REPORTS AND RECORDS

Reviews

Tags

the records, public records, police reports, criminal records, reports & records, driving records, criminal history, arrest records, incident reports, police department, accident reports, background check, sheriff's office, how to, background checks

Stats

views:: 0
rating:: not rated
reviews:: 0
posted:: 10/13/2009
language:: English
pages:: 0

Public Domain

SECTION H REPORTS AND RECORDS 1. Recent History of Pension Issues 2. 2003 Report of Representative Committee to the AGM p. 1-3 p. 4-16 Section H: Reports and Records: Policy and Procedures -November 23, 2005 (3.27.07) Section H: Reports and Records 1 Policy and Procedures 9.23.05 (3.27.07) 1. RECENT HISTORY ON PENSION ISSUES The ARTA investigation into pensions and pension issues began at the 2003 Annual General Meeting, October 23, 2002. The following motions were adopted: 1. Resolved that the ARTA establish a committee or empower a committee to further examine the issues raised by the Society for Pension Reform and other pension concerns, with a view to recommending actions that may be taken to ensure that the interests of ARTA members and retired teachers, generally, are fully represented. Rationale Apart from the Alberta Society for pension Reform many teachers, current practitioners and retired, are questioning the state of our pension plan, past decisions, policies, practices and what appear to be glaring deficiencies and inequities between our plan and others. Unfunded Liability Of prime concern, obviously, is the matter of the unfunded liability for which two or more generations of teachers are encumbered. What is being done to address the legal and moral elements of this matter? Did teachers create this liability? Can those yet inducted into teaching be legally obligated to pay for this faux pas? Is it true that, in 1996, the Government of Alberta utilized the plans’ surplus to cover its obligations? If so, has the public been made aware of this? Is it accurate, that the Government’s obligations re: the unfunded liability isn’t included in the calculation of Alberta’s debt. Is this public knowledge? Is it really the case that this issue must be resolved before other inequities and deficiencies in the plan can be addressed? Bridge Benefit It would appear that all provinces with the exception of Alberta and Manitoba have established means by which to cover the pension shortfall that accrues to teachers who retire with full index and full benefits, but who are not yet 65 years of age. The failure to do so in Alberta has resulted in significant penalty to many retired teachers and calls into Section H: Reports and Records 2 Policy and Procedures 9.23.05 (3.27.07) question the claims of the ATA, the Government and the ATRF, that the plan provides a 2% pension. Why doesn’t our plan include a bridge benefit? Why are teachers promised a 2% pension when, clearly, benefits do not reflect that? What are the other ‘hidden’ or ‘not always mentioned’ features of our plan that work to affect far less than was promised when teachers entered and contributed to the plan? What is being done to address this issue? Cola Major inequities can be found in the Cola provisions from province to province. Why does Alberta lag behind? Is this issue being addressed? How? Equity What is being done to ensure that our plan keeps pace with teacher pension plans in other provinces and with pension plans in general? What is being done to address the errors and/or omissions in the information that is provided CTF and other agencies that seek to study and compare pension plans? Effect of Wage and Salary Rollbacks What is being done to address this issue? Planning for the future What is being done to ensure that the Alberta plan keeps pace, that the needs of present retirees are assessed, that the needs of retirees I the future will be met? Voice, Input and Communication A source of frustration to many is the lack of input and representation afforded retirees. The plan seems to focus on contributors. The ATA and ARTA appear to represent the interests of contributors who, for the most part, and until they reach retirement, remain ignorant as to the full effects of the plan. There are, at the least, two questions to which the ARTA may be expected to respond. Section H: Reports and Records 3 Policy and Procedures 9.23.05 (3.27.07) What is being done by ARTA to rehabilitate or modernize the plan and to address the government’s failure to fulfill its obligations…prior to 1991 and now? What actions, if any, are being taken by the ARTA to ensure that these matters are resolved in the best interests of retired teachers? 2. Resolved that the ARTA place the issue of pension reform, as publicly presented by the Alberta Society for Pension Reform and acknowledge by the ARTA executive, at the forefront of its ongoing planning for members’ benefits; ad that it co-ordinates its efforts, in the matter of redress, with e; Alberta Society for Pension Reform and the newlyformed ATA Pension Committee, until a resolution of this matter has been satisfactorily achieved in deliberation and negotiation with the Alberta Government. 3. Resolved that the Representative Committee be assigned the tasks of research and indepth study of all issues and/or questions concerning pensions that may be pertinent to ARTA members. 