Retiree Pension Reps Report on the MTS DB Pension Plan
October 25, 2016
Retiree Pension Reps Report on the MTS DB Pension Plan
To TRAM Members.
Surplus Implementation Committee
As of July 22, 2016 there was approximately $3.7M in undistributed surplus meaning that as of this date 97.4% of the surplus had been distributed. By member count of the undistributed surplus corresponds to 756 unlocated members (out of 9,372 members included in the settlement) meaning 92% of eligible members have been located and received their surplus settlements.
The Surplus Implementation Committee met this year on June 24, 2016 and Sept. 12, 2016 to date. The next meeting is scheduled for November 30th, 2016. The latest Surplus Payment file based on completed documentation and located individuals and/or estates for the end of Sept. was sent out in early Oct. for approximately $341K leaving $3.364M still to be distributed. Of which the majority are unlocated estates or estates lacking proper documentation which amounts for approximately $2.4M of the remaining undistributed surplus. Equifax, an outside professional firm with expertise in locating people has been engaged and are in the process of looking for unlocated estates or individuals. Towers Watson, MTS and the CSSB are working diligently to review and collect further documentation while continuing to make payment of settlement amounts once all is in order. They are also working to locate the unlocated where possible.
Please direct Questions on the surplus distribution toll-free to 1-844-380-2474 or to e-mail address pensionsettlementquestions@mts.ca
DB Pension Committee
The Committee reports to the Audit Committee of the Board of Directors and meets twice a year. This year we met on June 24th, 2016 and the next pension committee meeting is scheduled for November 30th, 2016. The next Annual Valuation Reports (AVR) on the Pension plan will be as at Jan. 1st, 2017 for the year of 2016.
The Plan provides for a guaranteed COLA increase to pension payments each year. This guaranteed COLA is equal to two-thirds of the increase in CPI to a maximum CPI increase of 4%. COLA increases are granted each July. In 2016, retirees received a COLA increase of 1.07% which is two-thirds of the 2015 CPI increase of 1.61%.
Yours truly,
J. Larry Trach
Retiree Representative
MTS DB Pension Committee
