OE News Special Edition July 2013

is this: for every 1% drop in long term interest rates, the required reduction in benefit levels
would be 20%. This situation affects all pension plans in our current economic environment.
The purpose of this communication is to alert the membership that if long term interest rates
stay at present levels or continue to fall it may be necessary to adjust future service benefits levels
for accruing pension members.
It is also important to note that the long-term health of our pension plan continues to depend
on a strong membership, and in particular on the recruitment of new members. As the Business
Manager notes elsewhere in this report, all members have a responsibility to contribute to
recruitment – and this is the best way you can support your Trustees’ ongoing work to ensure
the stability of the pension plan you rely on.
Pension Plan
Actuarial Results
The following tables are from Plan’s Actuarial Report as at April 30, 2012. They summarize the
results of the going concern valuation, solvency valuation, and the normal actuarial cost calculation
made. As the tables confirm the Board is proud to verify your Pension Plan continues
to satisfy the going concern and solvency funding requirements despite the brutal global economic
situation we are currently living through.
PensiOn Plan actuarial results
GOING CONCERN VALUATION 30-Apr-2012 30-Apr-2010
Invested Assets at market value $1,013,752,735 $782,235,346
Liabilities (964,630,000) (772,039,700)
Going Concern Excess/(Unfunded Liability) $49,122,735 $10,195,646
Funded Ratio 105.1% 101.3%
SOLVENCY VALUATION 30-Apr-2012 30-Apr-2010
Invested Assets at market value less expenses $1,012,452,735
$780,935,346
Liabilities (991,836,800) (760,651,600)
Solvency Excess/(Deficiency) before allowance for the excess of
expected contributions over the normal cost $20,615,935 $20,283,746
Present value of the excess of expected contributions over the normal
cost - next 5 years (11,300,486) 5,040,373
Solvency Excess/(Deficiency) after allowance for the excess of
expected contributions over the normal cost $9,315,449 $25,324,119
Solvency Ratio 102.1% 102.7%
CONTRIBUTION REQUIREMENTS 30-Apr-2012 30-Apr-2010
Annual Amount Amount Per Hour Annual Amount Amount Per Hour
2013 Plan Year 2011 Plan Year
Normal Cost * $23,667,000 $3.43 $20,079,000 $2.91
Going Concern minimum payment
Additional amount to satisfy funding of solvency deficiency
Total Required Contributions $23,667,000
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$3.43 $20,079,000 $2.91
Expected Contributions 20,700,000 3.00 20,700,000 3.00
Excess/(Shortfall) of expected contributions over total
required contributions $(2,967,000) $(0.43) $621,000 $0.09
Special Edition Summer 2013 News 11
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