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2006-10-16_Agenda Packet--Dossier de l'ordre du jourIf.Yi City of Saint John Common Council Meeting Monday, October 16, 2006 Location: Common Council Chamber Supplemental Agenda Committee of the Whole 1.1 Funding the Pension Plan (a) Presentation by Ma nagement/Professional /Non -union (b) Presentation by CUPE, Locals 18, 61, 486, and IAFF L771 (c) Presentation by City of Saint John Retirees City of Saint John Seance du conseil communal Le lundi 16 octobre 2006 Emplacement: Salle du conseil communal L'ordre du jour suppidmentaire Comite Plemer 1.1 Financement du regime de retraite (a) Pr6sentation organisee par le personnel gestionnaire et professionnel /les travailleurs non syndiqu6s (b) Presentation organisee par les membres des sections locales 18, 61 et 486 ainsi que de la section locale 771 (IAFF) de I'Association des pompiers de Saint John (c) Pr6sentation organisee par I'Association des retrait6s de Saint John /rte) Presentation to Saint John Common Council Management / Professional / Non -Union Staff of the City of Saint John and the Saint John Police Force October 2006 Equity / Fairness / A Shared Solution "z.s 1 My colleagues, friends and your management, professional and non -union staff have asked me to present our views on ... "Funding the Pension Plan: A Call to Action" October 2006 Equity / Fairness / A Shared Solution 6 E We have come together to represent our interests and will vigorously pursue those interests with you and with any other body that may be called upon to deal with this matter. October 2006 Equity / Fairness / A Shared Solution 3 Are your professional advisors / support Lead your organization and its many services Look after the public purse /public resources Cultivate high standards / positive change Challenge / support / guide your employees October 2006 Equity / Fairness / A Shared Solution C� p 2 ., •,::d ul' ..a .�.TA a.. To be respected as people and professionals To be recognized for the vital contributions we make to this municipality and its citizens To always be treated equitably and fairly To be heard on matters that affect our lives and the future for our families To be a part of our city's exciting future ab October 2006 Equity / Fairness / A Shared Solution 5 Pension Plan funding concerns are not new; the issue has been before Common Council, Plan members and the public for at least 4 years. The City Manager has highlighted the need to act. As costly and difficult, even troubling, as this issue may seem, we believe that stakeholders will be prepared to act on a solution. October 2006 Equity / Fairness / A Shared Solution �' 6 October 2006 ..pX�!+�SD�1M!��• ,scs;Ae•,.... .,�r w.,i;sr�?x.� Sri" 5C:[ People's life investment is at risk - $88,852,300 Solvency ... serious - $43,547,200 Going Concern ... " We can not / must not stand idle Attention to this NOW is crucial INN Equity / Fairness / A Shared Solution 7 SMNT JOHN 5 Undefigi' /iiaaogue N au!rmmcawq•1. � .. i, nib Some very strong views and very different perspectives were expressed within our group. After much debate, we reached consensus: "we must be part of the solution ". We will work with Council, the City Manager, Retirees, and our Unionized Colleagues to October 2006 find an equitable and balanced solution. Equity / Fairness / A Shared Solution 9 •,: ��3YZ sWmgc,, spit ppfMX],cn titF ;• The City of Saint John is the Plan sponsor Responsibility to fund shortfall is clear Zk,' Long- standing commitment of Employer Common Council is legally accountable These, are very important realities * ** October 2006 Equity / Fairness / A Shared Solution ( 10 We believe that Plan trustees understand and have been diligent in their role We expect the Board to continue seeking "best" advice in managing our funds We thank individual Board members for their extraordinary personal commitment October 2006 Equity / Fairness / A Shared Solution - ,;.;s ^.�� - �W- c'ti�Eh.-:.'k�- u'Yiwa,:•..' '�e'tih'm37iAe;�� .. City Manager put forward an action plan � Respect his obligation to advise Council A much needed "stake in the ground" We, respectfully, see a better alternative October 2006 Equity / Fairness / A Shared Solution " p 12 .r T�� "av`e, aea•CgaFxA�'+�W!'� ''+�44'G.Tz�.,7,.- Protect core benefits in an equitable plan Address problem with broad, long -term view Responsibility of the Employer not shirked A shared solution among all partners October 2006 Equity / Fairness / A Shared Solution 13 "Civ t o''ltcin'`j Values SAINT JOHN AIL October 2006 "Fulfilling the expectations we create in our promises, both direct and implied." "Conducting oneself honestly, fairly, respectfully and ethically." "Establishing accountability, expectations and values -based consequences." Equity / Fairness / A Shared Solution ab It f }� 15 - - -. '„ th• � .. ,... - ,.-- w�r+rrnxr�rnse~+ mca��;rt!tcir..