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Welcome to the GENMO Salaried Pension Organization
April 18, 2024
2024 GENMO Annual General Meeting (AGM)
GENMO Annual General Meeting (AGM)
Dear GENMO Member,
The 2024 GENMO AGM will be held on Wednesday, May 15, 2024 at 1:30 PM.
To ensure as many GENMO members as possible can attend the meeting, it will once again be virtual. We will be emailing instructions and a link to all of those who wish to attend. It is quite simple. One requirement is that you will need an email address.
The meeting will follow the same format as previous AGM’s, with directors’ reports, financials, a message from our President, Mike Powell and a Questions and Answers period. Members can request a copy of the GENMO Financial Statements if the request is made prior to April 24, 2024 by sending an email to communication@genmo.ca
We will be voting for the GENMO Executive whose term will be ending. As per our bylaws, the following GENMO Executive positions are up for re-election: Mike Powel President), Mike Black (Treasurer), Denise Cay (Director- Membership) and Shirley Deatcher (Secretary) who have chosen to stand for re-election. If you wish to stand for election or nominate someone, please see the linked nomination form and be sure to e-mail or mail it by May 1, 2024. All candidates’ names will be posted on the home page of the GENMO web site by May 8, 2024.
As an attendance incentive, there will be membership raffle where 10 lucky participants will win $100.
If you cannot participate virtually and wish to vote by proxy, a ballot is linked and may be mailed or emailed by May 8, 2024.
We look forward to hearing from as many of you as possible. We never could have achieved all of our successes without your ongoing support.
NOMINATION PROCEDURES FOR ELECTION OF GENMO EXECUTIVES
Nominations for Executives shall be in writing and signed by one member in good standing accompanied by the consent, in writing, of each nominee and the position for which they are nominated. The Positions open for nomination are: President, Treasurer, Director –Membership, and Secretary. The official Nomination Form is below and can be obtained at www.genmo.ca "GENMO 2024 AGM Invitation". All completed nomination forms should be E-Mailed to GENMO at "communication@genmo.ca" or mailed to GENMO at P.O. Box 82555, Oshawa, ON L1G 7W7 prior to May 1, 2024.
If more than one (1) candidate stands for election of an Executive Position, the administrator will ask each candidate for that position to provide information on their background and interest in becoming an Executive. This information will be posted on the home page of the GENMO web site (www.genmo.ca) by May 8, 2024.
NOMINATION FORM
I, ____________________________, a GENMO member in good standing, nominate
Nominator Name
_____________________________ to stand for office as ______________________,
Candidate Name Position
a Director of the GENMO Salaried Pension Organization.
I, ____________________________, a GENMO member in good standing, accept the
Candidate Name
nomination and agree to stand for election as a Director of the GENMO Salaried Pension Organization.
Signature ______________________________________Date _____________
Nominator Signature
Signature ______________________________________Date _____________
Candidate Signature
PROXY FORM
I, _________________________________, a GENMO member in good standing,
designate Mike Powell or , as an alternate, to cast a vote on my behalf at the upcoming Annual General Mtg. on May 15, 2024.
Signature_________________________________________ Date__________
Completed Proxy forms should be E-Mailed to GENMO at "communication@genmo.ca" or mailed to GENMO at P.O. Box 82555, Oshawa, ON L1G 7W7 prior to May 8, 2024.
Assemblée Générale Annuelle (AGA) du GENMO
Cher, Chère Membre du GENMO,
L’AGA GENMO 2024 aura lieu le jeudi 15 mai 2024 à 13h30.
Pour s’assurer que le plus grand nombre possible de membres du GENMO puissent assister à la réunion, celle-ci sera à nouveau virtuelle. Nous vous enverrons des instructions par courriel et un lien vers tous ceux qui souhaitent y assister. C’est assez simple. L’une des exigences est que vous aurez besoin d’une adresse e-mail.
La réunion suivra le même format que l’AGA précédente, avec les rapports des administrateurs, les états financiers, un message de notre président, Mike Powell et une période de questions et réponses. Les membres peuvent demander une copie des états financiers genmo si la demande est faite avant le 24 avril 2024 en envoyant un courriel à communication@genmo.ca
Nous voterons pour l’exécutif du GENMO dont le mandat prendra fin. Conformément à nos règlements administratifs, les postes de direction suivants du GENMO doivent être réélus : Mike Powel (président), Mike Black (trésorier), Denise Cay (directrice des adhésions) et Shirley Deatcher (secretaire) qui ont choisi de se présenter à la réélection. Si vous souhaitez vous présenter à une élection ou proposer la candidature d’une personne, veuillez consulter le formulaire de mise en candidature ci-joint et assurez-vous de l’envoyer par courriel ou par la poste d’ici le 1 mai 2024. Les noms de tous les candidats seront affichés sur la page d’accueil du site Web du GENMO d’ici le 8 mai 2024.
À titre d’incitatif à la participation, il y aura un tirage au sort pour les membres en règle où 10 participants chanceux gagneront 100 $.
Si vous ne pouvez pas participer virtuellement et souhaitez voter par procuration, un bulletin de vote est lié et peut être posté ou envoyé par courriel d'ici le 8 mai 2024.
Nous sommes impatients d’entendre le plus grand nombre possible d’entre vous. Nous n’aurions jamais pu obtenir tous nos succès sans votre soutien continu.
Merci,,
Mike Powell Jan O’Neal Mike Black
Denise Cay Shirley Deatcher Tom Laurie
Garry Marnoch Brian Rutherford
PROCÉDURES DE MISE EN CANDIDATURE POUR L’ÉLECTION DES DIRIGEANTS DU GENMO
Les mises en candidature pour les cadres supérieurs doivent être faites par écrit et signées par un membre en règle accompagné du consentement écrit de chaque candidat et du poste pour lequel ils sont mis en candidature. Les postes ouverts à la nomination sont les suivantes : Président, trésorier, directeur des adhésions et secrétaire. Le formulaire de mise en candidature officiel est ci-dessous et peut être obtenu www.genmo.ca 'GENMO 2024 AGM Invitation ». Tous les formulaires de mise en candidature dûment remplis doivent être envoyés par courriel à GENMO au « communication@genmo.ca » ou envoyés par la poste à GENMO, case postale 82555, Oshawa (Ont.) L1G 7W7 avant le 1 mai 2024.
Si plus d’un (1) candidat se présente à l’élection d’un poste de direction, l’administrateur demandera à chaque candidat pour ce poste de fournir des renseignements sur ses antécédents et son intérêt à siéger sur l’Exécutif. Ces renseignements seront affichés sur la page d’accueil du site Web de GENMO (www.genmo.ca) d’ici le 8 mai 2023.
FORMULAIRE DE MISE EN CANDIDATURE
Je, ________________________________________ un membre en règle de GENMO, de désigner des
Nom du proposant
_______________________________________ pour se présenter au bureau comme directeur __________________ de
Poste nom du candidat
l’organisation de GENMO
Je, _________________________________soumets ma nomination et accepte de me présenter aux élections à titre
Nom du candidat
d’administrateur de l’organisation de retraite salariée GENMO.
Signature ______________________________________Date ________________________
Signature du proposant
Signature ______________________________________Date ________________________
Signature du candidat
FORMULAIRE DE PROCURATION
Je, __________________________ un membre en règle de GENMO,
désigne _ Mike Powell ou _________________________, en tant que suppléant, de voter en mon nom lors de la prochaine assemblée générale annuelle le 15 mai 2024.
Signature_________________________________________ Date__________
Les formulaires de procuration dûment remplis doivent être envoyés par courriel à GENMO à communication@genmo.ca ou envoyés par la poste au GENMO à la case postale 82555, Oshawa (Ont.) L1G 7W7 avant le 8 mai 2024.
Travel Brochure 2021/Brochure sur les voyages 2021
Back in 2021 GENMO and GM Canada finalized the “Out of Province” Travel Brochure. GM was to communicate the information to the salaried retirees and update Green Shield Canada (GSC). They did neither.
The “authentic” travel brochure is on your GENMO web site.
1/ Go to GENMO.ca
2/ On the tool bar, click on Reference
3/ Under the Eggs (GENMO Docs) click on Links
4/ The last link is “2021 GM Travel Brochure”. Click on it.
Please note that on page 3 “What Are The Limitations To These Benefits?”
“Where the applicable provincial health plan covers out of Canada expenses, the GSC Travel Assistance Team will use the criteria below to make an initial determination of the claim; however the determination of the provincial plan will govern the ultimate eligibility of expenses”.
Press here if you would like to go to the Travel Brochure 2021.
Enjoy your vacation.
GENMO Communications
Brochure sur les voyages des employés salariés de General Motors du Canada
En 2021, GENMO et GM Canada ont finalisé la brochure pour voyage « hors province ». GM devait communiquer l’information aux retraités salariés et mettre à jour Green Shield Canada (GSC). Ils n’ont fait ni l’un ni l’autre.
La brochure de voyage « authentique » se trouve sur votre site web GENMO.
1/ Aller à GENMO.ca
2/ Dans la barre d’outils, cliquez sur Référence
3/ Sous les Oeufs (Eggs ) (GENMO Docs) cliquez sur Liens ( Link)
4/ Le dernier lien est « Brochure de voyage GM 2021 ». (2021 GM Travel Brochure) Cliquez dessus.
Veuillez noter qu’à la page 3 « Quelles sont les limites de ces avantages? »
« Lorsque le régime d’assurance-maladie provincial applicable couvre les dépenses à l’extérieur du Canada, l’équipe d’assistance voyage de la CGC utilisera les critères ci-dessous pour prendre une décision initiale sur la demande; toutefois, la détermination du régime provincial régira l’admissibilité finale des dépenses ».
Profitez de vos vacances.
GENMO Communications
Appuyez ici si vous souhaitez ouvrir la Brochure de voyage 2021.
Le site de GENMO est en anglais C’est pourquoi il y a des mots anglais en bleu dans la traduction française.
Bill C-228 Senate Message
Pension Reform Federal Legislation That Is Required In Bankruptcy Protection
Bill C-228 received unanimous passage by the Canadian House of Commons in the fall of 2022. This legislation provides “Super Priority” for pension deficits in corporate bankruptcy. No more Nortel or Sears pension disasters.
The legislation has now moved to the Canadian Senate for passage. There is some concern that the (unelected) Senate may try to modify the legislation to benefit of the irresponsible corporations.
The responsibility of the Senate should be for the protection of vulnerable Canadians, not multi-national corporations.
Please join the membership of GENMO in advocating on behalf of vulnerable pensioners and urge the Canadian Senate to pass Bill C-228 with no modifications. Please open the attached memo by pressing here and forwarding it on to banc@sen.parl.gc.ca
Réforme des pensions Législation fédérale requise pour la protection en cas de faillite
Le projet de loi C-228 a été adopté à l’unanimité par la Chambre des communes du Canada à l’automne 2022. Cette loi prévoit une « super priorité » pour les déficits des régimes de retraite en cas de faillite d’entreprise. Finies les situations désastreuses comme celles de Nortel et de Sears.
Le projet de loi a maintenant été renvoyé au Sénat canadien pour adoption. On craint que le Sénat (non élu) ne tente de modifier la législation au profit des sociétés irresponsables.
La responsabilité du Sénat devrait être de protéger les Canadiens vulnérables, et non les sociétés multinationales.
Veuillez vous joindre aux membres du GENMO pour défendre les intérêts des retraités vulnérables et exhorter le Sénat canadien à adopter le projet de loi C-228 sans aucune modification. Veuillez ouvrir la note de service ci-jointe en appuyant ici et en la faisant passer à banc@sen.parl.gc.ca
GENMO Annual General Meeting (AGM) Revised
The 2022 GENMO AGM will be held on Thursday, May 26 2022 at 1:00 PM.
Due to the ongoing Covid 19 pandemic the meeting will once again be virtual. We will be emailing instructions and a link to all of those who wish to attend. It is actually quite simple. One requirement is that you will need an email address.
The meeting will basically be the same format with directors’ reports, financials and a message from the President. We will also be voting on changes to our bylaws as mandated by ONCA (Ontario Not-for- Profit Corporations Act). To help facilitate this, the new bylaws are posted on the GENMO website(under the “Reference” tab) along with a summary of the changes being made for your review before the meeting. Members can request a copy of the GENMO Financial Statements as long as the request is made prior to May 5, 2022 by sending an email to communication@genmo.ca
We will also be voting for the GENMO Executive whose term will be ending. As per our bylaws, the following GENMO Executive positions are up for re-election: Mike Powell (President), Denise Cay (Director-Membership and Mike Black (Treasurer) who have chosen to stand for re-election. We are definitely looking to fill the position of Secretary. If you wish to stand for election or nominate someone, please see the linked nomination form and be sure to e-mail or mail it by May 5 2022. All candidates’ names will be posted on the home page of the GENMO web site by May 10, 2022
As per our bylaws, we need at least one hundred participants. As an incentive, all participants will be eligible to win one of ten $100 prizes.
If you cannot participate virtually and wish to vote by proxy, a ballot is linked and may be mailed or emailed by May 10, 2022.
We look forward to hearing from as many of you as possible. We never could have achieved all of our successes without your ongoing support.
Thank you,
Mike Powell Jan O’Neal Mike Black Denise Cay
Tom Laurie Alanna Lyczba Garry Marnoch Brian Rutherford
April 16, 2021
GENMO Annual General Meeting (AGM)
Dear Member,
As you know, GENMO has held our AGM in May for the last ten years in Oshawa at various venues. We also held mini-AGMs in St Catharines, London and Windsor.
Due to the COVID pandemic and the State of Emergency we were obligated to cancel our meeting for 2020. By law, as a non-profit corporation we have a requirement to hold an AGM in May 2021. As a result of the ongoing pandemic we have decided to host a virtual AGM utilizing ZOOM technology.
Our virtual AGM will be held on Thursday, May 20 at 1:00 PM EST
We will be emailing instructions and a link to all of those who wish to attend. It is actually quite simple.
We require a minimum of 100 participants and have room for up to 1,000. If you wish to participate, please reply to this message. Here is an opportunity for all retirees from across the country to participate.
Your GENMO executive will update you on all issues including Director’s reports, Financials, the upcoming “annuity” transition and your retirement benefits.
As per our bylaws, all GENMO Executive positions are up for re-election. Executives Mike Powell (President), Jan O’Neal (Vice-President), Brian Rutherford (Director-Communications), Tom Laurie (Director-Legal), Denise Cay (Director-Membership), Garry Marnoch (Director-At Large), Alanna Lyczba (Secretary), and Mike Black (Treasurer) have chosen to stand for re-election. If you wish to stand for election or nominate someone, please see the linked nomination form and be sure to e-mail or mail it by May 5 2021. All candidates’ names will be posted on the home page of the GENMO web site by May 10, 2021. If there are no other candidates the current executive will be acclaimed
If you cannot participate virtually and wish to vote by proxy, a ballot is linked and may be mailed or emailed by May 10, 2021. Please appoint a current GENMO Executive to carry out your wishes at the AGM.
Thank you. We look forward to your attendance at our 2021 AGM.
Your GENMO Executive,
Assemblée générale annuelle (AGA) de GENMO
Cher/Chere membre,
Comme vous le savez, GENMO a tenu notre AGA en mai au cours des dix dernières années à Oshawa à divers endroits. Nous avons également tenu des mini-AGM à St Catharines, London et Windsor.
En raison de la pandémie de COVID et de l’état d’urgence, nous avons été obligés d’annuler notre réunion pour 2020. En vertu de la loi, en tant que société sans but lucratif, nous avons l’obligation de tenir une AGA en mai 2021. À la suite de la pandémie en cours, nous avons décidé d’organiser une AGA virtuelle utilisant la technologie ZOOM.
Notre AGA virtuelle aura lieu le jeudi 20 mai à 13 h HNE
Nous vous envoyerons par courriel des instructions et un lien vers tous ceux qui souhaitent y assister. C’est en fait assez simple.
Nous avons besoin d’un minimum de 100 participants et avons de la place pour un maximum de 1000. Si vous souhaitez participer, veuillez répondre à ce message. Voici une occasion pour tous les retraités de partout au pays de participer.
Votre Exécutif de GENMO vous mettra au point sur toutes les questions, y compris les rapports du directeur, les finances, la transition de « rente » à venir et vos prestations de retraite.
Conformément à nos règlements administratifs, tous les postes de direction de GENMO sont ouverts. Les dirigeants Mike Powell (président), Jan O’Neal (vice-président), Brian Rutherford (directeur des communications), Tom Laurie (directeur juridique), Denise Cay (directrice des membres), Garry Marnoch (directrice générale), Alanna Lyczba (secrétaire) et Mike Black (trésorier) ont choisi de se faire réélire. Si vous désirez vous présenter aux élections ou proposer la candidature d’une personne, veuillez consulter le formulaire de mise en candidature lié et assurez-vous de l’envoyer par courriel ou par la poste d’ici le 5 mai 2021. Tous les noms des candidats seront affichés sur la page d’accueil du site Web de GENMO d’ici le 10 mai 2021. S’il n’y a pas d’autres candidats, l’exécutif actuel sera acclamé
Si vous ne pouvez pas participer virtuellement et que vous désirez voter par procuration, un bulletin de vote est lié et peut être posté ou envoyé par courriel d’ici le 10 mai 2021. Veuillez nommer un Exécutif GENMO pour réaliser vos souhaits lors de l’AGA.
Merci. Nous nous réjouissons de votre participation à notre AGA 2021.
January 21, 2021
General Motors Salaried Pension Plan Change
General Motors informed GENMO at 3:00 PM on Wednesday, January 20, 2021 of a major change to the pension plan.
Effective July 1, 2021 the pension plan will be annuitized. Every plan member who retired prior June 1, 2020 will be issued an annuity from Sun Life Canada. Two other Canadian insurance companies will also be involved to support Sun Life.
GENMO views this as a very positive step in support of the security of your pension.
You will continue to receive your pension on the 1st of the month and the amount will remain the same with the exception of the “health care co-pay” amount. This payment will be handled separately. GM will provide more information on the co-pay in the near future as they will need to confirm banking information for direct deposit.
This change will basically be transparent to all pensioners. Should you require any future assistance, GM has set up a specific call centre to answer questions about the annuity purchase transaction. The General Motors Canada Annuity Purchase Support Centre: 1-855-780-2972.
General Motors will be sending you a communication in the near future.
GENMO will provide more information as it comes in.
GENMO Communications
Modification du régime de retraite des employés de General Motors
General Motors a informé GENMO à 15h00 le mercredi 20 janvier 2021 d'un changement majeur au régime de retraite.
À compter du 1er juillet 2021, le régime de retraite sera converti en rente. Chaque participant au régime qui a pris sa retraite avant le 1er juin 2020 recevra une rente de la Sun Life Canada. Deux autres compagnies d'assurance canadiennes seront également impliquées pour soutenir la Sun Life.
GENMO considère cela comme une étape très positive en faveur de la sécurité de votre pension.
Vous continuerez à recevoir votre pension le 1er du mois et le montant restera le même à l'exception du montant de «quote-part des soins de santé». Ce paiement sera traité séparément. GM fournira plus d'informations sur la quote-part dans un proche avenir car il devra confirmer les informations bancaires pour le dépôt direct.
Ce changement sera fondamentalement transparent pour tous les retraités. Si vous avez besoin d'une assistance future, GM a mis en place un centre d'appels spécifique pour répondre aux questions sur la transaction d'achat de rente. Centre de soutien à l'achat de rentes de General Motors Canada: 1-855-780-2972.
General Motors vous enverra une communiqué dans un proche avenir.
GENMO fournira plus d'informations au fur et à mesure.
Communications GENMO
December 02, 2020
Memorandum Settlement Document
Earlier this year, in response to changes that GM had made to out of country (OOC) travel benefits (due to cancellation of OHIP OOC coverage by the Ontario government) GENMO, in agreement with the class representatives Lynn McCullough of the O’Neill v. GMCL class action and Lea Jankowski of the Jankowski v. GMCL class settlement, invoked the arbitration clause of the class settlements to resolve these issues. We also advised GM at that time that we expected the results of the arbitration to be applied equally to pre-1995 retirees as well.
Ultimately, it was agreed by the parties to go to mediation to try to resolve the issue. On November 10 we had a mediation hearing with GM and reached what we believe to be a very satisfactory resolution. The following summarizes the outcome:
- Out of country travel benefits are now locked in and secured irrespective of what any province might do in the future in regards to terminating or limiting their health plan's OOC benefits.
- The use of the 90 stability requirement is limited to use only as a proxy for the initial vetting of OOC claims. Ultimately the provincial health plans are the final arbiter of eligibility of claims for medical expenses. If a province terminates its OOC coverage then the 90 day stability requirement will become one of the determining factors for determining eligibility of OOC claims.
- GM agreed to the version of the stability definition we put forward as opposed to their current more restrictive version. A copy of these terms is included in the Memorandum of Settlement.
- GM confirmed the proper terms for notifying Green Shield when medical services are required (i.e. as soon as possible or within 48 hours)
- In regards to suicide/self inflicted injuries this restriction will remain however if the provincial health plan deems associated medical expenses are eligible and pays a portion then they will be covered by Green Shield.
- We agreed to retain GM’s requested restriction on coverage for medical expenses to treat medical conditions related to an epidemic or pandemic where a travel advisory has been issued by the federal government.
A class action lawsuit won by the Snowbirds Assoc. reinstated OOC OHIP which will not be appealed by the Government.
For all the details of the settlement you can click “here” to be linked to the Memorandum of Settlement. GM will be issuing a revised Travel Brochure incorporating these revisions and will provide GENMO a draft by January 9, 2021 for review and comment.
At this time GM has stated that this settlement applies only to the Class Members; however they will be discussing the implications for the pre-1995 retirees. GENMO will continue to press for equal treatment for the pre-1995 retirees as we feel strongly that GM does not have the right to change their benefit coverage. We do not expect that there will be a problem.
GENMO Communications
Cher membre GENMO
Plus tôt cette année, en réponse aux modifications apportées par GM aux prestations de voyage à l’étranger (en raison de l’annulation de la couverture du COO de l’Assurance-santé de l’Ontario) GENMO, en accord avec les représentants du groupe Lynn McCullough du recours collectif O’Neill c. GMCL et Lea Jankowski du règlement collectif Jankowski c. GMCL, a invoqué la clause d’arbitrage des règlements collectifs pour régler ces questions. Nous avons également informé GM à ce moment-là que nous nous attendions à ce que les résultats de l’arbitrage soient également appliqués aux retraités d’avant 1995.
En fin de compte, les parties ont convenu d’aller à la médiation pour tenter de résoudre le problème. Le 10 novembre, nous avons eu une audience de médiation avec GM et avons conclu ce que nous croyons être une résolution très satisfaisante. Ce qui suit résume le résultat :
- Les prestations de voyage à l’extérieur du pays sont maintenant immobilisés et garantis indépendamment de ce que n’importe quelle province pourrait faire à l’avenir en ce qui concerne la cessation ou la limitation des prestations du COO de son régime d’assurance-maladie.
- L’utilisation de l’exigence de stabilité de 90 est limitée à l’utilisation uniquement comme indicateur de l’examen initial des revendications du COO. En fin de compte, les régimes provinciaux d’assurance-maladie sont l’arbitre final de l’admissibilité aux demandes de remboursement de frais médicaux. Si une province met fin à sa couverture du COO, l’exigence de stabilité de 90 jours deviendra l’un des facteurs déterminants pour déterminer l’admissibilité aux demandes du COO.
