afternoon breakout: communicating the value of good … · communicating the value of good pensions...

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


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


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


What works?

Newsletters and articles

Websites Social media

Seminars One-on-one meetings

Community


Get involved with advocacy groups


BC PENSION FORUM

February 26, 2016

AFTERNOON BREAKOUT:



Communicating Value of Good Pensions

Ron Auer *

Executive Director, CORPaTH

* Director, Analytic Investors, LLC

#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.


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.


Michael Kahn, PhD


• 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



• 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.


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.



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


Check’s in the Mail? Documenting the movement

to protect and promote

retirement security.

A CORPaTH

Film

Coming Soon


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


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

http://www.unpri.org/


“But I like living in the past. It’s where I grew up.” The New Yorker


BC PENSION FORUM

February 26, 2016

AFTERNOON BREAKOUT:



Introductions

Corina De Guire, MA

Director, Plan and Member Communications

BC Pension Corporation

Type of Plan: DB plan

#BCPensionSummit


Communicating the value of the plan

with members is challenging

#BCPensionSummit


Understanding our environment helps us be

responsive to members’ communications needs


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


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


A holistic approach reduces risk

• Consistent

• Strategic

• All channels

and audiences

• Long term

• Steady, even tone


Thank you for joining us!

[email protected]

[email protected]

[email protected]

mailto:[email protected]



afternoon breakout: communicating the value of good … · communicating the value of good pensions...

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