GENMO Pension Committee Mtg. April 25, 2018
Quarterly Pension Committee Meeting April 25, 2018  On April 25, Tom Laurie—in
Pension Committee Meeting December 19, 2017
Pension Committee Meeting- December 19, 2017 On Tuesday December 19 at headquarters on Co
Pension Committee Meeting- May 12, 2017
Pension Committee Meeting- May 12, 2017 On May 12, 2017, GENMO’s Pension Review Com
Pension Committee Meeting October 28 2016
  On October 28, Mike Powell and the writer met with Ines Craviotto, Chief Financial
Additional 2015 AV Information
Additional September 1, 2015 Actuarial Valuation Information The expected lifetime of a p


 Welcome to the GENMO Salaried Pension Organization


May 12, 2018

Leading up to every election we ask each of the major parties what their platform is relative to pension issues. The upcoming Ontario election provides more focus on pension protection than most previous elections because the current Liberal government recently introduced changes that weaken pension protection by allowing companies to reduce their funding target from 100% to 85% solvency and increasing the Pension Benefit Guarantee Fund (PBGF) from the first $1,000 to the first $1,500 per month. (Remember that we are not covered by the PBGF. GM Canada cannot take advantage of the 85% target until they have three consecutive years of 100% solvency funding which would reinstate our PBGF coverage). This saves companies in excess of $1.4 billion per year.

GENMO participated with Canadian Federation of Pensioners to develop a proposal to improve the PBGF to cover not just the first $1,500 per month, but the entire pension amount. Under this proposal pensioners would be guaranteed 100% of their pension, funded by less than 10% of the savings companies would realize from the shift to 85%. Companies receive savings and pensioners receive their full pension, a win/win.

 Unfortunately, none of the major parties have adopted this proposal as you can see in their pension platforms below. None of the parties have indicated they would revert to the 100% solvency target.

If you feel strongly about this issue, we urge you to attend all candidates meetings, write the candidates in your riding. To assist you we have posted some suggested questions, developed by the CFP, which can be viewed by pressing here.

Below are brief summaries of the party positions. More complete position statements can be found by pressing here.

Liberal Platform

Reduce the funding target from 100% solvency to 85% solvency and increase the PBGF from the first $1,000 to the first $1,500 per month.


We will work with the federal government and public and private sector pension plans, among other stakeholders, to review all options available to provide protection beyond the current Pension Benefits Guarantee Fund (PGBF).


Committed to enhancing the PBGF to $3000 monthly and to ensure future benefits grow with inflation.


We believe that the Pension Benefits Guarantee Fund should be expanded, funded by premiums.


Your GENMO Executive


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 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   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.























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































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:












Your GENMO Executive
















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 :




















Votre Conseil de GENMO







































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.”























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























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.








  1. 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.
  2. 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.
























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 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.












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.







































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:












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 :




 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�, and her Press conference��Following is the link to the speech that Jennifer French gave in the legislature regarding pension protection. It mentions GENMO and the CFP.�








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:
















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
















Peter Fragiskatos, Kate Young
















Tracey Ramsey, Cheryl Hardcastle, Brian Masse
















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 �, et sa conf�rence de presse,�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.�












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�:
















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
















Peter Fragiskatos, Kate Young
















Tracey Ramsey, Cheryl Hardcastle, Brian Masse
















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.
















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 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.















�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.















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.















Your GENMO Executive















Brian Rutherford Mike Powell���������������� Mike Black��������� Denise Cay















Alanna Lyczba���� Garry Marnoch�� Lynn McCullough�������� Al Willison





























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.















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.















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.















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.















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�.















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.















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.















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.















Votre Conseil GENMO















Brian Rutherford Mike Powell���������������� Mike Black��������� Denise Cay















Alanna Lyczba���� Garry Marnoch�� Lynn McCullough�������� Al Willison







































































Dear GENMO Member,















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.















Without your financial support we never would have won our benefits lawsuit (O�Neill vs. GMCL).















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.















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).















New members will pay a $25 membership fee plus $25 initiation.















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.















A full financial accounting will be given at our next AGM in May 2015.















Once again, thank you for all of your support.















Your GENMO Executive





























Lynn McCullough GENMO Resignation















Dear GENMO Member,















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.















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.















Lynn also was key in representing the interests of all GENMO members, including those not in the class, in both benefit and pension issues.















Lynn will still remain as the class Representative Plaintiff.















Mike Powell (GENMO VP) will take on Lynn�s duties as the Director of Legal.















Please join us in wishing Lynn all the best as he gets on with his life and enjoys a healthy and happy retirement.





























