisation prévue à la constitution

• In exchange for their membership fees, members can expect to get:
• An organized entity to advocate for their interests on benefits issues
• An increase in the probability that the Bank will agree to share the Pension Surplus with Members
• A voice in the positions to be adopted by the Association and the opportunity to become directly involved
• Information on discussions and negotiations with the Bank
• Information on benefits provided by other organizations
• A vehicle for keeping in touch with other pensioners
• Improved communications between the Bank and Pensioners on pension and retiree matters
• En retour de leur participation à l’association, les membres peuvent s’attendre à:
• faire partie d’un groupe qui défend leurs intérêts en ce qui a trait à tous les bénéfices attendus de la Banque
• une plus grande probabilité que la Banque acceptera d’inclure les pensionné(e)s dans la redistribution des surplus du Régime de pension
• un droit de parole dans les interventions de l’association ainsi que la possibilité de s’impliquer directement
• une information à jour sur les discussions et les négociations avec la Banque
• de l’information sur les bénéfices offerts par d’autres organismes
• la possibilité de demeurer en contact avec d’autres pensionné(e)s
• de meilleures communications entre la Banque et les pensionné(e)s sur le sujet des pensions et des bénéfices de retraite

As a guide to assist the nominations and voting processes, we include the following excerpts on the Executive Committee and its duties from the draft constitution.

The Executive Committee is the governing body of the Pensioners’ Association. It is responsible for formulating and recommending to the Membership, broad policies and programs designed to further the objectives of the Association and for the implementation of those policies and programs. The Executive Committee will consist of four Officers (President, Vice President, Secretary, and Treasurer) and three Members at Large. Officers and Members of the Executive Committee will normally be elected for two-year terms, however for the first election in 2001, to ensure future continuity, terms will be as outlined below:

• The President is the principal officer of the Bank of Canada Pensioners’ Association and the chairperson of the Executive Committee.
• Responsible through the Executive Committee for formulating and recommending to the Membership, broad policies and programs designed to further the objectives of the Association.
• Within the approved mandate, is responsible for developing strategy, setting priorities, and directing the work program including assigning responsibilities to Members at Large and appointing committees of the general membership.
• Acts as the principal representative and spokesperson for the Association in all dealings with the Bank of Canada and in all other official liaison activities.
• Chairs all meetings of the general membership and the Executive Committee.
• Presents the annual report to the Membership.
• Promotes interest and active participation in the Association.
• One of four authorized signing officers for the Association.

• Officer of the Executive Committee.
• Fulfills the duties of the President in the absence of the President.
• Assists the President in all responsibilities to achieve the Association’s objectives.
• Takes special responsibility for policies and procedures relating to bilingualism and geographic inclusiveness.
• One of four authorized signing officers for the Association.

• Officer of the Executive Committee.
• Participates in Executive Committee activities to achieve the Association’s objectives.
• Manages all meetings of the Association and the Executive Committee including: arranging venue, compiling the agenda, issuing notice, and maintaining and distributing minutes of the meetings according to Association policy.
• Administers all correspondence and membership lists.
• Has custody of all records and documents of the Association except for those maintained by the Treasurer.
• Ensures the administration of the Association complies with good business practice.
• One of four authorized signing officers for the Association.

• Officer of the Executive Committee.
• Participates in Executive Committee activities to achieve the Association’s objectives.
• Keeps financial records, including books of account, consistent with prudent financial management and good business practice.
• Maintains account(s) at a deposit taking financial institution approved by the Executive Committee.
• Receives all payments and makes all disbursements of funds as directed by the Executive Committee.
• Presents an annual financial report to the Association Membership.
• One of four authorized signing officers for the Association.

• Member of the Executive Committee.
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• Participate in Executive Committee activities to achieve the Association’s objectives.
• Take special responsibility for specific functions as assigned by the President such as:
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• Research on pensions and benefits
• Liaison activities with other associations
• Presentations to the Membership
• Chairing of committees
• Provide advice to the Executive Committee on areas of expertise.
• Assist any of the Officers of the Executive Committee with their responsibilities as directed by the President.

The Organizing Committee for the Association has named an Elections Committee whose members will not seek office but will oversee the inaugural elections. The Committee consists of Coordinator: Florence Coleridge and Members: Yvonne Lanthier and Ian Cogan.

Nominations can be mailed, e-mailed or phoned to the Elections Coordinator to be received by September 7, 2001.

The background information about the candidates and the ballot forms will be mailed to the pensioners on our mailing list during September.

Ballots can be mailed or e-mailed to the Elections Coordinator to be received before October 5, 2001, or the ballots can be submitted at the General Meeting on October 18, 2001.

A final tally of the votes will take place at the General Meeting and the Executive Committee will be announced followed by the approval of the constitution, membership fees and other business.

Details of the vote will be confidential, known only to the Elections Committee. Only the winning candidates will be announced.

The following Nomination Form is to be completed by any person wishing to run for office or any person wishing to nominate someone for office on the Executive Committee of the Bank of Canada Pensioners’ Association. The Executive Committee positions are:

President, Vice-President, Secretary, Treasurer, Member at Large (3 positions).

Please nominate a person for one position only and please check that that person is willing to run for office. Nominations can be made by mail, e-mail, or by phone.

By Mail:

Florence Coleridge,
Elections Coordinator
308 Manor Avenue,
Ottawa, ON, K1M 0H8

By e-mail to:

coleridge@sympatico.ca
with the subject line: Executive Committee Nomination

By Phone:

Florence Coleridge, (613) 741-4905

The Elections Committee will acknowledge all nominations and confirm the willingness of the nominees to run for office.

For more information contact the Elections Coordinator at (613) 741-4905.

NOMINATION FORM
FORMULAIRE DE CANDIDATURE

OR submitted at General Meeting ~ October 18

coleridge@sympatico.ca pcliffen@eisa.com

colmar176@sympatico.ca