MacMILLAN BLOEDEL WEYERHAEUSER RETIRED SALARIED EMPLOYEES CLUB DIRECTORS’ MEETING – JANUARY 17, 2006 – 1:30 P.M.
Bill Cafferata Rita Crosby Daryl Cunnington Neil Dirom
Brian Hope Gary Johncox Jan Jones Lorne Lacey
Georgina Lorette Don Miller Joy Miller Glen Nymark
Jack Perry Niels Voss Mary Jane Walker Nicky Watson
Guest: Al Fraser, President, Weyerhaeuser Canada Salaried Retirees Social Club,
Al Cramb Jim Kirkland Eric Lofkrantz Garth MacFarlane
Geoff Mynett Eve Tucker
Gary Johncox welcomed everyone to the meeting and asked for a Motion to approve the minutes of the Directors’ meeting held Tuesday, November 15th, 2005.
Moved by Jan Jones, seconded by Don Miller, Carried.
Gary said that Rob Gerelus, Director, Pensions & Benefits at Weyerhaeuser, would be joining the meeting at 2:00 p.m. to present a review of the pension fund. Rob had declined to speak on the state of the markets and the Company’s business plans and, as both Craig Neeser and Patrick Lane were unavailable that day, that presentation was deferred to a future meeting.
2. Business Arising from the November 15th, 2005 Meeting
Don Miller presented an un-audited financial summary for the year 2005. Total income for 2005 of $12,742.65 exceeded expenditures of $11,963.30, providing a surplus of $779.35. The surplus for 2005 (a roster year) reflects favourable postage treatment as a result of Weyerhaeuser picking up the cost of mailing the AGM notice, cost savings associated with wider use of the club website and targeted, rather than blanket, mailing of the club roster. Revenue from membership in 2005 increased to $9,697.82 – up from $9,135 in 2004. Paid-up members in 2005 were 986 compared to 933 in 2004. The term deposit balance is $5,724.68.
While the number of paid-up members had increased in 2005, Don said the numbers will more than likely decline in the future and quickly erode the approximate $13,500 surplus. Therefore, the Directors agreed to leave the 2006 annual dues, which are now payable, at $10.00.
2006 Golf Tournaments
Jack Perry said the plan was to hold the Vancouver Island Tournament on the East Coast of the Island this year but he expressed concern about the higher cost and lower attendance. As location is a large part of its success, it was decided to approach Garth MacFarlane to host the 2006 tournament at the Alberni Golf Club once again. The suggested date was Tuesday, September 5th.
(Subsequent to the meeting, Jack Perry advised that the Alberni Golf Club has been reserved for Tuesday, September 5, 2006. The fee to cover green fees, dinner and prizes will be $30 for golf club members, $60 for non-members and $16 for buffet only. The fee is up slightly for non-members from $55 last year due to an increase in green fees.)
As prizes are provided for all participants in both tournaments, Jack Perry asked if allowances could be created in the Club treasury for funding. Gary Johncox asked for a Motion to allocate $200.00 per tournament towards prizes.
Moved by Bill Cafferata, seconded by Joy Miller, Carried
Jack also suggested that prize donations be solicited at the Annual General Meetings.
Daryl Cunnington recommended that the Lower Mainland Tournament be held on Wednesday, September 13th at the Langara Golf Course in Vancouver and undertook to make the booking as soon as possible.
Jan Jones agreed to set up the golf tournament registration desk at the Vancouver Annual General Meeting.
Directors’ & Officers’ Insurance/Club Incorporation
Gary Johncox said he agreed with Geoff Mynett’s view that Directors’ and Officers’ insurance and Club incorporation were probably not necessary. However, Geoff had suggested it would be better if the Club could get insurance for specific events such as the golf tournaments. Al Fraser confirmed that the Kamloops club is registered – involves the filing of an annual report, including a financial statement and list of Directors, along with a small fee. Kamloops does not carry insurance of any type. Registering as a Society would limit the Club’s liability. Gary deferred the subject until the March meeting when Geoff would be present.
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Pension Fund Review
Rob Gerelus entered the meeting and reviewed the status of the pension fund. He reminded Directors that Weyerhaeuser had rolled the five former MB salaried plans into a single plan, which is now managed by Royal Trust. The last actuarial evaluation of the plan’s funding level was done in 2003 and revealed a deficit of about $52 million on approximately $600 million of assets. The plan’s recent performance has been outstanding – a 21% average annual return over the past three years. The company is presently contributing $33 million annually to cover current increases in obligations and to recover the deficit. A new evaluation is underway and should be complete about mid-year.
Pension decisions are now made by a senior administration committee in Federal Way which includes the president, human resources, legal, financial and other officers. In answer to a question from a Director regarding the possibility of pension adjustments to current retirees, Rob Gerelus stated that this committee had met about a month ago and decided that there would be no increase to current pension recipients at this time. The next review will be three years from now. Gary Johncox noted this means that the interval between the last adjustment for former MB retirees (November 1999) and the earliest date that another may occur will be nine years. For retired Weyerhaeuser people, the interval will be eleven years. Rob said the investment community is displeased with Weyerhaeuser’s performance and debt load and Steve Rogel, President of Weyerhaeuser Company, has initiated a thorough analysis of the various business components with a goal to cause significant improvement. Cost control throughout the company is a priority.
Rob Gerelus reiterated that pension adjustments remain on an “ad hoc” basis and are not tied to the financial performance of the plan. He said the current decision is not confidential and the Board was free to make it known to retirees. Several Directors expressed their profound disappointment.
