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1. Be current with the basic aspects of the Teachers’ Retirement Allowance Fund Board, the Teacher’s Pension Act and other relevant pension matters.

2. Advise the Board on pension issues and make recommendations for policies and actions.

3. Assist the board in responding on pension issues on behalf of RTAM members.

4. Assist the board in educating members, other related parties, and the public on pension issues.

Committee Chair & Member/s

 


Alison Logan
Winnipeg
Chair
MEMBERS:
  • JoAnne Hoyak
  • Joan Dawson
  • Julian Hoyak
  • Lynn Land
  • Bill Cann (Ex-Officio)
  • Mel Montgomery (Carman)
June 2021 Highlights

On May 19 2021 RTAM met with Dana Rudy, Deputy Minister and Adam Smith, Executive Assistant to Minister Cliff Cullen. Ms. Rudy and Mr. Smith took the first part of the meeting with Minister Cullen joining us later. Among items that were discussed was RTAM’s long-standing request for a designated seat on the TRAF Board. The second position discussed was Government’s official recognition of RTAM as the legislated voice of retired teachers in Manitoba. RTAM continues to pursue these two items. We are currently in the process of trying to arrange a follow-up meeting with Minister Cullen.

Committee Report to the 2020 RTAM AGM

Pension Committee Report

AGM 2020

Respectfully submitted by Alison Logan, Chair (Winnipeg)

Members: Bill Cann (Winnipeg), JoAnne Hoyak (MacGregor), Julian Hoyak (MacGregor), Lynn Land (Winnipeg), Laura Skelly (The Pas)

Five committee meetings were held during the 2019-2020 year. 

In addition, Jeff Norton and Brad Prokop of TRAF attended one Pension Committee meeting and one RTAM Board meeting in order to share information.

As has been past practice, a meeting between TRAF Staff and RTAM Representatives was held on October 21, 2019. The President, Treasurer, Secretary and Pension Chair attended on behalf of RTAM.

Highlights of the Pension Committee endeavours this year included:

  1. Monitoring the status of the joint agreement with MTS and accepted by the TRAF Board as to the dispersal of the restricted surplus. The dispersal has been in place since July 1, 2018 and will continue over 5 years.
  2. As of July 1, 2020 COLA will be 1.35%.
  3. The Revision of RTAM Nomination Process for TRAF Board Appointment document which has been included in the AGM package.
  4. Action requesting that MTS recognise RTAM as the official voice of retired teachers.
  5. Ongoing communication with ACER-CART.
  6. Strongly urging the continuation of the traditional meeting(s) with our provincial representatives is recommended. Due to unusual circumstances, (Covid-19 as well as the provincial election) it was not possible this year. 
  7. The chair wishes to thank the committee members for all their commitment and diligent work.
The Pension Benefits Act Review

On January 10, 2018, Finance Minister Cameron Friesen announced that the review of the province’s pension laws had been completed by The Pension Committee of Manitoba.  A public consultation period with a submission deadline of February 21, 2018 was also announced at that time along with the release of a consultation paper and the commission’s recommendations for reforms to The Pension Benefits Act.
 
While RTAM developed a plan of action to respond to the recommendations of The Pension Benefits Act Review, collaborative contact with The Manitoba Teachers’ Society (MTS) was also made.  The result was the submission of a joint RTAM-MTS “Response to the Consultation Paper The Pension Benefits Act Review”.  To view the joint MTS-RTAM submission click here.
 
RTAM also belongs to the national association of retired teachers, Association canadienne des enseignantes et des enseignants retraités-Canadian Association of Retired Teachers (ACER-CART).  ACER-CART, in turn, is part of The Canadian Coalition for Retirement Security (CCRS).  CCRS also responded to the call for consultation on the The Pension Committee of Manitoba’s recommendations for reforms to The Pension Benefits Act.  To view the CCRS brief click here.
 

Download > Joint MTS - RTAM PBA Submission 21 February 2018

Download > CCRS Brief to the Pension Commission of Manitoba - CCRS - Feb 21 2018

 

 

 

Cost of Living Adjustment (COLA)

The Teachers’ Pensions Restricted Surplus Regulation, 2017 (M.R. 63/2018) was registered May 18, 2018, putting in place the regulatory authority necessary to disburse the restricted surplus equally over a five year period commencing July 1, 2018.  The regulation is consistent with the joint RTAM/MTS proposal which had been accepted by the TRAF Board and submitted to government as a proposed regulation in June, 2017.