- GM a accepté la version de la définition de stabilité que nous avons présentée par opposition à leur version actuelle plus restrictive. Une copie de ces termes est incluse dans le protocole de règlement.
- GM a confirmé les conditions appropriées pour aviser Green Shield lorsque des services médicaux sont nécessaires (c.-à-d. dès que possible ou dans les 48 heures)
- En ce qui concerne le suicide ou les blessures auto-infligées, cette restriction demeurera toutefois si le régime provincial de santé estime que les frais médicaux connexes sont admissibles et paie une partie, ils seront couverts par green shield
- Nous avons convenu de conserver la restriction demandée par GM sur la couverture des frais médicaux pour traiter les conditions médicales liées à une épidémie ou à une pandémie lorsqu’un avis de voyage a été émis par le gouvernement fédéral.
Un recours collectif remporté par les Snowbirds Assoc. a rétabli l’OOC OHIP qui ne fera pas l’objet d’un appel de la part du gouvernement.
Pour tous les détails du règlement, vous pouvez cliquer sur « ici » pour être lié au protocole de règlement. GM publiera une brochure révisée sur les voyages incorporant ces révisions et fournira à GENMO une ébauche d’ici le 9 janvier 2021 aux fins d’examen et de commentaires.
À l’heure actuelle, GM a déclaré que ce règlement ne s’applique qu’aux membres du groupe; toutefois, ils discuteront des répercussions pour les retraités d’avant 1995. Genmo continuera de faire pression pour l’égalité de traitement pour les retraités d’avant 1995, car nous croyons fermement que GM n’a pas le droit de modifier leur couverture des prestations. Nous ne nous attendons pas à ce qu’il y ait un problème.
GENMO Communication
September 30, 2020
CanAge Webinars
“CanAge” is a non profit National Seniors Advocacy Organization. It collaborates with organizations such as United Way, International Federation on Aging and NICE to name a few.
CanAge is sponsoring a series of webinars that may be of interest to you starting on October 2. These are available in English only.
Mike Powell will be leading a discussion on Economic Security on October 6.
Please go to the attached link and sign up for any or all webinars that may be of interest to you. There is no cost to you.
Stay informed on seniors issues that should be of interest to you.
Please go to the this link.
GENMO Executive
September 12, 2020
Member Communique_St. Catharines Cogeneration Initiative
Last week General Motors Canada announced the completion of a $28 million cogeneration investment at the GM St. Catharines Propulsion plant. We felt that this initiative would be of interest to our members and we also see it as a positive investment for the St. Catharines Propulsion plant.
This project will use methane gas from a local landfill site to power new engines installed at the plant to generate electricity for their operations. The project will also recover heat from the engines to heat the plant. This innovative and environmentally focused effort is expected to lower greenhouse gas emissions by 70% and reduce future energy costs for the plant. For the media announcement please click “here”. For more details on this project please click on this “link” for a backgrounder which provides details on this initiative.
Your GENMO Executive
La semaine dernière, General Motors Canada a annoncé l'achèvement d'un investissement de 28 millions de dollars pour la cogénération à l'usine de propulsion GM de St. Catharines. Nous estimions que cette initiative intéresserait nos membres et nous la considérons également comme un investissement positif pour l'usine de propulsion de St. Catharines.
Ce projet utilisera du méthane provenant d'un site d'enfouissement local pour alimenter les nouveaux moteurs installés à l'usine afin de produire de l'électricité pour leurs opérations. Le projet récupérera également la chaleur des moteurs pour chauffer l'usine. Cet effort innovant et axé sur l'environnement devrait réduire les émissions de gaz à effet de serre de 70% et réduire les futurs coûts énergétiques de l'usine. Pour l'annonce aux médias, veuillez cliquer «ici». Pour plus de détails sur ce projet, veuillez cliquer sur ce «lien» pour un document d'information qui fournit des détails sur cette initiative.
Les liens peuvent être en anglais seulement GM ne les ayant peut-être pas encore traduits.
Votre exécutif GENMO
August 27, 2020
GM Travel Plan Change for COVID-19
In our communication of June 16, 2020 we advised that GM Canada had agreed to move forward with mediation to try to resolve our concerns regarding changes GM Canada had made to our travel benefit coverage. We can now confirm that a full day mediation with GM Canada has been scheduled for November 10.
In that same communication we also pointed out that there were other issues that had recently arisen in regards to additional restrictions that had been added to our out-of-province travel coverage. One of those items was the elimination of coverage for any claims you suffer or contract in a specific country, region or city due to an epidemic or pandemic if a formal travel warning has been issued advising Canadians to avoid all or non-essential travel to that specific country. One of the implications of this new restriction meant that GM/Green Shield would not cover any emergency travel expenses related to COVID-19 incurred during travel.
On August 10 Green Shield announced a significant update to all standard GSC travel plans to now include temporary coverage for emergency medical expenses related to COVID-19 for the period of August 15, 2020 through June 30, 2021, up to the existing maximums and limitations within each plan. This additional coverage will apply to all destinations globally – regardless of any COVID-19 travel advisory being in place or reason for travel (i.e. leisure, work, school) – and is subject to all other terms. GM Canada has agreed to this change as well. The details of GM’s temporary change to travel coverage can be found by clicking on this “link”. This bulletin is also available on the GM Canada Retiree website. It will be found under the “Important Bulletins” section on the Pension and Benefits page.
Your GENMO Executive
Lors de notre communiqué du 16 Juin, 2020 nous mentionnions que GM Canada était d’accord pour aller de l’avant avec la procédure de médiation afin de répondre à nos inquiétudes générées par le fait que GM Canada avait fait des changements à nos bénéfices lors de voyages. Nous pouvons maintenant confirmer qu’une pleine journée de médiation aura lieu le 10 Novembre prochain avec GM Canada.
Lors de ce communiqué nous avions aussi porté à votre attention, qu’il y avait d’autre séléments qui généraient des restrictions additionnelles à notre assurance voyage lors de déplacements hors-province. Parmi celles-ci il y avait l’élimination de protection pour toute réclamation pour maladie contractée dans une pays, une région ou dans une ville lors d’une épidémie ou pandémie, si un avis spécifique avait été émis par le Gouvernement du Canada d’éviter tout déplacement non essentiel dans un pays spécifique. Une résultante de cette nouvelle restriction voulait dire que GM/Green Shield ne couvrirait pas pour des frais d’urgence reliés au COVID-19 lors de voyages.
Le 10 Août Green Shield annonce une mise à jour significative pour tous les plans de voyage afin d’inclure une protection temporaire pour frais médicaux reliés au COVID-19 pour la période du 15 Août, 2020 jusqu’au 30 Juin, 2021, ne dépassant pas les maximums et les limites à l’intérieur de chaque couverture. Cette couverture additionnelle couvre toutes les destinations – même si des avis sont en place quant à la nature du voyage, (comme, par plaisir, pour le travail, ou à des fins éducatives) - toutes les autres conditions s’appliquent. GM Canada endosse aussi ces changements. Les détails de ces changements temporaires pour protection lors de déplacements sont disponibles en cliquant sur ce ‘lien’. Ce communiqué est aussi disponible sur le site des Retraités de GM Canada. Il peut être consulté sous la section ‘ Bulletins Importants’ sur la page Pension et Bénéfices.
*NB en cliquant sur le lien vous aurez un document en anglais, la version française n’étant pas encore disponible sur le site de GM Canada.
L’Exécutif de GENMO
August 21, 2020
GM Unifor Contract Negotiations Annmouncement
GM Canada recently announced that it has opened negotiations with Unifor for a new labour contract for 2020 and beyond. The current GM Canada/Unifor National Master Agreement expires at 11:59 p.m. on
September 21, 2020. This Agreement covers approximately 1,632 hourly employees at GM Canada’s St. Catharines Propulsion Plant, Oshawa Stamped Products and Service Operations, and the Parts Distribution Centre in Woodstock Ontario. The CAMI Assembly plant is under a separate collective bargaining agreement which expires on September 21, 2021.
As part of the announcement Scott Bell, the President and Managing Director of GM Canada released a letter to employees and dealers that was also distributed to retirees via email through GM.ca Retiree Communications. If you are not signed up to receive communications directly from GM you can view the announcement letter by clicking on 'Scott Bell letter'.
To explain more about the negotiations and GM Canada’s overall operations GM produced a 2020 Fact Sheet which can be viewed by clicking “here”. It provides an overview on current employment numbers, Manufacturing and Production, the Oshawa Transformation and engineering and technology initiatives. We think you will find it very informative and a good overview of GM Canada’s operations.
Your GENMO Executive
Récemment GM Canada a déclaré avoir entamer les négociations avec Unifor pour un nouveau contrat de travail débutant en 2020 et pour les années qui suivent. Le présent contrat entre GM/Unifor Entente Nationale se termine à 11:59 pm le 21 septembre, 2020. Ce contrat s’applique pour 1632 employés horaires de l’usine de rouage d’entrainement de St. Catharines, de l’usine d’estampillage d’Oshawa et pour les opérations de service et du centre de distribution de pièces à Woodstock, Ontario. Pour sa part l’usine de CAMI a sa propre convention collective qui expire en septembre 2021.
Scott Bell, Président et Gérant Général de GM Canada, a aussi inclus dans cette annonce une lettre destinée aux employés et concessionnaires qui a aussi été distribuée aux retraités par courriel sur le site de GM.ca Communication aux retraités. Si vous n’êtes pas enregistrés pour recevoir les communiqués de GM vous pouvez cliquer sur ‘Scott Bell Letter’ pour lire le communiqué.
Afin de mieux comprendre ces négociations et l’ensemble des opérations de GM Canada, une liste de données de 2020 peut être consultée en cliquant ‘ici’. Ceci vous fournirale nombre d’employés, nos usines et leur capacité de production, les transformations à Oshawa et les initiatives en ingénierie et en nouvelles technologies. Nous croyons que vous serez bien informés sur GM Canada et que vous aurez une vue globale de ses opérations.
Votre Comité de Direction de GENMO
August 3, 2020
Pension Protection Advocacy
We felt it was timely to share with you some concerns regarding defined benefit pension plans in Canada and to provide you an update on recent advocacy initiatives.
Over the past few years provincial and federal governments have taken steps to reduce or eliminate solvency requirements for defined benefit pensions. This situation is now being exacerbated by the COVID-19 pandemic which is creating economic challenges for many businesses and their defined benefit pension funds. This will pose risks to pensioners who are members of these pensions as there will likely be increased numbers of insolvencies and bankruptcies coupled with underfunded pension plans. The GM Salaried Pension Fund was in good financial standing through September 2019. However, we have not seen nor heard any updates since that time. GM is not required to provide any further updates on the pension fund performance to the provincial regulators until the end of 2020 and is not required to provide an updated actuarial valuation until sometime in 2022.
GENMO is a supporter and member of the Canadian Federation of Pensioners (CFP). The CFP, like GENMO, believes Canadian pensioners who have worked hard all their lives deserve to have their pensions protected. The CFP has a long history of advocating on behalf of defined benefit pension plans and their members at both the provincial and federal levels. Their most recent undertaking was to submit a pre-budget document to the House of Commons Standing Committee on Finance (FINA). This submission provides a very clear and comprehensive overview of the current situation being faced by defined benefit pensioners and includes recommendations on how the government could protect defined benefit pensions and their recipients in their upcoming budget. We felt this document would be of interest to you and therefore the submission can be viewed by clicking on this “link”.
Your GENMO Executive
Nous croyons à propos de partager des inquiétudes que nous avons face aux régimes de retraite à prestations déterminées au Canada et de vous informer sur les récentes initiatives en place.
Ces dernières années les gouvernements tant fédéraux que provinciaux ont agi de façon à réduire ou éliminer les normes de capitalisation des régimes de pension à prestations déterminées. Avec Covid-19 cette situation s’est dégradée, car la pandémie a créé des défis économiques de taille pour beaucoup d’entreprises et leur régime de pension à prestations déterminées. Ceci rend vulnérables de nombreux retraités qui font partie de ces régimes de pension car un plus grand nombre d’entreprises seront sous-capitalisées ou iront en faillite, entrainant des régimes de pensions déficitaires. En date de Septembre 2019 le régime de pension des Salariés de GM était bien capitalisé. GM n’a pas à fournir d’autre rapport sur l’état du régime de pension aux auditeurs provinciaux avant la fin de 2020 et n’est requise de présenter une évaluation actuarielle que quelque part en 2022.
GENMO est membre et supporte la Fédération Canadienne des Pensionnés (CFP). La CFP, comme GENMO, croit que les pensionnés qui ont travaillé fort toute leur vie méritent que leur pension soit protégée. La CFP a une longue feuille de route quant à la protection des régimes à prestations déterminées et de leurs membres tant au niveau provincial que fédéral. Leur plus récente implication a été de présenter un document pré-budget au Comité des Finances de la Chambre des Communes (FINA). Ce document décrit de façon claire et entière la situation à laquelle doivent faire face les retraités ayant des régimes de pension à prestations déterminées et inclus même des recommandations à savoir comment le gouvernement, lors de son prochain budget, pourrait protéger les régimes à prestations déterminées et leurs bénéficiaires. Nous pensons que ce document pourrait vous intéresser alors vous n’avez qu’à cliquer sur le "link".
Le Comité Exécutif de GENMO
June 16, 2020
Update on Proceedings to Resolve Out of Country Benefits Issues
The GENMO Executive and the class representatives Lynn McCullough of the O’Neill v. GMCL and Lea Jankowski of the Jankowski v. GMCL et al class settlements have been continuously working to try to resolve the issues related to out of country travel benefits with GM Canada. There are two issues regarding out of country benefits that we have been trying to get GM Canada to commit to mediate with us as an alternative to going to binding arbitration.
As a reminder, effective January 1, 2020 GM Canada imposed a 90 day stability requirement for existing or pre-diagnosed conditions. GM Canada also stated that the continuation of out of country benefits was an accommodation to Ontario resident retirees and would continue until further notice. GM Canada’s position is based on the language in the class settlement that states that travel benefits are only available if the relevant provincial plan makes a payment towards the cost of the medical expenses. As there is now no OHIP coverage for out of country medical expenses GM Canada has stated that it is not legally required to continue to provide travel benefits. GM Canada is currently providing coverage as an accommodation only. We strongly disagree with GM Canada’s position in both these matters and have been trying to resolve it with them for many months. We originally invoked arbitration proceedings on February 28, 2020 and subsequently have strived to initiate mediation at GM Canada’s suggestion as an alternative way to resolve these matters. Unfortunately, it has taken quite some time to get GM Canada to commit to proceed with mediation. They have been deferring on this issue for the past few months.
As of June 9, 2020 GM Canada has agreed to move forward. They have proposed a list of potential mediators and a timetable for proceeding. This should lead to an actual mediation during early October. This seems like a long time; however, sufficient time is required to secure the necessary documents and evidence and to create the submissions to the mediator. In the case of GM Canada they have asked for some additional time as many of their facilities are closed and they anticipate difficulty in accessing their records.
In addition to the original two issues detailed above, other issues of concern have recently come to our attention. Earlier this year, without any notice to retirees, GM Canada revised the out-of-province coverage and the Travel Benefits brochure by adding additional restrictions to the coverage. We have advised GM Canada that we are also seeking to arbitrate/mediate the following:
- The addition of restrictions on coverage related to geographic areas of travel, including during pandemics where a formal travel warning has been issued;
- The addition of restrictions on coverage related to suicide or self-inflicted injuries and;
- The addition of a condition of coverage requiring class members to notify Green Shield prior to receiving treatment.
We would recommend that you visit the GM Canada Benefits Centre website and review the travel brochure under Plan Information for the full details of these new restrictions.
All of the above changes have also been imposed by GM Canada on those who retired prior to 1995. We expect that GM Canada would comply with any ruling for the class members in how it treats the pre-95 retirees.GM Canada has been advised that legal counsel has been retained to initiate separate proceedings on behalf of the pre-95 retirees if required.
We want to reassure you that even during these times of the COVID-19 pandemic that your GENMO Board of Directors continues to work diligently on your behalf on matters of concern to our organization and its members. We are doing this is in a safe and distanced manner to ensure that we are not contributing to the spread of COVID-19.
Your GENMO Executive
La Direction de GENMO et les représentants du recours collectif Lynn McCullough de O’Neill v. GMCL et Lea Jankowski de Jankowski v. GMCL et al dans l’entente du recours ont continuer à vouloir régler avec GM Canada les points qui achoppent pour nos bénéfices lors de voyages hors pays. Il y a deux sujets en regard à nos bénéfices lors de voyages sur lesquels nous avons essayé de contraindre GM Canada à la médiation au lieu d’aller à un arbitrage contraignant.
Mentionnons que, effectif Janvier 1, 2020, GM Canada a imposé une clause de stabilité de 90 jours pour les conditions de santé existantes ou diagnostiquées. En plus GM Canada a réitéré que la continuation des bénéfices hors-pays pour les résidents retraités de l’Ontario continuerait jusqu’à avis contraire. La décision de GM Canada se base sur ce qui est écrit dans le jugement du recours collectif qui dit que les bénéfices de voyage ne sont disponibles que si le régime de la province de résidence paye une partie des frais médicaux. Étant donné que OHIP ne paye plus pour des frais de santé hors du pays, GM Canada a dit qu’elle n’est plus tenue légalement de fournir les bénéfices de voyage. GM Canada offre les bénéfices que parce qu’elle le veut bien. Nous sommes en total désaccord avec la position de GM Canada sur ces deux points et avons essayé de résoudre ce dossier depuis plusieurs mois. Le 28 Février, 2020 nous avons invoqué le processus d’arbitrage et subséquemment entamé la médiation selon le vouloir de GM Canada comme alternative pour régler le dossier. Malheureusement, il aura pris beaucoup de temps avant que GM Canada soit d’accord de procéder avec la médiation. En plus, ils se reportent depuis quelques mois.
Depuis le 9 Juin, 2020 GM Canada a décidé d’entamer le processus. Ils ont présenté une liste de médiateurs potentiels de même qu’un échéancier afin de procéder. Ceci devrait mener à une médiation en début d’Octobre. Ceci semble beaucoup de temps; toutefois il faut assez de temps afin de préparer les documents nécessaires, la plaidoirie et soumettre au médiateur. Pour ce qui est de GM Canada, ils ont aussi demandé du temps supplémentaire étant donné que plusieurs de leurs installations sont closes et qu’ils anticipent de la difficulté pour accéder à leurs dossiers.
En plus des deux points mentionnés plus haut, d’autres points ont été apportés à notre attention. Plus tôt cette année, sans avertissements aux retraités, GM Canada a procédé à une revision de la couverture hors-province et de la Brochure des Bénéfices de Voyage, en ajoutant de nouvelles restrictions. Nous avons donc avisé GM Canada que nous solliciterons de l’arbitrage/médiation aussi sur les points suivants :
- L’addition de restrictions sur la couverture selon les destinations de voyage, incluant durant une pandémie lorsque des avis officiels de voyage ont été émis.
- L’addition de restrictions de couverture en ce qui a trait au suicide et à des blessures causées par la personne elle-même.
- L’addition d’une condition d’assurance qui demande d’avertir Green Shield avant de recevoir un traitement
Nous vous suggérons de visiter le site des Bénéfices de GM Canada afin de lire la Brochure de Voyage sous, Information du Plan afin de connaitre tous les détails de ces restrictions.
Toutes ces restrictions sont aussi imposées par GM Canada aux retraités d’avant 1995. Nous étions en position de croire que GM Canada se conformerait à l’entente du recours collectif pour ce qui a trait aux retraités d’avant 95. GM Canada a été avisée que nous avons retenu des services légaux afin de faire des démarches pour les retraités d’avant 95 si le besoin se fait sentir.
Nous tenons à vous rassurer que même durant cette période de pandémie de COVID-19, le Conseil d’Administration de GENMO continue de travailler diligemment à faire valoir et protéger vos droits et ceux de notre organisation. Nous le faisons de manière sécuritaire et distante afin d’empêcher la prolifération du COVID-19.
Votre Conseil d’Administration de GENMO
April 22, 2020
GENMO Postpones Annual General Meeting (version française à la suite)
Due to the COVID-19 Pandemic and the Ontario Declaration of Emergency, the GENMO Annual General Meeting (AGM) that normally takes place in May has been postponed. We will reschedule it once the current government restrictions are lifted.
As well, during this time, GENMO will only be communicating via email.
Therefore, if you know members who do not have e-mail, please pass on this information to them. If they do have access to e-mail please ask them to send an e-mail to membership@genmo.ca so that we can add them to our e-mail communication list.
Thank you for your continued support and please Stay Safe!
Your GENMO Executive
President: Mike Powel
Vice President: Jan O’Neill
Director of Communication and Legal: Tom Laurie
Directors at Large: Garry Marnoch, Brian Rutherford
Director of Membership: Denise Cay
Secretary: Alanna Lyczba
Treasurer: Mike Black
Special Advisors: Ken Bilodeau, Jo Ann Stuart
Étant donné la pandémie du COVID-19 et des mesures d’urgences décrétées par le gouvernement d’Ontario, l’Assemblée Générale Annuelle (AGA) de GENMO qui se tient habituellement en Mai a été reportée. Nous la tiendrons lorsque les présentes restrictions seront levées par le Gouvernement en place.
De plus, durant cette période GENMO communiquera seulement par courriel.
Ainsi, si vous connaissez des membres qui n’ont pas accès aux courriels, partagez avec eux cette information. Par contre s’ils ont accès aux courriels, demandez-leur d’en envoyer un à membership@genmo.ca afin que nous puissions les ajouter à notre liste d’envoie.
Merci pour votre appuie habituel et faites attention à votre santé!
Votre Comité de direction de GENMO
Président: Mike Powel
Vice-Président: Jan O’Neill
Directeur des Communications et Affaires Juridiques: Tom Laurie
Directeurs: Garry Marnoch, Brian Rutherford
Directeur Services aux Membres: Denise Cay
Secrétaire: Alanna Lyczba
Trésorier: Mike Black
Conseillers Spéciaux: Ken Bilodeau, Jo Ann Stuart
April 18, 2020
GENMO Proceeding to Resolve Out of Country Benefits Issues (version française à la suite)
The GENMO Executive, in full agreement with the class representatives Lynn McCullough, of the O’Neill v. GMCL class action and Lea Jankowski, of the Jankowski v. GMCL and Ally Credit class action, have invoked the arbitration clause in our class settlement agreement to resolve two issues related to out of country travel benefits. These changes to our travel benefits by GM Canada were facilitated by the termination of OHIP’s coverage for emergency services outside of Canada.
Effective January 1, 2020 GM Canada imposed a 90 day stability requirement for existing or pre-diagnosed conditions. GM Canada also stated that the continuation of out of country benefits was an accommodation to retirees and would continue until further notice. GM Canada’s position is based on the language in the class settlement that travel benefits are only available if the relevant provincial plan makes a payment towards the cost of the medical expenses. As there is no OHIP coverage for out of country medical expenses GM Canada has stated that it is not required to continue to provide travel benefits. They are currently providing coverage as an accommodation only. We strongly disagree with GM Canada’s position in both these matters and have been trying to resolve it with them for many months.
