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Essential Skills for Pension Committee Members - Federated Press

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19th<br />

<strong>Essential</strong><br />

Develop your skills as a trustee or pension committee member<br />

in an era of economic uncertainty and pension shortfalls<br />

November 21, 22 & 23, 2011, Toronto<br />

<strong>Skills</strong> <strong>for</strong> <strong>Pension</strong><br />

<strong>Committee</strong> <strong>Members</strong><br />

APPLICABLE TOWARD CPD REQUIREMENT<br />

Participating organizations<br />

AON HEWITT<br />

BLAKE, CASSELS & GRAYDON LLP<br />

CANADA POST<br />

CANADIAN AUTO WORKERS L2002<br />

CAW-CANADA<br />

CITY OF HAMILTON<br />

CORPORATE BENEFIT ANALYSTS<br />

FINANCIAL SERVICES COMMISSION OF ONTARIO (FSCO)<br />

GEORGE WESTON LIMITED AND LOBLAW COMPANIES LIMITED<br />

INDUSTRIAL ALLIANCE INSURANCE AND FINANCIAL SERVICES INC.<br />

J S COWAN CONSULTING LTD.<br />

MANULIFE FINANCIAL<br />

MCCARTHY TÉTRAULT LLP<br />

OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS CANADA<br />

RUSSELL INVESTMENT GROUP<br />

STANDARD LIFE INVESTMENTS<br />

TORONTO STAR<br />

TORONTO TRANSIT COMMISSION<br />

VICTORIA UNIVERSITY (IN THE UNIVERSITY OF TORONTO)<br />

Conference highlights<br />

• Learn about the most important skills required to become an effective<br />

pension committee member in diffi cult economic times<br />

• Hear how the Toronto Transit Commission’s pension plan<br />

fosters effective accountability and governance practices<br />

• Examine strategies <strong>for</strong> dealing with the real prospects of<br />

funding shortfalls and pension trustee liability claims<br />

• Hear about current pension re<strong>for</strong>m initiatives in several Canadian provinces<br />

• Explore the legal framework governing the role of trustees<br />

Optional workshops<br />

RISK MANAGEMENT: THE CORNERSTONE OF PENSION INVESTMENT<br />

Bruce Curwood, Director, Investment Strategy,<br />

Russell Investment Group<br />

MANAGING A DB PLAN: FUNDING, REPORTING AND INVESTING FUNDAMENTALS<br />

Cam MacNeish, Vice-President, Group <strong>Pension</strong> and Retirement Savings,<br />

Corporate Benefit Analysts<br />

“This conference reassured<br />

me of my own skills and<br />

understanding in doing<br />

what is “right” <strong>for</strong> our<br />

pension plan. Learned some<br />

new things and was able<br />

to ask questions from the<br />

experts. Speakers illustrated<br />

how complex pension<br />

issues are. Very worthwhile<br />

conference.”<br />

- Susan Corneau,<br />

Northern Transportation Co. Ltd.<br />

“Great variety of topics.<br />

Delivered at an appropriate<br />

level of understanding<br />

<strong>for</strong> growth potential of<br />

participants.”<br />

- Linda Kezima,<br />

Saskatchewan <strong>Pension</strong> Plan<br />

“I came to get a more<br />

complete picture of the<br />

governance process and I<br />

took away good ideas.”<br />

- Reg Morris,<br />

Electrical Industry of Alberta<br />

“Quality of topics, materials,<br />

presentations, speakers<br />

were strong.”<br />

- Jim Husiak,<br />

Exchange Group<br />

“All aspects very well<br />

done. Speakers very<br />

knowledgeable.”<br />

- Judy Blackburn,<br />

Manager, Payroll,<br />

Benefi ts & <strong>Pension</strong> Administration,<br />

Prospera Credit Union


Throughout the recent turbulent economic environment, we have seen some high-profi le plan sponsors challenged in meeting their<br />

pension obligations. As we emerge from these troubled economic times, what skills must you develop and hone to be a successful<br />

pension trustee or committee member? How can your plan be improved and how can you, as a pension committee member, more<br />

effectively fulfi ll your role to mitigate against the continuing climate of uncertainty?<br />