4. Resolved that the ARTA support the Alberta Society for Pension Reform One year later, at the 2003 Annual General Meeting, the Representative Committee presented a report and recommendations, which were received and subsequently voted on individually. That report is contained in the Appendix (See Appendix v). The motions approved, along with the report represent the ARTA’s position and policies on pensions. Section H: Reports and Records 4 Policy and Procedures 9.23.05 (3.27.07) REPORT OF REPRESENTATIVE COMMITTEE 2003 ARTA Representative Committee Report on Pension Issues Presented to The ARTA Annual General Meeting October 22, 2003 Ernest Sebastian, Chair Jack Fulwiler Charles P. Rose Joe Berlando, VP – Ex–officio Section H: Reports and Records 5 Policy and Procedures 9.23.05 (3.27.07) BACKGROUND Over the past year, the ARTA Representative Committee gathered information, read documents, met with groups and individuals central to teacher pensions, examined and discussed the various issues involved. The committee’s inquiry was guided by three motions approved at the Annual General Meeting of the Alberta Retired Teachers’ Association, October 23, 2002. (Appendix A). On February 23, 2003 the committee presented an interim report to the Executive Committee and Executive Council. (Appendix C) That report defined four basic issues as central to teacher pension problems and listed additional issues of significance that need to be addressed. Until the summer, the committee continued to explore issues, meet with groups and individuals and examine alternatives. The committee agreed to recess until the fall prior to writing a report for the Annual General Meeting. Factors Complicating and Impeding Our Efforts Several elements served to make the task of the Representative Committee very difficult. When the Alberta Teachers’ Association and the government worked on the Teachers’ pension plan in 1966, they did so with certain understandings. For example, teachers worked until age 65 and could expect to receive 70% of average salary. Later, age/experience index of 100 was established. Today that index is 85. A teacher can now retire with full pension at 55 years of age and30 years of experience, however, the teacher will not receive 70% of his/her average salary. In fact, many who retire at age 55 received close to 50% of their average. In order to receive the full 70%, they have to wait until age 65 when they receive their full Canada pension. While changes in the index have been effected, the plan has not responded. Control over the plan resides with a select few who, according to the manner in which the pension plan is set out in legislation, are not accountable to those who contribute to the plan. Emotions run high on the topic of pensions and the issues that have arisen over pensions. A strong aura of ownership and control, by those representing teachers, is evident. The simple act of questioning, at times, seems to draw forth defensiveness. Instead of a spirit of cooperation and collaboration with stakeholders who express concerns or who attempt to address perceived inadequacies, there seems to emerge an adversarial, siege–defend kind of atmosphere. There is evidence of anger on both sides. The area of pensions has traditionally been complex for teachers and it appears that teachers continue to struggle to make sense of it. There is much confusion over the Section H: Reports and Records 6 Policy and Procedures 9.23.05 (3.27.07) issues and many different interpretations of events. While the number of teachers questioning seems to be growing, there also appears to be a great deal of ignorance and apathy on the part of many teachers. Complicating matters further, one plan sponsor, the ATA, vigorously defends the status quo and its own past actions. The other plan sponsor, the government, neither comments nor meets to address concerns or issues. Ultimately, control of the entire plan resides with the second sponsor, the government, who appears unwilling to address issues to become a party to improvements. Finally, there is a strong divergence of opinion as to the propriety of retired teachers inquiring into pension issues. Some take the position that those drawing a pension are no longer entitled voice and/or involvement, as they are no longer paying into the fund. Others seem to feel that while ARTA might occasionally request an increase in Cola provisions for retired teachers, it has no right to demand change or reform. Findings and Recommendations Over the course of its inquiry, the Representative Committee worked hard to stay out of the circle of blame that seems to pervade current pension issues. It was the view of the Committee that the issues need to be clearly delineated and from that, necessary changes would be obvious. It is clear, however, the over time, meaningful change has not been forthcoming. The plan has neither kept pace with the changing needs of retired teachers not with changes in legislation. When all is said and done, it may also be the case that some of the decisions made in the past have not stood the test of time. Evidence suggests that instead of progressing as anticipated, the plan has become further mire in difficulty. The scheme for clearing the unfunded liability, for example, has not progressed as planned. Instead, a second liability has resulted. The total liability continues to grow. Pension plans struggle with the instability and uncertainty