GENMO’s legal counsel, Goldblatt Partners had written a letter to GM Canada on January 9 stating our opposition regarding the position announced by GM Canada in its letter to retirees dated Dec. 27, 2019. After many weeks of no response from GM Canada, Goldblatt Partners initiated arbitration proceedings on February 28, 2020on behalf of the two classes. GM Canada was also advised that as they had imposed these restrictions on retirees who retired prior to 1995, where there was no reservation of rights, that proceedings would be initiated on their behalf as well.
GM Canada responded via their counsel on March 4 that they had not seen our January 10, 2020 letter due to internal issues at their legal counsel’s office. They asked for additional time to consider the issues detailed in GENMO’s arbitration letter before proceeding. GENMO agreed to provide the extra time requested.
GM Canada responded on March 18, 2020. Unfortunately their position is that they will continue to impose a 90 day stability requirement for any pre-existing medical condition. Also they maintain that continued out of country coverage as an accommodation only is consistent with the class action settlements and is not required under the agreement.
GM Canada did state they remain open to discussing alternative solutions and that they are hopeful that this can be resolved without arbitration. Therefore, GENMO and the class representatives are left with a decision to make. We can either consider mediation as an interim step in the arbitration process to try to resolve these matters or proceed with an arbitration hearing to present its case to an independent arbitrator to rule on. It should be noted that an Arbitrator’s ruling would be final and binding and there would be no appeal. It has been decided that mediation should be pursued before an arbitration hearing and we will be advising GM Canada accordingly.
We trust you will support these undertakings as they proceed.
We want to reassure you that even during these times of the COVID-19 pandemic that your GENMO Board of Directors continues to work diligently on your behalf on matters of concern to our organization and its members. We are doing this is in a safe and distanced manner to ensure that we are not contributing to the spread of COVID-19.
Your GENMO Executive
L’Exécutif de GENMO, en conformité avec les représentants du recours collectif Lynn McCullough, dans la cause de O’Neill v. GMCL et Lea Jankowski, du recours collectif Jankowski v. GMCL et Ally Credit, ont invoqué la clause d’arbitrage dans l’entente de notre recours collectif pour clarifier deux points en ce qui est de nos déplacements hors du pays. Ces changements à nos bénéfices lors de voyage sont apparus lorsque OHIP (Ontario Hospitalisation Insurance Plan) a modifié sa couverture pour services d’urgence hors du Canada.
Effectif le 1er Janvier, 2020 GM Canada a imposé une la clause de stabilité de 90 jours pour les conditions de santé préexistantes. GM Canada a aussi mentionné que la couverture de non bénéfices hors-pays était pour accommoder les retraités et continuerait jusqu’à avis contraire. La position de GM Canada se base sur ce qui est écrit dans la résolution de notre recours collectif que les bénéfices de voyage ne sont disponibles que si le régime provincial du retraité paie une partie du coût des dépenses médicales. Étant donné que OHIP ne couvre plus pour les soins hors du pays, alors GM Canada n’a plus à fournir de soins lors des voyages hors du pays. Ils ne fournissent cette couverture qu’à titre d’accommodement. Nous sommes complètement en désaccord avec la position de GM sur ces deux points et avons essayé de s’entendre avec eux depuis plusieurs mois.
Les conseillers légaux de GENMO, Goldblatt Partners ont écrit à GM Canada le 9 Janvier et se sont opposés à la position de GM Canada dans sa lettre aux retraités datée du 27 Décembre, 2019. Après plusieurs semaines sans réponse de GM Canada, Goldblatt Partners ont entrepris une demande d’arbitrage le 28 Février, 2020 sur ces deux points. GM Canada a aussi été avisé, qu’étant donné qu’ils avaient aussi imposé ces restrictions aux retraités d’avant 1995, ou il n’y avait aucune restriction, que cette procédure les inclurait aussi.
GM Canada a répondu par son conseil le 4 Mars, qu’ils n’avaient pas vu notre lettre du 10 Janvier, 2020 à cause d’une situation interne au bureau de leur conseiller légal. Ils ont demandé un peu plus de temps afin d’analyser les demandes de GENMO dans la cause d’arbitrage les opposant. GENMO a accepté de leur accordé du temps supplémentaire.
Le 18 Mars, 2020 GM Canada a répondu. Malheureusement ils maintiennent leur position quant à la période de stabilité de 90 jours pour les conditions de santé préexistantes. Ils maintiennent aussi que la couverture des soins lors de voyages hors pays est faite seulement sur une base d’accommodement et est en conformité avec le jugement de notre recours collectif et n’est pas obligatoire selon le jugement.
GM Canada a par contre mentionné être ouvert pour trouver des solutions alternatives et a confiance que ceci peut être résolu sans aller à l’arbitrage. Ainsi, GENMO et les représentants de notre recours collectif ont à décider. Nous pouvons, soit aller en médiation comme première étape dans le processus d’arbitrage ou aller directement à l’arbitrage ou la cause serait présentée à un arbitre indépendant pour statuer. Il faut tenir compte que la décision de l’arbitre est finale et sans appel. Il a été décidé que nous voulons aller en médiation avant un audience d’arbitrage et nous en feront part à GM Canada, comme il se doit.
Nous sommes confiants que vous nous supporterez dans nos dossiers en temps opportun.
Nous voulons vous assurer que, même dans cette période de pandémie de COVID-19, le Conseil de Direction de GENMO continue de travailler diligemment en votre nom sur des dossiers qui visent notre organisation et ses membres. Nous faisons ceci en respectant les règles de protection et de distanciation afin de ne pas causer de propagation du COVID-19.
Votre CONSEIL EXÉCUTIF DE GENMO
March 24, 2020
As a member and supporter of the Canadian Federation of Pensioners (CFP) we want to advise you that the CFP has launched their new website. Check out the English site by clicking on:
https://www.pensioners.ca/
for the French site click on: https://www.pensioners.ca/?lang=fr
Their new site includes a lot of relevant and informative features on defined benefit pensions including:
- Summary of CFP’s national and provincial advocacy activities
- Recent news coverage
- Government Submissions (federal and provincial) dating back to 2017
- Downloadable copy of their Defined Benefit pension brochure
- List of CFP members with links to their websites (where available)
The CFP advocates on behalf of defined benefit pension plans like our General Motors Canada pension plan. The CFP is the united voice of 21 retiree groups, representing 270,000 defined benefit pensioners, who work together to improve pension security across Canada. CFP is also affiliated with CARP, FADOQ and the National Pensioners Federation.
The CFP has a long history of working collaboratively with provincial and federal government agencies responsible for pension regulation. Their active engagement at the federal and provincial levels includes pre-budget consultations, committee hearings, legislative consultations, stakeholder meetings, lobby days, media campaigns and face-to-face meetings with senior ministers and other elected and government officials
In today’s environment, especially with the coronavirus outbreak and its huge impact on the financial markets, protecting defined benefit pension plans is now more important than ever.
Your GENMO Executive
En tant que membre et supporteur de la Fédération Canadienne des Retraités (FCR) nous vous avisons que la FCR a lancé son nouveau site internet.
Vous pouvez accéder à leur version anglaise, https://www.pensioners.ca/ ou la version en française,
https://www.pensioners.ca/?lang=fr.
Le nouveau site a beaucoup d’information utile importante sur les régimes de retraite à prestations déterminées incluant :
- La liste des dossiers de FCR au niveau fédéral et provincial
- Couverture des récentes nouvelles
- Les Actions des Gouvernements autant au provincial qu’au fédéral depuis 2017
- Une copie téléchargeable de la Brochure sur les Pension à Bénéfices Déterminés
- La Liste des membres de la FCR avec le lien de leur site (si disponible)
La FCR milite pour les régimes à pension déterminée tel celui de General Motors du Canada. La FCR est la porte-parole de 21 groupes de retraités, représentant 270,000 retraités à pension déterminée, qui s’unissent pour l’amélioration de la sécurité de leur régime de pension à travers le Canada. La FCR est aussi affiliée avec CARP, FADOQ, et la Fédération Canadienne des Pensionnés.
La FCR travaille depuis longtemps en collaboration avec les agences provinciales et fédérales qui régissent les pensions. Leur implication active au niveau provincial et fédéral comprend les consultations pré-budgétaires, les audiences en comité, les consultations légales, les réunions des preneurs de décisions, les lobbys, les campagnes de médias et des réunions en face-à-face avec les ministres seniors, autres élus et les responsables gouvernementaux.
Dans les conditions d’aujourd’hui, comme la pandémie de coronavirus et son impact sur les marchés financiers, protéger nos régimes de pension est encore plus important que jamais.
Votre Exécutif de GENMO
January 09, 2020
GM Canada has finally provided notification about retirees Out of Country health care coverage.
Feedback we have received indicates that most people will find it in their secure mailbox on www.gmcanadabenefits.com. GM Canada did not provide notification that this communication was in your secure mailbox, and it appears that it will be deleted after January 23, so please check and copy or print it. It is titled Subject: Emergency Medical Services While Travelling Outside of Canada, dated December 27, 2019 and delivered to your secure mailbox on December 24, 2019.
If you elected not to use the secure mailbox you may have received a letter from GM Canada. We have heard from some that haven't received anything.
We caution you that while this is a positive step, we have serious concerns and have engaged legal counsel.
Many will read " GM Canada is pleased to announce, as an accommodation to its retirees, that it intends to continue to offer emergency medical services coverage to retirees" as nothing has changed. Based on the letter there are several disconcerting changes.
First and foremost GM Canada again is attempting to add pre-existing condition limitations that GENMO contends were never there, specifically a 90 day stability requirement for existing or pre-diagnosed conditions. Significantly reducing the value and effectiveness of your coverage.
GM Canada also has inserted "until further notice" providing them the ability to unilaterally change or eliminate coverage. A key victory in our lawsuit was the court judgment that GM Canada could not reduce or eliminate our benefits.
As well GM Canada is not clear who is impacted. The Out of Country changes were in Ontario, GM Canada's memo is not clear that the changes they want to make (and we oppose) are limited to Ontario. As the GM letter was sent to retirees across the country it appears that the changes GM is making applies to all irrespective of their province of residence.
Finally, for Ontario residents, what is not addressed is who will be responsible for the portion of the medical expenses that were previously paid by OHIP.
As mentioned GENMO is working with legal counsel to respond and object to the changes GM Canada is attempting to make to our coverage.
Your GENMO Executive
GM Canada a finalement fourni des clarifications sur la protection médicale pour les retraités qui voyagent hors du pays.
Après vérifications nous savons que la plupart de vous allez trouver l’information dans votre boite postale sécurisée au www.gmcanadabenefits.com . GM ne vous a pas fait savoir que ce communiqué se trouvait dans votre boite de courrier sécurisé et il semble quelle sera effacée après le 23 Janvier, donc vous devriez la lire et la copier ou l’imprimer. Le titre est Services médicaux d’urgence lors des voyages hors du Canada datée du 27 décembre 2019 et envoyée dans votre boite de courrier le 24 décembre 2019.
Si vous aviez opté pour ne pas avoir de boite de courrier sécurisée, vous avez peut-être reçu une lettre de GM du Canada. Il y en a même qui n’ont rien reçu.
Même si c’est un pas dans la bonne direction nous restons sur nos gardes et avons entamé une démarche juridique.
Beaucoup liront ¨ GM du Canada est fière d’annoncer, pour accommoder ses retraités, qu’elle continue d’offrir une couverture pour les frais médicaux d’urgence pour ses retraités ^ comme si rien n’avait changé. Mais selon la lettre il y a certains changements déconcertants.
En premier lieu GM Canada essaie encore une fois d’ajouter la clause pour les conditions préexistantes, qui n’a jamais existé selon GENMO, et qui exige une clause de stabilité de 90 jours pour conditions existantes ou pré-diagnostiquées. Ceci affecte grandement la valeur et la qualité de votre couverture.
GM mentionne aussi ¨jusqu’à avis contraire¨ leur donnant ainsi l’option de modifier ou de canceller unilatéralement la couverture. Une des principales victoires de notre recours collectif était le jugement de la cour qui statuait que GM Canada ne pouvait réduire ou éliminer nos bénéfices.
De plus GM Canada ne précise pas qui est touché. Le changement pour Hors Pays affecte l’Ontario, le mémo de GM Canada n’est pas clair face aux changements qu’ils veulent faire (et nous nous y opposons) sont limités à l’Ontario. Du fait que la lettre a été envoyé par tout le pays fait croire que les changements apportés par GM pourraient s’appliquer pour tous sans égard de leur province de résidence.
Finalement, pour les résidents de l’Ontario, rien ne mentionne qui sera responsable pour la portion des frais médicaux qui avant était payée par OHIP.
Nous le mentionnons encore GENMO travaille avec des conseillers juridiques pour répondre et s’objecter aux changements que GM du Canada s’apprête à notre couverture.
Votre Conseil de GENMO
December 06, 2019
GENMO was formed in 2009 as a non profit corporation. Together with our membership we have enjoyed several success stories in regards to our pension and benefits.
The seeds of our organization came from the Salaried Retiree Associations (SRAs) in Oshawa, St. Catharines, London and Ste Therese. Over the past several years we have enjoyed a close relationship with these organizations and depend on their support for the ongoing success of GENMO.
GENMO provides the business activities and the SRAs provide the social functions for the GMCL Salaried Retirees. Both activities are an integral part of the quality of our retirement lifestyle.
The Executive and volunteers of the SRAs provide monthly meetings with interesting guests and presentations as well as social activities such as golf tournaments, ballgames, theatre and Christmas dances.
GENMO and the SRAs have a symbiotic relationship; we need each other. Please take advantage of the activities that your local SRAs offer and continue your support or join as a new member.
Your local contacts are as follows:
Oshawa – Roy Ward at back.wards@sympatico.ca or Lillian Jacoby at 905-579-6709 http://www.gmsalariedretirees.com/
St. Catharines – Rick Predovich at rick.predovich@hotmail.com or phone at 905-934-3024
London – John Atkinson at greyfox@execulink.com or phone at 519-268-3932
or
Ray Castellan at castellan.ray@outlook.com or phone at 519-473 8086
Quebec – Claude Erazola at c.erazola@gmail.com
We are all in this together.
Your GENMO Executive
Constituée depuis 2009, GENMO est une corporation sans but lucratif. Nous et nos membres avons connu plusieurs succès dans le dossier de notre régime de pension et de nos bénéfices.
Notre organisation a pris forme à partir de l’Association des Retraités Salariés de Oshawa (ARSs), de St. Catharines, de London et de Ste Thérèse. Au cours des dernières années, nous avons entretenu de bonnes relations avec ces associations et dépendons de leur support pour la réussite de GENMO.
GENMO s’occupe de la gestion des dossiers et les ARSs gèrent le côté social pour les Retraités Salariés de GMCL. Les deux volets sont indispensables à notre qualité de vie en tant que retraité.
Les Dirigeants et bénévoles des ARSs organisent des activités mensuelles avec des invités de marque, des présentations et des activités sociales comme le golf, des parties de balle, du théâtre et des diners de Noêl.
GENMO et les ARSs avons un lien unique; nous avons besoin l’un de l’autre. Prenez avantage des activités organisées par vos ARSs et continuez à les supporter en devenant ou en restant membre.
Voici vos contacts locaux :
Oshawa – Roy Ward à back.wards@sympatico.ca ou Lillian Jacoby à 905-579-6709 http://www.gmsalariedretirees.com/
St. Catharines – Rick Predovich à rick.predovich@hotmail.com ou tél. à 905-934-3024
London –John Atkinson à greyfox@execulink.com ou tél. à 519-268-3932
ou
Ray Castellan à castellan.ray@outlook.com ou tél. à 519-473 8086
Québec - Claude Erazola à c.erazola@gmail.com
Nous défendons tous la même cause.
Votre Comité de Direction de GENMO
May 06, 2019
Mike Powell, GENMO and Canadian Federation of Pensioners President, speaking to Minister of Finance Bill Morneau. "Full pension protection in insolvency is the goal and we, CFP, CARP, and the National Pensioners Federation have put forward three options to accomplish it. We are still waiting for a single proposal to fully protect pensions in insolvency from either the pension industry or the federal government."
April 21, 2019 francais ci-inclus
CARP Membership Offer
As a member of GENMO you are being offered this special opportunity to receive a free 2 year membership to CARP. If you are already a member of CARP then your membership will be extended for an additional two years. This opportunity is being made available to our members due to GENMO’s membership in and support of the Canadian Federation of Pensioners who in turn are an affiliate of CARP. Our organizations all share a common goal of securing pension security and advocating for the protection of defined benefit pensions.
By clicking here, you will be taken to the CARP landing page where you will find more information about CARP as well as its free membership offer. At the bottom of the landing page you will find the enrollment. You will need to select “GENMO” in the roll down box to start the sign-up process.
We would strongly urge you to take advantage of this gracious offer from CARP, enjoy the benefits of membership in their organization and support our common interests.
Your GENMO Executive
Du fait que vous êtes membre de GENMO, vous avez le privilège de recevoir un abonnement gratuit de deux ans à CARP. Si vous êtes déjà membre de CARP alors votre abonnement sera majoré de 2 ans. Cette offre nous est proposée du au fait que GENMO et ses membres supportent la Fédération Canadienne des pensionnés qui elle est affiliée à CARP. Nos organisations ont toutes un objectif commun, de rendre sécure les régimes de pension et de défendre la protection des plans de pension à rente définie.
En cliquant ici, vousserez sur le site de CARP avec leur offre d’affiliation gratuite. Au bas de leur page d’accueil vous trouverez le formulaire d’adhésion. Vous devrez choisir GENMO dans la boite active de choix afin de débuter le processus d’adhésion.
Nous vous suggérons fortement de profiter de cette offre, gracieuseté de CARP, profitez des bénéfices de cette adhésion dans leur organisation tout en supportant nos intérêts communs.
Votre Conseil Exécutif de GENMO
March 29, 2019 francais ci-inclus
2019 AGM Invitation
You (and your spouse) are invited to attend the tenth GENMO “Annual General Meeting” (AGM) to be held at the REGENT THEATRE (50 King St East) in downtown Oshawa at 2:00 PM on Thursday, May 2, 2019. The doors will be open at 1:00 PM for a meet and greet. Refreshments will be served.
(francais ci-inclus)
There is a municipal parking garage at King and Mary.
The agenda will include the GENMO financial statements, membership drive, pension status and political action update.
Since the conclusion of the O’Neill vs. GMCL law suit, we assumed that all of our benefit issues were behind us. However, we learned this year that Green Shield changed our “out of province” health coverage, by adding a 90-day stability clause. This is in violation of the court approved settlement. We have been working with our lawyers, requesting GMCC ensure that Green Shield restores the out of province health benefit by removing the 90-day stability clause.
We remain concerned about our underfunded pension. The fund is on course to 100% solvency based on latest Actuarial Valuation (AV) and GM continues to make required contributions. However, with the eminent Oshawa plant closing and GMCC making the advance pension plan payment we are concerned about their future intentions.
We will provide updates on both of these issues at the meeting.
As per our bylaws, four GENMO Directors positions are up for re-election. Directors Tom Laurie, Garry Marnoch, Jan O’Neal and Brian Rutherford, have chosen to stand for re-election. If you wish to stand for election or nominate someone, please see the attached nomination form and be sure to mail it by April 20, 2019.
If you cannot attend and wish to vote by proxy, a ballot is attached (please press here) and may be mailed or brought to the meeting. It is to be used by a current GENMO member whom you appoint to carry out your wishes at the AGM. All candidates’ names will be posted on the home page of the GENMO web site by April 25, 2019. If there are no other candidates the current executive will be acclaimed.
The presentations will be followed by a question and answer period. Questions may be sent to info@genmo.ca or GENMO, PO 82555, Oshawa ON L1G 7W7.
Thank you for your continuing support.
Your GENMO Executive
Vous et votre conjoint (e) êtes invités à la 9ième Assemblée Générale Annuelle de GENMO qui sera tenue à compter de 14 :00 heure, le Jeudi 2 Mai 2019, au Théâtre Regent (50 rue King est au centre-ville de Oshawa). Vous pourrez entrer à partir de 13 :00 pour échanger avec confrères, consœurs. Des rafraichissements seront servis.
Il y a un stationnement municipal au coin de King et Mary.
À l’agenda, des sujets tels les résultats financiers, le nombre de membres, mise à jour sur le statut de notre régime de pension et une mise à jour sur notre action politique.
Suite à conclusion de notre recours O’Neill vs GMCL, nous pensions que les problèmes sur nos bénéfices étaient derrière nous. Nous avons appris cette année que Green Shield a modifié notre couverture des soins de santé hors-province en ajoutant une clause de stabilité de santé de 90 jours. Ceci va à l’encontre du jugement que nous avons eu devant les tribunaux. Nous avons consulté nos avocats afin que GMCC force Green Shield à réinstaurer nos bénéfices hors province en enlevant la clause de condition de santé stable de 90 jours.
Nous sommes toujours concernés par le sous financement de notre régime de pension. Le fond va vers une capitalisation de 100% selon le dernier rapport actuariel et GM continue de verser les contributions requises. Mais avec la fermeture éminente de l’usine de Oshawa et GMCC qui fait des paiements en avance pour le régime de pension, on se questionne sur ses intentions futures.
Nous adresserons ces deux sujets plus en détail lors de la réunion.
Selon nos règlements, 4 de nos Directeurs GENMO sont en réélection. Ces directeurs Tom Laurie, Garry Marnoch , Jan O’Neil et Brian Rutherford ont décidé de se représenter. Si vous désirez vous présenter ou suggérer quelqu’un, prière de voir le formulaire ci-joint et assurez-vous de le compléter et de le maller pour le 20 avril 2019.
Si vous ne pouvez assister et désirez voter par procuration, un bulletin de vote est joint (appuyer ici) et peut, ou être mallé ou apporté pour la réunion. Il devra être utilisé par un membre de GENMO que vous choisirez pour présenter vos choix à l’AGM. Les noms de tous les candidats seront publiés sur le site de GENMO en première page pour le 25 Avril 2019. S’il n’y a pas d’autre candidats le conseil actuel sera réélu par acclamation.
Suite aux présentations, il y aura une période de questions et réponses. Les questions peuvent être envoyées à info@genmo.ca ou GENMO, PO 82555, Oshawa On L1G 7W7.
Merci pour votre support continu.
Votre Conseil de GENMO
February 19, 2019
Updating Your Contact Details for GM Canada Benefits Centre
One of the inquiries that GENMO receives from time to time involves letters that members have received in regards to their pension eligibility. These letters request that the recipient respond to the letter by a certain date or their pension will be discontinued. We want to make you aware that this is a normal part of GM Canada’s ongoing pension audit process. In addition, there have been situations where the retiree has not received this letter due to their being away on extended travel. This can become very problematic for the retiree.
In order to try to address this matter GM distributed a newsletter to retirees in 2017. The bulletin contains information on how you can update your GM Canada Benefits account to provide a temporary mailing address while you are away. This will to help ensure that you continue to receive their correspondence. As well, you can add an alternative phone number and email address to your account. To access this “Snowbirds Bulletin”, please press here.
It should be noted that when you provide an alternate temporary address all mailings from the GM Benefits Centre will be sent to the temporary address. This includes income tax slips and documents as well.
We recommend that you keep your GM Benefits account up to date with your current contact information.