Current economic conditions have made the role of a pension trustee more challenging and risky than ever be<strong>for</strong>e. It has become<br />

essential to gain a comprehensive understanding of the duties and oversight responsibilities of pension trustees be<strong>for</strong>e joining the<br />

committee.<br />

This conference will provide you with a clear depiction of the key elements of the legislative and regulatory environment in which<br />

pension plans operate, where you will hear from experienced pension committee members from public and private sector plans as<br />

well as from Canada’s leading pension experts about the most essential skills required of new pension committee members in light<br />

of new expectations.<br />

Join us <strong>for</strong> this unique opportunity to discover new approaches to:<br />

- <strong>Pension</strong> re<strong>for</strong>m<br />

- Trustee liability<br />

- Investment basics<br />

- Funding shortfalls<br />

- <strong>Pension</strong> funding and plan design<br />

- <strong>Pension</strong> plan risks<br />

- And much, much more<br />

This exciting event brings together leading experts from: Blake, Cassels & Graydon LLP, CAW-Canada,<br />

George Weston Limited and Loblaw Companies Limited, Aon Hewitt, Canada Post, Canadian Auto Workers L2002, City of Hamilton,<br />

Corporate Benefi t Analysts, Financial Services Commission of Ontario, Industrial Alliance Insurance and Financial Services<br />

Inc., J S Cowan Consulting Ltd., Manulife Financial, McCarthy Tétrault LLP, Offi ce of the Superintendent of Financial Institutions<br />

Canada, Russell Investment Group, Standard Life Investments, Toronto Transit Commission and Victoria University (in the University<br />

of Toronto).<br />

Take advantage of this opportunity to learn how to fi ne-tune your pension committee <strong>for</strong> maximum success. With the level of practical<br />

experience at this conference, this is one event you cannot af<strong>for</strong>d to miss.<br />

Register now by calling (416) 665-6868 or 1-800-363-0722<br />

P.S. Don’t miss our practical workshops on Risk Management: The Cornerstone of <strong>Pension</strong> Investment and on Managing a DB<br />

Plan: Funding, Reporting and Investing Fundamentals.<br />

Who should attend<br />

<strong>Pension</strong> plan trustees and corporate pension committee members involved with<br />

the governance of pension plans that want an introduction to the key elements<br />

of operating and overseeing a pension plan<br />

- This program can be applied towards 5 of the 12 hours of annual Continuing Professional Development (CPD) required by the<br />

Law Society of Upper Canada. Please note that these CPD hours are not accredited <strong>for</strong> the New Member Requirement.<br />

- For Alberta lawyers, consider including this course as a CPD learning activity in your mandatory annual<br />

Continuing Professional Development Plan as required by the Law Society of Alberta.<br />

- Attendance at this course can be reported as 5 hours of Continuing Professional Development (CPD) to the Law Society of B.C.<br />

- The Barreau du Québec automatically accredits training activities held outside the Province of Quebec and accredited by<br />

another Law Society which has adopted MCLE <strong>for</strong> its members<br />

- Attendance at this course can be reported as 5 hours of Continuing Professional Development (CPD) to the Law Society of New Brunswick.<br />

SPONSORSHIP OPPORTUNITIES<br />

Maximize your company’s visibility in front of key decision-makers in your<br />

target market! <strong>Federated</strong> <strong>Press</strong> events are attended by those with the seniority<br />

and authority to change the way their organizations operate. For sponsors<br />

this means an unparalleled opportunity to raise your profi le be<strong>for</strong>e a manageable<br />

group of senior decision makers. There are a wide range of sponsorship<br />

packages, which can be customized to fi t your budget and marketing<br />

objectives.<br />

Contact Nayla Costandi at: 1-800-363-0722 ext. 244 <strong>for</strong> more in<strong>for</strong>mation.


