|
DATE
|
EVENT
|
|
Oct. 18/01
|
Pensioners’ Association first Annual General Meeting takes place
~ approval given to new Constitution, Executive Committee and fee
structure
|
|
Oct. 2/01
|
Organizing Committee and New Executive meet to prepare for Annual
General Meeting
|
|
Sept. 20/01
|
Letter received from OSFI accepting Bank’s argument that reimbursement
of contributions in 2000 does not involve a distribution of surplus
funds, but a refund of over-contributions.
|
|
Sept.15/01
|
Pensioners’ Bulletin #2 published ~ includes list
of Nominees for Office, proposed Constitution,
ballot forms, etc.
|
|
Aug.20/01
|
First Pensioners’ Bulletin published ~ includes proposal for Pensioners’
Association, Election procedures, etc.
|
|
Aug.13/01
|
Letters to the Editor from 5 pensioners, commenting on Aug. 5th
article, appear in Citizen
|
|
Aug. 5/01
|
Article appears in the Citizen and other Southam Press newspapers
"Pension feud brews at central bank; Bank of Canada retirees
claim ethical entitlement to share of $200M surplus"
|
|
July 30/31/01
|
Bank holds focus groups
|
|
July 17/01
|
Pensioners’ Group holds workshop for participants in Bank’s focus
groups ~ decision taken to present statements at each focus group
session
|
|
DATE |
EVENT |
|
July 13/01 |
Bank sends further response to Pensioners’ Group letter of May 29th dismissing concerns over removal of surplus funds, downplaying oversight role of requested Pension Council and rejecting requests for distribution of relevant correspondence to all pensioners |
|
July 11/01 |
Pensioners’ Group responds to Governor seeking a tangible recognition to his statements ~ a more equitable sharing of the pension surplus |
|
July 9/01 |
Pensioners’ Group sends e-mail to invite participants in Bank’s focus groups to a pre-meeting to discuss pension surplus issue |
|
July 6/01 |
Governor responds to Pensioners’ Group letter of May 29th indicating that Board takes pension surplus issue very seriously and that retirees are important to Bank. Detailed response to follow |
|
July 4-6/01 |
Bank invites selected pensioners to participate in focus groups on pension reform and communications at end of July |
|
June 27/01 |
Pensioners’ Group e-mails pensioners to invite comments on the proposal to set up Pensioners’ Association |
|
June 21/01 |
Pensioners’ Group meets to discuss proposal for setting up Pensioners’ Association and decides to proceed by setting up an Organizing Committee and surveying e-mail pensioners list; also decides to try to ensure that pensioners to be asked to participate in Bank focus groups on pension reform be kept up to date on surplus issue so that they can intervene appropriately |
|
May 29/01 |
Pensioners’ Group sends rebuttal to Bank’s May 8th letter:
- Disagrees vigorously with Bank’s view that it is reasonable for benefits of surplus to accrue solely to Bank
- Provides further argumentation for principle of ethical entitlement based on proportional contributions
- Questions Bank’s removal of $3.3 mm in surplus funds and references letter to OSFI
- Requests Bank to set up Pension Council (with pensioner representation) to play broad oversight role for pension plan
- Offers to help Bank select representative pensioners for consultation on review of pension plan; suggests that pensioners should have say in who represents them
|
|
May 29/01 |
Pensioners’ Group sends letter to Superintendent of Financial Institutions asking for clarification on whether the Bank acted properly in withdrawing $3.3MM in surplus funds from the Pension Trust, without his approval as is required by the Pension Benefits Standards Act |
|
May 8/01 |
Bank responds to March 8th letter from Pensioners’ Group:
- Rejects view that all Members have ethical entitlement to portion of surplus
- Since Bank responsible to cover funding risks, it is "reasonable that the Bank should receive the benefits of the surplus".
