OE News Special Edition June 2014

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IUOE News is the officialpublication of the InternationalUnion of Operating EngineersLocal 115.ON THE COVER OEPP Owned Columbia SquarePlaza welcomes new tenant – Save On Foods onAugust 1st, 2014.Local Executive BoardBusiness ManagerBrian CochranePresidentWayne E. MillsVice-PresidentBrad RandallRecording SecretaryBrian LefebvreFinancial SecretaryDon SwerdanTreasurerFrank CarrGuardEverett CummingsConductorDoug FisherTrusteesBrett ChapmanCurtis WrightAuditorsChip DhaliwalGoretti GuibaultCraig McIntoshDistrict Executive Board1 - Al Cooper2 - Curtis Harold3 - Brad Gerow4 - Herb Conat5 - Mike Spiruda6 - Rob FoskettPublication CommitteeBrian CochraneWayne MillsLynda ArlandDon SwerdanEditorial ServicesSarita Stad, COPE 378Design and Layoutwww.workingdesign.netContact Details4333 Ledger Avenue,Burnaby, B.C., V5G 3T3Telephone: 604-291-8831Fax: 604-473-5235Website: www.iuoe115.comE-mail: iuoe@iuoe115.comPensioners enjoying the September 2013 Annual Pension Social.REPORTSInvestment strategy proving successfulBrian Cochrane, Chairman.................................................................................................. 1Preparing for a challenging year aheadTrustees................................................................................................................................ 3Letter from Income Security ConsultantStrategic Income Security Services..................................................................................... 4Letter from ActuaryMorneau Shepell................................................................................................................. 5Administrator’s ReportShawn Hatch, Administrator............................................................................................... 6Operating Engineers’ Pension Plan Summarized Financial Statements............. 18Operating Engineers’ Benefits Plan Summarized Financial Statements ............ 28FEATURERetirees’ Social Evening September 2013.................................................................. 23PleaseRecycle
Message from the ChairmanInvestmentstrategy isproving successfulBrian Cochrane,Business ManagerDear Brothers and Sisters,In keeping with our proud traditions, I ampleased to present this 39th Annual Report, onbehalf of the Board of Trustees and the Staff ofthe Operating Engineers’ Benefits & PensionPlans.Pension PlanManagement of the pension funds you rely onfor your retirement is a tremendously importantresponsibility, and often a challenging one. Aftermany years of historically consistent low interestrates, this past year saw a volatile rise and subsequentfall in interest rates.Your Board of Trustees’ primary objective isto ensure the greatest certainty possible withrespect to the payment of the benefits that thePlan has promised to provide. I am thereforepleased to report that the investment strategyadopted by the Board is proving successful inachieving this goal during times of volatility.Throughout the past year, the Board hasreceived many reports and presentations fromeconomists, investment managers and otherprofessional advisors. Based on this informationthe Board has concluded that only minor adjustmentsto its investment strategy are required.Our investment portfolios are heavily weightedtowards fixed-income assets. This strategy isin-line with the conservative approach requiredin the management of a mature pension plansuch as ours. However, we will continue to seekalternative investments which meet our risk toleranceand investment return requirements.Given the particular assets we have selectedtheir value continues to respond to interest ratechanges in the same way as the value of our liabilitiesdo. Declines in interest rates have been anissue for pension plans. Our investment strategyhas, by design, largely protected us from thisissue.Benefits PlanThe past year saw significant increases in thecost of providing benefits.This is due in part to yet another 3% increasein MSP premiums and increased drug claimcosts due to point of purchase drug claim reimbursementthrough the Pacific Blue Cross drugcard. Overall, in 2013 Extended Health Benefitclaims rose by 22%.Your Board of Trustees continue to monitorbenefit plan costs closely so that the plan willcontinue to be able toprovide quality coverageMembership growth leads tofor our members andincreased market share whichtheir families.The good news is that in turn builds the Union’sfor 2013, contributions strength for the future.to the benefits plan roseby over $1,000,000 representing an 8% increase.This is a sign of an improved work picture andthe organizing efforts of our Union.In ClosingIn closing it is important to note that the prudentinvestment strategies and fiscal management ofthe benefits plan can only go so far in securingthe long-term stability of the OEBPP. The otherkey factor is membership which drives increasedhours of covered employment.Membership growth leads to increased marketshare which in turn builds the Union’sstrength for the future. We also need to maintaina constant influx of new and younger membersto provide a balance to an aging demographic.The Local Union Executive Board is very committedto these values which will keep our mem-Special Edition Fall 2014 News 1
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OE News Special Edition June 2014

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