Becoming an Effective<br />

Trustee<br />

Alnasir Samji, Chair - <strong>Pension</strong> <strong>Committee</strong>,<br />

Toronto Star<br />

9:00-10:00<br />

PANEL DISCUSSION: WHAT DOES IT TAKE TO<br />

ESTABLISH A SUCCESSFUL PENSION COMMITTEE?<br />

Alain S. Malaket, Senior Director, <strong>Pension</strong> & Benefits,<br />

George Weston Limited and Loblaw Companies Limited<br />

Alnasir Samji, Chair - <strong>Pension</strong> <strong>Committee</strong>, Toronto Star<br />

Gerald Boychuk, Chief Investment Officer, City of Hamilton<br />

Darryl Draeger, <strong>Pension</strong> Communications,<br />

Canadian Auto Workers L2002<br />

Bill MacLean, Senior Vice President - Investment Practice, Aon Hewitt<br />

In today’s economic, climate pension issues are, more than ever, the<br />

focus of attention from the media and the public. In turn, pension committee<br />

members are under increasing pressure from their board of<br />

directors, regulators and benefi ciaries to diligently oversee the administration<br />

and operation of their pension plan. In reality, however, many<br />

pension committees could be doing more to discharge their fi duciary<br />

duty and meet stakeholder expectations. This panel discussion will<br />

examine the increased expectations placed on pension committee<br />

members and the steps committee members can take to effectively<br />

carry out their responsibilities.<br />

· What skill sets should a pension committee include?<br />

· What is the committee’s scope of responsibility?<br />

· Where do you fi nd great committee members<br />

and how can appointees acquire the knowledge<br />

they need to carry out their duties?<br />

· What is the committee’s role in educating plan members?<br />

· How should a pension committee keep the board<br />

properly in<strong>for</strong>med on key pension issues?<br />

10:00-10:45<br />

EVALUATING THE PENSION COMMITTEE<br />

Anthony T. Lennie, Director, Finance,<br />

Victoria University (in the University of Toronto)<br />

Assessing the pension committee’s per<strong>for</strong>mance is one of the most<br />

challenging, yet one of the most important, procedures in ensuring<br />

sound pension governance. This activity goes hand-in-hand with improved<br />

transparency and accountability. This presentation will highlight<br />

Victoria University’s pension committee assessment and how the strategies<br />

can be applied successfully in your organization.<br />

· Self assessment using principle-based guidelines<br />

· Developing an understanding of trustees’<br />

and staff’s roles and responsibilities<br />

· Filling in the gaps<br />

· Keeping up to date: committee education<br />

10:45-11:00 NETWORKING BREAK<br />

11:00-11:30<br />

DEVELOPING THE GOVERNANCE STRUCTURE<br />

Alain S. Malaket, Senior Director, <strong>Pension</strong> & Benefits,<br />

George Weston Limited and Loblaw Companies Limited<br />

Establishing the right pension governance structure begins with an effective<br />

design and implementation strategy. Identifying the corporate<br />

style and structure of the organization, the needs of pension members,<br />

economic constraints and the different attributes of various types<br />

and sizes of retirement plans involved, are just some of the factors<br />

that need to be considered. This presentation will highlight these key<br />

aspects and the decision-making processes involved in building an effective<br />

governance system.<br />

· Overcoming obstacles to good governance<br />

· Planning your governance structure:<br />

success criteria and future challenges<br />

· Maintaining communications to plan members<br />

and benefi ciaries as part of fi duciary responsibilities<br />

· Joint trusteeship: advantages and disadvantages<br />

11:30-12:15<br />

PENSION REGULATION: WHAT YOU NEED TO KNOW<br />

Lynda Ellis, Senior Manager, <strong>Pension</strong> Policy,<br />

Financial Services Commission of Ontario (FSCO)<br />

In a rapidly changing regulatory environment it is important <strong>for</strong> pension<br />

committee members to have a thorough understanding of the current<br />

regulatory landscape as it affects legal requirements <strong>for</strong> pension plans<br />

and administrators. This discussion details the key elements of the legislative<br />

and regulatory environment in which pension plans operate.<br />

· The role of federal and provincial <strong>Pension</strong> Benefi ts Acts<br />