of the market place. Those in charge of many plans are also taking action to address unfunded liabilities. The Teachers’ Pension Plan, however, seems to be unique in both the size of its unfunded liability and the inaction of its plan sponsors. It is difficult to argue with the perspective offered by one knowledgeable and highly respected player in the history of the teacher pensions in Alberta, who concludes that neither teachers nor the teachers’ association have made the necessary commitment to pension reform to bring about change. Section H: Reports and Records 7 Policy and Procedures 9.23.05 (3.27.07) It is in that context and with the intent of initiating action to bring about meaningful change that the Representative Committee presents the following recommendations. Status of Retired Teachers, Voice, Representation In its interim report, the Representative Committee suggested that the ARTA Executive and Executive Council needed to address the issues of voice and representation for retired teachers. The committee noted that, “The only avenue for input on pension issues would appear to be via the ATA political process. Yet there is no provision in that process for retired teachers.” The committee made note of the lack of representation on the recently reactivated ATA Pension Committee. It also noted that there was no provision for the voice and input of retired teachers and ARA and that there was evidence to suggest that in the case of one ARTA chapter, the ATA was not honouring its commitments to life members. From those examples and others it seems blatantly obvious that retired teachers are accorded little, if any, status by either of the plan sponsors. To this point, ARTA efforts to address those matters have met with little success. A resolution will be put before the next ARA to the effect that, on a trial basis, two life members be allowed to attend the ARA as observers who may speak on resolutions, which directly affect retired teachers. The request for restoration of representation on the Pension Committee was rebuffed. As a first step in addressing the issues of voice, representation, the propriety of our involvement and inquiry into the matter of teacher pensions and the legitimacy of any quest for pension reform by retired teachers, the following recommendations seem in order. Recommendation #1 It is recommended that The Alberta Retired Teachers’ Association adopt a policy statement to include the following: That retired teachers be granted equal status as stakeholders in the pension plan. That retired teachers be accorded full and equal representation on the board, which administers the plan and any committees established to conduct plan business. That membership on the Alberta Teachers’ Association Pension Committee be restored and that the number of retired representatives be proportional to the number of retired teachers. Section H: Reports and Records 8 Policy and Procedures 9.23.05 (3.27.07) Recommendation #2 It is recommended that the Executive and executive Council of ARTA commence advocacy on behalf of retired teachers, with representation to be made to various levels of government, opposition members, the Teachers’ Pension Plan Board, the Alberta Teachers’ Association and advocated for seniors such as The Alberta Council on Aging and The Coalition of Seniors’ advocates. Recommendation #3 It is recommended that the Executive and Executive Council of ARTA undertake and commence a program of communications, with information as to ARTA Policy to be shared with retired teachers throughout the province, with teachers currently practicing and with various media. Process and Governance In its interim report, the Representative Committee identified the lack of process as an issue of significant concern. It noted that the process for raising pension concerns and issues, for discussion and/or for effecting improvements, if there is one, neither clear nor open. In addition, there does not appear to be any ongoing proves for determining the degree to which the pension plan actually serves the needs of retirees. Avenues that are available for pursuing change are inexorably entwined in the political elements of one plan sponsor’s operations. The lack of process, lack of voice, representation and status afforded retired teachers leave the plan and its sponsors open to criticism and, possibly, to legal challenge. Given that retired teachers have dutifully contributed to the plan over the course of their careers, they ought to be entitled to full and equal participation in all matters of the plan, including a process by which concerns and issues might be expressed and discussed with changes proposed and considered. Recommendation#4 It is recommended that the Alberta Retired Teachers’ Association accept as policy and advocate that the Teachers’ Pension Plan be removed from the control by government. Recommendation #5 It is recommended that the Alberta Retired Teachers’ Association advocate the election of a board of officers to administer the plan, such a board to be accountable to practicing teachers, retired teachers and where appropriate, surviving spouses. Section H: Reports and Records 9 Policy and Procedures 9.23.05 (3.27.07) Recommendation #6 It is recommended that, as a condition oft structure for said board, that there be defined, a process for change, an ongoing proves for assessing