Your GENMO Executive
Chez GENMO nous recevons à l’occasion des demandes de nos membres sur des lettres qu’ils reçoivent quant à l’éligibilité de leur pension. Dans ces lettres on demande au récipiendaire de répondre pour une certaine date, faute de quoi le versement de leur pension pourrait être discontinué. Nous voulons que vous soyez avisés qu’il s’agit d’un processus normal de vérification des auditeurs de GM. En plus il s’est produit des situations ou le retraité n’avait pas recu sa lettre, étant en voyage pour une longue période de temps. Ceci peut créer une situation problématique pour le retraité.
Afin de pourvoir à une telle situation GM a fait parvenir aux retraités un communiqué sur ce sujet en 2017. Dans ce bulletin on vous fait savoir comment vous pouvez mettre à jour vos données sur le site des Bénéfices de GM Canada en fournissant une adresse temporaire ou vous pouvez être rejoint durant votre séjour à l’étranger. Ceci assurera que vous pourrez continuer de recevoir votre correspondance. Vous pouvez même ajouter un autre numéro de téléphone et une adresse courriel. Afin de lire ce bulletin pour Retraité Migrateur, cliquez ici.
Il faut par contre prendre note que lorsque vous fournissez une adresse temporaire, alors tout votre courrier en provenance du Centre des Bénéfices de GM sera envoyé à cette adresse temporaire, incluant vos relevés pour impôts et autres documents.
Nous vous demandons donc de maintenir votre Compte de Bénéfices GM à date avec la bonne information pour vous contacter.
Votre Exécutif de GENMO
November 28, 2018
Oshawa Closing Announcement
Dear GENMO Member,
You have probably heard by now that General Motors is announcing the closing of its Oshawa assembly plant which will cease operation sometime during 2019. This is part of a global transformation that will also see the closure of two assembly plants in the US as well as an additional two plants outside North America in 2019.
You are probably wondering how this announcement will affect salaried retirees. The short answer is that in the immediate future it will not. Your pension and benefits should not change. It should be noted that as of December 2017 the salaried pension was funded at 94.9% on a solvency wind-up basis and has shown ongoing improvement.
Two years ago Steve Carlisle (GMCC President) told GENMO in a meeting at Canadian Headquarters that all salaried legacy costs were funded by vehicle sales in Canada. Manufacturing was not a factor.
GENMO is arranging a meeting with GMCC to discuss our future. When we receive more information you will be advised by GENMO.
Please do not be overly concerned at this time; but if we find that GMCC is changing the landscape, be prepared to support GENMO in a struggle to protect what you worked for and were promised by the company, your pension and benefits.
Your GENMO Executive
Cher(ère) Membre de GENMO,
Vous êtes probablement au courant que General Motors a annoncé la fermeture des usines de fabrication à Oshawa durant l’année 2019. Ceci fait parti d’un plan de restructuration global au cours duquel deux usines de fabrication aux États-Unis cesseront leurs activités de même que deux autres usines en dehors des États-Unis et ce en 2019.
Vous vous demandez aussi comment ces fermetures affecteront les retraités salariés. La réponse est que, dans un futur immédiat, rien ne changera. Votre pension et vos bénéfices ne devraient pas être changés. Il est à noter qu’en date de Décembre 2017 le fond de retraite des employés salariés était capitalisé à 94.9% sur la base de la solvabilité selon un scénario de liquidation et s’est amélioré depuis.
Il y a 2 ans Steve Carlisle (Président de GMCC) a dit à GENMO lors d’une réunion au siège social à Oshawa que tous les coûts reliés aux employés salariés étaient financés par les ventes de véhicules au Canada. La production n’y est pour rien.
GENMO est à préparer une réunion avec GMCC pour savoir ce que le futur nous réserve. Quand nous aurons plus d’information, GENMO voustiendra au courant.
Il ne faut pas être trop inquiet pour le moment, mais si le paysage change chez GMCC soyez prêts à supporter GENMO dans un combat pour protéger ce que vous avez gagné et qui vous a été promis par la compagnie : votre pension et vos bénéfices.
Votre Comité Exécutif de GENMO
May 2, 2018
GENMO 2017 - 2018 Year in Review 2017 - 2018 Annee en Revue
This past year has been quite busy for GENMO. Our new area representatives in Alberta and Windsor are Mike Trigiani and George Fairbairn respectively plus Christine Thomas for GMACCL. Mary Douglas did a wonderful job in Windsor and will be missed. To date, we have had 105 board meetings plus eight Annual General Meetings since inception in 2009 plus numerous other meetings. We also hold information meetings (mini-AGM’s) at St. Catharines, London and Windsor on a frequent basis. This attests to the dedication and professionalism of your board.
Brian Rutherford and Mike Powell have leadership roles in the Canadian Federation of Pensioners (CFP) with Mike leading political action efforts for both GENMO and the CFP. Mike is also the president of the CFP. GENMO has contributed $5 per member to a CFP fund which is used to pursue their stated goal which is to actively promote the interests of defined benefit pensioners and advocate on their behalf for changes to federal and provincial legislation. We have signed a memorandum of understanding with the CFP for approved uses of this $15,000. Mike has participated in panel discussions regarding pensions and has been on Zoomer radio offering his take on bankruptcy legislation. Mike wrote an op-ed letter regarding the Sears bankruptcy which was published in the Globe and Mail.
GENMO, through its affiliation with the CFP, has been involved with the Canadian Association of Retired Persons (CARP) and its organization of the National Day of Action targeting Liberal MP’s across the country, a petition and a meeting with Liberal MP’s in Ottawa in an effort to improve pension security. This has led to recognition in the 2018 Federal Budget of the need to address retirement security.
We have made the membership aware of the condition of our pension plan as of the December 31, 2016 actuarial valuation (AV). The actuarial firm Willis Towers Watson made a presentation to our Board at CHQ regarding this AV. We are hopeful of another meeting with GM to discuss the new one when available. Two members of our group meet several times per year with GM to discuss the performance of our pension plan’s assets. We met with the Unifor Director of Pensions and Benefits regarding common issues with the hourly and salaried pension plans, specifically underfunding and the Pension Benefit Guarantee Fund.
We have developed a good working relationship with GM with respect to the issues brought forward by retirees. Examples include individuals whose benefits have been cut off because the Benefit Centre couldn’t contact them, incorrect tax statements in Quebec and others. They have been very receptive and have been cooperative in making corrections.
The GMACCL retirees benefited from our benefit class action as their benefits were upgraded to our level with the same terms in June, 2017. We still can’t understand why GM had them excluded from our class action since we have the same pension plan and had identical benefits.
We received legal opinions on the two Federal bills to provide super priority for pension plans and also on Ontario Bill 177 which unfortunately allows reduced solvency funding of pension plans. We also sought advice on how we might regain coverage under the Pension Benefit Guarantee Fund for GM retirees as we have been deemed ineligible for its protection since 2009.
GENMO and the CFP will be approaching all Ontario political parties to determine their level of support for various pension issues. The results will be published in May.
Thank you for your support. We will continue efforts to protect our pensions and benefits.
Your GENMO Executive
La dernière année a été plutôt occupée pour GENMO. Nos nouveaux représentants locaux en Alberta et à Windsor sont Mike Trigiani et George Fairbairn et Christine Thomas pour GMACCL. Mary Douglas a fait du très bon travail et nous manquera beaucoup. À date nus avons tenu 105 réunions en plus de 8 Assemblées Générales Annuelles depuis nos débuts en 2009 en plus de plusieurs autres réunions. Nous avons aussi donné des réunions d’information (mini-AGA) à St. Catharines, London et Windsor sur une base régulière. Ce qui confirme le vouloir et le professionnalisme de votre Conseil de Direction.
Brian Rutherford et Mike Powell occupent des rôles dans la Direction à la Fédération Canadienne des Pensionnés(CFP) pendant que Mike traite du dossier politique pour GENMO et la CFP en plus d’être le Président de la CFP. GENMO a contribué $5 par membre à un fond de la CFP qui sert à poursuivre leur but premier qui est de défendre les intérêts des pensionnés à régime défini et de demander en leur nom des changements aux lois fédérales et provinciales. Nous avons signé un protocole d’entente avec la CFP pour l’utilisation de ce $15,000. Mike a fait part de comités d’étude sur les pensions et a aussi passé à Zoomer radio donnant ses commentaires sur la loi des faillites. Mike a aussi écrit une lettre ouverte dans le Globe and Mail portant sur la faillite de Sears.
De par son affiliation avec la CFP, GENMO a été impliqué avec l’Association Canadienne des Personnes Retraités (CARP) et avec l’organisation de la Journée Nationale d’Action en visant les Députés Libéraux à la grandeur du pays avec une pétition et une réunion à Ottawa afin de sécuriser les régimes de pension. Il en a résulté une reconnaissance, dans le budget de 2018, d’adresser la sécurité des régimes de pension.
Nous avons attiré l’attention des pensionnés sur l’état de notre plan de pension en date du 31 Décembre, 2016, selon l’évaluation actuarielle. La firme d’actuaires Willis Towers Watson a fait une présentation à notre conseil au CHQ, portant sur cette évaluation actuarielle. Nous espérons assister à la réunion lors de la prochaine évaluation. Deux membres de notre conseil rencontrent plusieurs fois l’an GM pour repasser la performance des actifs de notre régime. Nous avons aussi rencontré le Directeur des Pensions et Bénéfices chez UNIFOR au sujet des points communs du régime des salariés et des employés à l’heure principalement sur les sujets de la sous-capitalisation et du Fond de Garanti des Bénéfices.
Nous avons établi de bonnes relations de travail avec GM quant aux situations visant les retraités. Comme exemple pour ce qui est d’individus dont les bénéfices avaient été interrompus car la GM ne pouvait les contacter, relevés d’impôt erronés pour le Québec et autres. Ils ont été très coopératifs à faire les corrections.
Les retraités de GMACCL ont bénéficié de notre recours collectif et en Juin 2017 leurs bénéfices ont été augmentés à notre niveau et aux mêmes conditions. Nous ne comprenons encore pas pourquoi GM les a exclus de notre recours collectif alors que nous avons le même régime de pension et bénéfices.
Nous avons reçu des avis légaux sur les deux projets de loi du Fédéral pour établir une super-priorité pour les régimes de pension et aussi pour le Projet de Loi de l’Ontario 177 qui malheureusement réduit la capitalisation des régimes de pension. Nous avons aussi demandé avis sur comment nous pourrions recouvrer la couverture sous le Fond de Garanti des Bénéfices de Pension pour les retraités de GM alors que nous avons été déclarés inéligibles à cette protection depuis 2009.
GENMO et la CFP vont contacter tous les partis politiques afin de connaitre leur position et leur vouloir face aux différents sujets visant les régimes de pension. Les résultats seront publiés en Mai.
Merci de nous supporter. Nous continuons de travailler à protéger nos pension et bénéfices.
Votre Conseil de Direction de GENMO
April 16, 2018
Dear GENMO Member, April 16 2018
You (and your spouse) are invited to attend the ninth GENMO “Annual General Meeting” (AGM) to be held at the REGENT THEATRE (50 King St East) in downtown Oshawa at 2:00 PM on Thursday, May 10, 2018. The doors will be open at 1:00 PM for a meet and greet. Refreshments will be served.
There is a municipal parking garage at King and Mary.
The agenda will include the GENMO financial statements, membership drive, pension status and political action update.
Since the conclusion of the O’Neill vs. GMCL law suit, we assume that all of our benefit issues are behind us.
We are concerned about our underfunded pension. Even though GMCC is making all of its legally obligated contributions, it is not on a path to be 100% funded.
As per our bylaws, four GENMO Directors positions are up for re-election. Four of our directors have chosen to stand for re-election. If you wish to stand for election or nominate someone, please see the attached nomination form and be sure to mail it by April 25, 2018.
If you cannot attend and wish to vote by proxy, a ballot is attached and may be mailed or brought to the meeting. It is to be used by a current GENMO member whom you appoint to carry out your wishes at the AGM. All candidates’ names will be posted on the home page of the GENMO web site on May 1, 2018. If there are no other candidates the current executive will be acclaimed.
The presentations will be followed by a question and answer period. Questions may be sent to info@genmo.ca or GENMO, PO 82555, Oshawa ON L1G 7W7.
Thank you for your continuing support.
Your GENMO Executive
Brian Rutherford Mike Powell Mike Black Denise Cay Tom Laurie Alanna Lyczba Garry Marnoch Lynn McCullough
Jan O’Neil
Cher (e) Membre de GENMO, 16 avril 2018
Vous et votre conjoint (e) êtes invités à la 9ième Assemblée Générale Annuelle de GENMO qui sera tenue à compter de 14:00 le Jeudi 10 Mai 2018, au Théâtre Regent (50 rue King est au centre-ville de Oshawa). Vous pourrez entrer à partir de 13:00 pour échanger avec confrères, consœurs. Des rafraichissements seront servis.
Il y a un stationnement municipal au coin de King et Mary.
À l’agenda des sujets tels les résultats financiers, le nombre de membres, mise à jour sur le statut de notre régime de pension et une mise à jour sur notre action politique.
Suite à conclusion de notre recours O’Neill vs GMCL, nous pensons que les problèmes sur nos bénéfices sont derrière nous.
Par contre nous sommes concernés par le sous financement de notre régime de pension. Malgré que GMCL respecte entièrement ses contributions dictées par la loi, on n’est pas sur un sur un axe de capitalisation à 100%.
Selon nos règlements, 4 de nos Directeurs GENMO sont en réélection. Quatre de nos directeurs ont décidé de se représenter. Si vous désirez vous présenter ou suggérer quelqu’un, prière de voir le formulaire ci-joint et assurez-vous de le compléter et de le maller pour le 25 avril 2018.
Si vous ne pouvez assister et désirez voter par procuration, un bulletin de vote est joint et peut, ou être mallé ou apporté pour la réunion. Il devra être utilisé par un membre de GENMO que vous choisirez pour présenter vos choix à l’AGM. Les noms de tous les candidats seront publiés sur le site de GENMO en première page pour le 1er Mai 2018. S’il n’y a pas d’autre candidats le conseil actuel sera réélu par acclamation.
Suite aux présentations, il y aura une période de questions et réponses. Les questions peuvent être envoyées à info@genmo.ca ou GENMO, PO 82555, Oshawa, On L1G 7W7.
Merci pour votre support continu.
Votre Conseil de GENMO
Brian Rutherford Mike Powell Mike Black Denise Cay Tom Laurie Alanna Lyczba Garry Marnoch Lynn McCullough Jan O’Neil
March 04, 2018
Three years ago few people believed we could get pension protection on the federal government's radar. After all, no substantial changes followed the Nortel insolvency in 2009 despite many efforts including a well-intentioned, but fatally flawed, private members bill put forward by the NDP.
Rather than giving up we took a hard look at our strategy, tactics and message. As a result we established a strategy to narrow our focus and broaden support by working with other organizations. Our message became "extend super-priority status to the pension deficit". We knew we would face significant opposition from the finance industry and government so we initiated ways to bring pressure to bear on politicians. We took our strategy to other organizations like the Canadian Federation of Pensioners, CARP, the Canadian Labour Congress and Leadnow.
Thanks to your support and your willingness to get involved we have made significant progress. Although we’re a long way from success we have moved this issue into the public eye and captured the attention of federal politicians and the federal government. You have played a key role by contacting and meeting with politicians.
The evidence is in this excerpt from the recently announced budget:
“Protecting Canadians’ Pensions
In recent years, we have seen companies, such as Sears Canada, entering the insolvency process with substantial unfunded pension liabilities. As a result, workers and pensioners, who have paid into pension plans over their careers, are faced with unexpected financial losses that impact their retirement security.
All Canadians deserve more peace of mind when it comes to their retirement and companies must act in good faith towards their employees. At the same time, we recognize the challenges facing courts as they try to maximize recovery in bankruptcies that affect not just workers and pensioners, but also small businesses, lenders, and other creditors which are owed money. Our government is committed to finding a balanced way forward.
That’s why, over the coming months, we will be looking to obtain feedback from pensioners, workers, and companies. We will take a whole-of-government, evidence-based approach towards addressing retirement security for all Canadians.”
It is far from the commitment we would like to see, but the federal government is now clearly aware of how these insolvency and funding issues affect pensioners.
We occasionally have individuals question why they should be members of GENMO as we gained back most of our benefits and GM Canada seems to be doing well. The reality is pension security is dependent on the legislation that regulates pensions and insolvency. With your help we have made significant progress in protecting our pensions and the pensions of thousands of others. We will need your support to continue the effort.
Il y a trois ans, peu croyaient en nos chances de mettre à l’agenda du gouvernement fédéral la protection de nos fonds de pension. Après tout, aucun changement significatif ne s’est produit suite aux déboires de Nortel en 2009 malgré des efforts substantiels, incluant un projet de loi présenté par le NPD et qui a été rejeté.
Ne voulant pas abandonner, nous avons repassé notre stratégie, nos outils et notre message. Ce qui a résulté en une stratégie mieux ciblée tout en se joignant à d’autres organisations qui ont le même but. Notre message est devenu de rendre le statut des déficits de pension en une super-priorité.
Sachant que l’opposition serait très forte de la part des organismes financiers et des gouvernements, nous avons orienté notre effort sur les politiciens. Nous avons porté notre cause vers d’autres organisations comme la Fédération Canadienne des Pensionnés, CARP, LEADNOW et le Congrès du Travail du Canada.
Votre appui et à votre implication nous ont permis de progresser de façon significative. Même si nous sommes encore loin de notre but, nous avons porté notre cause devant l’opinion publique et avons attirer l’attention des Députés Fédéraux et du Gouvernement Canadien. Vous avez joué un rôle clé en appelant et en rencontrant vos députés respectifs.
La preuve est évidente à la lecture du dernier budget.
Protégeons les Pensions des Canadiens
Au cours des dernières années, nous avons vu des compagnies, tels Sears Canada, qui entrent sous le mode de protection des créanciers avec un déficit dans leur fond de pension. Il en résulte que travailleurs et pensionnés, qui ont participé au régime de pension durant toute leur carrière, font face à des pertes financières importantes qui nuisent à la sécurité de leur régime de pension.
Tous les Canadiens ont droit à une tranquillité d’esprit lors de leur retraite et les compagnies doivent agir de bonne foi face à ces derniers. De plus nous reconnaissons les défis rencontrés devant les tribunaux pour les compagnies qui essaient de se restructurer en prenant en considération non seulement les travailleurs et les pensionnés, mais aussi les petits entrepreneurs, les créanciers et autres envers qui des dettes sont encourues. Notre Gouvernement veut vraiment adresser cette situation dans un futur rapproché.
C’est pourquoi, dans les mois qui viennent, nous voulons recevoir du feedback des pensionnés, travailleurs et des compagnies. Nous prendrons une approche entière et basée sur des faits afin d’assurer la sécurité des tous les Canadiens lors de leur pension.
Ceci est encore loin de l’implication que nous espérons recevoir, mais le Gouvernement est clairement au courant de la situation et des effets des déficits et de la sous-capitalisation sur les pensionnés.
À l’occasion certains individus questionnent le pourquoi d’être membres de GENMO alors que nous avons retrouvé la majorité de nos bénéfices et que GM Canada semble bien aller. La réalité est que la sécurité des régimes de pension est basée sur les lois qui régissent les régimes de pension et la loi sur les faillites. Grace à vous nous avons réalisé des progrès marqués pour protéger notre régime de pension et les régimes d’autres milliers de pensionnés. Nous aurons encore besoin de votre appui pour atteindre notre but.
January 01, 2018
Pension Protection in CCAA and BIA
The Canadian Federation of Pensioners has analyzed four options to protect pensions in insolvency (Companies' Creditors Arrangement Act and Bankruptcy and Insolvency Act). Our position is that extending super-priority status to the pension deficit is the best solution in terms of effect and feasibility.
An outline of the four and a very brief explanation is below.
Deemed Trust
Concept: Change the CCAA and BIA to make pension deficit a deemed trust.
Impact: Pension deficit would become the highest priority in insolvency ensuring pensions were fully funded.
Issues: This option would be very disruptive to the insolvency process and likely lead to increased commercial lending rates because it puts pension deficits ahead of all other creditors including the Debtor in Possession (DIP) lender. The DIP lender is the source of funds that allows a company to operate during the restructuring process.
Should pension deficits be granted deemed trust status, DIP lenders would restrict lending and likely result in more bankruptcies and fewer restructurings. Deemed trust needs to be considered because in the Indalex case the Supreme Court of Canada was very careful to rule specifically on Indalex, keeping the deemed trust option open.
A national pension insurance program
Concept: Establish a national pension insurance program funded by premiums charged to companies with defined benefit pensions.
Impact: The insurance program would cover any pension loss arising from insolvency.
Issues: An excellent solution that would be very difficult to implement.
The federal and provincial regulators would have to standardize pension regulations. For example today regulators have different definitions of fully funded. A national plan would likely be seen by the provinces as usurping their regulatory responsibility.
A new agency would have to be created to operate the insurance program. As this option would require the government to spending, it is unlikely to be able to be proposed as a private members bill, it would have to be government policy.
Restrict executive pay and dividends if the pension is not fully funded
Concept: Change legislation to restrict company's ability to increase executive compensation and pay dividends unless the pension is fully funded.
Impact: Company's would be incented to fully fund their pensions.
Issues: A good solution that would be very difficult to implement. Numerous federal and provincial regulations would have to be changed. Business would likely see this as an intrusion, too much government involvement in private business.
A new agency would have to be created to ensure compliance. As this option would require the government to spending, it is unlikely to be able to be proposed as a private members bill, it would have to be government policy.
Extend super-priority to the unfunded pension liability
Concept: Change the CCAA and BIA to make extend super-priority to pension deficits. Current year normal pension contribution is already super-priority (Wage Earner Protection Program 2008/9).
Impact: Super-priority is a very high priority but lower than deemed trust. In the vast majority of insolvencies, the pension deficit would be settled, funded to 100% solvency. It is possible that there would not be enough assets to settle the super-priority items. This puts pension deficits equal to DIP funding that is normally granted super-priority status by the judge.
Issues: A good solution, easy to implement and generally opposed by the finance community.
The finance community has written papers based on a theory that elevating the priority of pension deficits in insolvency would lead to significant increases in general commercial lending rates (unsecured lenders would demand much higher rates, claims of an 80 basis point increase) and significant restrictions on DIP funding availability (resulting in more bankruptcies). We believe this theory traces back to a study done by Phillips, Hager & North in the aftermath of Nortel. It is, however, a theory that history has proven wrong.
Since that paper was written two events have occurred that should have triggered the results the theory predicted.
The Wage Earner Protection Program was implemented in 2008/9. It granted super-priority status to pension current year normal contribution and other employee compensation. It did not trigger the forecast results.
A better example is Indalex. On April 7, 2011 the Ontario Court of Appeal ruled that pensions were a deemed trust in their Indalex decision. At that point the legal precedence in Canada (at least Ontario) became pension deficits were deemed trusts, to be settled first in restructuring/bankruptcy, ahead of the super-priority we are seeking. That ruling stood until the Supreme Court of Canada overruled the Ontario court on February 1, 2013. For almost two years legal precedence was that pension deficits were deemed trusts. The financial industry didn't collapse, in fact there wasn't a ripple.
The fact that the Supreme Court of Canada, while rejecting the Indalex deemed trust argument, was very careful to preserve the possibility of a deemed trust argument also should trigger the forecast results and did not.
CFP Position on Pensions
Sears has ignited a firestorm of interest in the lack of pension security. Sears is not unique. Nortel, Wabush Mines, Indalex, Grant Forest products, and many others came before Sears. They all left pensioners with reduced pensions and created hardships that put taxpayers on the hook for increases in government social service costs.
