afternoon breakout: communicating the value of good … · communicating the value of good pensions...
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Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
BC PENSION FORUM
February 26, 2016
AFTERNOON BREAKOUT:
Communicating the Value of Good Pensions
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Moderator
• Linda Watson
– Vice Chair, BC Teachers Pension Plan
Speakers
• Corina de Guire
– Director, Plan and Member Communications, BC Pension Corporation
• Ron Auer
– Executive Director, CORPaTH
• Riley St. Jacques
– Senior Consulting Actuary, PBI Actuarial Consultants
#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Introductions
Riley St. Jacques, FCIA, FSA
Senior Pension Consultant
PBI Actuarial Consultants Ltd.
Specialize in TBP and MEPP
#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
What is a good pension?
Better ThanNothingBad Good Better Best
Nothing RRSP/DC SRP TBP/MEPP
DB
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
What works?
Newsletters and articles
Websites Social media
Seminars One-on-one meetings
Community
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Get involved with advocacy groups
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
BC PENSION FORUM
February 26, 2016
AFTERNOON BREAKOUT:
Communicating the Value of Good Pensions
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Communicating Value of Good Pensions
Ron Auer *
Executive Director, CORPaTH
* Director, Analytic Investors, LLC
#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
CORPaTH is an alliance of defined benefit pension stakeholders who believe working men
and women earn and deserve a secure retirement.
• Education to ensure the long-term viability of defined benefit pensions and safeguard the
enormous economic contributions pensions make to regional, national, and global
infrastructures and economies.
• Advocates responsible investment strategies, social responsibility, transparent and stable
financial markets, investor advocacy, solid corporate governance, and consistency of
meaningful investment returns.
• Growing community of decision makers who oversee pension assets and are committed
to protect, promote, and perpetuate defined benefit pensions globally.
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
The Value of Good Pension Plans
• Defined Benefit Plans are superior vehicles to deliver sustainable
investment returns and to provide retirement income security.
• “Pension Envy” is misguided; all workers should participate.
• Framework is ‘wealth and income inequality’, secure retirement Income,
GDP and societal contribution.
• Benefits local, regional, national, and international economies.
• Communication and engagement with plan participants - both current and
future- taxpayers, legislators, employers, business owners, and societies at
large.
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Michael Kahn, PhD
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
• Baby Boomers retiring and
majority ill-prepared.
• 40 Million households (25-
64) do not have retirement
accounts.
• Insufficient 401(k) savings,
DC plans costly and
ineffective, private pensions
disappearing, Social Security
cuts, plus increased
healthcare costs.
• Pressure on public
assistance, reverting to elder
poverty. No safety net.Source: NIRS
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Communicating Value of Good Pensions
• Defined Benefit Plans are GOOD Pensions
• Shift to DC plans increases income inequality, which in turn
drags down the economy and prolongs recessions.
• Shift to DC plans has created accelerating retirement savings
crisis
• Angus Deaton, PhD; Nobel Laureate, Economic Sciences,
2015:• The United States has moved primarily to defined-contribution
pension plans with associated stock market risk, whereas, in
Europe, defined-benefit pensions are still the norm. Future financial
insecurity may weigh more heavily on U.S. workers, if they perceive
stock market risk harder to manage than earnings risk, or if they
have contributed inadequately to defined-contribution plans.
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Talking Points
1. DB plans serve many purposes beyond providing constituents with retirement income.
2. DB plans are proven to be extremely cost effective and reliable in delivering retirement
income security.
3. Many DB plans are underfunded today, not because of paltry long-term returns. Rather,
sponsors’ contributions neither sufficient nor consistent enough to properly fund
benefits.
4. Returns, over time, are average.
5. DB plan funding surpluses and deficits occur over normal cycles of investment returns.
6. Plans with actuarially sound funding policies will achieve 100% funded status over the
long run. Short term market cycles can veer plans off course.
7. Healthy DB plans are underpinned by a sustainable benefit design, a strong governance
process, and the sponsor’s commitment to regularly fund the plan. *
8. Within DB plans responsible investment reduces investment risk, and is cognizant of the
impact both financially and societally.
9. DB plans investments create jobs, strengthen GDP, and reduce income inequality.
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Communicating Value of Good Pensions
CORPaTH activities
Annual Summit Forum & Awards Banquet
December 2016, Las Vegas, NV
Pending Forums:
• NORTH AMERICA'S BUILDING TRADES UNIONS
2016 LEGISLATIVE CONFERENCE, Washington, DC
• New York, NY
• Chicago, IL
• Los Angeles, CA
• London, U.K
• Brazil
CORPaTH Website: www.corpath.org
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Check’s in the Mail? Documenting the movement
to protect and promote
retirement security.
A CORPaTH
Film
Coming Soon
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
CORPaTH Strategic Allies: Resources for Communication & Message
NCCMP (National Coordinating Committee for Multiemployer Plans) – An organization
of national, regional and local multiemployer pension and health and welfare plans,
International and Local Unions, national and local employer associations, individual local
employers, and multiemployer fund professionals.
www.nccmp.org
NCPERS (National Conference on Public Employee Retirement Systems) Pension
Defense Tool Kit. A useful template of what a local or regional media tool kit should
contain as local and regional media outreach efforts build to support retirement security for
employees.
www.ncpers.org/promotingpensions
NIRS (National Institute for Retirement Security) A non-profit research and education
organization established to contribute to informed policymaking by fostering a deep
understanding of the value of retirement security to employees, employers, and the
economy as a whole.
http://www.nirsonline.org
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
CORPaTH Strategic Allies: Communications, Message, Research
Principles for Responsible investment
• Explicit relevance to the investor of environmental, social and governance
(ESG) factors, and long-term health and stability of the market as a whole.
• Long-term sustainable returns dependent on stable, well-functioning and well
governed social, environmental and economic systems.
• Growing recognition in the financial community that effective research, analysis
and evaluation of ESG issues is a fundamental part of assessing the value and
performance of an investment over the medium and longer term
• Requires investors and companies to take a wider view (of) full spectrum of
risks and opportunities, in the interest of their clients and beneficiaries.
www.unpri.org
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
“But I like living in the past. It’s where I grew up.” The New Yorker
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
BC PENSION FORUM
February 26, 2016
AFTERNOON BREAKOUT:
Communicating the Value of Good Pensions
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Introductions
Corina De Guire, MA
Director, Plan and Member Communications
BC Pension Corporation
Type of Plan: DB plan
#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Communicating the value of the plan
with members is challenging
#BCPensionSummit
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Understanding our environment helps us be
responsive to members’ communications needs
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
Understanding members helps us focus on
their needs and get their attention
• Member-centric communications
• Simple, relevant, impactful
• Create a relationship through a
lifetime of communications
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
It’s important to join
the conversation
• Do the research so you
know the facts
• Create partnerships to
share the facts
• Tell your story before
others tell it
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525#BCPensionSummit
A holistic approach reduces risk
• Consistent
• Strategic
• All channels
and audiences
• Long term
• Steady, even tone
Suite 1200, 1166 Alberni Street, Vancouver, BC V6E 3Z3 Canada T 604 408.2456 F 604 408.2525
Thank you for joining us!