Ottawa Chapter Spring AGM Meeting - May 28, 2013

1. WELCOME! Ottawa Chapter Spring AGM Meeting May 28, 2013

2. AGM Agenda 9:30 Welcome & Introduction Marlyn Easterbrook 9:40 Treasurer’s Report Don Dutton 10:00 President’s Report Dan McDonald Q & A 11:00~ Break ~ 11:25 Guest Speaker – Peter McKenna Executive Director: Rideau Community Health Services 12:25 Wrap Up 12:30 Meeting Close

3. Video of President’s Report on Website www.bellpensionersgroup.ca

4. Communications Facebook LinkedIn

5. !!!!! RECRUITMENT !!!!!

6. NEXT MEETING Tuesday October 29, 2013 9:30 a.m. - 12:30 p.m. Nepean Sportsplex

7. Ottawa Chapter- Financial ReportMay 28, 2013 Don Dutton Ottawa Chapter Treasurer

8. Financial Summary – BPG Inc.Year ending Dec. 31, 2012 20122011 REVENUES 215,976 214,740 EXPENSES 165,599175,222 Excess Rev/Exp 50,377 39,518 Total Members 10,059 10,179

9. Paid Membership – Ottawa ChapterYear ending Dec 31, 2012 YearMembersIncrease 2006 1132 172 2007 1252 120 2008 1206 (46) 2009 1332 126 2010 1356 24 2011 1331 (25) 2012 1235 (96)

10. Financial Summary – Ottawa ChapterYear ending Dec 31, 2012 20122011 REVENUE 25,403 27,140 Transfer to Corporate 13,220 12,620 EXPENSES 6,2699,919 Excess Rev/Exp 5,914 4,978 Bank Account * 36,251 32,956 Total Paid Members 1,235 1,331 *Includes Deferred Member Fees & PayPal Income

11. Financial Summary – Ottawa ChapterYear ending Dec 31, 2012 Revenue20122011 Member Fees 25,060 27,140 Other Income 343 377 ------------- ------------- Total Revenue 25,403 27,517 Expenses Meeting Facilities & Expense 2,813 3,585 Postage & Printing 855 2,834 Telephone (Conf. Calls) 69 0 Office Supplies 420 360 Office Equipment 318 2,095 Gifts/Donations 50 100 Membership Promotion 1,529 640 Bank Charges 94 130 PayPal Fees 121 175 ------------- ------------- Total Operating Expense 6,269 9,919 Transfer to Corporate 13,220 12,620 ------------- ------------- Excess of Rev/Exp 5,914 4,978

12. Financial Summary – Ottawa ChapterBalance SheetYear ended Dec 31, 2012 ASSETS Current Assets - Bank Account 36,218 - PayPal Account 34 - Pre-Paid Expense 157 ------------ Total Assets 36,409 LIABILITIES & EQUITY Current Liabilities - Prepaid Memberships - 2013 12,580 - 2014 to 2020 2,360 ------------ Total Current Liabilities 14,940 Total Equity - (Retained Earnings + Net Income 2012) 21,469 ------------ Total Liabilities & Equity 36,409

13. BPG Ottawa ChapterHow your money was spent in 2012

14. Fiscal Year 2013As of May 16, 2013 Member Database1,443 Paid Membership – 20131019 (70%) Revenue (Membership fees) 2012 420 2013 & Beyond 20,380 Interest & Other 289 Total Revenue21,089 Expenses Postage & Printing 488 Office Supplies 52 PayPal Fees 129 Bank Charges 39 Total Operating Expense 709 Transfer to Corporate 10,380 Net Income YTD 10,000

15. Ottawa Chapter Balance SheetAs of May 16, 2013 ASSETS Current Assets- Bank Account20,054 - PayPal Account 1,034 - Reserve Account-GIC15,000 ------------ Total Assets 36,088 LIABILITIES & EQUITY Current Liabilities - Prepaid Memberships - 20143,360 - 2015 to 2020 1,260 ------------ Total Current Liabilities 4,620 Total Equity - (Retained Earnings + Net Income 2013)31,468 ------------ Total Liabilities & Equity 36,088

16. Approval of Auditors - 2013 • In accordance with the new Not for Profit regulations • I move – • That the firm BDO Canada be retained as the auditor for BPG until the close of the next annual meeting at the remuneration agreed to in the response – Request for Audit Services

17. Approval of Financial Audit for 2013 • In accordance with the new Not for Profit Corporations regulations • I move – • That BDO Canada be asked to conduct an audit engagement instead of the default review engagement as required under the new Canada Not for Profit Corporations Act

18. Bell Pensioners' GroupMay – June 2013President's Report Presented by Dan McDonald

19. Summary Changes to By-law No. 1 Establishment of a new Chapter Plan Performance Indalex Decision Focus for 2013 BPG Board of Directors

20. By-law No. 1 The Act has changed and not-for-profit corporations must make sure that their By-laws are consistent with the new Act The new Act forces some changes to the BPG By-law All Board directors must be elected, including that the Chapter chairs being appointed to the Board automatically At the same time, other changes are proposed to simplify organizational change