Sears stands out because they were far more effective at paying owners billions, executives millions while leaving an underfunded pension behind. Worse still, Sears provides a great roadmap for other companies to follow. Unless the federal government takes action, it is only a matter of time until the next Sears.
Make no mistake. What these companies have done is legal. Companies are focussed on maximizing financial returns to the benefit of owners and executives. No one should be surprised, then, that companies take full advantage of existing legislation to meet their goals.
If we want different results, we need different legislation.
Pensions are deferred compensation. They are earned long before a company begins the spiral to restructuring or bankruptcy. Pensions are a commitment made by the company and regulated by governments.
The Canadian Federation of Pensioners position is that super-priority status should be extended to the pension deficit, placing pensions near the top for settlement under both the CCAA and the BIA. The Conservative government, obviously seeing an injustice, passed the Wage Earner Protection Program (WEPP) that granted super-priority to the current year (the year CCAA or BIA is filed) normal pension payments in 2008/9. Extending it to the entire pension is the logical next step.
Super-priority is not a perfect solution; in rare cases companies could enter insolvency without sufficient assets to fully fund the pension. It is, however, a good solution providing protection for the vast majority of pensioners, providing that protection for Canadians across the country and, as it follows WEPP, a reasonably straightforward change.
December 21, 2017
Sears should not be the Canadian Press 2017 Business News Story of the Year.
The failure of Sears has ignited a firestorm of concern across Canada, largely based on the cavalier and cruel treatment of employees and pensioners. As a result more and more people are questioning current pension protection under Canadian law and are recognizing that legislative change is required.
Sears should not be the Canadian Press 2017 Business News Story of the Year because Sears is not unique. Nortel, Wabush Mines, Indalex, Grant Forest products, and many others came before Sears. They all left pensioners with reduced pensions and created hardships that put taxpayers on the hook for increases in government social services costs.
Sears stands out because they were far more effective at paying owners billions and executives millions, while leaving an underfunded pension behind. Worse still, Sears provides a great roadmap for other companies to follow. Unless the federal government takes action, it is only a matter of time until the next Sears occurs.
Make no mistake. What these companies have done is legal. Companies are focussed on maximizing financial returns to the benefit of owners; it is their fiduciary responsibility. No one should be surprised, then, that companies take full advantage of existing legislation to meet their goals.
Governments have known of the weakness in the legislation for years, and have not addressed it. There are solutions but governments have not adopted any. Had governments made the changes after Nortel, Sears’ pensioners would not have been left behind, Sears would not have been the Canadian Press 2017 Business News Story of the Year.
Both the Bloc Québécois and the NDP have introduced private members bills. Journalists, not often on the same side of any issue, and a broad spectrum of media from the right through to the left have published articles, opinion pieces and editorials in support of legislative change to protect pensions.
Despite these broadly held concerns the Federal government remains largely silent. Their current position on this issue is woefully inadequate. They have declared that the issue is complicated, and are open to looking at proposals, but so far have taken no substantive action. It appears the government has no solution other than to direct people to taxpayer funded services. The office of the Minister responsible, Minister Navdeep Bains, has stated only that they connect Sears employees with government services.
If we want different results, we need different legislation.
In 2008, the Conservative government enacted the Wage Earners Protection Program, which granted super-priority status to current year normal pension contributions, joining other super-priority obligations including wages and commissions earned and not paid. This was excellent legislation; it just didn’t go far enough.
Pensions are deferred wages; monies earned but not paid. They should be protected in full.
The Canadian Federation of Pensioners, CARP and many others believe the best solution at this time is to extend super-priority status to the entire pension. The two private members bills introduced are built on this concept.
Super-priority moves pensioners from near the back of the line to near the front. It keeps the financial responsibility for the pension commitment where it belongs, with the commercial interests of the company. Not the taxpayer.
Silence from the federal government signals their acceptance of the status quo. Waiting for the next Sears.
That is unacceptable.
Michael Powell
Incoming President
Canadian Federation of Pensioners
December 19, 2017
GENMO 2017 End of Year Message
We should all try to forget the terrible weather we had this summer and remember the glorious fall weather. Whether you head south for the winter or simply bundle up, embrace the weather.
The Province of Ontario recently passed bill 177. Included in this bill are changes to the Pension Benefits Act (PBA) that will allow companies to fund their pension obligations at 85% instead of 100%. Most pensions are currently funded at 85%. As the PBA has no negative consequences for underfunding pensions, we fear that the new norm could be funding 85% of the 85%.
The new funding rule is a $1.5 Billion gift to the companies. All risk is on the pensioner. As a carrot for the pensioners, the Pension Benefit Guarantee Fund (PBGF) will increase from a maximum of $1,000 to $1,500. Not only is this inadequate, General Motors retirees will NEVER be eligible to collect due to PBA Reg. 321-09 which was part of the 2009 bail out agreement.
On a positive note, GENMO’s Mike Powell has been elected as the new President of the Canadian Federation of Pensioners (CFP) and will remain as Vice President of GENMO. Mike has nurtured a positive relationship with CARP which is now aiding us in reforming the Bankruptcy Insolvency Act and CCAA. As the SEARS retirees have become the new pension disaster poster child, Mike and CARP are very active politically and with the media to give pension deficits “super priority” in bankruptcy. The struggle continues.
The GENMO executive wishes all members a very merry Christmas and a Happy New Year. Don’t forget your 2018 membership renewal. Thank you if you have already paid your membership fee. We can’t protect your pension without your support.
GENMO 2017 message de fin d'année
Nous devrions tous oublier la mauvaise température de cet été et nous souvenir du bel automne.Que vous passiez l'hiver dans le sud ou restez au chaud ici profitez de la température.
Récemment le gouvernement de l'Ontario a a passé le projet de loi 177. Ce projet comprend des changements sur la loi des pensions et bénéfice qui permettent aux corporations de capitaliser à 85 % seulement le régime de pension de leurs employés. Nous craignons que cette nouvelle norme finirait par capitaliser 85 % du 85 %.
C'est comme faire un cadeau de $1.5 milliard aux compagnies. En échange les retraités reçoivent une carotte pour que le fond de garantie passe d'un maximum de $1000 dollars a $1500 dollars. Non seulement est-ce insuffisant mais les retraités de Général Motors ne seront jamais éligibles car le règlement 321-09 qui faisait parti du sauvetage en 2009 les exclus.
Passons maintenant à une note plus positive, Mike Powell a été élu comme nouveau président de la Fédération Canadienne des Pensionnés et continuera comme vice-président chez GENMO. Mike a bâti une bonne relation avec CARP qui est maintenant à travailler à réformer la loi sur les faillites et la loi sur l'entente avec les créanciers. Depuis que les retraités de Sears Canada sont devenus les victimes des régimes de retraite Mike et l'Association canadienne des retraités sont très actifs politiquement et utilisent les médias afin d'établir une super priorité pour les déficit des régimes de pension lors de faillite. Le combat continue.
Le Conseil exécutif de GENMO veut souhaiter à tous ses membres un joyeux noël et et une bonne année. N'oubliez pas de renouveler votre cotisation comme membre pour 2018. Mais si cela est déjà fait, un gros MERCI. Nous ne pouvons protéger votre pension sans votre aide.
Brian Rutherford Denise Cay Jan O’Neill Alanna Lyzcba Jo Ann Stuart Mike Black Garry Marnoch Mike Powell Lynn McCullough
BY BOB FARMER, Special to the Toronto Sun, December 6, 2017
When employers go bankrupt, their current day misfortune can effectively reach back in time and undermine the accumulated pensions of their past employees, rocking the foundation built during working years to ensure financial stability in retirement.
If a business goes under while its pension plan is underfunded, pensioners end up losing part of the defined benefit pensions they worked a lifetime to obtain. This scenario has played out many times, with Sears Canada’s employees being the latest victims. It isn’t fair, and the situation is about to get worse.
Today, of the $246 billion in total liabilities for Ontario-regulated private sector defined benefit pension plans, $54 billion are unfunded. This week in Queen’s Park, the government is preparing to relax the rules for funding pension plans even further, allowing an additional $33 billion of liabilities to be unfunded, which will lead to more — and deeper — plan underfunding.
The idea is to help Ontario employers save by decreasing their obligation to fund their pension plans. But this saving is at the expense of the security of Ontario pensioners.
There’s a mechanism in place called the “Pension Benefits Guarantee Fund” (PBGF), designed to at least partially protect pensioners whose plans are wound up when underfunded. It chips in enough to ensure that the first $1,000 per month that is owed to a pensioner gets paid. Any pensioner entitled to more than that? Out of luck.
The $1,000 limit, put in place 37 years ago, when the PBGF was initially established, is proposed to increase to $1,500. Well and good, if a little late: Considering the inflation that took place in the 1980s, an increase to $1,500 should have kicked in around 30 years ago. Better late than never, and of course any increase is helpful to pensioners.
However, before back slaps and high fives are exchanged, it is important to remember that, even at $1,500 per month, many Ontario pensioners are left exposed to pension losses. In addition, indexation provisions – which can be 25% of the value of a pension – are lost. That is not the commitment that was made to these pensioners.
There is a solution that would ensure that Ontarians’ pension security is not made more precarious by the proposed changes to pension funding rules: Cover all Ontarians in this situation, without exception, by not limiting the PBGF.
But, wouldn’t this be very expensive? Who would pay? Reasonable questions. Since its implementation, employers with defined benefit plans have paid fees to support the PBGF. The increase in fees needed to remove limits from the PBGF is only a small fraction of the savings that these same employers will enjoy when the government relaxes the pension funding requirements.
The Canadian Federation of Pensioners (CFP) estimates that fraction to be approximately 5%. Consequently, the net effect of the proposed pension funding changes and elimination of the PBGF cap combined would still be a substantial savings to employers — conservatively estimated by the CFP to be well over a billion dollars a year.
Any relaxation of pension funding rules should be accompanied by this simple change to the PBGF. It’s a win-win solution for employers and pensioners: Employers will realize substantial savings; pensioners will finally be assured that the pension commitments made to them will be honoured and their pensions truly protected.
This simple fix comes at no net cost to employers, and no cost at all to taxpayers. The time to implement it is now, as part of the current round of changes. Both opposition parties support it. The ball is in the government’s court.
— Bob Farmer is president of the Canadian Federation of Pensioners, an association of pensioner organizations dedicated to enhancing the security of defined benefit pension plans. The member organizations of CFP represent the pension interests of 250,000 plan members across Canada.
Par Bob Farmer, Spécial au Toronto Sun, 6 Décembre 2017
Quand des employeurs tombent en faillite, leur malheur présent peut reculer dans le temps et affecter les années actives pour assurer une stabilité à la retraite.
Si une compagnie faillit lorsque son régime de pension est sous-financé, les retraités perdent une partie de leur régime garanti de pension pour lequel ils ont travaillé toute leur carrière. Ce scénario se produit souvent, les employés de Sears Canada étant les dernières victimes. Ce n’est pas acceptable et la situation risque d’empirer.
Présentement, parmi les $246 milliards de responsabilités des Fonds de pension à prestations définies des régimes privés basés en Ontario, il y a un manque de capitalisation de $54 milliards, Cette semaine à Queen’sPark, le Gouvernement se prépare à adoucir encore les règles, permettant $33 milliards de sous-capitalisation additionnelle, qui créera une sous-capitalisation plus importante et profonde des régimes de pension.
L’Idée est d’aider les employeurs de l’Ontario en diminuant leur responsabilité de financement de leur régime de pension. Mais cette économie se fait en diminuant la sécurité des retraités de l’Ontario.
Il existe un mécanisme appelé Le Fond de Garanti des Bénéfices de Pension (PBGF) destiné à protéger en partie les retraités dont le fond est fixé lorsque sous-capitalisé. Ça ajoute assez pour s’assurer que le retraité reçoive au moins $1000 de pension. Aucune chance pour un retraité qui aurait droit à plus.
La limite de $1000, établie il y a 37 ans, quand le PBGF avait été créé, pourrait être augmentée à $1500. Bien, mais un peu tard : considérant que l’inflation des années 1980, une augmentation aurait dû avoir lieu il y a 30 ans. Mieux vaut tard que jamais et toute augmentation aide les retraités.
Mais avant de se féliciter, il serait bon de réaliser que même avec $1,500 par mois, beaucoup de retraités de l’Ontario sont exposés à des pertes de revenu de pension. En plus, les calculs d’indexation - qui peuvent être 25% de la valeur de la pension – sont perdus. Ce n’est pas la promesse qui avait été faite à ces retraités.
Il existe une solution qui empêcherait que la sécurité de pension des Ontariens ne devienne plus précaire par les changements proposés aux règles de financement des régimes de pension : Protégez tous les Ontariens dans cette situation, sans exception, en ne limitant pas le PBGF.
Mais, serait-ce trop dispendieux? Qui paierait? Questions raisonnables. Depuis sa création, les employés avec régimes de pension définis ont payé un montant pour supporter le PBGF. L’augmentation des frais pour changer les limites du PBGF n’est qu’une infime fraction des économies dont bénéficieront ces mêmes employeurs lorsque le gouvernement réduira les règles de financement des régimes de pension.
La Fédération Canadienne des Pensionnés (FCP) estime à 5% cette fraction. Par conséquence, l’effet final des changements au financement et l’élimination de la limite du PBGF combinée serait encore une économie substantielle pour les employeurs – estimée conservatrice par la FCP de plus de 1 milliard $ par an.
Tout assouplissement des règles sur les régimes de pension devrait comprendre ce simple changement au PBGF. Ce serait une solution gagnante pour les employeurs et les retraités. Les employeurs réaliseraient des économies substantielles; les retraités seraient assurés que les promesses qui leur ont été faites seraient tenues et leur régime de pension vraiment protégé.
Cette solution simple ne coûterait presque rien aux employeurs et rien du tout aux payeurs de taxe. Les deux partis d’opposition supportent l’idée. La balle est dans le jeu du Gouvernement.
--- Bob Farmer est Président de la Fédération Canadienne des Pensionnés, une association d’organismes de retraités qui ont pour but la sécurité des fonds de pension à rente définie. Les organismes membres de la FCP représente les intérêts de 250,000 membres au Canada.
GM Canada Salaried Pension Plan Actuarial Valuation - December 31, 2016
GM Canada completed an actuarial valuation of our pension plan for December 31, 2016 even though a previous one was done for September 1, 2016. No new AV was needed until September, 2017 but there were several reasons for doing so. One reason was to make the report for the end of a calendar year as the plan's various assets are usually reported quarterly. The September 1st date made calculations difficult. The other reason was to take advantage of increasing interest rates which would allow the discount rate to move upward, thus lowering the pension plan liability.
Our plan's windup ratio increased from 86.1% to 89.9% mainly because the liabilities decreased by $132M in this four month period. The discount rate assumption had been increased by .5% by the actuaries. The assets decreased by $63M. The hourly plan windup ratio increased by 4.0% to 84.3% and liabilities decreased by $791M. The overall net decrease in liabilities was $923M.
GM Canada's minimum payment in 2017 is $85M for our plan and $476M for the hourly plan for a total of $561M. If the September 1, 2016 AV had been used their annual payment would have been $615M.
The return on assets, net of all expenses, was 3.6% per annum for this period.
There is pending Ontario legislation which would allow a company to fund their pension plans at an 85% solvency level. In a previous email we suggested that GM would not be eligible for this funding relief due to regulation 321-09 of the Bailout Agreement in 2009, but we were wrong; GM would be allowed to fund at an 85% solvency level similar to all defined benefit plan sponsors in Ontario. Since our plan is above that amount on a solvency basis (90.0%), GM would have a funding holiday. This legislation definitely favours the companies but the carrot that the government dangled in front of the DB pension plan members is that the Pension Benefit Guarantee Fund would be increased to $1500 from $1000. GM's salaried and hourly pension plan members are not eligible though as we unjustly excluded. Because the regulation lapsed in 2014 GENMO is endeavouring to have the provincial government include us again. We will keep you aware of this legislation's progress.
Valeur Actuarielle du Fond de Pension des Employés Salariés de GM Canada – 31 Décembre 2016
GM Canada a procédé à une évaluation actuarielle de notre régime de pension au 31 Décembre 2016, même si ils en avaient faite une au 1 Septembre, 2016. Aucune raison d'en faire une avant Septembre 2017, sauf pour les raisons suivantes. Une raison étant d'en avoir une qui coïnciderait avec la fin d'année étant donné que les résultats des avoirs du plan sont rapportés sur une base trimestrielle. La date du 1er septembre rendait cela difficile L'autre raison était de prendre avantage de la hausse des taux d'intérêt qui accroitrait la valeur des placements et diminuerait la dette du fond de pension.
Ainsi l'équité de notre fond de pension a augmenté de 86.1% à 89.9% car le déficit du fond a baissé de $132M durant ce quatrième quart. Les actuaires ont supposé que les taux augmenteraient de .5%. Les actifs diminués de $63M .Le plan des employés à l'heure a augmenté de 4%, à 84.3% et le déficit a diminué de $791M. La diminution totale du manque est de $923M.
Le paiement minimum pour 2017 est de $85M pour notre régime et de $476M pour les employés à l'heure, pour un total de $561M. Si les chiffres de septembre avaient été utilisés le paiement annuel total aurait été de $615M.
Le retour sur actif , après toutes les dépenses, a été de 3.6% annuel pour cette période.
L'Ontario est à travailler sur un projet de loi visant à permettre aux compagnies de capitaliser leurs régime de pension à 85%. Dans un email précédent nous avons suggéré que GM ne devrait pas être éligible à ce congé de capitalisation par le paragraphe 321-09 de l'entente pour sauver GM signée en 2009, mais nous avions tort; GM aurait droit de financer à 85% la solvabilité de son fond comme pour tous les autres plans en Ontario. Comme notre régime dépasse le niveau de solvabilité (90%), GM aurait un congé de cotisation. Ce projet de loi favorise définitivement les compagnies pendant que le gouvernement présente une carotte devant les membres du DB pension à l'effet que le Fond de Garanti des Bénéfices de Pension passerait de $1000 à $1500. Les pensionnés salariés et horaires de GM ne peuvent par contre pas en bénéficier en étant exclus injustement. En 2014 nous avons été exclus temporairement de cette mesure, GENMO travaille auprès du gouvernement à ce que nous soyons de nouveau inclus. Nous vous tiendrons au courant de l'évolution de cette legislation.
091717
Mike Powell interview on Zoomer Radio AM740
To: GENMO Members
Subject: Mike Powell interview on Zoomer Radio AM740
Another example of GENMO getting the message out.
Mike and Wanda Morris, VP Advocacy for CARP, were asked to talk about pension security on the September 13 "Fight Back with Libby Znaimer" show. The link to that segment is below.
Later that day, Mike participated in a panel discussion on Zoomer TV show "The Zoomer" on the same subject. It will air in the next few weeks. We will send out a notice when it is scheduled.
GENMO Executive
Click Here
Aux Membres de GENMO
Sujet: Entrevue de Mike Powell sur Zoomer Radio AM 740
Un autre exemple de GENMO qui fait passer son message
Mike et Wanda Morris, VP représentant CARP, ont été invitésle 13 septembre pour parler de la Protection des Pensions à l’émission Fight Back with Libby Znainer. Le lien pour la voir est plus haut.
Plus tard ce jour-là, Mike a aussi participé sur un panel à Zoomer TV appelé The ZOOMER portant sur le même sujet. Ce sera diffusé dans les semaines à venir. Nous vous aviserons de la date.
Votre Exécutif GENMO
083117
Petition to the House of Commons
Dear GENMO member:
In the wake of recent bankruptcy protection and restructuring issues affecting companies such as Stelco, Sears and others, it has become increasingly obvious that retirees need to be protected. As we’ve mentioned many times previously retirees cannot recover from pension reductions as can financial institutions and suppliers and most other creditors of companies. GENMO’s focus has been on changes to the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA) to help all retirees in Canada, including ourselves.
We have another opportunity to make the federal government aware of the need to make changes. A petition to the House of Commons which ‘calls upon the Government of Canada to reform the Companies’ Creditors Arrangement Act so that supplemental pension plans are treated as priority creditors in the event of a corporate bankruptcy or restructuring’ has been created. The government must respond within 45 days. There is nothing binding in the petition but it does create greater awareness of the issues by those empowered to make changes.
Please respond to the petition by November 18, 2017 by using the following link:
https://petitions.ourcommons.ca/en/Petition/Details?Petition=e-1165
Your GENMO Executive
083117
Pétition pour la Chambre des Communes
Cher Membre de GENMO :
En réaction aux différents cas de restructuration et de protection sous la loi des faillites qui ont eu lieu pour des compagnies comme Stelco, Sears et autres, c’est évident que les retraités doivent être protégés. Comme nous l’avons dit maintes fois, un retraité n’a pas les outils pour combattre des réductions à son régime de pension, au contraire des institutions financières, des fournisseurs et de la plupart des créanciers. GENMO croit qu’il faut se concentrer à amender la loi sur les faillites et la loi sur les arrangements avec les créanciers, afin de protéger les retraités au Canada, incluant nous-mêmes.
Voici une autre occasion pour rendre le gouvernement fédéral conscient du bien-fondé de procéder à des changements. Une pétition adressée à la Chambre des Communes et qui demande au Gouvernement du Canada de procéder à une réforme de la loi sur les arrangements avec les créanciers, afin que plus de régimes de pension soient traités comme créanciers prioritaires advenant la faillite ou la restructuration d’une compagnie. Le Gouvernent doit nous répondre dans 45 jours. Il n’y a pas d’obligation dans une pétition autre que de rendre conscients ceux qui ont le pouvoir de procéder aux changements.
Nous aimerions que vous signiez la pétition avant le 18 Novembre 2017 en utilisant le lien ci-joint :
https://petitions.ourcommons.ca/en/Petition/Details?Petition=e-1165
Votre Conseil de GENMO
073117
Mike Powell’s Letter to Editor in response to Globe and Mail Article on Sears Pension Plan
There are a few points in this article that need clarification. It is all too often that editing to save space leads to a lack of clarity.
First is the statement that Sears was injecting "make-up payments". This makes it sound as if Sears was on its own initiative trying to make up the pension shortfall. The Ontario Pension Benefit Act (OPBA) requires companies to make up their pension deficits over time. Sears was merely making the minimum contribution legally allowed under legislation that is woefully inadequate, in Sear's case resulting in a $267 million deficit. Unfortunately there is nothing in the OPBA that requires a company fully fund their pension.
The second is referring to pensions as a "promise". The Supreme Court of Canada ruled pensions are deferred compensation. Earned every minute worked 20, 30, 50 years ago. Essentially, but not legally, a trust that the company commits to and the governments ensure. Reducing the monthly pension of a retiree is to reach back to the first day they worked and take away a little of what they earned that day and every other day. How many executives have had their past bonuses clawed back? None, in fact the executives that lead the company to insolvency get retention bonuses to stay on.
There are others, but the third is that " this is an uncommon occurrence". Nortel was mentioned but there are many others. Stelco, Indalex, Wabush Mines, Algoma Steel are but a few examples of companies who were able to compromise the future of their pensioners through bankruptcy or restructuring.
Globe and Mail Article- Sears Canada has given us reason to be thankful for inferior pension plans (Rob Carrick)
Apparently, Sears Canada can’t interest you in kitchen appliances, golf pants, tube socks, luggage or any of the other miscellaneous items found in its stores.