the needs of retirees and a process for determining the degree to which the needs of retirees are being met by the plan. Recommendation #7a It is recommended that the Alberta Retired Teachers’ Association seek legal opinion as to the rights of retired teachers in matters pertaining to the Teachers’ Pension Plan and to the possibilities should legal action be required. Recommendation #7b It is recommended that the Alberta Retired Teachers’ Association obtain the services of a legal firm from which legal opinions might be sought regarding ARTA business. Education and Awareness The Representative Committee is of the opinion that, by and large, practicing teachers and retired teachers remain relatively ignorant as to their pension plan and as to current pension issues. For example, there seems to be a general belief that teacher pensions are guaranteed. The plan sponsor representing teachers, according to one of its representatives, no longer talks about the plan as being guaranteed. The Representative Committee believes there is a need for a program of education that, at present, is not being provided. Recommendation #8 It is recommended that ARTA develop a program of education for both retired and practicing teachers, along with a plan for dissemination, the purpose of which will include familiarization with the workings of the Teachers’ Pension Plan, information about pensions in general and an update on current issues and alternatives. The Four Basic Issues In its interim report, the committee outlined four areas in which concerns appear legitimate and calls for reform appear to be warranted. The committee reaffirms its belief that concerns over the teacher pension plan are valid, that the concerns continue to grow, that the general condition of the pension plan is not improving and that, in spite of the rhetoric, little is being done to address those problems. The committee is of the belief that neither retired teachers nor those in service are fully aware of the implications of the current situation. Section H: Reports and Records 10 Policy and Procedures 9.23.05 (3.27.07) Pension Shortfall A major issue for many retirees continues to be the shortfall in pension that occurs when a teacher with full index retires between the ages of 55 and 65.Excluding reductions associated with the election of various joint pension alternatives or guarantees, that shortfall is significant. While the shortfall may be reduced somewhat by opting for Canada Pension at age 60, it places many retirees in a position where they are forgoing a significant portion of retirement income is to opt for “coordination” of Teacher Pension and Canada Pension. For all intents and purposes, ”coordination” amounts to taking a loan for life of the pension with repayment commencing when Canada Pension begins and continuing repayments for life. It amounts to a gamble in which it is to the retiree’s advantage to die prior to paying back more than was borrowed. Coordination works to the advantage of teachers with minimal service and to the advantage of those who, by virtue of health issues, may be facing reduced longevity. While the committee was unable to obtain information by which to determine the extent to which this scheme works to the advantage of retired teachers in general, many of those who “opted for coordination” not decry the so−called benefit. In that fewer retirees opted for coordination in 2002, that at the time or its report, the average age of retirement was 57 and that the ATRF identified a trend towards retirement at age 55, the committee deemed this a legitimate issue requiring reform. After researching the history and background of this issue, considering practices in other teacher pension plans and practices in non−teacher pension plans, the committee offers several recommendations aimed at correcting the shortfall problem. Recommendation #9 It is recommended that the teacher pension plan be disassociated from the Canada Pension Plan. Recommendation #10 It is recommended that a bridge–benefit be implemented until disassociation can be effected. Section H: Reports and Records 11 Policy and Procedures 9.23.05 (3.27.07) Recommendation #11 It is recommended that a plan be developed for addressing the shortfall that has accrued to pensioner since the Teachers’ Retirement Plan and the Canada Pension Plan were blended and that said plan be implemented as quickly as possible. Recommendation #12 It is recommended that the loan–advance–coordination feature be removed when the bridge–benefit is commenced or the plan is disassociated. Recommendation #13 It is recommended that the Alberta Retired Teachers’ Association commence a program of advocacy to achieve these reforms. Inadequacy of the Cola By simple calculations ad comparisons, the Representative Committee was able to ascertain that current Cola provisions are doing little to help retirees keep pace with inflation and the increasing cost of living. Recommendation #14 It is recommended that Cola be adjusted to 100% of the CPI. Recommendation#15 It is recommended that either the Canadian CPI or an alternative index be used, such index to be more in line with real cost of living increases. Effects of Salary and Wage Rollback In spite of the claims by teacher representatives, that the losses suffered by teachers have been recouped, the committee could find no evidence by which to substantiate