OE News Special Edition July 2013

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issue for pension plans. Our investment strategy has, by design, largely protected us from this issue. Benefits Plan This has been a year of significant change for the Operating Engineers’ Benefits Plan. Extended Health and Dental benefits are now being provided through Pacific Blue Cross. This has resulted in a number of improvements in service delivery for our members, most notably point of purchase drug claim reimbursement through the drug card. At the same time, members MEMBERship gRowth LEaDs to are experiencing a number of inCREasED MaRkEt shaRE, whiCh new Pacific Blue Cross proce- BuiLDs thE union’s stREngth dures and policies designed to FoR thE FutuRE. help in the prudent financial management of the Benefits Plan. Your patience and cooperation in this regard will assist in helping us keep the cost of benefit coverage for our members in line. With respect to disability benefits, the level of our long term disability benefit has been raised to $2,000 per month for all new claims. At the same time, our existing long term disability claimants received an ad hoc increase in their benefit ranging from $50 to $400 per month. Going forward Great-West Life will be administering long term disability benefits while the 2 News Special Edition Summer 2013 Operating Engineers’ Benefits Plan office will continue to administer weekly disability benefits. You will note in the financial statements contained in this report that 2010/11 hours of contribution improved by approximately $2,000,000 for the year. This is a sign of an improved work picture and the organizing efforts of our Union. In closing In closing it is important to note that the prudent investment strategies and fiscal management of the benefits plan can only go so far in securing the long-term stability of the OEBPP. The other key factor is membership which drives increased hours of covered employment. Membership growth leads to increased market share which in turn builds the Union’s strength for the future. We also need to maintain a constant influx of new and younger members to provide a balance to an aging demographic. The Local Union Executive Board is very committed to these values which will keep our membership and finances on very stable footing. With your assistance, we will be successful in reaching these goals which will in turn, over time, increase our market share, increase our bargaining strength, and provide strength to our benefits and pension plans. Our organizing efforts continue to focus on building the Union. Your organizers cannot do this in isolation, we all have a large stake in this and we all need to play a role. The best contribution you can make is to be informed and engaged with the growth of the Union by helping to sign up new members. Anti-worker groups continually try to discredit the rights of our members who benefit from plans such as ours. We at the IUOE believe workers have the right to “Rise Above” and that the best way to reach that goal is a sound defined benefit pension plan and a well-designed benefits plan such as ours. Fraternally, Brian Cochrane, Chairman Brothers of IUOE Local 115 commemorating the Ironworkers Memorial on June 17th
a MEssagE FRoM thE tRustEEs Investment portfolio is performing well and trustees will continue to review Frank Carr Don Swerdan Brian Lefebvre Brian Cochrane Tim Cullen Brad Randall Ted Carlson Brian Savage Since the last report to members of the Operating Engineers’ Benefits and Pension Plans Employer Trustee Gary McIntosh resigned and was replaced by Brian Savage. This past year there have been a total of 9 meetings between the Pension Plan and the Benefits Plan. In addition, the Trustees have attended several educational presentations regarding the economy and investment strategy. The Trustees devoted a great deal of time to monitoring the performance of the Pension Plan investments and considering whether any changes to the overall investment policy were necessary. For the time being the Trustees are satisfied that the investment portfolio is performing well and that no immediate DuRing thE yEaR, thE changes are required. Looking tRustEEs ContinuED with ahead, the Trustees will continue to thE iMpLEMEntation oF kEy review the investment strategy and BEnEFit iMpRovEMEnts consider whether a shift in strategy is required, especially if we continue to see prolonged periods of low interest rates. The Trustees are also satisfied with the investment returns of the Benefits Plan trust fund. During the year, the Trustees continued with the implementation of key benefit improvements including elimination of the $25 extended health deductible, increasing both accidental death & dismemberment and group life coverage from $40,000 to $60,000, increasing the weekly disability benefit, increasing the long term benefit to a flat $2,000 and introducing point of sale drug reimbursement. In keeping with the fine traditions of our Local union your Trustees carry out their onerous responsibilities without compensation and are reimbursed only for those out of pocket expenses that are reasonable and necessary to carry out our duties. The Trustees are preparing for a challenging year ahead and are committed to working hard to do the very best we can for our members. Fraternally, Your Trustees Special Edition Summer 2013 News 3
Page 1 and 2: News Special Edition: 38 th Annual
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Page 7 and 8: E & E May 7, 2013 ELLEMENT & ELLEME
Page 9 and 10: The interest rate impact The follow
Page 11 and 12: Greater certainty in all investment
Page 13 and 14: is this: for every 1% drop in long
Page 15 and 16: sOlvency valuatiOn Balance sheet AS
Page 17 and 18: The three largest cost centers Medi
Page 19 and 20: aDministratiOn exPenses The followi
Page 21 and 22: REPORT OF THE INDEPENDENT AUDITOR O
Page 23 and 24: OPERATING ENGINEERS' PENSION PLAN S
Page 25 and 26: 34th annuaL pEnsion soCiaL Retirees
Page 27 and 28: 34th Annual Retirees’ Social Even
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Page 35 and 36: Local Union Offices District 1 and

OE News Special Edition July 2013

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