Now, what about defined-contribution pension plans? The struggling retailer, now under court protection from its creditors, has done a great job lately of selling people on the attributes of this second-best type of pension plan.
The best pensions are defined-benefit plans, although the Sears Canada story suggests it’s time for a rethink. If you have a DB pension, you need to find out how solid it is and adjust your retirement-savings level as required. If you’ve got a DC plan, let Sears Canada demonstrate a big advantage of this type of pension plan.
A DB plan, ideally, offers preset payments for life based on your years of service and salary level. But as Sears Canada has shown, a DB pension can only deliver in full if your employer is financially healthy enough to fund the plan properly.
With a DC plan and similar group registered-retirement savings plans, you save for retirement with contributions from your employer. On leaving the work force, it’s up to you to convert your savings into retirement income. DC plans expose you to stock-market crashes, investment fees, bad decision-making and more. Where they beat DB plans cleanly is in giving you property rights.
Keith Ambachtsheer, president of pension consultants KPA Advisory Services, says property rights in the pension world boil down to this: “Whatever you’re being promised, is it really your property? Or, is it someone making you a promise that’s uncertain.”
A DB pension, even offered by a solid entity like a government or blue-chip company, can never really be your property and a DB plan from a shaky company like Sears Canada is even more tenuous. But a DC pension, with all its drawbacks, is truly your property.
Sears Canada now offers a defined-contribution plan, but it maintains a defined-benefit plan for retirees and long-serving employees. Mr. Ambachtsheer says corporations started offering defined-benefit pension plans in the 1950s, a time of great optimism about the long-term prospects for corporate profits and investment gains. In the 1990s, companies started to realize that DB pensions were a drag on both profitability and flexibility.
Quite a few companies today, Sears Canada among them, have DB pension plans that are underfunded. This means that if the company were to be wound down, there wouldn’t be enough money in the pension to pay the full amount expected by current and future retirees.
Sears Canada has been injecting what Mr. Ambachtsheer calls “make-up payments” into its DB pension on a monthly basis. But the company’s restructuring plan calls for these payments to be made only until Sept. 30. With the Sears DB pension underfunded by roughly $267-million, this is a real concern for people who currently receive retirement benefits or expect to in the future.
The risk is that retirement benefits in the DB plan would have to be reduced from what employees have been expecting. Mr. Ambachtsheer says this is an uncommon occurrence in the DB pension world, but it has happened. Nortel Networks is one example.
Public-sector DB pensions are the safest of their kind because governments can raise taxes to meet their obligations. If you have a corporate plan, go to your HR department and ask for documentation on the plan’s funding level. Mr. Ambachtsheer said DB plans are subject to a periodic actuarial analysis. “You need to be aware of the funded status of the plan and the financial strength of the corporation behind the plan,” he said. “Those are factors people should be aware of.”
Vigilance is required with defined-contribution pensions, but in a different way. You need to ensure you have a sensible mix of low-cost investments working for you, and that you’re maxing out on matching benefits from your employer. On retirement, you must recalibrate your whole investing plan as you stop accumulating money and start spending it in the form of retirement income.
“The positive side of a DC plan is that people have clear property rights,” Mr. Ambachtsheer said. “They own units in that plan – no one can take them away.”
072417
Status of Salaried Pension Plan- September, 2016 Actuarial Valuation
Dear GENMO member:
General Motors recently provided us with information regarding the status of our pension plan. It was quite brief and showed the going concern ratio of 95.2% and the transfer (windup) ratio of 86.1% without providing much interpretation or other hard data. It was totally inadequate based on the importance of the pension for us but probably meets FSCO requirements.
The going concern ratio is if the company was to continue in perpetuity. We would be wise not to put much importance into that number as happened back in the 1990’s when the Too Big to Fail legislation was enacted. A number of companies took advantage in order to underfund the plan on a solvency basis and later failed; those retirees were quite hard hit by reduced pensions.
The windup ratio is, as mentioned, the ratio of the plan assets divided by the plan liabilities. There are several scenarios whereby the plan could be wound up. The company could decide to fully fund the plan and wind it up, but this is unlikely as both the hourly and salaried plans are underfunded by a total of $2.7B (salaried- $412M, hourly- $2,317M). Or, a company could be forced to wind it up under the provisions of CCAA where the pension plan is at the bottom of the creditor list. This does not normally work out well for the pensioners as seen on the news lately with Stelco and Sears.
At present, Ontario companies are required to fund the plans toward a 100% target but there is pending legislation to allow sponsors to fund to 85%. As we’re already above this goal, it might allow GM Canada to have a funding holiday. Although the purpose of the legislation is to provide a benefit to the companies, it hurts pensioners who have little protection within the CCAA process as it allows the funding to be significantly lower. We believe that GM Canada will be excluded because of provisions of the 2009 bailout agreement, Ontario Regulation 321-09, and will be required to fund towards 100% solvency.
In the past year our plan’s transfer ratio increased from 85.4% to 86.1%. The hourly plan is 80.3% funded, up from 78.3%. Neither plan is where we’d like it to be but both are moving in the right direction in case some calamity was to occur.
We used to believe that our pension plan would be 100% funded by 2019 as the initial regulation dictated funding requirements in 2009 for a 10 year period; in 2014 it indicated five years. But that was for the funding of the existing deficits. Each year the plan, as calculated by the actuarial valuation, has come up with new deficits which had their own five year terms. Right now there are amortization payment requirements through August, 2022 with the present value of these payments being $408M. Note that the hourly plan’s amortization payment present value is $2,129M.
GM Canada’s minimum payment to our plan from Sept 1, 2016 to Sept 1, 2017 is $103M; plus it has to pay at least $512M to the hourly plan. At a meeting last year GM executives told us that the pension plans are fully funded from auto sales in Canada. GM sold about 270,000 vehicles here in 2016; sales are up by over 20,000 for the first six months this year. The 2016 charge per vehicle just for pensions is about $2200. We don’t know which bucket pays for our benefits.
Several other interesting facts: plan assets- $2,536M (up from $2,521M), rate of return on market value of assets net of all expenses- 7.1%, number of retirees and surviving spouses- 7,059, average age- 75.6, payments to pensioners-$175.5M
Your GENMO Executive
L’État du Plan de Pension pour Salarié - Valeur Actuarielle Septembre 2016
Cher membre de GENMO :
Récemment General Motors nous a fourni une mise à jour sur notre régime de pension. C’était bref et montrait la tendance de valeur (going concern) à 95.2% et une valeur de liquidation à 86.1% sans fournir trop d’explications ni de données précises. Selon nous c’était inadéquat étant donné l’importance que nous accordons à notre pension mais ça devait être suffisant pour rencontrer les conditions de FSCO.
Le ratio de tendance future est conditionnel à ce que la compagnie continue à perpétuité. Nous voulons faire attention à ne pas attacher trop d’importance à ce chiffre comme ce fut le cas en 1990 lorsque le principe de Trop Gros pour Faillir était instauré. Un certain nombre de compagnies en ont profité pour sous-financer leur régime sur une base de solvabilité et ont fait défaut par la suite : leurs retraités ont été durement touchés avec des pensions réduites.
Le ratio de liquidation est, comme mentionné, le résultat des actifs divisés par les montants à payer. Il y a plusieurs façons de liquider un fond de pension. La compagnie pourrait décider de complètement financer le fond de pension et ensuite le cristalliser, mais c’est peu probable car le fond des employés à l’heure et celui des salariés sont sous-financés pour un total de $2.7M (salariés -$412, horaires $2.31M). Ou encore, une compagnie pourrait liquider selon les règles du CCAA où un fond de pension est au bas de la liste des créanciers. Ceci n’est vraiment pas bon pour les retraités comme on le voit pour Stelco et Sears.
Présentement, les compagnies en Ontario doivent viser à capitaliser les plans à 100%, mais il y a un projet de loi qui pourrait permettre de capitaliser à 85%. Comme nous avons déjà atteint ce niveau, ceci pourrait permettre à GM Canada d’avoir un congé de paiements. Même si le but de ce projet de loi est d’aider les compagnies, cela nuirait aux retraités qui ont peu de protection dans le processus d’entente avec les créanciers et diminuerait significativement la capitalisation de leur fond. Nous croyons que GM Canada n’y aura pas droit en raison de l’entente pour les sauver en 2009, Loi de l’Ontario 321-09, qui dit qu’ils doivent être capitalisés a 100%.
Durant la dernière année le financement de notre fond est passé de 85.4% à 86.1%. Pour les retraités à l’heure il est passé de 78.3% à 80.3%. Les deux plans ne sont pas ou on aimerait les voir, mais ça s’en va dans la bonne direction si un malheur se produisait.
Nous pensions que notre régime serait capitalisé à 100% pour 2019 selon l’entente de 2009 pour dix ans ; 2014 étant la cinquième année. Mais ceci était pour les déficits existants. Chaque année du plan, tel que calculé par évaluation actuarielle, a généré de nouveaux déficits qui avaient chacun leur terme de cinq ans. Présentement il existe de paiements d’amortissement jusqu’en 2022, paiements qui ont une valeur de $408M. Il est à noter que l’amortissement pour les employés horaires est à $2,129M.
Le paiement minimum que GM Canada doit faire dans notre régime de pension est de $103M entre le 1er septembre 2016 et 2017; ils doivent de plus payer $512M pour le plan des employés à l’heure. Lors d’une réunion l’an dernier des dirigeants de GM nous ont dit que les régimes de pension étaient complétement capitalisés grâce aux ventes de véhicules au Canada. GM a vendu ici 270,000 véhicules en 2016; les venets sont de 20,000 de plus pour le premier six mois de l’année 2017. Ce que la pension coûte par véhicule est de $2,200. Nous nous demandons avec quoi nos bénéfices sont payés.
Autres faits intéressants : actifs dans notre régime de pension $2,536M (anciennement $2,521M), taux de croissance sur la valeur au marché de7.1%, le nombre de retraités et de conjoints survivants, 7059, âge moyen de 75.6 ans, paiement aux pensionnés de $175.5M.
Votre Conseil Exécutif de GENMO
070717
STELCO : A clear and frightening example of what CCAA can mean to pensioners
We have followed the latest Stelco restructuring under the Companies' Creditors Arrangement Act (CCAA) for some time now, and have reviewed the status with you at our Annual General Meetings.
On June 19, 2017 the judge approved the settlement plan. This released the members of STEL Salaried Pensioners Organization from their non-discloser restrictions. STEL is the GENMO of Stelco and in fact were very helpful as we were establishing GENMO, and like GENMO are members of the Canadian Federation of Pensioners. Through STEL we received a copy of the new pension regulation that detail what will happen to their pension. It is Ontario Regulation 255/17 if you want to look it up.
What you will read below simply points out why super-priority for pension unfunded liabilities in CCAA and Bankruptcy and Insolvency (BIA) is essential to our pension security.
You will read in the media that the Stelco pensioners will receive 100% of their pensions; what could be wrong with that? The fact is they will initially receive 100% but it is not guaranteed forever. How could it be?
The math is pretty simple. The pensions are underfunded by $850 million. The new owner, Bedrock, negotiated the deal so they have no ongoing responsibility for the pension. Bedrock has promised to contribute $160 million over the next 15 years. In addition if Stelco's land holdings in Hamilton and Nanticoke can be sold for a profit, the pension will receive a portion, however the land is an environmental nightmare with little to no value.
Without some miraculous set of market conditions the solvency ratio of these pensions will decline. The settlement plan requires the pension be wound up when it reaches a solvency ratio of 85% of the current solvency ratio. When that happens the Stelco pensioners will receive a reduced pension; likely in the 65 - 70% range.
What this plan does is buy time to manage the bad news. Right now the story is pensioners receive 100%. Some number of years from now, when the pension reaches the threshold and is wound up, the Stelco CCAA will be old news and forgotten.
STEL was able to share other information about the Stelco CCAA that was frankly scary and included elements that surprised us.
- Stelco, through their restructuring process (from filing on September 16, 2014) was profitable. In fact as of the settlement date after paying out close to $200 million in restructuring costs, Stelco had amassed $200 million in cash. The latest reports suggest that Stelco now has $250 million in cash. So since September 2014 Stelco has made in excess of $400 million profit. Clearly, the belief that a company has to be insolvent and losing lots of money to file CCAA is incorrect.
- Stelcos salaried retirees were not recognized by the court, even though in the previous 2004 CCAA they were. This meant that the salaried retirees’ legal fees would not be covered this time (as they were in 2004). If they wanted to be represented as a unique group, the Stelco salaried retirees would have to fund their own legal fees, but they didn't have the funds. The court did group the salaried retirees with other interested parties and covered the legal costs of that group, but those other parties had different priorities. The salaried retirees’ voice was not heard. This surprised us as we were under the assumption any legitimate group would be recognized by the court and have their legal costs funded from the assets of the company. Now we know that isn't true. It is fortunate we have a healthy bank account that would allow us to fund our own legal expenses if the need arises.
The priority for GENMO and the Canadian Federation of Pensioners at the Federal level is to expand super-priority to the pension deficit as the single most effective change to improve pension security,
GENMO Executive.
070717
Stelco : Une vraie et dangereuse exemple de ce que La Loi de L’entente avec les créanciers peut faire.
Nous avons suivi le dossier de la restructuration de Stelco selon la loi d’entente avec les Créanciers (LEC) depuis un certain temps et avons fait le point lors de notre assemblée générale.
Le 19 Juin, 2017 le Juge a approuvé le plan de restructuration. Ceci a permis aux membres de STEL Organisation des pensionnés salariés de pouvoir parlé librement du sujet. Stel est à Stelco ce que GENMO est à GM, et nous ont beaucoup aidés lors de la création de GENMO e sont comme GENMO membres de la Fédération Canadienne des Retraités. Ils nous ont fourni une copie de la nouvelle façon de faire, qui montre ce qui va arriver avec leur pension. Il s’agit de la Régulation de l’Ontario 255/17 si vous désirez la consulter.
Ce que vous allez lire plus bas illustre pourquoi une super-priorité pour notre fond de pension est essentielle pour contrer les manques financiers de notre pension selon la CCAA (Loi Canadienne sur les Faillites) et le BIA.
Dans les journaux vous lirez que les retraités de Stelco recevront 100% de leur pension : tout semble en règle. En réalité ils recevront 100% au début mais ce n’est pas garanti a long-terme. Pourquoi?
Le calcul est très simple. Leur pension est sous-capitalisée de $850 millions. Le nouveau propriétaire, BEDROCK, a négocié ne pas être responsable du fond de pension. Bedrock a promis de contribuer à raison de $160 millions sur les 15 prochaines années. Aussi si les terrains de Stelco à Hamilton et à Nanticoke sont vendus à profit, une partie du montant seront attribuée au fond de pension, mais le terrain est un cauchemar environnemental qui ne vaut à peu près rien.
Sans un miracle de la conjoncture des marchés le taux de capitalisation du fond se détériorera. Le plan de de renflouement prévoit que lorsque le niveau de capitalisation est à 85% d’entreprendre sa liquidation. Quand ceci se produira les retraités auront une pension réduite à 65% ou 70% environ.
Ce que ce plan permet est d’avoir plus de temps avant d’annoncer la mauvaise nouvelle. Pour le moment les retraités reçoivent 100%. Dans quelques années quand le fond sera en trouble et qu’il sera liquidé, le plan de redressement sera une chose du passé et sera aux oubliettes.
Stel nous a aussi partagé d’autre information sur StelcoCCAA qui sont très inquiétantes et qui contenaient des éléments qui nous ont surpris.
1- Stelco, suite à leur restructuration (depuis le 16 Septembre, 2014) est profitable.
En fait en date de la restructuration après avoir payé près de $200 millions en cout de restructuration, Stelco a amassé près de $200 millions comptant. Le dernier rapport indique que Stelco a maintenant $250 en liquidité. Depuis Septembre 2014Stelco a fait plus de $400 millions en profit. Il est clair, que la croyance qu’une compagnie doit être non solvable et faire de grosses pertes pour aller sous la loi d’entente avec les créanciers est un mythe.
2- Les retraités salariés de Stelco n’ont pas été protégés par la justice, même si dans le redressement de 2004, ils l’avaient été. Ceci veut dire que les frais légaux encourus pour la défense des retraités salariés ne seraient pas reconnus, comme ce fut le cas en 2004. S’ils voulaient être représentés comme un groupe unique, les retraités salariés de Stelco devraient financer leur poursuite, mais ils n’ont pas les fonds$. La cour a regroupé les retraités salariés avec d’autres groupes semblables et a couvert les coûts de ce groupe, mais ce groupe avait d’autres priorités. La voix de ces salariés retraités n’a pas été entendue. Ceci fut une surprise pour nous, car nous avions l’impression que n’importe que groupe serait reconnu devant les tribunaux et que leurs dépenses légales seraient financées à partir des actifs de la compagnie. Nous savons maintenant que ce n’est pas le cas. Ça adonne bien que nous ayons un bon compte de banque en santé qui nous permettra de financer notre cause si ça en vient là.
La priorité de GENMO et de la Fédération Canadienne des Retraités est que les déficits de pension deviennent une super-priorité et que ce soit le changement principal pour améliorer la sécurité de notre pension.
Le Conseil de GENMO
SEARS CANADA – ANOTHER IMPENDING PENSION DISASTER
Sears Canada is another company on the brink of taking advantage of Canada's weak legislative protection for pensions.
It has been no secret that Sears Canada has been in trouble for several years and recent reports indicate the end is near.
https://www.theglobeandmail.com/report-on-business/rob-magazine/sears-canada-decline/article34121047/
As we have pointed out Canadian legislation allows, perhaps encourages, companies to restructure under the Companies' Creditors Arrangement Act (CCAA). This “act” provides no protection for pensions.
In Sears Canada's case, they were able to sell off their valuable assets such as the credit card business ($2.2 billion) and leases for their most desirable locations ($400 million).They paid special dividends to their hedge fund owner and left the pension underfunded. In 2013 Sears Canada doubled the compensation of the top five executives (to $4.8 million) and left the pension underfunded.
Under the CCAA this is all water under the bridge. Companies can and do pay their executives significant bonuses and reward shareholders with special dividends as the company spirals to failure. By the time the CCAA is filed assets are drained and the underfunded pension is left underfunded.
Pensions are reduced, often benefits are lost. Pensioners pay the price.
This is another example that highlights why “super-priority” for the unfunded pension liability in restructuring and bankruptcy is so important. This is why GENMO and the Canadian Federation of Pensioners continue to be very active with MPs and the Federal Government. This change would put the pension deficit near the top of claims to be settled and would require companies to fulfill the pension commitment they made to their employees.
We feel that the welfare of vulnerable pensioners is more important than junk bonds and hedge funds.
GMCC UNIFOR Agreement
Dear GENMO Member,
GMCC and UNIFOR have reached a contract agreement which includes a promise of new investment and product for the Oshawa Car Plant and the St. Catharines Engine/Transmission Plant.
This is good news for all GMCC hourly and salary employees and retirees.
Renewed investment in these plants helps keep your pension and benefits secure into the near future.
This is good news for the citizens of Ontario; particularly Oshawa and St. Catharines.
This is great news for GM Corp. as they will still be receiving excellent product from their world class Canadian facilities.
The agreement will have GM invest $ 400 million in Oshawa to build heavy duty trucks as an overflow plant by 2018. GM will invest $ 150 million in St. Catharines to refurbish tooling for engines and a new generation transmission.
For more details of the agreement check out the following link:
http://www.unifor.org/sites/default/files/attachments/gm_highlights_brochure_final_sept_23_2016.pdf
GMCC will still be providing funding for your pension as defined by the Pension Benefits Act. There will be no difference in the funding regulation between the hourly and salary plans; GM has five years to repay each of the plan’s annual deficits. Our concern is that together, the salary and hourly pension plans have a deficit of approximately three billion dollars.
An article in the Globe and Mail suggested that GM vowed to wipe out the pension deficit; however, David Patterson GM Canada VP Corporate and Environmental Affairs, advised that supplemental funding was not planned. He stated ‘The funding of our defined benefit plans will be on a solvency basis pursuant to Ontario law and requirements’.
GENMO will continue to work with the Canadian Federation of Pensioners to reform the federal BIA and CCAA to protect pension deficit in bankruptcy for all Canadians with private defined benefit pensions.
Our work is not yet complete.
Enjoy the great news.
Your GENMO Executive
Cher membre GENMO,
GMC et UNIFOR ont conclu une entente contractuelle qui promet un nouvel investissement et un nouveau produit pour l’usine Automobile d’Oshawa et l’usine Moteur/Transmission de St.Catharines.
Il s’agit de bonnes nouvelles pour tous les employés payés à l’heure, les salariés et les retraités.
Le nouvel investissement dans ces usines contribuera à sécuriser à court terme votre pension et vos bénéfices.
Il s’agit également d’une bonne nouvelle pour l’Ontario et particulièrement pour les citoyens d’Oshawa et de St.Catharines.
Il s’agit aussi d’un grand avantage pour GM Corp. qui continuera à être alimenté par d’excellents produits provenant de ses usines Canadiennes de renommée mondiale.
L’entente prévoit un investissement de $ 400,000,000. à Oshawa de la part de GM pour la construction, d’ici 2018, d’une usine supplémentaire pour la fabrication de camions lourds et de $150,000,000. à St.Catharines pour la remise à neuf de l’outillage pour Moteurs et Transmissions de nouvelle génération.
Pour plus de détails concernant l’entente, consultez le lien suivant :
http://www.unifor.org/sites/default/files/attachments/gm_highlights_brochure_final_ sept_23_ 2016.pdf
GMCC maintiendra ses subventions à votre fonds de pension conformément aux termes du «Pension Benefits Act.» et les mêmes règles de subventions s’appliqueront aux plans des employés salariés et de ceux payés à l’heure ; GM bénéficie de 5 ans pour rembourser chacun des déficits annuels des plans. Nous éprouvons une inquiétude reliée au fait que le déficit combiné des plans des employés salariés et de ceux payés à l’heure s’élève à environ 3 milliards de dollars.
Un article du Globe and Mail laisse entendre que GM désire essuyer le déficit des pensions : Cependant, David Patterson, vice-président Corporatif et des affaires environnementales, a mentionné qu’une subvention supplémentaire n’était pas planifiée. Il a déclaré que «La subvention de nos plans de bénéfices définis serait sujette à la solvabilité de GM conformément aux lois et exigences de l’Ontario.
GENMO va poursuivre son travail avec La Fédération Canadienne des Pensionnés pour réformer le BIA et CCAA fédéral de façon à protéger tous Canadiens détenant des plans privés de pension à bénéfices définis contre les préjudices résultant de banqueroutes.
Notre travail poursuit son cours et espérons que ces bonnes nouvelles vous réjouiront.
Votre comité exécutif GENMO
Letter to the editor Report on Business 2016_06_22
Re�A pension plan for the next generation�(June 18): Let�s not forget the pension elephant in the room: private defined-benefit pension plans. While the news media and governments debate the need for improved income security for seniors, the focus is on the �shiny new toys� � expanded TFSAs, pooled registered pension plans and enhanced CPP.
Meanwhile, the 1.5 million Canadian families who are dependent on private defined-benefit pension plans are left exposed to potential financial disaster. Companies who choose to file for restructuring or bankruptcy can and do abandon their pension obligations, resulting in significant pension reductions and loss of medical benefits for plan members.
Pensioners have little or no ability to recover these losses. They shift from contributing to the tax base to consuming tax dollars through expanded need for social services.
