IUOE News - Spring 2011

Benefits Plans
The impact of credit crises on net wealth
The following charts from Phillips, Hager &
North Investment Management Ltd. and CIBC
Asset Management give you some perspective of
the impact of the economic crisis on net wealth and
investments. As an example, personal wealth in the
United States alone was down by $13 trillion by the
end of 2008 when you factor market and real estate
The following charts from Phillips, Hager & North Investment Management Ltd. and CIBC
Asset losses Management together. give you We some are perspective now of seeing the impact some the credit recovery crises had on in net
wealth and investments. As an example personal wealth in the United States alone was
down this by $13 area. trillion Unfortunately, dollars by the end of 2008 household when you factor debt market levels and real conestate
losses together. We are now seeing some recovery in this area, unfortunately, household
debt levels continue at an all time high.
tinue at an all-time high.
It goes without saying that we continue to live with
the effects of a very difficult financial time. Clearly,
this is a period to remain safe and monitor investment
strategies looking for opportunities to enhance yield
and certainty.
Trustee appointment
On Dec. 10, 2010, the Executive Board
appointed Member Representative Brian
Lefebvre as a trustee of the Operating
Engineers’ Benefits and Pension Plans.
Brother Lefebvre replaces Brother Gary
Kroeker, who retired on Sept. 18, 2010.
Brother Lefebvre has served the
Local Union as a member representative for the past 11
years. In May 2005, he was appointed to the position of
District 6 representative filling the vacancy that resulted
from Brother Dave Bjarnason’s retirement.
We look forward to Brian’s active participation in the
discussions at the trustees’ meetings and are confident of
his valuable contribution.
Benefits Plan update
The government has implemented the second of
three 6% increases to the Medical Services Plan. After
16 News March 2011
Couple this period with historical low interest rates
Couple this period with historical low interest rates and we have an incredibly difficult time
and for both we your have personal an investments incredibly and your difficult pension plan. time for both your
personal investments and your pension plan.
16
14
12
10
!"#$%&'($)$%*'+,"&'-#%.&*
8
6
4
2
0
United States Bond Yields 1799 -2009
1799
1809
1819
1829
1839
1849
1859
1869
1879
1889
1899
It the goes third without year, saying we cost continue of to living live with increases the effects of a will very difficult be applied. financial time.
Clearly, this is a period to remain safe and monitor investment strategies looking for
The Plan administration has been meeting with your
opportunities to enhance yield and certainty.
Board of Trustees to provide cost estimates and recom-
TRUSTEE APPOINTMENT
mendations on how to best deal with this situation. Your
Board Insert has insisted that Plan members and beneficiaries
picture of
be Brian protected to the best of our ability, while maintaining
Lefebvre one of the best benefit plans in the industry.
Although our full cost projections have yet to be
determined, your Board has asked administration staff
Trustee of the Operating Engineers' Benefits and Pension Plans.
to start advising Plan members that premium increases
are going to be necessary.
September 18, 2010 due to his retirement.
Your Board of Trustees recognizes the impact these
changes will have on members and thanks you for your
position patience that he and presently understanding holds. as we work our way through
these dramatic changes imposed by government. Your
support would be appreciated as we ask you to join with
us to voice our concerns and opposition to healthcare
cuts. Please take the time to communicate with your
local MLA and let government know the importance of
1909
1919
1929
1939
1949
1959
1969
1979
1989
1999
2009
Source: Universal Economics
At their meeting of December 10, 2010, the Executive Board appointed Brother Brian
Lefebvre, Area Member Representative and Executive Board member for District 6, as
Brother Lefebvre’s appointment replaces Brother Gary Kroeker, who resigned effective
Brother Lefebvre has served the Local Union as Business Representative for the past 11
years. In May of 2005, Brother Lefebvre was appointed to the position of District # 6
Representative filling the vacancy as of a result Brother Dave Bjarnason’s retirement, a