2006
CANADIAN
MERCHANT
SERVICE GUILD
WESTERN BRANCH
PENSION PLAN
(Towboats)
This statement has been prepared for:
2006
CANADIAN
MERCHANT
SERVICE GUILD
WESTERN BRANCH
PENSION PLAN
(Towboats)
Printed March 2007
Table of contents
PERSONAL INfORmATION ............................................................ 5
Respecting your personal information ............................................. 6
fuNdINg....................................................................................... 7
Required member contributions ...................................................... 7
Required employer contributions .................................................... 7
Additional (member) voluntary contributions (AVC)......................... 7
Credited investment earnings ......................................................... 8
Pension account balance................................................................ 8
Work and contribution history for 2006........................................... 9
BENEfITS .................................................................................... 12
Estimated and projected purchasing
power of DC account ................................................................... 12
What are the benefit entitlements
if you die prior to retirement?........................................................ 15
2006 fINANCIAL STATEmENT ..................................................... 16
YOuR PERSONAL ESTATE CHECkLIST ........................................ 18
Important actions to take now ...................................................... 18
Location of important documents ................................................. 19
RIgHTS TO INfORmATION .......................................................... 21
In our member bulletin dated October 14th, 2005, we announced
the launch of the new Canadian Merchant Service Guild Western
Branch (Towboats) website.
Our intent was to meet our promise of providing you with
additional information about the plan. We hope that you have had a
chance to visit the site at www.coughlin.ca/cmsgw and benefit from
the information that is now available to you online .
To improve the flow of information, we have made some changes
to your Pension statement. The following information, which was
available previously only on a yearly basis, is now available directly
on the new internet site:
· explanation of the pension plan;
· retirement dates;
· forms of pension available;
· benefits on termination of plan membership;
· death benefits;
· disability benefits;
· investment management approach;
· selecting the appropriate fund; and
· glossary of terms.
You will also be able to access a number of our administrative forms
by clicking the Pension plan /administration forms tab.
We hope that the website assists in providing you with up-to-date
information about your plan.
Sincerely,
Coughlin & Associates Ltd., your plan administrator,
and the Trustees.
Western Branch Pension Plan | Towboats
Personal information
Name: (Name)
SIN: (SIN)
Date of birth: (DOB)
Beneficiary: (Beneficiary)
Spouse: (Name 2)
Spouse’s SIN: (SIN 2)
Spouse’s date of birth: (DOB 2)
Vesting date: (new merge field 13.5)
Normal retirement date: (age 60)
Early retirement date: (age 50)
On December 31st, 2006 your funds were invested in the (new
merge field 16) portfolio.
At January 1, 2007 your funds were invested in the (new merge
field 17) portfolio.
· If your personal information is incomplete, or where personal
figures regarding your Pension cannot be calculated, the
corresponding field will show N/A.
· It is important to update any missing or incorrect information
on your file. Simply contact the plan administrator, Coughlin
& Associates Ltd., as indicated on the last page of this
personalized pension statement.
5
Canadian Merchant Service Guild
RESPECTINg YOuR PERSONAL INfORmATION
The administrator of your group Pension plan is Coughlin
& Associates Ltd. At Coughlin, we recognize and respect every
individual’s right to privacy. When personal information is provided
to us, we establish a confidential file that is kept in the offices of
Coughlin, or the offices of an organization authorized
by Coughlin. We use the information to administer the group
pension plan. We limit access to information in your file to
Coughlin staff or persons authorized by Coughlin who require it to
perform their duties, to persons to whom you have granted access,
and to persons authorized by law.
Coughlin uses your Social Insurance Number for the purposes
of government reporting, identification and administration of your
pension plan. Coughlin may exchange your personal information
with the following persons, organizations or parties: financial
institutions; government agencies; insurance companies; employers
or former employers; your local union, plan trustees, pension
advisory committee members, actuaries and auditors. Coughlin
may use the personal information on file to provide
you with additional information regarding any benefits to which
you are entitled.
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Western Branch Pension Plan | Towboats
Funding
REquIREd mEmBER CONTRIBuTIONS
As outlined in the collective agreement between the Guild and
certain members of the Council of Marine Carriers, you are
required to contribute 7.5 per cent of your basic wages by payroll
deduction. If you are party to a different collective agreement, the
rate of contribution may differ. Contributions are remitted to the
plan on a regular monthly basis.
REquIREd EmPLOYER CONTRIBuTIONS
As set out in the collective agreement effective October 1, 2000, your
employer(s) is/are required to contribute to the plan an amount
equal to 8.5 per cent of your basic wages on a regular monthly basis.
