WELCOME!

Ottawa Chapter

Spring AGM Meeting

May 28, 2013

AGM Agenda 9:30 Welcome & Introduction

Marlyn Easterbrook 9:40 Treasurer’s Report Don Dutton10:00 President’s Report Dan McDonald

Q & A11:00 ~ Break ~11:25 Guest Speaker – Peter McKenna

Executive Director: Rideau Community Health Services

12:25 Wrap Up12:30 Meeting Close

May 28, 2013 2

Video of President’s Report on Website

www.bellpensionersgroup.ca

May 28, 2013 3

Communications Facebook LinkedIn

May 28, 2013 4

!!!!! RECRUITMENT !!!!!

May 28, 2013 5

NEXT MEETING

Tuesday October 29, 2013

9:30 a.m. - 12:30 p.m.

Nepean Sportsplex

May 28, 2013 6

Ottawa Chapter- Financial ReportMay 28, 2013

Don Dutton

Ottawa Chapter Treasurer

Financial Summary – BPG Inc.Year ending Dec. 31, 2012

2012 2011

REVENUES 215,976 214,740

EXPENSES 165,599 175,222

Excess Rev/Exp 50,377 39,518

Total Members 10,059 10,179

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Paid Membership – Ottawa ChapterYear ending Dec 31, 2012

Year Members Increase

2006 1132 172

2007 1252 120

2008 1206 (46)

2009 1332 126

2010 1356 24

2011 1331 (25)

2012 1235 (96)

May 28, 2013 9

Financial Summary – Ottawa ChapterYear ending Dec 31, 2012

2012 2011REVENUE 25,403 27,140 Transfer to Corporate 13,220 12,620 EXPENSES 6,269 9,919Excess Rev/Exp 5,914 4,978

Bank Account * 36,251 32,956Total Paid Members 1,235 1,331

*Includes Deferred Member Fees & PayPal Income

May 28, 2013 10

Financial Summary – Ottawa ChapterYear ending Dec 31, 2012

Revenue 2012 2011Member Fees 25,060 27,140Other Income 343 377

------------- -------------Total Revenue 25,403 27,517

ExpensesMeeting Facilities & Expense 2,813 3,585Postage & Printing 855 2,834Telephone (Conf. Calls) 69 0Office Supplies 420 360Office Equipment 318 2,095Gifts/Donations 50 100Membership Promotion 1,529 640Bank Charges 94 130PayPal Fees 121 175

------------- -------------Total Operating Expense 6,269 9,919

Transfer to Corporate 13,220 12,620------------- -------------

Excess of Rev/Exp 5,914 4,978

May 28, 2013 11

Financial Summary – Ottawa ChapterBalance Sheet

Year ended Dec 31, 2012

ASSETSCurrent Assets - Bank Account 36,218 - PayPal Account 34

- Pre-Paid Expense 157------------

Total Assets 36,409

LIABILITIES & EQUITYCurrent Liabilities - Prepaid Memberships - 2013 12,580

- 2014 to 2020 2,360------------

Total Current Liabilities 14,940

Total Equity - (Retained Earnings + Net Income 2012) 21,469------------

Total Liabilities & Equity 36,409

May 28, 2013 12

BPG Ottawa ChapterHow your money was spent in 2012

May 28, 2013 13

Fiscal Year 2013As of May 16, 2013

Member Database 1,443

Paid Membership – 2013 1019(70%)

Revenue (Membership fees) 2012 4202013 & Beyond 20,380Interest & Other 289

Total Revenue 21,089

Expenses Postage & Printing 488Office Supplies 52PayPal Fees 129Bank Charges 39

Total Operating Expense 709

Transfer to Corporate 10,380

Net Income YTD 10,000

May 28, 2013 14

Ottawa Chapter Balance SheetAs of May 16, 2013

ASSETSCurrent Assets - Bank Account 20,054

- PayPal Account 1,034- Reserve Account-GIC 15,000

------------Total Assets 36,088LIABILITIES & EQUITYCurrent Liabilities - Prepaid Memberships - 2014 3,360

- 2015 to 2020 1,260

------------Total Current Liabilities 4,620

Total Equity - (Retained Earnings + Net Income 2013) 31,468------------

Total Liabilities & Equity 36,088

May 28, 2013 15

Approval of Auditors - 2013

In accordance with the new Not for Profit regulations

I move – That the firm BDO Canada be retained as the auditor

for BPG until the close of the next annual meeting at the remuneration agreed to in the response – Request for Audit Services

May 28, 2013 16

Approval of Financial Audit for 2013

In accordance with the new Not for Profit Corporations regulations

I move – That BDO Canada be asked to conduct an audit

engagement instead of the default review engagement as required under the new Canada Not for Profit Corporations Act

May 28, 2013 17

Bell Pensioners' GroupMay – June 2013

President's Report

Presented by Dan McDonald

Summary

Changes to By-law No. 1

Establishment of a new Chapter

Plan Performance

Indalex Decision

Focus for 2013

BPG Board of Directors

May 28, 2013 19

By-law No. 1 The Act has changed and not-for-profit

corporations must make sure that their By-laws are consistent with the new Act

The new Act forces some changes to the BPG By-law

All Board directors must be elected, including that the Chapter chairs being appointed to the Board automatically

At the same time, other changes are proposed to simplify organizational change

May 28, 2013 20

By-law No. 1

Outlines Rights and responsibilities of members Organization of BPG Obligations of the BPG Board

