Number 7, November 2002 ~ numéro 7, novembre 2002

Message from your Executive Committee

Our second Annual General Meeting (AGM) was held on October 23^rd at the RA Centre in Ottawa with an enthusiastic audience of over one hundred members. The minutes of this meeting are included later in this bulletin, but here are some of the highlights:

• Membership started at about 100 a year ago and is now well over 400
• Report pending from our lawyers
• BCPA report on Bank’s retiree benefit programs to be distributed soon
• 2003 Budget and membership fees ($20) approved by members
• Members approve motion for BCPA Executive Committee to have approval in principle to discuss class action suit with lawyers, subject to final approval by membership

There was active participation from members throughout the meeting, particularly during the session on planning for next year. We want to thank all participants for making our second AGM such a success.

Minutes of Bank of Canada Pensioners’ Association
Second Annual General Meeting
23 October 2002
R.A. Centre, Ottawa

The meeting was opened at 10:10 a.m. by President Paul Cliffen, with a general welcome and introductions of the executive committee. "Housekeeping" items were covered (lunch, membership tables, coffee locations, etc.) and it was noted that although most of the meeting would be in English, interventions in either language were welcome. A request for items under "Other business" received no response.

Approval of the minutes of the first AGM (circulated earlier, copies on all tables) was moved by Sheila Balatti, seconded by Cliff Godding and carried by unanimous show of hands.

Paul noted that the executive’s report would focus on progress made towards the objectives of the association’s constitution (copies at tables).

Membership
Membership after the first general meeting was about 100, with a target for the first year of 300 members. It is now about 400.

Information for pensioners
Six bulletins were distributed to members (2 before the association was formed, 4 after). A web site has been open since May, with half our members on line. A survey was conducted this spring to get feedback from members, with a response rate of about 30%.

Advocate re pension surplus
There were six meetings with the Bank (the Governor was present at two). In general, the Bank has been willing to discuss a number of issues but not a settlement of the pension fund surplus. They maintain that it belongs to them. On the other hand, we believe that the existence of our association had an influence on the Bank’s decision to enhance pensions for most retirees effective 1 July 2002.

Given the Bank’s intransigence, we retained legal counsel in July to advise us on our legal rights as pensioners and to recommend appropriate strategies. The lawyers’ report has been delayed by missing documentation dating back to the beginning of the fund. The association has made numerous requests for these documents (including through Access to Information) and the Bank claims it is still searching for them.

Monitor changes to Pension Plan
The Mercer Report in June described a surplus of $188 million at January 2002, despite contribution holidays by staff and the Bank and adverse market conditions last year. Income tax regulations prevent the Bank from contributing again until the surplus is reduced to about $50 million.

Pension administration was contracted out to Mercer in June, but the Bank remains responsible. We have passed on to the Bank complaints received by the Association about poor service from Mercer and we remind members that you can contact the Bank’s compensation group directly. We have proposed that the Bank provide a toll-free number for pensioners in other regions.
[telephone: 613-782-8988/ e-mail: compensation@bankofcanada.ca]




Enhancements to the Pension Plan were announced in July and addressed in our Bulletin No 6. While they are a step in the right direction, these changes (estimated to cost about $27 million) are no answer to the substantial surplus reported.

Beginning next year, significant changes will be made to the pension plan for current staff, who will be able to choose between defined benefit and defined contribution plans. We are concerned that the current surplus will be used to fund these changes and have sought our lawyers’ opinion on these issues as well.


Retiree benefit programs
Bev Bacon has been compiling a report on benefit programs in other organizations, to see how ours compare. Her overall conclusions are that our plan is quite good but that there are a number of areas that could be better. When complete, her report will be distributed to all members and we will seek your feedback on which potential improvements are most important.

Other organizations
We have developed contacts with other pensioner association (e.g., Federal Public Service, Canada Mortgage and Housing, Business Development Bank, etc.) to share common interests.

David Morgan reported on the constitutional review process, noting that a 3-year period exists before a review is required by our constitution. He and Florence Coleridge have been reviewing suggestions made last year but there is nothing substantial enough to warrant acting ahead of the normal 3-year time frame.

Paul offered thanks to members of the executive committee, to Colin Stephenson (our "Webman"), to Bev Bacon, and to all those who have helped with translation, bulletin mailing and organization of the AGM.

The financial report had been distributed along with the agenda to all members and was recapped by Fern Payer, Treasurer, in both English and French.

This was read by Gordon May, head of the Audit Committee (composed of Gordon and Jim Hughes). Hugh McNeill moved acceptance of both the Financial Statement and of the Auditors’ Report, seconded by Helen Dickenson. The motion was passed by a show of hands.

Fern Payer presented the proposed 2002/2003 budget and a membership fee of $20 for the year. Hillel Kaslove moved approval of the proposed budget and fee, seconded by Shirley Hornick. This was passed by a show of hands.

Paul noted that in 2003 the membership target will be 500, in order to increase our influence with the Bank. He appealed to members, in particular, to help recruit others. Once the legal opinion is in, it will be reported to all members, along with the law firm’s recommendations. Those could include a class action. To gauge the reaction of members present, the President asked for a motion from the floor endorsing approval in principle to enter into discussion with Kosky-Minsky on the issues of a class action suit, subject to final approval by the membership. This was moved by René Marcotte, seconded by Otto Epp. Discussion followed the proposed motion, ranging from the potential costs to the timing of any action and included the possible use of media to increase pressure. The motion was passed unanimously by show of hands.

Another element in plans for year two is the benefits report. The executive will ask members to identify priorities and will then lobby on behalf of those.

• Concern that the Bank has access to information on the web site (Colin Stephenson pointed out that access to some material is restricted to members and Paul acknowledged need to balance access and privacy concerns)
• Whether we are required to audit books annually (yes)
• Existence of provision for pensioners who cannot pay regular fees (yes)
• Suggestion that monies be identified for EC meetings (nice thought, but not necessary now)
• Suggestion that members of the Board of Directors be lobbied directly (will be explored)
• Question about Pension Council as allowed by PBSA (BCPA has been pushing for that, but it is seen by the Bank as only advisory in nature )
• Teleconferencing at meetings (will be explored)
• Fixed dated for AGMs (will be explored)
• Definitions of home care providers for insurance benefits (part of benefits study?)
• Status of spouses for membership (to be addressed by the Constitutional Committee)

The meeting was adjourned at 12:05 by President Paul Cliffen.

New Toll-Free Telephone Number for Contacting the Bank At the request of the BCPA, the Bank has set up a new toll-free number to permit you to speak, without charge, to a Bank representative if you are not satisfied with the service Mercer is providing on pension or benefit issues. The toll-free number is 1-866-782-8988. As a reminder, the local Ottawa area number for this purpose is 782-8988 and the e-mail address is compensation@bankofcanada.ca .

As always, we welcome feedback from members.