Royal Trust Letter to Retirees
Rob Gerelus apologized for the way in which this letter requesting verification of receipt of pensions – sent out by Registered Mail to all retirees in December – had been handled. When registered letters are returned as “unclaimed” or “undeliverable”, a second letter will be sent by regular post with an extended time frame of March 1, 2006 to respond. Both Royal Trust and Mylee Powell, Pension & Benefits Analyst in Weyerhaeuser’s Vancouver office, will accept confirmations by phone, fax, or email from retirees who did not receive the letter. Mylee can be reached at: Ph. 604-661-8006, Fax 604-688-8256, email firstname.lastname@example.org. They require name, address, social insurance number and date of birth.
Rob also asked the Club to remind retirees of the importance of advising Weyerhaeuser’s Employee Service Centre – 1-800-833-0030 – whenever they change their address.
Retiree Benefits Handbook
Rob Gerelus reported that a new, generic retiree benefits handbook to replace the outdated January 1, 2002 edition was being drafted, with distribution slated for the fourth quarter 2006 at the latest. It will be stored electronically on Weyerhaeuser’s website with a hard copy mailed to retirees’ homes.
Daryl Cunnington mentioned that we would be including an Information Sheet with contact numbers with our AGM meeting notice mail-out.
Rob Gerelus left the meeting.
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Gary Johncox and the Directors expressed disappointment and displeasure with Weyerhaeuser’s decision that there would be no adjustment to current pension recipients at this time and three years before another review would be undertaken. Gary noted that MB initiated periodic pension adjustments about 1979 and every three years or so on average thereafter – with the longest interval being 4.5 years during very tough times. Weyerhaeuser’s practice has been identical to MB’s - adjustments are “ad hoc” and not intended to convey any obligation to continue.
After a full discussion, the Board felt it was necessary to inform retirees of Weyerhaeuser’s decision and Gary Johncox undertook to draft a letter to be posted on the website, requesting responses from the 450 members with email. If this response is strong enough, the Directors may propose a further hard copy mail-out to the 1,500 or so retirees on our list who do not have email, with an invitation to register their displeasure directly to Weyerhaeuser’s senior management.
Club Name Change/Domain Name
Gary Johncox again brought up the subject of dropping “MacMillan Bloedel” from the Club name. Al Fraser confirmed the official name of the Kamloops group as “Weyerhaeuser Canada Salaried Retirees Social Club”. It was also confirmed that the Kamloops club was not the owner of the website domain name “weycanretirees.com”. After a discussion of several suggested names, the decision was made to leave it as is for the time being.
Appointment of Vice-President
Gary Johncox stated that, to date, he had failed to engage a Vice-President from amongst the Directors who would be willing to take over as President when his term is up after this year’s Annual General Meetings. He undertook to continue the search and, if still unsuccessful, said he would be willing to carry on as President until such time as he found someone who would commit to assuming the presidency as soon as possible.
Bylaw 41 in the Club’s constitution states “Before a Director may be nominated for President he must have served for at least one year as Director….”
3. New Business
2006 Annual General Meetings
It was noted that, in Geoff Mynett’s view, there would be no problem holding the formal business part of the meeting in only one location each year. Nanoose would be the venue in 2006. Sequence of the meetings was not a factor either as a summary could be given at the other meetings.
After a general discussion on speakers and topics, it was decided, if possible, to have two speakers at each meeting – one to address business conditions in the industry and the other to focus on matters of personal interest, e.g. health, life style choices, Powers of Attorney, etc. Niels Voss said that last year’s format worked well in Powell River and he did not expect any problems in engaging someone from the local community.
The following Directors agreed to be lunch conveners:
Vancouver - Rita Crosby
Nanoose - Jack Perry
Powell River - Niels Voss
Gary Johncox asked any Director not wishing to serve for another term (2006-2007) to get in touch with him.
In regard to the number of Directors, the Constitution states as follows:
“28. The number of Directors of the Club shall be twenty in number. At any General Meeting of the Club, provided due notice thereof has been given as aforesaid, the number of Directors may be increased or decreased and in any event shall not be fewer than eighteen.”
Currently, there are 22 Directors.
Appointment of a Nominating Committee was deferred until the March meeting.
Long Term Care Insurance (LTC)
Mary Jane Walker stated that in response to an enquiry from a member, Johnson had provided information on the LTC plan they offer to groups such as ours, in partnership with Manulife Financial as the insurer. Its purpose is to provide financial support to those who require assistance with two or more activities of daily living or assistance due to cognitive impairment such as Alzheimer’s disease. Monthly premiums are based on entry age and plan chosen. A person in poor health or already receiving long term care would not qualify. It is not inexpensive and it would be unlikely that people with an income below $30,000 could afford it. In the event of death prior to accessing the benefit, there is no return of premiums. The onus would be on the Club to ensure that initial educational material was distributed to members. Johnson would handle subsequent mailings in much the same way as they do for MEDOC and home insurance.
Glen Nymark said the Club should not be responsible for marketing such products. Gary Johncox recalled our most recent experience with Johnson sending out a letter depicting the Club as endorsing their home insurance. The subject was deferred to the March meeting for a decision.
4. Date of Next Meeting
Tuesday, March 14th, 2006 at 1:30 p.m. in the Weldwood Room, YWCA, 535 Hornby Street, Vancouver
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Prepared by: Mary Jane Walker, Secretary
Reviewed by: Gary Johncox