One per cent goes toward a disability fund and is not credited to
your account The employer contributions made
on your behalf are not a taxable benefit to you until you collect
a benefit. Employer contributions are included in the pension
adjustment (PA) reported on your T4 to the Canada Revenue
Agency each year. The one per cent disability contribution should
not be included in the PA.
AddITIONAL (mEmBER) VOLuNTARY CONTRIBuTIONS (AVCs)
If you wish, you may make additional voluntary contributions
(AVCs) to the plan by completing the appropriate application. The
total additional amount that you may contribute to this plan and/or
any RRSP is determined by tax rules that became effective in 1990.
If you plan to make AVCs, it is your responsibility to ensure that
you are familiar with the applicable legislation. If you are not sure,
consult a tax adviser. To qualify as pension plan contributions,
contributions must be made before December 31 of that same year.
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Canadian Merchant Service Guild
CREdITEd INVESTmENT EARNINgS
The net rate of return credited to your account will take into
consideration a portfolio change effective July 1, 2006, if you
so elected.
The net rate of return earned by the (new merge field 18) fund in
2006 was (new merge field 19).
The net rate of return earned by the (new merge field 20) fund to
June 30, 2006 was (new merge field 21) and the net rate of return
earned by the (new merge field 22) fund from July 1, 2006 to
December 31, 2006 was (new merge field 23).
This rate was applied to your member contributions, employer
contributions and additional voluntary contributions as shown below.
PENSION ACCOuNT BALANCE
Opening account balance (January 1, 2006) ........ $000,000,000
Opening balance of required contributions ................. $000,000,000
Member required contributions for 2006 ................ $000,000,000
Employer required contributions for 2006 ............. $000,000,000
Total contributions for 2006 ............................................ $000,000,000
Investment earnings (loss) for 2006
on required contributions and account balance ............ $000,000,000
Subtotal ............................................................................. $000,000,000
Opening balance of assets
.
transferred from other plan(s) ...................................... $000,000,000
Assets transferred in 2006 from other plan(s) ................ $000,000,000
Investment earnings (loss) for 2006
on transferred assets ......................................................... $000,000,000
Subtotal ............................................................................. $000,000,000
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Western Branch Pension Plan | Towboats
Opening balance of additional
voluntary contributions (AVCs) ................................... $000,000,000
AVCs made in 2006 .......................................................... $000,000,000
Investment earnings (loss) for 2006 on AVCs ................ $000,000,000
Subtotal ............................................................................. $000,000,000
Closing account balance (December 31, 2006) .... $000,000,000
NOTE: The total contributions received in 2006 do not include
the one per cent disability contributions made on your
behalf to the disability account.
WORk ANd CONTRIBuTION HISTORY fOR 2006
The pension plan funding falls under the terms of the collective
agreement, which defines the funding requirements. The following
table summarizes the contributions received by the administrator
on your behalf. It is very important that you verify and reconcile
this data immediately. Should there be any discrepancies, please
notify the administrator as quickly as possible.
10
Work month Name of Basic Contributions
month processed employer earnings Employer member AVCs
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
Canadian Merchant Service Guild
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
YYYY/MM YYYY/MM XXXXXXXXXXXXXXXXXXXXXXXXX $000,000.00 $00,000.00 $00,000.00 $00,000.00
NOTE: Only contributions remitted between February 1 and the year-end closing date (usually January 31 of following year)
are listed above. Any current year remittances received after closing will appear in the next booklet.
In connection with the annual audit of our records, please review your statement for pensionable earnings. Report
,
contribution inaccuracies directly to our auditors: Bouris Wilson LLP 1701 Woodward Drive, Ottawa, Ontario,
11
Western Branch Pension Plan | Towboats
K2C 0R4; Attn. Mr. James C. Dykstra, CA, (fax 613-727-8585; E-mail jdykstra@bouriswilson.com), and to the plan
administrator, Coughlin & Associates Ltd.
Canadian Merchant Service Guild
Benefits
ESTImATEd ANd PROjECTEd PuRCHASINg POWER
Of dC ACCOuNT
The following table identifies the estimated monthly pension
that can be provided at age 65, including government programs.
It also outlines what can be purchased from member and employer
contributions, transfers from funds in other plans and AVCs,
where applicable. Please refer to the assumptions (indicated by
the asterisk(s)) used to determine the data listed below.
