OE News Special Edition July 2013

MEssagE FRoM thE ChaiRMan
Staying the course on prudent
management and the importance
of long term growth
Dear Brothers and Sisters,
In keeping with our proud traditions, I am
pleased to present this 38th Annual Report, on
behalf of the Board of Trustees and the Staff of
the Operating Engineers’ Benefits & Pension
Plans.
Pension Plan
Management of the pension funds you rely on
for your retirement is a tremendously important
responsibility, and often a challenging one. This
past year has proven to be a volatile investment
and low interest rate environment, which has
required a prudent and conservative management
approach.
Your Board of Trustees’ primary objective is
to ensure the greatest certainty possible with
respect to the payment of the benefits that the
Plan has promised to provide. I am therefore
pleased to report that the investment strategy
adopted by the Board is proving successful in
achieving this goal.
Throughout the past year, the Board has
received many reports and presentations from
economists, investment managers and other
professional advisors. Based on this information
the Board has concluded that it should stay the
course regarding its investment strategy for the
coming year.
Our investment portfolios are heavily weighted
towards fixed-income assets. This strategy is
in-line with the conservative approach required
in the management of a mature pension plan
such as ours.
Given the particular assets we have selected
their value continues to respond to interest rate
changes in the same way as the value of our liabilities
do. Declines in interest rates have been an
Brian Cochrane,
Chairman
Michael R Fanning
speaking on the IUOE
Pension Funds at the
38th Annual IUOE
Conference
Special Edition Summer 2013 News 1