Chair – Harpinder Sandhu
Q: Who is part of the committee?
A: Everyone but BCGEU members.
PSPPAC Trustee election by acclamation. Christine Sorensen elected, from BC Nurses Union.
PSPPAC Chair re-elected for a 2 year term.
Vice Chair discussion set for May 2013. For a possible past president or for a mentoring role for a new chair.
BC Ferries Issue – Purchasing Past Service
Is the employer paying their share? Trustees will bring forward this discussion following BC Ferries formal inquiry to create a clarifying amendment. The board at the Pubic Service Pension Plan will be notified. Main issue is if there was a relationship with the employer previously, then the employer pays. Potential problem occurs when discussing Temps/Causal workers that were paid an “in lieu” percentage for benefits. The question is; does this “in lieu” payment include pension benefits?
BC Assessment’s policy? From a recent example of an employee that was formally a temp, who had purchased past pension service. The HR department had informed him he would pay only his portion. Not the entire portion.
Trustee Report
The process to create a Joint Trusteeship began in 1995 and was completed in 2000. This process has preserved the pension plan.
BCIMC is meeting their rate of return targets with pension investments. BCIMC is also looking at “Thematic Investing”. An example would be to look at a production chain such as food to see where there are gaps in investment. Refrigeration in India is an example.
Are we Defined Benefit or a Hybrid Plan?
We are a Hybrid Plan because we are not 100% employer sponsored.
Communications overhaul: Promote public pensions via a communications campaign. For example, 70-80% of the plan is funded through Investment Returns, 20-30% is funded by government.
LTD: Pension carries on when a member is on LTD, contributions carry on.
Tom Vincent (vice president of the PSEC, appointed by gov’t in 2009) member of the PSPP Board of Trustees. Currently working with MLA’s to teach them that most members do not have gold-plated pensions. Cost of investment @ BCIMC is very low compared to private banks.
The recent public pension conference is encouraging reaching out to other public pension plans.
Skytrain workers (local 7000) have joined CUPE will be joining PSPP. Recently they are one of few workers that are moving from Defined contributions to Defined Benefit Plan. The employer agreed to this move as it is more economical for them also. The employer did a 36 page report that suggested the PSPP over all others. Side Note: the employer probably agree because employees at Skytrain work many hours of overtime which do not count towards pension contributions that the employer must match under a defined contribution plan.
Going Forward
PSPPAC Logo needed. Can BC Assessment members help?
PSPPAC email account needed. I created the tentative psppac.bc@gmail.com. Pending approval from next meeting in May 2013.
M/S/C