Estimate at age 65 At january 1, 2007
Source Estimated monthly pension
1. from pension account balance* .................................$000,000,000
2. from AVCs and investment returns*.........................$000,000,000
3. from funds transferred in from other
plans with investment returns* .................................$000,000,000
Total estimated projected pension
available at age 65 ............................................................$000,000,000
4. the present CPP benefit payable at 65 is** ...................... $863.75
5. the present OAS benefit payable at 65 is** .......................$491.93
Total available at age 65 ..................................................$000,000,000
* Using the assumptions that the fund will earn 5.0 per cent per
annum from January 1, 2007 until you reach age 65 and a joint
and last survivor annuity is purchased, reducing to 60 per cent
with a five-year guarantee when the interest rate is 5.5 per cent.
** Assumes you are eligible for the maximum benefit provided
by government-sponsored programs (CPP & OAS).
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Western Branch Pension Plan | Towboats
Based on the assumptions below, if you wish to retire at age N/A,
the following table illustrates the estimated monthly pension that
can be provided based on the earnings to date from government
programs as well as purchases from member and employer
contributions, transfers-in from other plans and AVCs, where
applicable. Please refer to the assumptions used in determining
these figures.
Estimate at age N/A At january 1, 2007
Source Estimated monthly pension
1. from pension account balance* .................................$000,000,000
2. from AVCs and investment returns*.........................$000,000,000
3. from funds transferred in from other
plans with investment returns* .................................$000,000,000
Total estimated projected pension
available at age N/A ........................................................$000,000,000
4. the present CPP benefit payable at N/A is** ...................$ 000.00
.
5. the present OAS benefit is not payable before 65 ................ N/A
Total available at age N/A ..............................................$000,000,000
* Using the assumptions that the fund earns 5.0 per cent per
annum from January 1, 2007 until you reach age N/A and
a joint and last survivor annuity is purchased, reducing to
60 per cent with a five-year guarantee when the interest rate
is 5.5 per cent.
** Assumes the early retirement reduction factor for CPP remains
at six per cent per year of early retirement.
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Canadian Merchant Service Guild
If you wish to retire at age N/A, the following table, based on the
assumptions below, illustrates the estimated monthly pension that
can be provided based on the earnings to date from government
programs as well as purchases from member and employer
contributions, transfers-in from other plans and AVCs, where
applicable. Please refer to the assumptions used in determining
these figures.
Estimate at age N/A At january 1, 2007
Source Estimated monthly pension
1. from pension account balance* .................................$000,000,000
2. from AVCs and investment returns*.........................$000,000,000
3. from funds transferred in from other
plans with investment returns* .................................$000,000,000
Total estimated projected pension
available at age N/A ........................................................$000,000,000
4. the present CPP benefit payable at N/A is** ........................ N/A
5. the present OAS benefit is not payable before 65.................. N/A
Total available at age N/A ..............................................$000,000,000
* Using the assumptions that the fund earns 5.0 per cent per
annum from January 1, 2007 until you reach age N/A and
a joint and last survivor annuity is purchased, reducing
to 60 per cent with a five-year guarantee when the interest
rate is 5.5 per cent.
** CPP is not available before age 60.
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Western Branch Pension Plan | Towboats
WHAT ARE THE BENEfIT ENTITLEmENTS
If YOu dIE PRIOR TO RETIREmENT?
Had you died on December 31, 2006, your benefits would
have been payable as follows:
Where death occurs before retirement:
a) the pension account balance
with investment earnings ..........................................$000,000,000
b) the value of funds transferred from other plans
with investment earnings ...........................................$000,000,000
c) the additional voluntary contributions
with investment earnings ...........................................$000,000,000
Death benefit value ..........................................................$000,000,000
If you do not have a spouse, your beneficiary or estate will receive
a lump sum refund of the death benefit, less applicable taxes.
If you have a spouse at the time of your death, your spouse will
receive the amount accumulated in your pension account and
any accrued investment earnings as a death benefit. The spouse
may transfer the death benefit to a locked-in registered retirement
savings plan (LIRRSP) or purchase an immediate or deferred life
annuity or life income fund from an insurance company.
15
Canadian Merchant Service Guild
2006 financial statement
The following information has been taken from the 2006
auditor’s report.