21. By-law No. 1 • Outlines • Rights and responsibilities of members • Organization of BPG • Obligations of the BPG Board • Must be approved by membership • Must be approved by Industry Canada • Must conform to the Canada Not-for-profit Corporations Act (NFP Act)

22. Objectives for By-law Changes Compliance with the new Act No change of members' rights Organizational flexibility

23. By-law Changes – Chapter Chairs Until now: each chapter chair, elected by that chapter's members, automatically sits on the Board With new Act: members of each chapter will elect one Director to sit on the Board, and that Director will also be the Chapter Chair End result: no practical change

24. Other Changes (required by Act) • Notice of meetings: 21 days (up from 14) • Financial statements: must be made available 21-60 days before AGM • 2/3 voting majority needed to change any By-law provisions affecting • Members' rights • Voting process & notice of meetings • Special general meeting must be called if 5% of members request it (previously: 25%)

25. BE IT RESOLVED AS A SPECIAL RESOLUTION THAT: The directors of the Corporation are authorized and directed to make an application under section 297 of the NFP Act to the Director appointed under the NFP Act for a Certificate of Continuance of the Corporation; The Articles of Continuance (transition) of the Corporation, which have been submitted to this meeting and are annexed to these minutes as Schedule A, are approved;

26. BE IT RESOLVED AS A SPECIAL RESOLUTION THAT: 3. The general operating By-law of the Corporation (as amended) is repealed effective on the date that the corporation continues under the NFP Act and the new general operating By-law No.1 which has been submitted to this meeting and is annexed to these minutes as Schedule B is approved and will be effective on the same date. 4. Any one of the officers and directors of the Corporation is authorized to take all such actions and execute and deliver all such documentation, including the annexed Articles of Continuance (transition), the notice of registered office and of directors in the forms fixed by the Director, which are necessary or desirable for the implementation of this resolution.

27. Motion Approval of By-law changes

28. Establishment of a new Chapter In early 2012, retirees from Télébec sought the possibility to join BPG. Since they were under Bell Aliant’s accountability, BPG did not have access to the information related to their DB Pension and Benefit plans. BPG proposed to Télébec’s retirees the establishment of a new Chapter which would provide the required expertise to answer requests associated to their DB Pension and Benefit plans.

29. Establishment of a new Chapter (cont’d) Value added for BPG: Consolidating Bell/BCE DB Pension retirees under one entity Providing BPG more influence facing Bell/BCE and Government Focusing one voice and one direction when negotiating with BCE and Government Better understanding of other DB pension plans managed under Bell/BCE Increasing BPG’s membership Getting closer to the members in the regions

30. 1000 Trend 2004-2011 500 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 -500 -1000 -1500 -2000 -2500 -3000 Market Value Fully Funded Actuary Value Plan Performance ($M) Plan Valuation Report as of December 31, 2011 • Solvency Shortfall$3,134.6M • Solvency Ratio79.7% • Return on Assets4.95%

31. Bell excess prepayments as of December 31, 2011 $1,142.8 M Used to reduce the amortization payment _ $565.7 M Minimum amortization payment required in 2012 = Bell excess prepayments as of December 31, 2012 $577.1 M + 2012 contribution DB & DC normal cost and special advance contribution $750 M = $1,327 M Bell excess prepayments going in 2013 Bell’s Contribution in 2012

32. Indalex Decision Ontario Court of Appeal ruling gave pensioners claims priority above those of other creditors, including the debtor-in-possession (DIP) lenders The Supreme Court of Canada agreed that while the deemed trust established under provincial law did confer a priority on the pensioners, the laws of the federal government are paramount when federal and provincial laws conflict

33. Indalex Decision As the DIP priority came under the federal law, it superseded the priority granted under the provincial law Bad news for those pension plans that fall completely under federal jurisdiction BPG must continue its efforts with the Federal Government to enshrine pension protection safeguards in federal legislation or regulations

34. Security of our Pension Promise BPG Focus for 2013 • BPG will continue its efforts with the Federal Government to enshrine pension protection safeguards in federal legislation or regulations - Letter to Minister Flaherty • Follow-up of the d’Amour Expert Committee Report • Key topics the Pension Committee will pursue in 2013: • Corporate Restructuring • Indexation Calculations • Trade COLA for Enhanced Pension • Pension vs Annuities • Valuation Methods • Investment Strategies

35. BPG Board • Dan McDonald (President) • Charlie Labarge (Vice-President) • Penny Gilray (Treasurer) • Lancy Hum (Secretary) Committees • Roberte Cadieux (Communications) • Bob Farmer (Governance) • Bob Bartlett (PC, Nominations) • Marg Eades (PC) • Ron Hunt (Governance) • Jean-Luc Geha (Audit) • Michel Doyon (Audit & PIC) • Louise Touchette (Nominations) • Sue Dawes (Alternate PIC rep) Chapter Chairs • Marlyn Easterbrook (Ottawa) • Titus Ramkhalawansingh (Toronto) • Frank Bible (SW Ontario) • Robert Guay (Montreal) • Jean Lamer (Quebec City) • Norm Kelly (Télébec)

36. Q & A

37. NEXT MEETING Tuesday October 29, 2013 9:30 a.m. - 12:30 p.m. Nepean Sportsplex