+ . Generally paid more than others for reasons of: level of responsibility, consequence of decisions, accountability and nature of knowledge / education •Respect our contributions and the great value that we as individuals bring to this organization •We are paid reasonably, but certainly not excessively, for the responsibilities we hold October 2006 Equity / Fairness / A Shared Solution 16 ;k tP«wtiwr +.?ilA�j!.g:Y{,•5,: ' � «,L:4'�S:brfiE +. October 2006 We have demonstrated, time and again, our commitment to community and to citizens. We expect honesty, fairness, respect and an ethical workplace. All of us need to be accountable, to each other and to our public, for a solution to Pension funding. Equity / Fairness / A Shared Solution 17 :. x's:; �s`." •Yi:.R+Ya%i••svm4.tid.k'# +nn^d '.'4`✓a -�:+i: ' Much more than funding a financial deficit Pensions: integral part of HR management structure ... serious potential consequences Integrity of employment /retirement system Long -term investment management crucial Good people are essential to City's future October 2006 Equity / Fairness / A Shared Solution 18 October 2006 `K ;.s�.,,•vx,.,.rrzgf4C�+A�.t• :1dli�'r.w', Protect core benefits: 2% / service year Governed by Provincial legislation Continue promised plan benefits Equalize percentage contributions Indexing essential to long -term viability Artificial "cap" is offensive, must go Equity / Fairness / A Shared Solution �? * )NI { 19 October 2006 Parties commit to a shared solution* Support solvency exemption* Equalized regular contributions: 8.5 %* Equal shortfall payments: up to 12.6 %* Fair "economic" salary adjustments* Equivalent benefit: 2% / service year* Equity / Fairness / A Shared Solution l' 20 We urge Council, the City Manager, CUPE Local 18 (Outside Workers), IAFF Local 771 (Firefighters), CUPE Local 486 (Inside Workers), CUPE Local 61 (Police Officers), and Plan Retirees to join together with us in workinq out the details of a shared solution. October 2006 Equity / Fairness / A Shared Solution ''� 21 1. Dialogue with all member groups/ 2. Canvas Plan members on Solvency / next 3. 2007 Operating Budget preparation / must 4. Legislative amendments / shared solution 5. Meet with Superintendent of Pensions 6. Comply with accounting principles (GAAP) 7. Possible alternatives * ?* ... after dialogue October 2006 Equity / Fairness / A Shared Solution 22 October 2006 Equity / Fairness / A Shared Solution s 23 SAINT JOHN EL Saint Joh C u o:� Mon ouncil • 1 �CUPE*IIISCFP Canadian Union or Fi1Ds.. Syndicat canadion da is tonct,o^ 047 c SAINT JOHN AREA OFFICE 208 Lancaster Avenue. Saint John. NR E21M 2K9. 1505! 63n-1 G22 Fax (505i 635 -115244 cuee.ca sct .ca October 13, 2006 Mayor and Common Council City of Saint John P.O. Box 1971 Saint John, NB E21 411 Response to City Manager's Presentation of October 9th on Subiect: Funding the Pension Plan: A call to Action Dear Hon. Norm McFarlane & Councillors: On behalf of the four Civic Unions, CUPE Local 18, 61, 486 and IAFF Local 771, we offer the following suggestions in order to do diligence to the serious pension matter. We would like to thank the City Manager, Mr. Totten, for giving us the opportunity to meet last Thursday, October 5th, informing us on what was being recommended to City Council concerning our pension plan. As part of the recommendations put forward by the City Manager was to meet with the Bargaining Agents. We understand that Council passed a motion on Tuesday, October 10t ", to give the Bargaining Agents the opportunity to appear in front of a special session of the Council. We welcome that opportunity but before that meeting takes place, we would encourage Council to direct the City Manager and Senior Staff to meet with the Bargaining Agents. We would like to explore all options including the City Manager providing to the Bargaining Agents a full cost analysis of each of the recommendations, including the impact to the plan and as well the plan recipients. We would also request an opportunity to appear in front of Council and would suggest a special meeting of Council during the week of October 30th or at the next regular Council meeting in November to be on the Agenda. We feel strongly that this will give the Parties the opportunity to explore not only the options put forward by Mr. Totten but all options that can be explored. We respectfully take the opportunity to remind Council that this pension matter has been ongoing and in early 2006 the four bargaining agents, including the Retirees Association, made a presentation to council regarding the solvency issue. To date Council has not acted on that. If the City wants cooperation from PAUL MOIST - N =a �rosmen^ Fres: ^.cn: nauona. CLAUDE GENEREUX - National Secletaw- Treasure Secretaire- tresone naocna! MARIO GERVAIS - TOM GRAHAL -i - RICK MACMILLAN - BARRY 0 NEILL - PATRICK (SID) RYAN - Geners: Vice Vice- nresiaents generaur R01 the Bargaining Agents, we cannot be forced by deadlines. Lets give the quality of time that is required to find solutions on this serious matter. Thanking you in advance for your prompt response to this request. Signed: RH: ch'cope 491 :. Kim Phillips, President Local 61 Charles Hickey, Presider/f IAFF L7711 October 13, 2006 His Worship Mayor Norm McFarlane and Members of Common Council Your Worship and Councillors, Re: Pension Funding Given the short notice for the Council meeting, I did not have an opportunity to consult with the Pensioners of the City of Saint John Pension Plan in order to prepare a formal response to the City Manager's proposal. I am however comfortable in making it clear that the Pensioners do not want the City to take any action that would result in a reduction of benefits to the pensioners or their surviving spouses. The benefits our pensioners receive were