those claims. Rather, it would appear that those doing the calculations for the ATA have failed to account for the losses by teachers who have since retired and for whom the rollback losses have compounded. Section H: Reports and Records 12 Policy and Procedures 9.23.05 (3.27.07) Recommendation #16 It is recommended that the Alberta Retired Teachers’ Association seeks means by which to better cost the losses by retired teachers due to the wage and salary rollback imposed by the government and that it then address this matter through advocacy on behalf of its members. Unfunded Liability It its interim report, the Representative Committee advised that there was no evidence to suggest that the unfunded liability was being addressed. The report noted that the Executive Director of the Teachers’ Pension Plan assured the Committee that both plan sponsors were advised that the unfunded liability and the “New Deficiency” needed to be addressed “in the short term rather than the long term.” In the case of other pension plans, which liabilities pale in comparison to that of the Alberta Teachers’ Pension Plan, warnings have spurred immediate action to address the problems. Nearly eight months have elapsed since the Representative Committee met with the Teachers’ Pension Plan Executive Director and the Committee must now report that there is still no evidence to suggest that the matter is being addressed or that progress is being made in any kind of problem analysis or negotiation. The two plan sponsors keep agreeing to meet but nothing happens. The Representative Committee reaffirms its concerns with respect to the assumptions underlying the scheme for dealing with these liabilities, namely that salaries will continue to grow until 2060, that the number of teachers will continue to grow and that the pupil/teacher ratio will remain the same. The Committee reiterates the understanding that to the extent that any of those variables change, in either direction, contribution rates will need to rise. The Committee also advises that revisions to pension legislation seem to imply that the plan will be hard pressed to sustain itself in the future. According to the Act, any pension surplus is a given year must be directed to the unfunded liability. That actually happened a short time ago when there was a modest surplus after commitments were honored. However, when the plan experienced a ‘bad year’, in 2002, there was no surplus upon which to draw, and, thus, a new deficiency arose. Legislation now provides that increased contributions cover any such deficiency. Section H: Reports and Records 13 Policy and Procedures 9.23.05 (3.27.07) Given those parameters, it would appear impossible for the plan to make sufficient gains as to adequately provide for the retirement needs of teachers currently practicing. The scheme for addressing the problem is not working. All parties are at a standstill, hoping, it seems, for better days and/or waiting until 2060 to see if actuarial projections are realized. Pressure needs to be applied to plan sponsors to remedy the situation now. The Representative Committee notes that, as yet, there has been no outcry by teachers or the public…over the issue or at the amount of money being used each year to service the unfunded liability. On the other hand and drawing upon the wisdom of one of the sources with whom the Representative Committee met, we draw attention to the fact that this plan, for the most part, has always been saddled with liability and may always be so encumbered. Under that thinking, such a liability should not prevent plan sponsors or plan participants from actions that might better the plan and/or eliminate the unfunded liabilities. Assuming that posture, the Representative Committee has made the above recommendations and chooses to aspire to a more modern plan with additional recommendations. Society for Pension Reform Before presenting our final recommendations, we address the issue of the Society for Pension Reform and the question as to whether or not the Alberta Retired Teachers’ Association should or should not provide monitory support in addition to the moral support extended by the assembly last October. The Representative Committee examined materials issued by the Society, met twice with Society representatives, studied the perspectives shared at those meetings and consulted with a pension expert regarding the issues and the positions of the Society. The Representative Committee is of the opinion that the Society was formed and continued its activities, for the most part, because it does not find voice and/or support from those in charge. Believing strongly, as they do, about issues and what they have experienced, they feel they have no other choice but to take legal action to effect change and to have their issues addressed. Section H: Reports and Records 14 Policy and Procedures 9.23.05 (3.27.07) That notwithstanding and setting aside the aura of conflict to which we referred earlier, the Society is to be commended for the work it has done and for persevering. It has made significant contributions to reforms that may eventually prevail. With respect to the Teachers’ Pension Plan, for example, they clearly identified the shortfall issue and the effects of decisions to integrate with the Canada Pension Plan without the benefit of a bridging component. The Society has raised