- Board does not plan to revisit the pension plan surplus issue
- Bank will be consulting with representative group of retirees on review of pension plan
|
|
April 30/01 |
Bank sends all retirees a package prepared by Pensioners’ Group including:
- Minutes of Feb 27th meeting
- Copy of Feb. 27th presentation
- Notice to pensioners ~ questionnaire to be filled if interested in receiving information on pension and other matters
|
|
April 23/01 |
Pensioners’ Group meets to review status |
|
April 19/01 |
Pensioners’ Group sends Bank a letter inquiring about status of response to its March 8th letter and asks the Bank to sit down with representative group of stakeholders as a more constructive approach to dealing with extraordinary surplus |
|
April 18/01
(rec’d April 27) |
Bank sends out summary of Feb. 27th meeting to all pensioners and adds that Board was briefed on comments and is not planning to reconsider its decision of September 2000 |
|
Mar. 26/01 |
Pensioners’ Group meets to review reaction to Feb. 27th meeting, access to information package from Bank; decides to send prompt letter to Bank if response not received within month, decides to investigate setting up Pensioners’ Association |
|
DATE |
EVENT |
|
Mar. 8/01 |
Pensioners’ Group e-mails Bank its summary of Feb.27th meeting |
|
Mar. 8/01 |
Pensioners’ Group sends letter to Bank reinforcing message contained in its presentation and asking 14 questions that were not addressed fully at the presentation |
|
Feb. 27/01 |
Information session at Bank
- Bank reiterates position contained in Feb. 9th note
- Pensioners’ Group makes presentation at information session setting out basis for claim:
- Stakeholders have paid too much for defined pension benefit
- Ethical entitlement to surplus based on proportional contribution to it
- Contribution holiday for active Members inequitable without equivalent benefit for other Members
|
|
Feb.12/01 |
Pensioners’ Group meets to review changes in Pension Benefits Standards Act and decides to make presentation at Feb. 27th information session |
|
Feb. 9/01 |
Bank sends note to pensioners
- Bank should receive benefit of surplus since it must cover pension funding risks
- Notes that surplus recorded in the financial statements for Dec.31/00 is $214MM
- Invites pensions to information session at Bank on Feb. 27th
|
|
Jan. 3/01 |
Bank sends note to pensioners indicating Board committed to provide a full explanation if its decision ~ information package being assembled |
|
Dec.18/00 |
Pensioners’ Group meets to review pension surplus issue |
|
Nov. /00 |
Small group of pensioners begins to meet in Ottawa ~ hereafter the "Pensioners’ Group" |
|
Oct. /00 |
Pensioners begin to send in numerous letters complaining of inequity |
|
Oct. 18/00 |
Bank sends out letter to pensioners informing them of decision to grant contribution holiday for current staff |
|
Sept. ?/00 |
Bank removes $3.3 million from Pension Trust Fund to repay staff for contributions made in 2000 |
|
Sept. 15/00 |
Bank’s Board takes decision to provide current staff with contribution holiday retroactive to Jan. 1, 2000 |
|
June 2/00 |
Bank receives report by Watson Wyatt indicating 1999 surplus would be in excess of $171MM with more realistic assumptions |
|
Mar. /00 |
Bank receives report from TD Asset Management indicating probability that Pension Fund would lose $100MM (i.e. current surplus) is less than 2% over one year period and less than 0.5% over 10 years |
|
Feb. /00 |
Sub-committee of Board asked to review pension surplus issue |
|
Jan. 21/00 |
Internal study completed which recommends:
- portion of surplus ($56MM) be shared between Bank ($34MM) and all members ($22MM) based on proportional contributions ~ not acted upon by Bank
- study of plan design and contribution structure should be undertaken before next actuarial valuation in 2002
|
|
Nov. /99 |
Bank commissions internal pension study |
|
June /99 |
Bank begins to take complete contribution holiday |
|
June /99 |
Triennial actuarial assessment as of Jan. 1/99 completed
- Indicates surplus of $101MM using very conservative assumptions
- Changes to more conservative asset valuation ~ $47MM
- Notes that no Bank contributions are permitted by Income Tax Act until surplus reduced to less than $44MM
|
|
June? /96 |
Bank begins to use surplus to pay for part if its contribution cost |
|
June / 96 |
Triennial actuarial assessment indicates surplus of $8MM as of Jan.1/96 |