The impact for 2018 of the enactment of the Teachers’ Pensions Restricted Surplus Regulation, 2017 (M.R. 63/2018) is that the previously announced COLA of 1.15% effective July 1, 2018 will now be increased to 1.35%.

Background:

  • The TRAF Board earlier approved a 1.15% COLA effective July 1, 2018.
  • The 2/3 of CPI cap that had been in place on the annual COLA since July 1, 2008 ceased to apply effective with the July 1, 2018 COLA.
  • At a February 2018 meeting with the Minister of Education and Training, RTAM was informed that, at the time, there were no plans to extend the provision for restricting the TRAF Cost of Living Allowance (COLA) implemented in 2008 which has now expired. The calculation of COLA reverts to the provisions in place prior to 2008 as per subsection 10(7) of The Teachers’ Pensions Act.
Pension Committee Mandate

1. Be current with the basic aspects of the Teachers’ Retirement Allowance Fund Board, the Teacher’s Pension Act and other relevant pension matters.

2. Advise the Board on pension issues and make recommendations for policies and actions.

3. Assist the board in responding on pension issues on behalf of RTAM members.

4. Assist the board in educating members, other related parties, and the public on pension issues.

5. Establish and maintain liaison with other relevant pension groups.

6. Carry out the research process for RTAM’s nomination for the government’s discretionary appointment of a “representative” of retired Plan members to the TRAF Board, and shall conduct the search process and make recommendations in accordance with the RTAM Nomination Process for TRAF Board Appointment.

The Pension Committee is Seeking Grassroots Input
The Pension Committee is seeking personal stories and anecdotes from retired teachers with regard to their opinions and experiences on our defined benefit pension plan, the security and sustainability of it, and the effects of Bill 45 on their personal purchasing power. Please contact any committee member or the RTAM office.

PRIORITIES for 2020/2021

  1. To be aware of changes in The Pension Benefits Act and The Teachers’ Pensions Act that may affect us. Office staff will aid in monitoring this.
  2. To keep abreast of pension related articles and relevant letters in print media.
  3. To continue to work with MTS on relevant issues.
  4. To foster ongoing communications with the Government on pension issues.
  5. To keep communications open with the TRAF Board.
  6. To advocate that the Government appoint a retired teacher to the TRAF Board from RTAM’s list of recommended nominees.

 

Restricted Surplus ….A Refresher

A joint committee of RTAM (Rosalie Bornn, JoAnne Hoyak, Wayne Hughes) and MTS (Norman Gould, Roland Stankevicius, Bobbie Taillefer) representatives was established and was tasked with developing a plan to deal with the disbursal of the Restricted Surplus funds.

The following is a result of that Committee’s work and can be found on the TRAF website:

  • - 2019 COLA was 1.23%.
  • - 2020 COLA will be 1.35%.
  • - Both the 2019 and 2020 COLA include the release of approximately $5.6 million of restricted surplus as required under the Teachers’ Pensions Restricted Surplus Regulation, 2017.
  • - The restricted surplus will be available to provide COLA in 2021 and 2022, after which it will be depleted, as planned.

 

RESTRICTED SURPLUS
Restricted surplus represents funds in the Pension Adjustment Account (PAA) that are held in reserve as a result of the legislative cap that existed on COLA granted on July 1 each year for the 10-year period from 2008 through 2017. COLA during this period was limited to a maximum of two-thirds of the increase in the Consumer Price Index (CPI).

To the extent that the PAA had capacity to support a COLA greater than two-thirds of CPI, the excess funds were set aside as restricted surplus to be used to support COLA granted in 2018 or later. Restricted surplus was generated in each year from 2012 to 2016 inclusive. As the two-thirds CPI maximum ended with the grant of the 2017 COLA, no further restricted surplus will accumulate.

The Teachers’ Pensions Restricted Surplus Regulation, 2017 was enacted on
May 18, 2018. Under this regulation, the annual COLA will benefit from the release of the restricted surplus at a rate of 20% of the total restricted surplus for each year from 2018 to 2022 inclusive. Based on a restricted surplus amount of $27,987,000, this equates to $5,597,400 per year.