awareness of some of the inequities of a defined benefit plan. There are many. Attention has also been drawn to the less than favorable position in which surviving spouses find themselves and the lack of status, voice or representation of retirees in general. To that extent, we are of the opinion that the Society merits some financial support for continuing its research on pension reform. But the Representative Committee has some concerns with respect to supporting the legal action that has been initiated. We feel that, as a general rule, litigation should be a last resort. While the Society may have reached that point, the Representative Committee has not. The Committee has some reservations as to the liability of financial supporters, should a judgment rule against the complainants. The Committee is also concerned about the implications for the association to which many retired teachers have pledged life–long support. It must be noted, however, that should the pension situation continue as it has, legal action might well be required to effect changes. We must also allow for the fact that, as in other situations wherein group action is commenced, that a single individual or group may prevail, thereby setting the stage for reform. Recommendation #17 It is recommended that the Alberta Retired Teachers’ Association extend to the Society for Pension Reform a sum of money to be used to research on pension issues but not to be used in legal matters, such cum to be determined by delegates at the Annual General Meeting. Additional Reforms: A Plan For The Future Recommendation #18 It is recommended that the Alberta Retired Teachers’ Association seek legal advice as to the rights or retired teachers relative to matters of voice, representation and status in pension matters. Section H: Reports and Records 15 Policy and Procedures 9.23.05 (3.27.07) The matter of spousal benefits needs to be addressed. Recommendation #19 It is recommended that a spousal benefit be the norm and not a reduced benefit. During the year of inquiry into the matter of pensions and pension issues, the Representative Committee considered alternatives to the defined benefit pension. Recommendation #20 It is recommended that the Alberta Retired Teachers’ Association strive to move the Teachers’ Pension Plan from the defined benefit structure to that of anon–contributory benefit plan wherein the employers portion of the contribution…in essence an amount negotiated as part of the employment and salary contract…be administered under the plan but that the employee share be self–directed. Conclusion When the courts have become involved in cases where pension plans fail, judges express concerns as to why the plan participants and their representatives did not take action to address the problems and issues with their plans as they developed. For the Teachers’ Pension Plan in Alberta, there are no provisions for action by plan participants and plan sponsors do not seem to address the issues. We have a legal responsibility to represent our members. We have a moral responsibility to represent all retired teachers and teachers in general. Recommendation #21 It is recommended that the Alberta Retired Teachers’ Association investigate the parameters of group legal action in Alberta. Recommendation #22 It is recommended that ARTA strike a standing committee on pensions to work towards resolving the issues outlined in this report and to take action. Section H: Reports and Records 16 Policy and Procedures 9.23.05 (3.27.07) Appendix (a) to Representative Committee Report to 2003 AGM MOTIONS ON PENSION ISSUES REFERRED TO THE REPRESENTATIVE COMMITTEE AT THE 2003 AGM Moved that ARTA establish or empower a committee to further examine the issue raised by the Pension Society and other pension concerns, with a view to recommending actions that may be taken to ensure that the interests of ARTA members and retired teachers, generally are fully represented. That the Representative Committee be assigned the tasks of research and in depth study of all issues and/or questions concerning pensions that may be pertinent to ARTA members. “Be it resolved that SWARTA of the Alberta Retired Teachers’ Association urges the members of ARTA to place the issue of pension reform, as publicly presented by the Alberta Society for Pension Reform and acknowledged by the ARTA executive, at the forefront of its ongoing planning for members’ benefits; and that it coordinate its efforts, in the matter of redress, with the Alberta Society fort Pension Reform and the newly– formed ATA Pension Committee, until a resolution of this matter has been satisfactorily achieved in deliberation and negotiation with the Alberta Government. Section H: Reports and Records 17 Policy and Procedures 9.23.05 (3.27.07) Appendix (b) to Representative Committee Report to 2003 AGM The Committee met with, in some cases heard presentations and discussed the issues with the following: • • • • • • The Executive Director of the Alberta Teachers’ Pension Plans Fund A Staff Officer in Pensions from the Alberta Teachers’ Association A staff Officer (Retired) involved in the Pension Campaigns conducted by the Association Representatives from the Society for Pension Reform The Alberta Teachers’ Association Pension Committee An Actuary and Pension Expert Section H: Reports and Records 18 Policy and Procedures 9.23.05 (3.27.07)