Your GENMO Executive




































































































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.

























































Your GENMO Executive��






















































































This is a brief summary of the GENMO Organization�s activities and accomplishments in 2013.


























































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.

























































  • The Class Action law suit, was heard in The Ontario Superior Court of Justice on May 27, 28 and 29th.�
  • Justice Balobaba was the presiding Judge;�

  • Sack Goldblatt Mitchell LLP represented GENMO; Osler, Hoskin & Harcourt LLP represented GMCL.�

  • Buses were arranged for transportation of GENMO members.





























  • In July, Justice Balobaba�s decision ruled in favour of the Plaintiff on most issues





























  • GENMO / SGM identified some issues in the judgment that were unclear and a case conference was held with Judge Balobaba for clarification.�





























  • GMCL appealed the decision of Justice Balobaba. �
  • GENMO cross-appealed on several issues which were found in favour of GMCL.

  • In December� GMCL approached GENMO to negotiate a settlement

  • �A court date of June 12th, 2014 is scheduled for the Appeal if we are unable to reach a settlement prior to that date


























































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.





























GENMO� Area Representatives meet with members in their geographic areas





























  • Mike Powell met with Atlantic Area Members in April
  • Brian Rutherford, Lynn McCullough and Mike Powell met with� London and Windsor Area Members� in April �and St. Catharines in May





























� The AGM was held in May at the Regent Theatre in Oshawa.�





























  • On October 8th a special meeting was held at Woodview Park Clubhouse to address by-law amendments regarding payment of legal fees.
  • 2014 AGM Meeting date is May 8, 2014 at the Regent Theatre.� Please plan to attend.





























The Pension Committee meets with a GMCL financial representative quarterly to review the performance of the Pension Plan





























GENMO is a member of the Canadian Federation of Pensioners (CFP).� The CFP represents over 250,000 retirees.� Brian attends monthly meetings.

























































Political Action:





























The Political Action Committee developed a pro-active approach to increase awareness of the impact to communities should GMCL withdraw manufacturing from Canada-





























  • Letter was sent to Ontario Finance Minister Sousa in June
  • Brian, Mike prepared tutorials and documentation for consistency when meeting with mayors and politicians at all levels

  • Met with the Mayor of Oshawa in September





























  • Letter was sent to Kevin Williams requesting information regarding the underfunding of the pension planin August and response to reply in November.
  • GENMO executives attended meetings with Unifor to discuss pension issues and with an administrator of the HCT in December

  • GENMO executives attended meetings with the Financial Services Commission of Ontario (FSCO)

  • 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


























































GENMO had 3123 members in 2013.





























  • Membership Renewal Notification sent out in October
  • Recruitment for New Members Drive September-December.





























GENMO executives and Area Representative are volunteers





























  • Member volunteers assist with FSCO concerns, political action, membership, legal action, communications, website� and AGM































































































































































































































































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.

























































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.

























































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.




























































































































































































































































































P.O. Box 82555,





























Oshawa, On L1G 7W7





























August 7, 2013





























To: Mr. Kevin Williams





























President and Managing Director
General Motors of Canada
1908 Colonel Sam Drive





























Oshawa, Ontario





























L1H 8P7





























cc: Mr. Jeff Rolfs





























Mr. Dave Courtney





























Mr. Williams,





























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.





























The specific purpose of this note is to request clarification from you about GMCL's plans to fully fund the salaried pension plan.





























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.





























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.





























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.





























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?





























Brian Rutherford


























































GENMO Salaried Pension Organization

















































































































Dear GENMO Member:�





























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:�





























�Class Action Against GM Canada Succeeds�





























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

































































































































































































































































































































































































































































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.





























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.



















































































































































































































































































































































































































































































































































































































































































































































































































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.





























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.

























































Recent Court Hearings





























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.





























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."





























We will be working with GMAC retirees and other individuals who were not allowed into the class to determine the next course of action.


























































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























































































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.





























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.





























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.





























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.





























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.





























Be very vigilant. Your continued support for GENMO is appreciated.


























































contact GENMO� at�� or� P.O. Box 82555, Oshawa, ON� L1G 7W7
Who is your local MP ?������������ Who is your local Ontario MPP ?





















































































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.�





























We encourage you to visit GM Canada's website and examine their line of award winning products and services.


























































About This Site





























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.





























This is a�new site and we are constantly adding information so be sure to visit often.
Please send comments, questions and suggestions to





























If you are a GMCL salaried retiree, a surviving spouse,
or an active salaried employee, please
We all need your support.





















































































Saturday, May 26, 2018