· The role of the Income Tax Act<br />

· The roles of federal and provincial pension regulators<br />

· National regulatory initiatives and the role of the Canadian<br />

Association of <strong>Pension</strong> Supervisory Authorities (CAPSA)<br />

· New CAPSA guidelines as they relate to plan trustees or<br />

pension committee members: prudent investment practices<br />

· Future trends and concerns <strong>for</strong> plan trustees<br />

and pension committee members<br />

12:15-1:15 LUNCH<br />

SESSION 1<br />

Monday, November 21 st<br />

Monday, Tuesday & Wednesday, November 21, 22 & 23, 2011 • Registration: 8:00 – 9:00


Trust, Investment<br />

& Regulation<br />

Kathryn M. Bush,<br />

Blake, Cassels & Graydon LLP<br />

1:15-2:00<br />

EFFECTIVE ACCOUNTABILITY FOR PENSION MANAGEMENT:<br />

TCC PENSION PLAN BEST PRACTICES<br />

Brian Leck, General Counsel, Toronto Transit Commission<br />

Establishing and implementing a reasonable pension plan governance<br />

policy will not completely insulate a sponsor from liability, but the absence<br />

of a policy or the failure to implement it is likely to be a factor<br />

that encourages a court to find against a plan sponsor. A properly constructed<br />

governance process coupled with periodic governance audits<br />

should allow plan sponsors to identify potential sources of obligation<br />

and deal with them be<strong>for</strong>e they result in liability. This discussion details<br />

how the Toronto Transit Commission’s pension plan fosters effective<br />

accountability and governance practices.<br />

· Implications of the recent draft of CAPSA pension plan governance<br />

principles, guidelines and self assessment questionnaire<br />

· Integrating pension governance into corporate governance<br />

· Fiduciary duties and responsibilities<br />

· Establishing internal procedures <strong>for</strong> managing pensions<br />

· Monitoring the fund on an ongoing basis<br />

2:00-2:45<br />

A UNION PERSPECTIVE ON PENSION PLAN GOVERNANCE<br />

Jo-Ann Hannah, National Representative, CAW-Canada<br />

As one of the largest private-sector unions in Canada (with almost<br />

200,000 members), the CAW-Canada has made employer-sponsored<br />

pensions a priority in bargaining. The CAW-Canada has successfully<br />

negotiated and maintained pension plans with small employers as well<br />

as large corporations such as Air Canada, General Motors and CN<br />

Rail. The session will cover:<br />

· Different approaches among unions on pension plan governance<br />

· Governance issues with defined contribution plans<br />

· How unions and plan sponsors can work together<br />

in the interests of plan members<br />

2:45-3:00 NETWORKING BREAK<br />

3:00-3:45<br />

OSFI’S EXPECTATIONS FOR MANAGING PENSION PLAN RISK<br />

Lisa Peterson, Manager, Private <strong>Pension</strong> Plans Division,<br />

Office of the Superintendent of Financial Institutions Canada<br />

Risk management is the process of analyzing exposure to risk and<br />

developing & implementing mechanisms to handle such exposure. The<br />

Office of the Superintendent of Financial Institutions Canada (OSFI),<br />

which supervises and regulates federally regulated private pension<br />

plans, assesses the quality of risk management at two levels of control:<br />

operational management and oversight functions. This session<br />

will examine OSFI’s expectations with respect to managing pension<br />

plan risk, including:<br />

· OSFI’s Risk Assessment Framework <strong>for</strong> pension plans<br />

· Risk components <strong>for</strong> pension plans<br />

· Quality of risk management<br />

· Stress testing: A risk management tool<br />

3:45-4:30<br />

LIABILITY AND THE FIDUCIARY<br />

Kathryn M. Bush, Blake, Cassels & Graydon LLP<br />

SESSION 2<br />

The legal issues facing plan fiduciaries today are complex, and making<br />

a mistake can have serious consequences not only <strong>for</strong> the plan sponsor,<br />

but also <strong>for</strong> pension committee/board of trustees personally. This<br />

discussion details the legal framework governing the role of the plan<br />

fiduciary, with a view to helping both new and experienced pension<br />

committee members and plan trustees make better decisions.<br />

· A plan sponsor’s "two hats"<br />

· The fiduciary standard of care<br />

· Legal pitfalls in daily plan operation<br />

· The oversight role of a pension committee/board of trustees<br />

· What happens when a fiduciary breaches its standard of care?<br />

· Protecting yourself from personal liability: essential skills<br />

· Legal requirements <strong>for</strong> ongoing fiduciary training<br />

What Does It Take To Establish A Successful <strong>Pension</strong> <strong>Committee</strong>?<br />

