2008 Annual Report - IWA Forest Industry Pension Plan

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INVESTMENT MANAGERS AS AT DECEMBER 31, 2008Manager Mandate % of AssetsManagedPhillips Hager & North Canadian Balanced 23.6TD Asset Management Canadian Equities 11.5Beutel Goodman Canadian Equities 5.8Beutel Goodman Bonds 7.1TD Asset Management Bonds 14.3Aronson + Johnson + Ortiz US Equities 3.7JP Morgan Asset Management US Equities 3.5Alliance Bernstein Global Equities 5.9Capital Guardian Global Equities 2.6Oechsle International Non-North American (EAFE) Equities 3.6Sprucegrove Non-North American (EAFE) Equities 3.2Capital Guardian Emerging Market Equities 2.6Various Real Estate and Infrastructure 10.0Internal Cash 2.6TOP TEN HOLDINGS AS AT DECEMBER 31, 2008Security Issuer Type of Security Holding as a %of Total Assets1 Concert Properties Canadian Real Estate Development Company 2.42 Encana Canadian Energy Company Shares 1.83 Canadian Government Government Bond - 5.75% CouponMaturity June 1, 20294 Toronto-Dominion Bank Canadian Bank Shares 1.45 Royal Bank of Canada Canadian Bank Shares 1.46 Canadian Government Government Bond - 5% CouponMaturity June 1, 20377 Canadian Government Government Bond - 5.75% CouponMaturity June 1, 20378 Canadian Imperial Bank of Commerce Canadian Bank Shares 1.29 Manulife Canadian Insurance Company Shares 1.21.41.41.310 Canada Government Government Bond - 8% CouponMaturity June 1, 20231.1IWA - Forest Industry Pension PlanAnnual Report 200814
PLAN’S FINANCIAL POSITIONGOING CONCERN ACTUARIAL LIABILITYGoing concern is an actuarial method used to measure Plan funding which assumes an entity remains in existence for theforeseeable future. The going concern actuarial liability provides an estimate of the obligations of the Plan, assuming that thePlan continues indefinitely.The assumptions used to determine the going concern actuarial liability are the best estimate of each assumption, includinga margin for adverse deviation. These assumptions change over time, as economic conditions change. Each year, ongoingpension accruals add to the Plan’s liabilities and benefits paid reduce the Plan’s assets, while potential investment returns andcontributions 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, anactuarial valuation is required to be filed at least every three years to estimate the Plan’s surplus or deficit, and to determine thePlan’s funding requirement. The last filed actuarial valuation, December 31, 2006, disclosed actuarial assets of $3,015,558,000, withaccrued 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 thegoing concern actuarial liability is larger than the Plan’s actuarial value of assets, the shortfall must be paid into the Plan over aperiod 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.HISTORICAL FUNDED RATIO120%RELATIONSHIP BETWEEN MARKET VALUE OF ASSETS AND GOING CONCERN ACTUARIAL LIABILITY100%80%60%40%20%0%198519861987198819891990199119921993199419951996199719981999200020012002200320042006IWA - Forest Industry Pension PlanAnnual Report 200815
Page 1 and 2: IWA - FOREST INDUSTRY PENSION PLANA
Page 3: TABLE OF CONTENTSMESSAGE FROM THE T
Page 6 and 7: PROFILEThe IWA - Forest Industry Pe
Page 8 and 9: PENSION PLAN GOVERNANCEOVERVIEWA 16
Page 10 and 11: GOVERNANCE STRUCTUREIWA - FOREST IN
Page 12 and 13: MEMBERSHIPACTIVE MEMBER PROFILEThe
Page 14 and 15: ASSETS IN THE PENSION FUNDThe Pensi
Page 16 and 17: RATES OF RETURN AND BENCHMARKSA ben
Page 20 and 21: PLAN’S FINANCIAL POSITIONSOLVENCY
Page 22 and 23: SUMMARIZED FINANCIAL STATEMENTS FOR
Page 24 and 25: INVESTMENT & CUSTODIAL EXPENSESThe
Page 26 and 27: GLOSSARYActive Member - A member of
Page 28 and 29: NOTESIWA - Forest Industry Pension
Page 30 and 31: NOTESIWA - Forest Industry Pension
Page 32: IWA - FOREST INDUSTRY PENSION PLAN1

2008 Annual Report - IWA Forest Industry Pension Plan

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