Pension Committee Meeting- April 15, 2013
Attendees: Jeff Rolfs- Vice President Finance and CFO, David Courtney- Employment Cost Analysis Manager, Garry Marnoch- GENMO, Lynn McCullough- GENMO
We reviewed our pension plan fund performance for the fourth quarter of 2012.
Overall, the funds performed quite well in the fourth quarter with our asset managers beating the benchmarks for similar funds the majority of the time. Overall, these asset managers beat the benchmarks for the past quarter, past year and past three years.
The asset mix has moved to 45% in risk seeking assets this quarter, ahead of the goal of spring, 2013. This new asset mix was decided on in order to reduce the volatility in the plan and to ensure that we do not have a similar situation to 2008 where the plan was heavily weighted in equities and suffered as a result.
The investment return and contributions exceeded benefit payments again. As mentioned in the previous report, this is a very positive sign regarding the health of our pension plan. The market value of the plan is up 4% from the fourth quarter of 2011 even when considering the benefit payments.
As there will be no new entrants to our plan since all active salaried employees have moved to a defined contribution plan, GMCL will be further evaluating the asset mix.
The funding valuation as of September 1, 2012 will be filed by May 31, 2013.