Monday, November 21 st


Governance<br />

& Re<strong>for</strong>m<br />

Michael Marmoreo, Regional Vice President, Group <strong>Pension</strong>s,<br />

Industrial Alliance Insurance and Financial Services Inc.<br />

9:00-9:45<br />

DC PLAN ISSUES<br />

Renée Couture, Director, <strong>Pension</strong> Services, Regulation,<br />

Compliance and Member In<strong>for</strong>mation, Canada Post<br />

Defined contribution pension committee members need to examine,<br />

at the appropriate level of detail, how plan participants actually make<br />

use of the DC plan, including such elements as investment behaviour,<br />

contribution levels and how participants access plan in<strong>for</strong>mation. Establishing<br />

successful plan communications that actually engage plan<br />

participants of a defined contribution plan is a big challenge faced by<br />

sponsors. This presentation will examine the unique issues involved<br />

with DC plans, outlining some of the best practices and new ideas in<br />

communication.<br />

· Participant investment behaviour<br />

· Investment advice <strong>for</strong> plan participants<br />

· Investment options: active management, index funds,<br />

target date funds, target risk, customized vs. “off the shelf”<br />

· Retirement income issues: projections, calculators, plan design<br />

· Benchmarking key aspects of your plan administration<br />

as a continuous improvement process<br />

9:45-10:30<br />

THE IMPORTANCE OF RISK MANAGEMENT<br />

TO GOOD GOVERNANCE<br />

Bruce Curwood, Director, Investment Strategy,<br />

Russell Investment Group<br />

Under per<strong>for</strong>mance is a symptom of ineffective decision making and<br />

risk management. In view of the size of the assets involved and the<br />

difficult judgments to be made, it is vital that trustees develop the highest<br />

standards and adhere to strict governance and risk management<br />

processes. Designing and implementing an effective pension governance<br />

system involves careful planning, a support structure and the<br />

necessary processes and procedures of a policy-based framework.<br />

This session will discuss recent governance research, the major barriers<br />

to investment excellence and ways to narrow the knowing-doing<br />

gap in investments.<br />

· Governance structure and linkage with risk management<br />

· The key participants in plan governance: who should be involved<br />

· Identifying the corporate style and structure of the organization,<br />

the needs of pension members, economic constraints and the<br />

different attributes of various types and sizes of retirement plans<br />

· Determining if a risk management strategy is<br />

right <strong>for</strong> your specific plan<br />

· Barriers to action in risk management<br />

· The vital role of the chair<br />

10:30-10:45 NETWORKING BREAK<br />

10:45-11:30<br />

THE FUTURE OF CAP<br />

Michael Marmoreo, Regional Vice President, Group <strong>Pension</strong>s,<br />

Industrial Alliance Insurance and Financial Services Inc.<br />

The past decade has witnessed the growth of CAP plans, coupled with<br />

an increase in DB/DC conversions. The future does not appear promising<br />

<strong>for</strong> DB plans, with escalating funding costs and loss of surplus<br />

ownership spurring a new round of conversions to CAP. This session<br />

will examine some of the challenges facing CAP plans (contribution<br />

and retirement inadequacy, lack of education and low participation<br />

rates) and explore possible solutions.<br />

· Where have CAPs been and where are they going?<br />

· Death of DB plans and the ensuing lack of coverage<br />

· Potential solutions: CSPPs and DPSPs<br />

· Low participation and contribution levels:<br />

causes and potential solutions<br />

· Failure of education<br />

· Replacement income adequacy<br />

· Recommended regulatory changes<br />

11:30-12:15<br />

MANAGING SERVICE PROVIDER CONTRACTS<br />

Randy V. Bauslaugh, McCarthy Tétrault LLP<br />

<strong>Pension</strong> committees commonly use service provider contracts when<br />

assigning administrative or financial duties to others. This session will<br />

provide suggestions and tips <strong>for</strong> negotiating and managing third party<br />

service provider contracts.<br />

· Contract basics <strong>for</strong> all third party service agreements<br />

· It’s not just boilerplate: interpreting “standard”<br />

language in service provider contracts<br />

· Common clauses in service provider contracts<br />

that should cause pension committee concern<br />

· Suggestions <strong>for</strong> dealing with investment management agreements<br />