CANAdIAN mERCHANT SERVICE guILd WESTERN BRANCH
PENSION PLAN (TOWBOATS)
Statement of changes in net assets available for benefits
for the year ended december 31, 2006
Increase in assets 2005 2006
Investment income
Income from managed portfolio $503,995 $567,640
Interest income on current account 46,017 70,000
Net income on security transactions 15,283,018 14,198,944
Increase (decrease) in market value (959,017) (121,815)
Contributions
Mandatory employers 2,927,839 2,997,202
Mandatory members 2,927,659 2,998,615
Disability 235,678 252,183
Deferred disability 111,700 168,923
Voluntary 180,441 93,666
Transfer in 39,525 0
Total increase in assets $21,296,855 $21,225,358
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Western Branch Pension Plan | Towboats
decrease in assets 2005 2006
Plan operation
Administrative expenses $366,986 $362,611
Investment management fees 429,470 442,859
Benefits and refunds paid
Purchase of annuities 0 90,280
Death benefits 1,994,471 330,848
Refund on terminations
and retirements 9,770,392 11,243,513
Total decrease in assets $12,561,319 $12,470,111
Increase (decrease) in net assets $8,735,536 $8,755,247
Net assets available for benefits
at start of year 135,714,835 144,450,371
Net assets available for benefits
at end of year $144,450,371 $153,205,618
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Canadian Merchant Service Guild
Your personal
estate checklist
ImPORTANT ACTIONS TO TAkE NOW
1. Draw up a will, if you have not already done so. Without a will,
payments from your estate may be delayed and your intentions
regarding the distribution of your estate may not be followed.
Review your will and/or legal documents once a year for:
· changes in beneficiaries resulting from birth, death,
marriage, etc.;
· changes in your financial situation resulting from maturity
of children, illness, significant changes in assets, etc.;
· changes in federal or provincial tax, probate or property
law that may affect your will; and
· changes in executors, trustees, and guardians for your
children.
2. Review your insurance program to ensure it meets your present
needs.
3. Verify the beneficiaries that you have named for your pension
and insurance benefits. If you would like to change your
beneficiaries, or name a beneficiary where you have none on
record, complete a new beneficiary designation form available
from the plan administrator. If you wish to designate someone
other than your legal spouse, a spousal waiver must be signed
and notarized.
4. Record your private financial matters below:
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Western Branch Pension Plan | Towboats
LOCATION Of ImPORTANT dOCumENTS
WILL
My will is located at
My executor is
My lawyer is
PERSONAL LIfE INSuRANCE POLICIES
Company
Beneficiary
Amount
Bank accounts
Bank
Branch
Account no.
REgISTEREd RETIREmENT SAVINgS PLANS
Company
Branch
Account no.
1
Canadian Merchant Service Guild
SAfETY dEPOSIT BOx
Bank
Branch
Box no.
OTHER ImPORTANT dOCumENTS
Mortgage
Birth certificate
Marriage certificate
Passport
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Western Branch Pension Plan | Towboats
Rights to information
The outline of the pension plan that is illustrated in this statement
does not create or confer any contractual or other rights. The plan is
subject to amendment and modification from time to time at
the trustees’ discretion as circumstances warrant. All rights and
obligations with respect to the plan will be governed solely by
the official documents governing the Canadian Merchant Service
Guild Western Branch Pension Plan (Towboats). On reasonable
written notice members, former members, members’ spouses,
beneficiaries or authorized representatives may review any
documents relating to the plan at offices of either the Guild
or the administrator.
Photocopies are available at a fee.
AVAILABLE dOCumENT
· Annual information returns;
· Audited financial statements;
· Collective agreement;
· Custodian agreement;
· Investment manager agreements;
· Plan document;
· Statement of investment policies and procedures; and
· Trust agreement;
Please keep this statement as a permanent record. We hope that you
will find it helpful in understanding your interest in the plan.
Please advise the administrator of any errors or omissions.
21
Canadian Merchant Service Guild
BOARd Of TRuSTEES
guild: Employers:
R. Cahill B. Geen
Capt. T. Monteski B.E. Sims
Capt. D. Overstall G. Wilson
AdmINISTRATOR
.O.
P Box 3517, Station “C”
Ottawa, ON K1Y 4H5
Tel. 613-231-2266 toll-free 1-888-613-1234
Fax 613-231-2345 webmaster@coughlin.ca
www.coughlin.ca/cmsgw
CmSg office
218 Blue Mountain Street
Coquitlam, BC V3K 4H2
Tel. (604) 939-8990 Fax (604) 939-8950
AudITOR
Bouris, Wilson LLP
CuSTOdIAN
Royal Bank of Canada
CANAdA REVENuE AgENCY REgISTRATION NumBER
545160
OSfI REgISTRATION NumBER
55478
E & OE
22