Must be approved by membership

Must be approved by Industry Canada

Must conform to the Canada Not-for-profit Corporations Act (NFP Act)

May 28, 2013 21

Objectives for By-law Changes

Compliance with the new Act

No change of members' rights

Organizational flexibility

May 28, 2013 22

By-law Changes – Chapter Chairs

Until now: each chapter chair, elected by that chapter's members, automatically sits on the Board

With new Act: members of each chapter will elect one Director to sit on the Board, and that Director will also be the Chapter Chair

End result: no practical change

May 28, 2013 23

Other Changes (required by Act) Notice of meetings: 21 days (up from 14)

Financial statements: must be made available 21-60 days before AGM

2/3 voting majority needed to change any By-law provisions affecting

Members' rightsVoting process & notice of meetingsSpecial general meeting must be called if

5% of members request it (previously: 25%)

May 28, 2013 24

BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:

1. The directors of the Corporation are authorized and directed to make an application under section 297 of the NFP Act to the Director appointed under the NFP Act for a Certificate of Continuance of the Corporation;

2. The Articles of Continuance (transition) of the Corporation, which have been submitted to this meeting and are annexed to these minutes as Schedule A, are approved;

May 28, 2013 25

BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:

3. The general operating By-law of the Corporation (as amended) is repealed effective on the date that the corporation continues under the NFP Act and the new general operating By-law No.1 which has been submitted to this meeting and is annexed to these minutes as Schedule B is approved and will be effective on the same date.

4. Any one of the officers and directors of the Corporation is authorized to take all such actions and execute and deliver all such documentation, including the annexed Articles of Continuance (transition), the notice of registered office and of directors in the forms fixed by the Director, which are necessary or desirable for the implementation of this resolution.May 28, 2013 26

Motion

Approval of By-law changes

May 28, 2013 27

Establishment of a new Chapter

In early 2012, retirees from Télébec sought the possibility to join BPG. Since they were under Bell Aliant’s accountability, BPG did not have access to the information related to their DB Pension and Benefit plans.

BPG proposed to Télébec’s retirees the

establishment of a new Chapter which would provide the required expertise to answer requests associated to their DB Pension and Benefit plans.

May 28, 2013 28

Establishment of a new Chapter (cont’d)

Value added for BPG:

Consolidating Bell/BCE DB Pension retirees under one entity

Providing BPG more influence facing Bell/BCE and Government

Focusing one voice and one direction when negotiating with BCE and Government

Better understanding of other DB pension plans managed under Bell/BCE

Increasing BPG’s membership Getting closer to the members in the regionsMay 28, 2013 29

Plan Performance ($M)

Plan Valuation Report as of December 31, 2011

Solvency Shortfall $3,134.6M

Solvency Ratio 79.7%

Return on Assets 4.95%

May 28, 2013 30

1000

500

0

-500

-1000

-1500

-2000

-2500

-3000

2003 2004 2005 2006 2007 2008 2009 2010 2011

FullyFunded

MarketValue

Actuary Value

Trend 2004-2011

Bell’s Contribution in 2012

May 28, 2013 31

Bell excess prepaymentsas of December 31, 2011Used to reduce theamortization payment

2012 contribution DB & DC normal cost and special advance contribution

Minimum amortizationpayment required in 2012Bell excess prepaymentsas of December 31, 2012

Bell excess prepaymentsgoing in 2013

$1,142.8 M

$750 M

$565.7 M

$577.1 M

$1,327 M

+

=

=

_

Indalex Decision

Ontario Court of Appeal ruling gave pensioners claims priority above those of other creditors, including the debtor-in-possession (DIP) lenders

The Supreme Court of Canada agreed that while the deemed trust established under provincial law did confer a priority on the pensioners, the laws of the federal government are paramount when federal and provincial laws conflict

May 28, 2013 32

Indalex Decision

As the DIP priority came under the federal law, it superseded the priority granted under the provincial law

Bad news for those pension plans that fall completely under federal jurisdiction

BPG must continue its efforts with the Federal Government to enshrine pension protection safeguards in federal legislation or regulations

May 28, 2013 33

Security of our Pension Promise BPG Focus for 2013

BPG will continue its efforts with the Federal Government to enshrine pension protection safeguards in federal legislation or regulations - Letter to Minister Flaherty

Follow-up of the d’Amour Expert Committee Report Key topics the Pension Committee will pursue in 2013:

1. Corporate Restructuring2. Indexation Calculations3. Trade COLA for Enhanced Pension4. Pension vs Annuities5. Valuation Methods6. Investment Strategies

May 28, 2013 34

BPG Board Dan McDonald (President) Charlie Labarge (Vice-President) Penny Gilray (Treasurer) Lancy Hum (Secretary)

Committees Roberte Cadieux (Communications) Bob Farmer (Governance) Bob Bartlett (PC, Nominations) Marg Eades (PC) Ron Hunt (Governance) Jean-Luc Geha (Audit) Michel Doyon (Audit & PIC) Louise Touchette (Nominations) Sue Dawes (Alternate PIC rep)

Chapter Chairs Marlyn Easterbrook (Ottawa)

Titus Ramkhalawansingh (Toronto)

Frank Bible (SW Ontario)

Robert Guay (Montreal)

Jean Lamer (Quebec City)

Norm Kelly (Télébec)

May 28, 2013 35

Q & A

May 28, 2013 36

NEXT MEETING

Tuesday October 29, 2013

9:30 a.m. - 12:30 p.m.

Nepean Sportsplex

May 28, 2013 37