· Suggestions when dealing with benefit administrator contracts<br />

12:15-1:15 LUNCH<br />

Setting and Implementing Investment Objectives<br />

SESSION 3<br />

Tuesday, November 22 nd


Risk, Disclosure<br />

& Ongoing Issues<br />

Clark Steffy, Senior Account Executive, Group Retirement Solutions,<br />

Manulife Financial<br />

1:15-2:00<br />

MANAGING PENSION ASSET RISKS<br />

Emmanuel Matte, Vice-President, Standard Life Investments<br />

In today’s pension environment, developing an understanding of pension<br />

finance taking into account pension plan risks is critical. This session<br />

will examine the setting of investment objectives and review the<br />

risks, including investment risks & the potential <strong>for</strong> trustee liability, and<br />

provide an overview of how they can be managed.<br />

· Investing on dynamic and sometimes chaotic markets<br />

· Sources of pension risks: identifying the common<br />

and not-so-common risks facing a plan<br />

· The elements of modern financial theory:<br />

asset-liability optimization<br />

· Volatility of investment returns at the portfolio,<br />

asset class and security levels<br />

· Choosing an efficient investment portfolio <strong>for</strong> a pension fund<br />

· Managing and mitigating risk<br />

· Asset liability studies & risk budgets<br />

2:00-2:45<br />

RETIREMENT INCOME GOALS FROM A DC PLAN PERSPECTIVE<br />

Jim Cowan, President, J S Cowan Consulting Ltd.<br />

DC plans, like DB plans, are intended to provide your employees with<br />

a reasonable standard of living in retirement, when combined with Old<br />

Age Security and the Canada/Québec <strong>Pension</strong> Plan. Unlike DB plans<br />

however, DC plans have outcomes that are difficult to predict, and the<br />

alternatives that are available to members at retirement are not always<br />

well understood. As a committee member it is essential that you understand<br />

your plan design and the outcomes that it is likely to produce.<br />

· Replacement ratios:<br />

· what is a replacement ratio<br />

· what is your replacement ratio target: be<strong>for</strong>e<br />

or after tax, with or without OAS and CPP/QPP<br />

· what assumptions are appropriate in setting your target:<br />

length of career, age at retirement, investment<br />

returns, inflation, final earnings etc.<br />

· Conversion of DC assets to retirement income:<br />

alternatives available to plan members<br />

· Member education: financial planning tools you should<br />

make available to plan members & risks involved<br />

2:45-3:00 NETWORKING BREAK<br />

3:00-3:45<br />

GROUP DECISION MAKING FOR PENSION<br />

AND INVESTMENT COMMITTEE MEMBERS<br />

Clark Steffy, Senior Account Executive, Group Retirement Solutions,<br />

Manulife Financial<br />

Effective versus ineffective decision making by groups, due to behavioural<br />

biases, can have a significant impact on governance decisions<br />

by pension committee members. This session will examine the key<br />

requirements <strong>for</strong> effective group decision making in pension governance.<br />

· Cognitive diversity of the decision group<br />

· Maintaining independence of opinion<br />

· Avoidance of group dynamics traps that lead<br />

to polarization of the groups opinion<br />

· Effective utilization of local and tacit knowledge<br />

3:45-4:30<br />

FIDUCIARY DUTIES<br />

Deron Waldock, Blake, Cassels & Graydon LLP<br />

Trustees are responsible <strong>for</strong> the proper running of the pension plan<br />

