Information Circular - About TELUS

Mandate
The mandate of the Pension Committee is to oversee the
administration, financial reporting and investment activities of
the Pension Plan for Management and Professional Employees
of TELUS Corporation, the TELUS Defined Contribution
Pension Plan, the TELUS Edmonton Pension Plan, the TELUS
Corporation Pension Plan, the TELUS Québec Defined Benefit
Pension Plan, any successor plans, related supplemental
retirement arrangements as mandated by the Board, and
any related trust funds (collectively, the Pension Plans).
The Committee is responsible for reporting to the Board in
respect of the actuarial soundness of the Pension Plans,
the administrative aspects of the Pension Plans, investment
policy, the performance of the investment portfolios and
compliance with government legislation. The Committee may,
from time to time, recommend to the Board for approval,
fundamental changes in the nature of the pension arrangement
for any Pension Plan, and changes in the governance
structure for the Pension Plans.
Membership
The current membership of the Committee is as follows:
Name Independent
Don Woodley (Chair) Yes
Charlie Baillie Yes
Micheline Bouchard Yes
Rusty Goepel Yes
Dick Auchinleck was also a member of the Committee until
May 5, 2011.
34 . TELUS 2012 information circular
PENSION COMMITTEE rEPOrT
Meetings
The Committee meets at least once each quarter and reports
to the Board on its meetings. Activities reviewed are based on
its mandate and annual work plan. At each regularly scheduled
quarterly meeting, the Committee meets in-camera without
management present. The Committee also meets with Pension
Plan auditors without management present. The Committee
held four meetings in 2011.
Highlights
Plan amendments
In 2011, the Committee oversaw an amendment to the
Company’s largest defined benefit plan to close the plan to new
entrants effective June 9, 2011. The plan had previously been
closed to new management employees in January 2001 but
had continued to accept Alberta bargaining member entrants.
All TELUS registered defined benefit pension plans are now
closed to substantially all new participants. The Committee also
oversaw plan amendments which were required as a result of
legislative changes.
Discretionary pension fund contribution
After an extensive review in 2011, TELUS made discretionary
contributions totalling $100 million in January of 2012 to three
Company-sponsored defined benefit pension plans that were in
deficit. At year-end 2010 TELUS’ defined benefit pension plans
were fully funded in aggregate on a solvency basis. However, the
steep decline in interest rates during 2011 impacted the funding
ratio negatively and it was determined that additional funding
was prudent. Including the $100 million discretionary
contribution, it is estimated the plans will be approximately
90 per cent funded on a solvency basis as at year-end 2011.
Total pension plan contributions, including both the discretionary
contribution and those required to cover current service cost,
are estimated to be $172 million in 2012.