The pension deficit should be given superpriority in the Companies� Creditors Arrangement Act and the Bankruptcy and Insolvency Act. Owed wages and current pension obligations are superpriorities, the pension deficit is not. This is despite the fact the Supreme Court of Canada in IBM Canada Ltd. v. Waterman ruled that pensions are deferred compensation, not a benefit.
Private defined pension plans need an effective legislative backstop that ensures pensioners receive the pension their employers committed to. A backstop that doesn�t require any public funds is the financial responsibility of the companies.
Mike Powell, Whitby, Ont
�
Lettre � l'�diteur de la section des affaires, le 22 Juin, 2016
Re: Un r�gime de pension pour la prochaine g�n�ration (18Juin). N'oublions pas ce�g�ant des pensions: les r�gimes priv�s ��versements garantis.
Pendant que les�m�dias d'information et que les gouvernements d�batent d'une facon d'am�liorer la s�curit� financi�re�des ain�s, la priorit� semble �tre sur les "tous nouveaux jouets"- TFSA plus g�n�reux, fonds de pension en commun et un CPP am�lior�.�
En attendant, 1,5 millions de familles Canadiennes qui sont d�pendantes de r�gimes priv�s � rente garantie demeurent vuln�rables � des d�sastres financiers. Des compagnies qui, ou font faillites, ou se restructurent, peuvent ou m�me se retirent de leur obligations face � leur fond de pension. Ce qui a pour effet de r�duire les pensions et de perdre des b�n�fices m�dicaux pour leurs retrait�s.
Les retrait�s ont peu ou pas de moyens de combler ces pertes. Ils passent de contributeurs au r�gime des taxes, � b�n�ficiaires du r�gime de taxes en utilisant les�programmes sociaux.
Les d�ficits des fonds de pension devraient devraient �tre�en priorit��selon la Loi �des Arrangements avec les Cr�anciers et aussi dans la Loi sur les Faillites. Les salaires non pay�s et les obligations des pensions sont en priorit� mais pas les d�ficits des fonds de pension. Ceci, en d�pit que la Cour Supreme du Canada a statu� que les pensions sont de la compensation report�e et non un b�n�fice dans la cause de IBM Canada Ltd. v. Waterman.
Les fonds de pension priv�s garantis ont besoin d'une l�gislation qui agit comme filet de s�curit� et qui prot�ge les pensionn�s afin qu'ils recoivent les pensions promises par leur employeur. Une clause de protection ne demande pas de mise de fonds publics et est la responsabilit� financi�re des compagnies.
Mike Powell, Whitby, Ont
�
Francais ci-inclus
Dear GENMO member:
GENMO recently received the latest Actuarial Valuation of our salaried pension plan.� This report comprehends the status of the plan as at September 1, 2015.
The plan�s assets are worth $2,597M while last year they were worth $2,457M.� The rate of return earned on the market value of assets for the past year was 10.5%.� GMCC has attempted to de-risk the plan by investing conservatively and getting involved in hedging.� The target asset allocation is 40% return-seeking assets (such as equities and real estate) and 60%fixed income (such as long term bonds).
Despite these impressive returns the plan experienced a solvency deficiency of $177M in 2015.� As per the Pension Benefits Act, GM Canada has until 2021 to repay this shortfall.
The hypothetical windup liability creates a deficit of $437M as the plan is still considerably underfunded.� The Transfer Ratio (assets/liabilities) is .85 which is improved from last year�s .82.� This would mean that if the plan were wound up our pension payments would be reduced to about 85% of what they are presently.
The total deficit of both the hourly and salaried plans is approximately $3B.�
As part of the bailout agreement, we were removed from the Pension Benefit Guarantee Fund.� This would have paid us, at the present Transfer Ratio, $150 per month.
The $4B of government funds received in the bailout by GM Canada that was used to prepay pension contributions as a Prior Year Credit Balance is gone.� Now GM Canada has to fund the entire pension contribution from current operations.� The annual pension payment for both plans now is nearly $700M which is considerably higher than the company�s previous annual payment of $200M.
We are concerned because without production in Oshawa, GM Canada may not have the revenue to support these payments.� Other companies, most recently US Steel Canada (formerly Stelco), have used CCAA regulations to seek bankruptcy protection and reorganize.� This process allows a company to become economically viable again while shedding costs.
For further data, click Additional 2015 AV Information.
We will continue to monitor all aspects of the situation and report to you as developments occur.
Your GENMO Executive
�
Cher Membre de GENMO:
Genmo vient de recevoir la valeur actuarielle du fond de pension des salari�s. Ceci �tablit la valeur du plan au 1er septembre 2015.
Le plan a une valeur en actifs de $2,597M quand elle �tait de $2,457M l�an dernier. Durant la derni�re ann�e le retour sur investissement des actifs a �t� de 10.5%. GMCC a minimis� les risques d�investissement en y allant plus conservateur et en utilisant la protection des investissements. Les investissements� en capital de risque ont �t� de 40% (en �quit�s et en biens immobiliers) et de 60% en revenu fixe (obligations � long terme).
Malgr� ces tr�s bons r�sultats il y a encore un sous-financement de $177M en 2015. Selon la loi sur les r�gimes de pension, GM Canada a jusqu�en 2021 pour combler ce creux.
La valeur hypoth�tique de la mise � niveau du plan montre un manque de $437M �tant donn� que le plan est consid�rablement sous financ�. Le niveau de transfert� (actifs/passifs) est de .85 et s�est am�lior� vs l�an dernier � .82. Ce qui veut dire que nos pensions seraient de 85% de ce qu�elles sont pr�sentement si il ya avait liquidation du fond
Le total du d�ficit du fond des salari�s et des employ�s � l�heure est d�environ $3B.
Selon l�entente pour sauver la compagnie, nous sommes exclus du Fond de Garantie des Pensions. Ceci nous aurait donn� $150 par mois selon le ratio de transfert actuel.
Le $4B d�aide gouvernementale re�u pour renflouer GM Canada qui a �t� utilis� pour payer les contributions dans notre r�gime de pension� comme Balance de Cr�dit de l�Ann�e Ant�rieure� est parti.
GM Canada est maintenant seule � payer la totalit� des contributions au fond de pension pour les op�rations en cours. Le niveau annuel des paiements des deux plans est de $700M, ce qui est beaucoup plus que les paiements ant�rieurs de $200M.
Nous sommes concern�s car sans production � Oshawa, GM Canada n�aura pas les revenus pour faire face � de tels paiements. D�autres compagnies, comme r�cemment, US Steel Canada (Stelco), ont utilis� la loi CCAA pour d�clarer faillite et se restructurer. Ce qui leur a permit de redevenir rentables en diminuant leurs co�ts.
Pour plus de d�tails, cliquez sur Additionnal AV Information.
Nous continuerons � suivre tous les aspects de ce dossier� et vous tiendrons inform�s selon l��volution de la situation.
�
L�Ex�cutif� de GENMO
�
�
Subject: Significant progress in our fight to protect your pension
Fran�ais ci-dessous
Dear GENMO member,
With our AGM coming up on May 26, 2016, and following up on our email of March 29 we have some very good news on our fight to protect pensions in the event companies choose to restructure or declare bankruptcy.
On May 12 2016, The Ontario Legislature unanimously supported a motion to call on the Government of Canada to ensure that benefits owed to pensioners be given top priority in the event that a company files for bankruptcy. The motion was put forward by Jennifer French, MPP Oshawa and NDP pension critic. More information can be found on her website�http://www.jenniferfrench.ca/mpp-frenchs-motion-to-protect-pensioners-passes-with-unanimous-support/, and her Press conference�https://www.youtube.com/watch?v=tfwKHI3h6c4.�Following is the link to the speech that Jennifer French gave in the legislature regarding pension protection. It mentions GENMO and the CFP.�https://www.youtube.com/watch?a=&feature=youtu.be&v=B3pQYjPhAEY&app=desktop
While not binding on the Federal government it is a huge step forward in support of our ongoing efforts to protect your pension.
It also provides us an opportunity to increase our efforts to meet with and influence MPs across the country. Remember we have members in 218 of 308 ridings.
We have a standard presentation to ensure our message stays consistent and can help you in your effort; including attending the meeting with you if practical.
We have already met with, or have plans to meet:
Oshawa
Celina Caesar-Chavannes, Kim Rudd, Colin Carrie, Erin O�Toole, Mark Holland, Jennifer O'Connell, Neil Ellis, Maryam Monsef, Mike Bossio
St Catharines
Dean Allison, Rob Nicholson, Vance Badawey, Chris Bittle, Scott Duvall
London
Peter Fragiskatos, Kate Young
Windsor
Tracey Ramsey, Cheryl Hardcastle, Brian Masse
Other
Navdeep Bains, Marco Mendicino, John Oliver
Thank you for your continued support
Your GENMO Executive
Brian Rutherford����� Mike Powell������������ Mike Black�������������� Denise Cay
Alanna Lyczba ������� Garry Marnoch ������� Lynn McCullough��� Al Willison
�
�
Sujet�: Gains appr�ciables dans notre d�marche pour s�curiser votre pension
Cher member GENMO
Avec notre Assembl�e G�n�rale du 26 Mai 2016, et en suivi � notre courriel du 29 Mars dernier nous avons de tr�s bonnes nouvelles dans le dossier de prot�ger nos pensions, quant� � la possibilit� que des compagnies choisissent de se restructurer ou de d�clarer faillite.
Le 12 Mai 2016, le gouvernement de l�Ontario a support� une motion qui voulait que le Gouvernement� du Canada s�assure que les b�n�fices dus aux pensionn�s aient la plus grande priorit�, dans les cas de faillite des entreprises. La motion a �t� pr�sent�e par Jennifer French, D�put�e de Oshawa et critique en mati�re de pensions au NPD. Plus de d�tails sont fournis sur son site internet ��http://www.jenniferfrench.ca/mpp-frenchs-motion-to-protect-pensioners-passes-with-unanimous-support/, et sa conf�rence de presse�https://www.youtube.com/watch?v=tfwKHI3h6c4,�Voici le lien vers le discours que Jennifer French lui a donn� � l'Assembl�e l�gislative en ce qui concerne la protection des pensions. Il mentionne GENMO et la FCR.�
https://m.youtube.com/watch?a=&feature=youtu.be&v=B3pQYjPhAEY
Malgr� que c�est sans obligation pour le Gouvernement F�d�ral, c�est un grand pas dans notre d�marche pour prot�ger notre pension.
Ca donne� aussi la chance et l�occasion pour renforcer nos efforts afin de sensibiliser tous les d�put�s � la grandeur du pays. Appelez-vous que nous avons des membres dans 218 des 308 comt�s.
Si vous �tes pr�s � rencontrer votre d�put�, faites nous le savoir de m�me qu�� votre repr�sentant local. Nous avons une pr�sentation standard afin de garder notre message int�gre et pouvons supporter votre effort: incluant d��tre pr�sents lors de la rencontre.
Nous avons rencontr� ou rencontrerons�:
Oshawa
Celina Caesar-Chavannes,Kim Rudd,Colin Carrie, Erin O�Toole, Mark Holland,Jennifer O'Connell, Neil Ellis, Maryam Monsef, Mike Bossio
St Catharines
Dean Allison, Rob Nicholson, Vance Badawey, Chris Bittle, Scott Duvall
London
Peter Fragiskatos, Kate Young
Windsor
Tracey Ramsey, Cheryl Hardcastle, Brian Masse
Autres
NavdeepBains, Marco Mendicino, John Oliver
Merci pour votre encouragement
Le Comit� Ex�cutif de GENMO
Brian Rutherford����� Mike Powell������������ Mike Black�������������� Denise Cay
Alanna Lyczba ������� Garry Marnoch ������� Lynn McCullough��� Al Willison
�
�
Subject:� Update on GENMO activities/ Mise � jour des activit�s de GENMO
Fran�ais ci-dessous
Dear GENMO member,
We wanted to update you on GENMOs activities in the past few months and again thank you for your continued support.
The security of our pension is our primary focus.� We are part of the 1.5 million Canadian families that depend on their private defined benefit pension for their income security.� Security at risk due to weak Provincial and Federal legislation.
With the recent Federal election we have been concentrating on meeting with the new, generally Liberal, MPs.
To date our meetings with the new Liberal MPs have been very encouraging. So far they have all been receptive to our message and supportive.� We have reviewed our concerns with, and changes we would like to see in the Corporate Creditors Arrangement Act (CCAA) and Bankruptcy and Insolvency Act (BIA).
To refresh your memory the two acts are quite different and require unique changes.
We have already made the case that pensions should be protected in CCAA or BIA actions.� Pensions are accepted as deferred income.� Unlike all other stakeholders of a company and unlike their own personal investments, pension plan members have no ability to manage the risk associated with their pension; their income security. Close to 80% of pensions regulated Federally and in Ontario are underfunded. Plan members only protection is current legislation.
The BIA is a very structured process. The change required is to modify the priority of settlement to improve the standing of pension deficits. Most provinces have Deemed Trust provisions.� A deemed trust recognizes that companies have financial obligations and that these obligations should be addressed before settlements to other stakeholders. Unfortunately, deemed trusts are not recognized in Federal legislation. Therefore the BIA should be changed to ensure pension deficits are addressed in bankruptcy as a deemed trust would be; immediately after debtor in possession claims.
The CCAA allows the courts a great deal of flexibility. The focus of the courts is to prioritize preserving something of the company as an ongoing enterprise. On the surface this seems a noble and justified approach. However, allowing companies to ignore pension deficits is fundamentally unjust.� The CCAA should be changed to require the courts to address and resolve any pension deficits in any action as part of the Plan of Arrangement.
We have mapped our membership to the ridings they live in. This provides a list of MPs to focus our efforts on.
At a national level, GENMO members are in 218 ridings; 117 Liberal, 66 Conservative, 29 NDP and 6 BQ. ��Not surprisingly our members are primarily in two provinces; Ontario (86.8%), and Quebec (7.2%).� They are concentrated in five geographical areas. Using the GENMO membership data to extrapolate both hourly and salary retiree populations by geographical area reveals the following:
- Oshawa 46.5% of our members 22,320 total GM Canada retirees and 11 ridings.
- St Catharines 16.3% of our members 7,824 total GM Canada retirees and 7 ridings.
- Windsor 9.0% of our members 4,320 total GM Canada retirees and 4 ridings.
- London 8.4% of our members 4,032 total GM Canada retirees and 4 ridings.
We have, or are planning, to meet with these and other key MPs to continue to advocate for change.
The fact we have a large membership is invaluable in getting these meetings.
�
Thank You
�
Nous voulons vous mettre au courant de ce qui se passe chez GENMO dans les derniers mois et aussi vous remercier de votre support continuel.
La s�curit� de notre fonds de pension est notre premi�re priorit�. Nous faisons partie du 1.5 million de familles Canadiennes d�un fond de pension garanti pour la s�curit� de leur revenu. Cette s�curit� qui est risqu�e � cause de la faiblesse de nos lois provinciales et f�d�rales.
Suite � la derni�re �lection f�d�rale nous avons concentr� notre effort sur les nouveaux d�put�s, principalement les� lib�raux.
� date� les rencontres avec les nouveaux d�put�s lib�raux sont tr�s encourageantes. � date ils� ont �cout� notre message et nous supportent. Nous leur avons soumis nos pr�occupations de m�me que les changements que nous aimerions voir dans la loi (CCAA) des arrangements avec les cr�anciers et la loi (BIA) sur l�insolvabilit� et les faillites.
Pour vous rafraichir la m�moire les deux lois sont diff�rentes et n�cessitent des changements sp�cifiques.
Nous avons d�j� fait la preuve que les pensions devraient �tre mieux prot�g�es en cas de CCAA et de� BIA. Les pensions sont trait�es comme des revenus diff�r�s. Au contraire les autres parties prenantes d�une compagnie et des investissements personnels, les membres d�un fond de pension n�ont pas la possibilit� de g�rer les risques en lien avec leur fond de pension�; leur s�curit� de revenu. Environ 80% des pensions g�r�es par le F�d�ral ou l�Ontario sont sous financ�s. Le seul recours des pensionn�s est la l�gislation pr�sente.
Le BIA est un processus tr�s structur�. Il faudrait apporter le changement suivant, qui est de donner une plus forte priorit� � r�gler le sous financement des fonds. La plupart des provinces� ont� des dispositions pour les fiducies. Des dispositions pour fiducie reconnaissent� les obligations financi�res des compagnies et aussi le fait quelles doivent �tre adress�es avant de payer d�autres cr�anciers. Malheureusement ces provisions ne sont pas reconnues dans la l�gislation f�d�rale.� Ainsi il faudrait modifier la BIA (loi sur les faillites) pour s�assurer que les d�ficits des fonds de pension soient consid�r�s lors de faillite selon les dispositions des Fiducies, juste apr�s les cr�anciers� prioritaires.
Le CCAA donne � son tour une trop grande facilit� aux tribunaux. La priorit� des tribunaux est de donner avantage � pr�server la survie de la compagnie. De prime � bord, ca semble une bonne approche. Par contre de permettre aux compagnies d�ignorer les d�ficits de fonds de pension est fondamentalement injuste. Le CCAA (entente avec les cr�anciers) devrait �tre modifi� de la fa�on suivante pour que les tribunaux consid�rent et corrigent les d�ficits des fonds de pension dans les arrangements avec les cr�anciers.
Nous avons localis� nos membres selon leur circonscription �lectorale. Ceci permet de savoir quels sont les membres du parlement sur lesquels nous devons nous concentrer.
Au niveau national, les membres de GENMO sont dans 218 comt�s; 117 comt�s lib�raux, 66 conservateurs, 29 NPD et 6 BQ. La majorit� de nos membres est dans 2 provinces; Ontario (86.8%) , Qu�bec (7,2%) et concentr�s dans 5 r�gions g�ographiques. En utilisant les donn�s sur les membres de GENMO, nous s�parons les membres � l�heure et les salari�s� par r�gion g�ographique et voici ce que nous pouvons observer�:
- Oshawa 46,5% de nos membres 22320 total GM Canada retrait�s en 11 comt�s
- St Catherines 16,3% de nos membres 7,824 total GM Canada retrait�s en 7 comt�s
- Windsor 9,0% de nos membres 4,320 total GM Canada retrait�s en 4 comt�s
- London 8,4% de nos membres 4,032 total GM Canada retrait�s en 4 comt�s
�
Nous avons ou allons rencontrer ces d�put�s et aussi les plus importants membres du parlement pour continuer � faire reconna�tre nos droits.
Le fait que nous ayons autant de membres est notre grande force � faire valoir nos droits.
Merci
Le Conseil de GENMO Executive
�
�
Prescription Drug Co-Pay Amount and Green Shield Policy Change re Benefit �����Claim Coordination
1-��� Several members have complained to us at info@genmo.ca that their prescription drug co-pay was higher than the agreed amount ($2.00).� As you may be aware, the dispensing fee is covered up to $11.00 by our plan .� Shoppers Drug Mart�s fee is $11.99 so the difference is added to the co-pay amount.� We have asked that their fee be reduced to $11.00 for our retirees but have not received a response.� If the fee is higher than the normal co-pay amount, you should ask the pharmacist to have it reduced to the $2.00; one member had his co-pay eliminated entirely.� There is a great disparity in dispensing fees.� A survey in Oshawa showed: Costco $3.89 (seniors $1.89), Walmart $9.97, Loblaws $10.49, Shoppers $11.99
2-��� Green Shield Canada revised their Secondary Coordination of Benefit Calculation for Drugs policy last September.� This change would affect spouses where one has a health insurance plan which is not Green Shield.� They advised �If the drug claim was previously processed by another insurance/health benefit carrier, and the pharmacist submits the remaining amount to your GSC drug plan, GSC will reimburse the pharmacy up to the eligible amount�.� See following example:
A plan member fills a prescription at a pharmacy and the claim is submitted to the primary plan for $120,�
The primary plan pays $80
The GSC drug pricing file has an eligible price of $100 for this drug
The pharmacist submits the remaining $40 to GSC as secondary plan
GSC as secondary plan pays $20 (the difference between $100� and $80)
The excess $20 amount will no longer be reimbursed by GSC��
If this is a problem for you, it might be wise to use GSC as the primary plan and then go to your other carrier to see if it will pay the difference. � �
Your GENMO Executive � � � � � � � � � � � � � � � ��
Fran�ais ci-dessous
The following appeared in the November 3, 2015 edition of the Auto Info, a publication from the Oshawa Car Plant.
�Leadership Message from Steve Carlisle- General Motors of Canada Company
I�d like to update everyone on a minor change to our company name that will happen over the next month. I want to ensure you�re not surprised if you see it, and also let you know why it�s happening.� I also need your help with a few items.
Effective November 23rd, 2015, General Motors of Canada Limited will be changing its name to General Motors of Canada Company and will be making adjustments to its corporate ownership structure.� These changes are part of an overall alignment of General Motors� international operations to drive corporate efficiencies in this increasingly global environment.
This corporate reorganization does not materially change General Motors of Canada�s obligations, operations, business relationships or public commitments.� The change is one part of a wider General Motors international structure organization that also involves GM�s Europe and Mexico entities.� This reorganization has no impact on our optimistic outlook for our operations in Canada.
We will continue to refer to �GM Canada� as we do today; it may be referred to as �GM Canada� or �GMCC� in agreements and publications.� The GM Canada logo will remain unchanged.
The new GMCC will remain an indirect, wholly-owned subsidiary of General Motors Company.� Members of the project team will be reaching out across the organization to assist with various aspects of the name change.
Steve Carlisle
�
We will be investigating what these changes mean and how they might affect GMCC�s pension and benefit obligations for its salaried retirees.
�
Ce qui suit a paru dans le num�ro du 3 novembre 15, une parution d�Auto Info, publication de �l�usine de voitures de Oshawa.
Message du leader de General Motors of Canada Company, Steve Carlisle.
J�aimerais faire une mise�� jour mineure qui aura lieu dans le mois qui vient au sujet du nom de notre compagnie. Je veux m�assurer que vous ne serez pas surpris si vous le voyez et aussi pour� que vous sachiez ce qui se produit. J�ai aussi besoin de vous sur certains points.
En effet le 23 novembre 15, General Motors of Canada Limited s�appellera General Motors of Canada Company et fera des modifications quant � la structure de sa propri�t�. Ces changements font parti d�une mise � jour des op�rations internationales pour atteindre une efficacit� corporative dans un environnement de plus en plus global.
Cette r�organisation corporative ne change mat�riellement rien quant aux obligations, op�rations, relations d�affaires ou implications publiques de General Motors du Canada. Ce changement n�est une partie d�un plus grand changement de structure� de l�organisation internationale de General Motors qui implique aussi les entit�s de GM Europe et du Mexique. Cette r�organisation n�a pas d�impact sur les pr�visions optimistes de nos op�rations au Canada.
On va continuer de dire GM Canada comme nous le faisons pr�sentement�; on fera r�f�rence � GM Canada ou GMCC� lors de parutions ou ententes. On conserve le logo actuel sans modifications.
Le nouveau GMCC demeurera une compagnie, propri�t� � part enti�re de General Motors Company.
L��quipe de ce projet sera disponible � la grandeur de la compagnie pour assister aux al�as de ce changement de nom.
Steve Carlisle
Nous allons mener notre propre enqu�te quand � ce que ces changements peuvent entrainer quant aux obligations de la compagnie sur le r�gime de pension et b�n�fices des retrait�s salari�s.
