SLIDE 1
Meeting Outline
- Review asrTrust and The Trustees’ Role
- Some Plan Stats
- 2016 Financial Results
- 2017 Actuarial Valuation
- Benefit Plan Upgrades
- Answer Your Questions
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Leading change Responding to Challenges in a Changing World Gord - - PowerPoint PPT Presentation
Leading change Responding to Challenges in a Changing World Gord - - PowerPoint PPT Presentation
Leading change Responding to Challenges in a Changing World Gord Graham, Executive Director Meeting Outline Review asrTrust and The Trustees Role Some Plan Stats 2016 Financial Results 2017 Actuarial Valuation Benefit Plan
SLIDE 2
SLIDE 3
What is a Trust?
A trust is a legal relationship in which one party, (GMCL), gives another party, (the Trustee), property or assets to hold in trust for the benefit of a third party, the beneficiary (Retirees). Trustees have a strict legal obligation to always act in the best interests of the beneficiaries.
Building your Trust
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About protecting the promise for all beneficiaries, current and future. A 60+ year commitment.
SLIDE 4
Board of Trustees
Custodian Independent Investment Managers Green Shield Canada Manages eligibility for benefits and adjudicates claims
Executive Director Manager, Administration and Strategic Relations
- 5 Trustees appointed by Unifor
- 5 independent Trustees
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The structure of the trust
SLIDE 5
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Membership Statistics
2016 2017 Members in Canada 31,209 31,833 Non-resident Members 56 56 Total 31,265 31,889 Total with Dependents 55,435 55,471 Average Age 70.73 70.33 Paid Claims in Canada $84,352,405 $88,454,691(E) Paid Non-resident Claims $633,837 $700,209 (E) Total $84,986,241 $89,154,900 (E) Per Member Claims - Canada $2,702 $2,778 (E) Per Non-Resident Member Claims $11,318 $12,503 (E)
SLIDE 6
Benefit Costs: 2016 $M, %, Before Taxes and Fees
6 Drug, 39.3, 47% Audio, 2.4, 3% EHS, 7.3, 9% LTC, 12, 14% Travel, 2.2, 2% Dental, 17.1, 20% Vision, 4, 5%
Drug Audio EHS LTC Travel Dental Vision
SLIDE 7
Investment Snapshot
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Type of Investment Managers Amount Invested Fixed Income TDAM $759M Canadian Equity TDAM QV Financial $437M Global Equity TDAM Burgundy
- T. Rowe Price
Fiera $648M Canadian Real Estate Crestpoint CC&L Great West Life $92M Canadian Mortgages Philips, Hagar and North $101M
SLIDE 8
Comparative 2016 Returns
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Plan 2016 Returns
asrTrust (CCI Retiree Plan) 7.6% Ontario Teachers’ Pension Plan 4.2%* Average Pension Plan 6.8%*
* Andrew Willis, Globe and Mail, Wednesday, Mar. 29, 2017
SLIDE 9
2016 Financial Snapshot Very Strong Five Year Results
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2016 2015 2014 2013 2012 Total Income
$161M $86M $192M $142M $117M
Total Expenses
$105M $110M $109M $105M $118M
Surplus/Deficit
$56M ($24M) $83M $36M ($1M)
Cumulative Surplus
$150M $94M 118M $35M ($1M)
Total Assets $2,040M $1,984M $2,008M $1,924M $1,887M $1,887M $2,040M
Total Assets : 2012 - 2016
In spite of spending more than 500 million dollars
- n health benefits for
members, your Trust has more money than what it started with!
SLIDE 10
How was the money spent in 2016?
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Out of every hundred dollars spent….
- $94.97 or health care
- $4.28 for investment
management fees
- $0.35 for professional fees and
consulting
- $0.19 for salaries, benefits
- $0.13 for board expenses
- $0.08 for rent, insurance,
phones, computers, etc.
Audited financial statements is available at asrtrust.com
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INVESTMENT EXCELLENCE AT A LOW COST
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asrtrust.com
Cost of an Average Mutual Fund asrTrust Investment Costs
asrTrust’s investment management costs were a fraction of that – just 0.24% of net assets in 2015, or 24 cents on every $100 to manage
- ver Two Billion Dollars in assets.
* Morningstar Canada
The average management fee charged by a mutual fund in Canada is more than 2.4%* of your investment portfolio. That means, you pay $2.40 for every $100 you have invested.
SLIDE 12
Managing for the Future: 2017 Actuarial Valuation
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An actuary looks at….
- The people – how many, how old, how
healthy, how long they are living
- Financial markets – how will the Trust`s
investments are likely to do in future
- Health care cost trends – future drug
costs and other significant healthcare expense
To estimate whether the Trust is on track to meet its long-term
- bligations
SLIDE 13
2017 Valuation
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Valuation Date Funded Status
Original GMCL Plan, January 2011 78.3% New GMCL Plan, April 2012 (Projected) 100.6% January 1, 2014 103.9% January 1, 2017 116.8%
➢ Very Strong Investment Returns ➢ Build up of Surplus Cash ➢ 2012 Plan Design Effective in Reducing Expenses
The Plan has $116.80 in assets for every $100 in liabilities
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Important Contributors
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Contributor Impact Risk
Investment Results
+++
Another “great recession”
Claims Results
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New drugs, changes to government plans
Membership
- Members living longer,
actives retiring earlier
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2018 Benefit Plan Enhancements
➢ Increase PSA test reimbursement from $15 to $35 ➢ Add coverage for dental implants at 50% reimbursement ➢ Increase eye exam reimbursement from $85 to $120 ➢ Increase vision care maximum from $300 every 24 months to $350 ➢ Increase hearing aid per ear limit from $1000 every three years to $1500 ➢ Increase reimbursement rate on medical supplies from 80% to 90% ➢ Reduce annual indexing of monthly contributions from 5% to 1.5%
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Clarify Travel Requirements
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90-Day Travel Stability Clause – Coming June 1, 2018
- Clearly states when you shouldn’t travel because of changes
to your medical condition
- Addresses the Number One concern people have when
about to travel
- Avoids misunderstandings and problems when a claim is
made for emergency medical coverage
SLIDE 17
Conclusions…
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A very successful year and a solid first five years. This allowed the Trustees to begin to put something back into the plan. The next valuation will be January 1, 2020.
SLIDE 18
Questions
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