2009 Annual Report - IWA Forest Industry Pension Plan

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In v e s t m e n t Ma n a g e r s as a t De c e m b e r 31, 2009 Manager Mandate % of Assets Managed TD Asset Management Canadian Equities 11.6 Phillips Hager & North Canadian Equities 9.0 Beutel Goodman Canadian Equities 5.4 TD Asset Management Canadian Bonds 12.8 Phillips Hager & North Canadian Bonds 9.9 Beutel Goodman Canadian Bonds 4.5 JP Morgan Asset Management US Equities 5.3 Aronson + Johnson + Oritz US Equities 5.2 Alliance Bernstein Global Equities 8.6 Capital Guardian Global Equities 4.1 Oechsle Non-North American (EAFE) Equities 5.4 Sprucegrove Non-North American (EAFE) Equities 5.1 Capital Guardian Emerging Market Equities 3.2 Various Real Estate and Infrastructure 8.3 Internal Cash 1.6 To p Te n Ho l d i n g s as a t De c e m b e r 31, 2009 Security Issuer Type of Security Holding as a % of Total Assets 1 Concert Real Estate Corporation Real Estate 2.2 2 Toronto Dominion Bank Canadian Bank Stock 1.6 3 Royal Bank of Canada Canadian Bank Stock 1.3 4 Canadian Imperial Bank of Commerce Canadian Bank Stock 1.2 5 Canadian Government Canadian Government Bond - 5% Coupon 1.2 Maturity June 1, 2037 6 Ontario Government Provincial Government Bond - 7.6% Coupon 1.1 Maturity June 2, 2027 7 Manulife Financial Corporation Canadian Financial Company Stock 1.0 8 Suncor Energy Corporation Canadian Energy Company Stock 1.0 9 Barrick Gold Corporation Canadian Gold Company Stock 0.9 10 Canadian Government Canadian Government Bond - 4% Coupon Maturity June 1, 2041 0.9 IWA - Forest Industry Pension Plan Annual Report 2009 14
Pl a n ’s Fi n a n c i a l Po s i t i o n Go i n g Co n c e r n Ac t u a r i a l Liability Going concern is an actuarial method used to measure Plan funding which assumes an entity remains in existence for the foreseeable future. The going concern actuarial liability provides an estimate of the obligations of the Plan, assuming that the Plan continues indefinitely. The assumptions used to determine the going concern actuarial liability are the best estimate of each assumption, including a margin for adverse deviation. These assumptions change over time, as economic conditions change. Each year, ongoing pension accruals add to the Plan’s liabilities and benefits paid reduce the Plan’s assets, while potential investment returns and contributions add to the Plan’s assets. In accordance with the Pension Benefits Standards Act of British Columbia and the Income Tax Act (Canada) and Regulations, an actuarial valuation is required to be filed at least every three years to estimate the Plan’s surplus or deficit, and to determine the Plan’s funding requirement. The last filed actuarial valuation, December 31, 2006, disclosed actuarial assets of $3,015,558,000, with accrued pension liabilities of $2,911,940,000, resulting in a surplus of $103,618,000. The key actuarial assumption included in this valuation is an assumed long-term investment return of 6.5% per year. When the going concern actuarial liability is larger than the Plan’s actuarial value of assets, the shortfall must be paid into the Plan over a period not exceeding 15 years. The ratio of the Plan’s market value of assets to its actuarial liability was estimated at 103.6% at December 31, 2006, up from 87.7% two years earlier. 120% Hi s t o r i c a l Fu n d e d Ra t i o 100% 80% 60% 40% This chart indicates the historical relationship between the Plan’s Market Value of Assets and the Going Concern Actuarial Liability. 20% 0% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 15 IWA - Forest Industry Pension Plan Annual Report 2009
Page 1 and 2: IWA - Fo r e s t In d u s t r y Pe
Page 3: Ta b l e o f Co n t e n t s Me s s
Page 6 and 7: Pr o f i l e The IWA - Forest Indus
Page 8 and 9: Pe n s i o n Pl a n Go v e r n a n
Page 10 and 11: Go v e r n a n c e St r u c t u r e
Page 12 and 13: Me m b e r s h i p Ac t i v e Me m
Page 14 and 15: As s e t s in t h e Pe n s i o n Fu
Page 16 and 17: Ra t e s o f Re t u r n a n d Be n
Page 20 and 21: Pl a n ’s Fi n a n c i a l Po s i
Page 22 and 23: Sum m a r i z e d Fi n a n c i a l
Page 24 and 25: In v e s t m e n t & Cu s t o d i a
Page 26 and 27: Gl o s s a r y Active Member - A me
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2009 Annual Report - IWA Forest Industry Pension Plan

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