�
Francais ci-dessous
�
Dear GENMO Member,
�
You should have received a letter from GMCL the week of August 2, 2015 titled �Pension Plan Funding Progress Report� dated June 2015. As per the regulation of the Ontario Pension Benefits Act (PBA) the plan sponsor (GMCL) must communicate the status of the plan every year if the plan is less than 85% funded on a solvency basis; as is the case with our plan.
�
The good news is that the pension is in better condition than last year. The wind up ratio has improved to 82%; however the information dated September 1, 2014 is almost one year old. A lot can happen in a year.
�
GMCL has made some funding claims and has attempted to explain �Option 3 Status and Funding�. We want to simplify the explanation.
�
In 2009 GMCL did make a $720 million prepayment into our plan using a monetary tool known as a Prior Year Credit Balance (PYCB). This was NOT a top up to the pension but rather more like a bank account that GMCL could draw on to make about 80% of their regular pension plan payments. The remaining 20% came out of GMCL revenue. The $720 PYCB did not increase funding and lead to better funding levels. It provided GM with an instrument to reduce the strain on its revenue from 2009 until the PYCB reached $0. This money (PYCB) was part of the Provincial and Federal bailout agreement.
�
GMCL points out that Option 3 was a short term modification to the Pension Benefits Act allowing companies to repay annual pension deficits over 10 years rather than 5 years.� What GMCL does not point out is that Option 3 required the company to canvas all plan members and if more than 30% did not agree, the company has to revert to the standard 5 years.� The Ontario Government and GMCL negotiated a special deal to avoid communicating with us.� The salaried plan members were never asked; GENMO would never had supported it.
�
GMCL claims that using �Option3� �leaves GMCL with more capital to use in the business�. Despite repeated attempts by GENMO to confirm allocation, to our knowledge, none of this capital is for new product in Oshawa or St Catharines.
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�We applaud GMCL for committing to make their PBA required contributions to our pension plan going forward. We are cautiously optimistic that the plan will approach full solvency. With no future product commitments in Oshawa or St Catharines, we are concerned about where GMCL will find the revenue to meet their pension commitments.
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GENMO continues to meet regularly with the pension regulator FSCO and the Ontario Finance Ministry to communicate our concerns to protect your pension and interests.
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Your GENMO Executive
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Brian Rutherford Mike Powell���������������� Mike Black��������� Denise Cay
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Alanna Lyczba���� Garry Marnoch�� Lynn McCullough�������� Al Willison
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Vous avez sans doute re�u de GMCL une lettre du 2 Ao�t 2015, Rapport du progr�s du Fond de Pension dat�e de Juin 2015. Selon les lois de des pensions de l�Ontario et le commanditaire d�un fond de pension (GMCL) doit faire un rapport annuel de son fond lorsqu�il capitalis� � moins de 85%; comme pour notre r�gime.
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La bonne nouvelle est qu�il y a eu am�lioration par rapport � l�ann�e pr�c�dente. Le ratio de solvabilit� est pass� � 82%; par contre l�information date du 1er septembre 2014. Il peut se passer beaucoup de choses en un an.
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GMCL a fait des d�clarations� sur la source des fonds et essay� d�expliquer l�option 3 �tat et capitalisation. Nous aimerions �laborer le sujet.
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En 2009 GMCL a effectu� un d�p�t dans notre plan en utilisant un outil mon�taire qui se nomme Balance de Cr�dit sur l�Ann�e Pr�c�dente, BCAP. Ceci n�est aucunement un d�p�t dans notre fond de pension mais plut�t comme un compte de banque dont on se sert pour faire environ 80% des paiements dans le r�gime. Le 20% restant est venu des revenus de la GMCL. Le BCAP de $720 n�a pas grossi la mise mais a permis de montrer une meilleure capitalisation. Ca a fourni � GMCL de r�duire la pression sur ses revenus de 2009 jusqu�� ce que le BCAP tombe � 0$. Cet argent provenait de l�aide des gouvernements, Provincial et F�d�ral.
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GMCL fiat allusion au fait que l�Option 3 �tait un changement temporaire � la loi sur les pensions, permettant aux compagnies de payer les d�ficits de pension annuels sur 10 ans au lieu de 5 ans. Ce que la GMCL n�a pas mentionn� est que selon Option 3 ils devaient consulter les b�n�ficiaires du plan et si 30% ou plus refusaient, la compagnie se devait de revenir � la p�riode de 5 ans.� Le gouvernement d'Ontario et GMCL a alors n�goci� une entente sp�ciale selon laquelle ils n�avaient pas � communiquer avec les retrait�s. Ainsi les retrait�s salari�s n�ont jamais �t� consult�s; GENMO se serait oppos�.
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Selon GMCL, utiliser l�option 3 laisse GMCL avec plus de capital � utiliser pour atteindre ses buts. Malgr� plusieurs essaies de GENMO pour confirmer l�allocation, � notre connaissance, il n�y a aucun montant qui a servi pour de nouveaux produits soit � Oshawa ou � St Catherines.
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Nous serions fiers que GMCL s�engage � faire ses contributions � notre fond de pension au BCAP dans le futur. Nous sommes mod�r�ment optimistes que le r�gime devienne compl�tement capitalis�. En plus qu�il n�y a aucune promesse de nouveaux mod�les pour Oshawa et St Catherines et nous nous demandons ou GMCL�trouvera les fonds pour payer nos pensions.
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GENMO continue � rencontrer les administrateurs des r�gimes de pension FSCO de m�me que le ministre des finances de l�Ontario pour les tenir au courant de nos inqui�tudes afin de prot�ger vos pensions de m�me que vos int�t�ts.
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Votre Conseil GENMO
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Brian Rutherford Mike Powell���������������� Mike Black��������� Denise Cay
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Alanna Lyczba���� Garry Marnoch�� Lynn McCullough�������� Al Willison
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Dear GENMO Member,
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GENMO became a non-profit corporation in January 2009. At that time we knew we would require funding for any eventualities that would require us to retain a legal firm such as SGM. Initially we asked for an annual membership fee of $25 plus $25 for initiation. As time went on and legal fees continued to increase your fee went up to $75.
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Without your financial support we never would have won our benefits lawsuit (O�Neill vs. GMCL).
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As a part of the settlement, GMCL has reimbursed GENMO for all of our legal costs pertaining to the lawsuit. We are now in a very stable financial situation for any future litigation dealing with benefits and pension issues.
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Due to our financial stability, the GENMO executive has decided to give members who have paid their 2014 membership fees a �membership fee holiday�. You will be receiving a letter in November with a self addressed return envelope. We want you to fill in and mail your 2015 registration as you do every year, but you will not have to send in any money (fees).
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New members will pay a $25 membership fee plus $25 initiation.
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Going forward, we will decide on an annual �fee� requirement that is dictated by the circumstances at that time. Remember, we will always have ongoing costs.
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A full financial accounting will be given at our next AGM in May 2015.
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Once again, thank you for all of your support.
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Your GENMO Executive
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Lynn McCullough GENMO Resignation
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Dear GENMO Member,
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Lynn McCullough, the GENMO Director of Legal and the Representative Plaintiff in the �O�Neill vs. GMCL� benefits lawsuit has resigned his position as a GENMO executive effective September 10, 2014 due to personal reasons.
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We all owe Lynn a great debt of thanks for the countless hours he spent on behalf of the 3,200 class members and the successful outcome of the lawsuit. Lynn�s efforts and strength are the main reason we were so successful.
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Lynn also was key in representing the interests of all GENMO members, including those not in the class, in both benefit and pension issues.
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Lynn will still remain as the class Representative Plaintiff.
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Mike Powell (GENMO VP) will take on Lynn�s duties as the Director of Legal.
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Please join us in wishing Lynn all the best as he gets on with his life and enjoys a healthy and happy retirement.
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Your GENMO Executive
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MONTHLY HEALTH CARE CONTRIBUTION- TAX SLIP (T4A)
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Your �monthly healthy care contribution� amount is not shown on the tax slip (T4A) from GMCL.� We attempted to have this included but GMCL claims that it cannot be done, although other auto companies itemize it.� If you require this information to use as a medical expense when preparing your income tax form please contact the GM Canada Benefits Centre at 1-877-442-4625.
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Your GENMO Executive��
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�� GENMO 2013 � THE YEAR IN REVIEW
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� This is a brief summary of the GENMO Organization�s activities and accomplishments in 2013.
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� Legal:
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� GENMO�s most significant achievement was the successful outcome of the Class Action Law Suit �Joseph Michael O�Neill and General Motors of Canada Limited.� GMCL appealed Justice Balobaba�s decision.� The date of the Appeal is June 12, 2014.
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- The Class Action law suit, was heard in The Ontario Superior Court of Justice on May 27, 28 and 29th.�
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Justice Balobaba was the presiding Judge;�
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Sack Goldblatt Mitchell LLP represented GENMO; Osler, Hoskin & Harcourt LLP represented GMCL.�
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Buses were arranged for transportation of GENMO members.
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- � In July, Justice Balobaba�s decision ruled in favour of the Plaintiff on most issues
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- � GENMO / SGM identified some issues in the judgment that were unclear and a case conference was held with Judge Balobaba for clarification.�
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- GMCL appealed the decision of Justice Balobaba. �
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GENMO cross-appealed on several issues which were found in favour of GMCL.
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In December� GMCL approached GENMO to negotiate a settlement
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�A court date of June 12th, 2014 is scheduled for the Appeal if we are unable to reach a settlement prior to that date
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� Meetings:
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� GENMO executives meet monthly, usually on the second Tuesday of the month.� Agendas and Minutes of the regular meetings and membership reports are sent to Area Representatives across Canada.
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� GENMO� Area Representatives meet with members in their geographic areas
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� The AGM was held in May at the Regent Theatre in Oshawa.�
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� The Pension Committee meets with a GMCL financial representative quarterly to review the performance of the Pension Plan
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� GENMO is a member of the Canadian Federation of Pensioners (CFP).� The CFP represents over 250,000 retirees.� Brian attends monthly meetings.
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Political Action:
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� The Political Action Committee developed a pro-active approach to increase awareness of the impact to communities should GMCL withdraw manufacturing from Canada-
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- Letter was sent to Ontario Finance Minister Sousa in June
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Brian, Mike prepared tutorials and documentation for consistency when meeting with mayors and politicians at all levels
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Met with the Mayor of Oshawa in September
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- Letter was sent to Kevin Williams requesting information regarding the underfunding of the pension planin August and response to reply in November.
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GENMO executives attended meetings with Unifor to discuss pension issues and with an administrator of the HCT in December
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GENMO executives attended meetings with the Financial Services Commission of Ontario (FSCO)
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GENMO encouraged all members to visit the Ontario Liberal Party Website and respond to their request for prioritizing issues in preparation for the upcoming election
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�Membership:
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� GENMO had 3123 members in 2013.
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� GENMO executives and Area Representative are volunteers
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- Member volunteers assist with FSCO concerns, political action, membership, legal action, communications, website� and AGM�
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�O�Neill V. GMCL COURT CASE UPDATE
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���� THE RESTORATION OF SALARIED BENEFIT AND LIFE INSURANCE LOSSES
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As you may be aware General Motors of Canada appealed the Ontario Superior Court decision of Justice Belobaba which ruled in favour of most of our issues.� We cross-appealed on the few remaining items in dispute.
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Our case will be heard in front of the Court of Appeals for Ontario on March 18, 2014 at Osgoode Hall.� In this one day proceeding three judges will hear our case.� It is expected that it will take four to six months for a decision to be released.
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A somewhat similar case, Lacey verses Weyerhaeuser, in British Columbia was decided in favour of the retiree (Lacey) by the B.C. Court of Appeal back in May, 2013.� Although Weyerhaeuser wanted to appeal this to the Supreme Court of Canada, the court recently denied their leave to appeal; consequently, the BCCA decision is final.� This could have a major influence on our case.
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P.O. Box 82555,
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August 7, 2013
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To: Mr. Kevin Williams
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President and Managing Director
General Motors of Canada
1908 Colonel Sam Drive
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Oshawa, Ontario
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cc: Mr. Jeff Rolfs
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Mr. Dave Courtney
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Mr. Williams,
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GENMO Salaried Pension Organization is a nonprofit organization that advocates on behalf of the approximate 8,000 members of General Motors of Canada Limited (GMCL) salaried pension plan.
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The specific purpose of this note is to request clarification from you about GMCL's plans to fully fund the salaried pension plan.
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Our members are very concerned that the wind up ratio of their pension plan has been deteriorating consistently, another 3% decline last year, while GMCL commits to make only the minimum contribution to the plan.� This at the same time as GM in the United States announced it was making a $900 million contribution to the US plan, even though no payment was necessary.
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GMCL has decided not to publish annual financial statements, so there is nothing in the public domain relative to GMCL's financial health.� However the following facts are in the public domain; General Motors is more profitable than ever (most profitable year ever was $7.6 billion in 2011), and that General Motors is selling more vehicles than ever, 9.2 million in 2012.
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For GMCL's performance, statements such as "We are focused on building a profitable business which has long-term viability, which is in the best interest of all of GM's stakeholders, including shareholders, employees, retirees, dealers and suppliers." indicate GM is doing well in Canada.
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My question to you is, given General Motors financial turnaround since 2009 and the backdrop of the $900 million contribution made to the US pension plan, what is your plan to fully fund the Canadian salaried pension plan?
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Brian Rutherford
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President
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GENMO Salaried Pension Organization
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�Dear GENMO Member:�
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Today, Justice Belobaba of the Ontario Superior Court of Justice found in favour of most of the members of the class action commenced against GM Canada.� The following is found on our law firm�s web site:�
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��Class Action Against GM Canada Succeeds�
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�On July 17, 2013, the Ontario Superior Court of Justice granted summary judgment in favour of 98% of class members represented by Sack Goldblatt Mitchell LLP in the matter of O�Neill v. General Motors of Canada Ltd, a class action commenced on behalf of salaried and executive retirees of General Motors of Canada Ltd. arising out of the reductions and eliminations to their post-retirement benefits over 2008-2010. �The class action was certified on consent in 2011 and the case proceeded to a motion for summary judgment on the issue of whether GMCL breached its contracts with the class members in reducing/eliminating their benefits. The court agreed with SGM that GMCL was contractually obligated to provide the promised benefits, and breached its contracts with the former salaried employees by reducing and eliminating those benefits. However, the court found that GMCL was permitted to reduce the benefits of a smaller number of executive retirees because their contracts contained different language. �The initial representative plaintiff, Joseph O�Neill, worked for GMCL for more than 40 years. Lynn McCullough, who became the representative plaintiff in 2012 after Mr. O'Neill passed away, worked for GMCL for 44 years. GMCL promised to provide the former salaried employees with post-retirement benefits, including healthcare and life insurance, in various documents provided to them over their careers. �In 1994, GMCL began including a �reservation of rights� clause in its benefits documents, which it claimed allowed it to �amend, modify, suspend or terminate any of its programs (including benefits).� Over 2008-2010, GMCL implemented a number of reductions to the post-retirement benefits, including the elimination of semi-private hospital coverage and a severe reduction in the amount of the basic group life insurance benefit. Some class members lost over $100,000 in life insurance coverage as a result of the reductions. �The court agreed with SGM that the benefits were provided to the employees as a matter of contract and as �deferred compensation� for class members� services to GMCL. The court further found that former salaried employees would reasonably expect that the benefits provided to them were secure and would continue for life, based on the promises in the booklets. In this context, the court found that the �reservation of rights� clause language was not sufficiently clear to permit GMCL to reduce the benefits after retirement, and that more explicitly language alerting employees to the possibility of reductions after retirement was required. �One third of the class retired early pursuant to early retirement agreements. The court agreed with the plaintiff that nothing in these agreements altered GMCL�s obligation to continue to provide post-retirement benefits, and found that GMCL breached the contracts of the former salaried employees when it reduced and eliminated their benefits. �With respect to the executive post-retirement benefits, the court found that the language in the benefits documents was much clearer in conveying that the benefits were not guaranteed and were subject to reduction. Accordingly, the court found that GMCL could lawfully reduce the benefits of executives after the point of retirement and had not breached its contracts with the executive class members in so doing. �The class members were represented by Steven Barrett and Christine Davies at Sack Goldblatt Mitchell LLP.� �We have not had a chance to study the decision in great detail but note Justice Belobaba felt that GMCL was entitled to reduce the CSERP benefit of executives.� Also we have to seek clarification of paragraph 105 where he concluded ��class members that have not prevailed are ..salaried retirees who continued to work after becoming eligible to retire and were working when the impunged reductions were announced��,� In paragraph 80 he wrote �I find that GMCL was not contractually entitled to reduce the health care and basic life insurance benefits after the salaried employees had retired.�� There is a timing conflict between these two paragraphs which our law firm will have to sort out. �Press here for the O�Neill v. General Motors of Canada decision or see "Class action Status". �Thank you very much for your support.� Unfortunately the fight is not over yet. �Your GENMO Executive �Brian Rutherford, Mike Powell, Jan O�Neill, JoAnn Stuart, Denise Cay, Doug McDowell, Garry Marnoch, Lynn McCullough, Alanna Lyczba
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GENMO AREA UPDATE MEETINGS �GENMO�s executives are trying their best to communicate with all members across Canada. Because of the nature of General Motors of Canada manufacturing centres, most salaried retirees are located in southern Ontario. We also have �chapters� located in Moncton, Ste Therese and in the west mainly in the Vancouver area. �Last September Lynn McCullough, Mike Powell and Garry Marnoch visited the Ste Therese membership and provided a pension and benefits lawsuit update, as well as a question and answer period. On March 20 Mike Powell visited the east coast membership in Moncton for a similar update. �In the Oshawa area Brian Rutherford gives a monthly 10 minute update at the GMCL Salaried Retiree Association meetings. �In April we will have update meetings in London on April 10 at 1:00 PM and in Windsor on April 11 at 10:00 AM. �In May we will be having the GENMO Annual General Meeting (AGM) on the 9th at 4:00 PM at the Regent Theatre in Oshawa and an update meeting in St Catharines on the 13th at 1:00 PM. �We have yet to set a date for an update meeting in the west.
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�We hope that all GENMO members in these areas are able to take advantage of the updates to your benefits and pension. Even though our economy seems to be slowly turning the corner, these are still uncertain times. We must remain vigilant.
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FEBRUARY 5, 2013 APPEAL
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GMCL�s appeal regarding the production of documents issues was successful. Justice E. Morgan accepted their argument that the minutes and financial statements were not �contractual� documents and therefore could not be included under the terms of the settlement agreement. This means that GMCL is not required to produce the minutes we have requested and it also means that we cannot rely on any of the minutes/financial statements we had included in a recent affidavit.
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However, we still feel that we have a very strong case and will move forward with our Plaintiff Factum (by�April 15) and Reply Factum (by May 15).�The court will hear our case on May 27 and 28, 2013.
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�Recent Court Hearings
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On December 20, 2012 we were in court to force GMCL to produce historical benefit plan documents and retain certain financial documents which we show in affidavits for our case.� �We believe that this information is important and relevant to our case.� Master Glustein found in favour of us.� He wrote "... I find in favour of O'Neill and order GMCL to produce corporate minutes and resolutions concerning the creation of the benefits plans at issue in the action.� Similarly, I dismiss GMCL's motion to strike the DiMartile documents."�� Also, "I dismiss GMCL's motion to strike the Financial Statements as evidence from the O'Neill affidavit."� (As you may know DiMartile is suing GMCL.)�� GMCL is appealing the judge's decision; this appeal should be heard this month or next.
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We were in court on January 16, 2013 seeking to have GMAC retirees, and several other individuals as well, included in our class action.� We were not successful as Justice Belobaba wrote "I agree with GMCL that the current class definition cannot reasonably be interpreted to include these non-GMCL retirees or GMCL retirees who retired after the end of the defined class period."� He reasoned regarding the GMAC retirees that they "entered into employment contracts with GMAC ......and not with GMCL.� They are not �retirees' of GMCL.� They have no contractual claim against GMCL."
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We will be working with GMAC retirees and other individuals who were not allowed into the class to determine the next course of action.
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CLASS ACTION SCHEDULE
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| EVENT |
COMPLETION DATE |
| Plaintiff�s Record |
August 20, 2012 |
| Defendant�s Record |
October 16, 2012 |
| Plaintiff�s Reply Record (if any) |
October 26, 2012 |
| Plaintiff�s Factum |
April 15,2013 |
| Defendant�s Factum |
May 1, 2013 |
| Reply Factum |
May 15, 2013 |
| Motion Dates (in front of Justice Belobaba) |
May 27,28 2013 |
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ALL SALARIED RETIREES AND ACTIVE EMPLOYEES MUST BE VIGILANT OF THEIR VESTED INTERESTS:
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General Motors Corporation has forsaken their Salaried Retirees in the United States. At age 65, retirees lose all of their meagre benefits except for their $10,000 life insurance policy. They are now losing their "defined benefit" pensions to a choice of a lump sum payment or an annuity with the Prudential Insurance Corporation. Active salaried employees were forced into a �defined contribution' benefit plan.� Seniors now have to become amateur actuaries to decide on what is best for them and their families. No matter what the choice is, they will lose. So much for loyalty and hard work; GM wants all "legacy costs" off of their books.
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General Motors Corporation has forsaken the Active Salaried Employees at GMCL. In 2013 the "defined benefit" pension will be grandfathered and a "defined contribution" pension will be unilaterally forced on them. Employees who retire after June 1, 2014 will lose all of their benefits at age 65. So much for loyalty and hard work; GM wants all "legacy costs" off their books.
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GMCL Salaried Retirees are suing the Company for lost benefits, including life insurance. Back in 2009, GENMO saw the writing on the wall and decided to push back at GMCL's never ending, unilateral benefit takeaways. GM wants all "legacy costs" off the books. Although the court case is progressing slowly, we feel very positive about winning the class action.
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From the GMCL Salaried Employees Actuarial Valuation as at September 1, 2011, provided by Towers Watson, the pension plan is 79% funded. Starting on September 14, 2015, GMCL has five years to fully fund the pension plan (September 1, 2019) as per Regulation321/09 of the Pension Benefits Act.
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At this time we do not know GMCL's long term plans for the current �defined benefit' pension plan for all current retirees. We do know that GM wants all "legacy costs" off their books.
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Be very vigilant. Your continued support for GENMO is appreciated.
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contact GENMO� at� info@genmo.ca� or� P.O. Box 82555, Oshawa, ON� L1G 7W7
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Who is your local MP ?������������ Who is your local Ontario MPP ?
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GENMO Salaried Pension Organization is a not-for-profit corporation dedicated to promoting the protection of the pensions, benefits and other common interests of its members and surviving spouses. It is neither sponsored nor endorsed by General Motors of Canada.
Please understand that we SUPPORT GENERAL MOTORS and we encourage everyone to support General Motors and continue to be an advocate. It is in everyone's best interest for General Motors to succeed as a financially viable company.�
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We encourage you to visit GM Canada's website and examine their line of award winning products and services.
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About This Site
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Here you will find information about our goals, who we are and how we operate along with�ongoing information about your GM Pension and Benefits Plan status.
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This is a�new site and we are constantly adding information so be sure to visit often.
Please send comments, questions and suggestions to info@genmo.ca.
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If you are a GMCL salaried retiree, a surviving spouse,
or an active salaried employee, please join�us.
We all need your support.
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