- from collection of contributions to investment of assets and payment<br />

of benefits. Plan members, particularly in a time of economic turbulence,<br />

look to the trustee to ensure that the plan is well run and that<br />

their benefits are secure. As such, trustees must act independently of<br />

the employer in accordance with the trust deed, <strong>for</strong> the benefit of the<br />

plan members. This discussion will detail the key fiduciary duties of<br />

trustees.<br />

· Acting in the best interests of the plan beneficiaries: a definition<br />

· The duty of impartiality: what it means in a trustee context<br />

· Acting in line with the trust deed and rules<br />

· Communicating to members their rights and entitlements<br />

· Ensuring required contributions are remitted to the plan on time,<br />

that funds are invested prudently and that benefits paid are<br />

correct, timely and in line with plan terms and the law<br />

Liability and the Trustee<br />

SESSION 4<br />

Tuesday, November 22 nd


OPTIONAL WORKSHOP A Wednesday, November 23 rd - 9:00-noon<br />

RISK MANAGEMENT: THE CORNERSTONE OF PENSION INVESTMENT<br />

Bruce Curwood, Director, Investment Strategy, Russell Investment Group<br />

The root cause of failure in pension risk management is poor governance. Most pension committee members place too much emphasis<br />

on returns and don’t take the time it takes to understand and manage the risks in their funds. Intent on the process of determining a<br />

plan’s asset allocation and manager selection and per<strong>for</strong>mance, they place risk management on the back burner. This hands-on interactive<br />

workshop will break attendees into groups by size, type of fund and role, and demonstrate ways <strong>for</strong> fiduciaries to adopt better risk<br />

management processes.<br />

· The enormity and urgency of the risk management problem<br />

· Paying sufficient attention to behavioural issues<br />

· Accurately diagnosing the risk management deficit<br />

· Understanding the complexity of risk and rethinking risk management<br />

· Pursuing a fund-wide approach to risk: quantitative and qualitative risks<br />

· Nine elements of a risk management framework<br />

Bruce B. Curwood, MBA CFA CIMA, is Director Investment Strategy at the Russell Investment Group. His current responsibilities relate<br />

primarily to research, strategy and client service.<br />

OPTIONAL WORKSHOP B Wednesday, November 23 rd - 1:30-4:30<br />

MANAGING A DB PLAN: FUNDING, REPORTING AND INVESTING FUNDAMENTALS<br />

Cam MacNeish, Vice-President, Group <strong>Pension</strong> and Retirement Savings, Corporate Benefit Analysts<br />

This interactive workshop will provide participants with a fundamental understanding of the key finance and investment management<br />

elements within a single-employer DB pension plan. The handout material and workshop exercises will provide practical insights into<br />

the strategic and tactical aspects of maintaining and reporting the liabilities, assets and funding of a DB plan within today’s current<br />

economic environment. Also, the participants will obtain key in<strong>for</strong>mation about the steps to prepare and implement a plan to transition<br />

from a DB plan to a successor DC retirement plan.<br />

· Long-term retirement program philosophy and goals<br />

· Immediate and medium term financial position and impact of interest rates and market volatility<br />

· Transition alternatives: plan closure to new members, benefit hard and soft freeze, conversion and plan wind-up<br />

· Implementing the best solution to help ensure the organization meets its business objectives<br />

As a practical example, participant groups will be assigned an exercise of developing and presenting case-study recommendations and<br />

action plans to maintain a DB plan or transition the DB plan to a DC savings arrangement to a fictitious pension committee or board.<br />

Cam MacNeish is currently Vice-President, Group <strong>Pension</strong> and Retirement Savings with Corporate Benefit Analysts, CBA, a mid-sized<br />

pension and benefit consulting firm based in Ontario. Cam started his career in 1984 as an internal consultant on industrial and business<br />

productivity with a focus on pension and retirement savings. He has developed a breadth of experience within insurance companies and<br />

well-known consulting firms with practical experience in pension plan governance and design, DB actuarial and third-party administration,<br />

investment consulting and program compliance. Cam has his Bachelor of Applied Science (Engineering) from the University of Toronto. Cam<br />

is also a Certified Financial Planner, a Fellow of the Life Management Institute and has taken the Level 1 Canadian Securities Course. Cam<br />

is past National Board Member of the Canadian <strong>Pension</strong> & Benefits Institute and is active with the local Grand Valley chapter of HRPA.


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