fully funded by contributions from the members over many decades. We do support the City's efforts to put the pension plan on strong financial footing and are willing to participate in discussions with the City in this regard. I think it would be helpful for Mr. Totten to meet with the pensioners to explain the current situation and to alleviate any concerns the pensioners may have about the security of their pensions. Respectfully submitted, , Claude MacKinnon President City of Saint John Retiree's Association City of Saint John Common Council Meeting Monday, October 16, 2006 Location: Common Council Chamber Committee of the Whole Council Chamber Call to Order — 6:00 pm 1.1 Presentations - Pension Plan City of Saint John Seance du conseil communal Le lundi, 16 octobre 2006 Emplacement: Salle du conseil communal Comite plenier Salle du conseil communal 1. Ouverture de la seance : 18 h 1.1 Presentations —fonds de retraite The City of Saint John Norm McFarlane Mayor's Office Bureau du maire 01 October 3, 2006 Deputy Mayor Hooton And Councillors Deputy and Councillors: Subject: Update on Saint John Harbour Bridge The Saint John Harbour Bridge Authority would like to provide an information update to Council regarding future financing of its operation and budget submission. They believe Council should be aware of their plan. Mayor SAINT JOHN P.O. Box 1971 Saint John, NB Canada F21411 I www.saintjohn.ca I C.P. 1971 Saint John, N. -B. Canada WIN Presentation to Saint John Common Council Management / Professional / Non -Union Staff of the City of Saint John and the Saint John Police Force October 2006 Equity / Fairness / A Shared Solution 1 My colleagues, friends and your management, professional and non -union staff have asked me to present our views on ... "Funding the Pension Plan: A Call to Action" October 2006 Equity / Fairness / A Shared Solution 2 We have come together to represent our interests and will vigorously pursue those interests with you and with any other body that may be called upon to deal with this matter. October 2006 Equity / Fairness / A Shared Solution 3 Are your professional advisors / support Lead your organization and its many services Look after the public purse / public resources Cultivate high standards / positive change Challenge / support / guide your employees October 2006 Equity / Fairness / A Shared Solution W V To be respected as people and professionals To be recognized for the vital contributions we make to this municipality and its citizens To always be treated equitably and fairly To be heard on matters that affect our lives and the future for our families To be a part of our city's exciting future W October 2006 Equity / Fairness / A Shared Solution 5 Pension Plan funding concerns are not new; the issue has been before Common Council, Plan members and the public for at least 4 years. The City Manager has highlighted the need to act. As costly and difficult, even troubling, as this issue may seem, we believe that stakeholders will be October 2006 prepared to act on a solution. Equity / Fairness / A Shared Solution 0 October 2006 People's life investment is at risk - $88,852,300 Solvency ... serious = $43,547,200 Going Concern ... " We can not / must not stand idle Attention to this NOW is crucial Equity / Fairness / A Shared Solution��" ice' 7 Understanding of citizens Responsible media / press coverage Commence dialogue with all groups immediately!!! Responsible public debate October 2006 Equity / Fairness / A Shared Solution 0 Some very strong views and very different perspectives were expressed within our group. After much debate, we reached consensus: "we must be part of the solution ". We will work with Council, the City Manager, Retirees, and our Unionized Colleagues to October 2006 find an equitable and balanced solution. �w Equity / Fairness / A Shared Solution�`� "t�` 9 �1* The City of Saint John is the Plan sponsor Responsibility to fund shortfall is clear * Long- standing commitment of Employer Common Council is legally accountable oo� These are very important realities * ** October 2006 Equity / Fairness / A Shared Solution 10 We believe that Plan trustees understand and have been diligent in their role We expect the Board to continue seeking "best" advice in managing our funds We thank individual Board members for their extraordinary personal commitment October 2006 Equity / Fairness / A Shared Solution City Manager put forward an action plan t Respect his obligation to advise Council A much needed "stake in the ground" w We, respectfully, see a better alternative October 2006 Equity / Fairness / A Shared Solution 12 Protect core benefits in an equitable plan Address problem with broad, lonq -term view Responsibility of the Employer not shirked A shared solution among all partners October 2006 Equity / Fairness / A Shared Solution �,,' 13 Commitme October 2006 Integrity �sponsibility Equity / Fairness / A Shared Solution LL October 2006 "Fulfilling the expectations we create in our promises, both direct and implied." "Conducting oneself honestly, fairly, respectfully and ethically." "Establishing accountability, expectations and values -based consequences." Equity / Fairness / A Shared Solution Generally paid more than others for reasons of: level of responsibility, consequence of decisions, accountability and nature of knowledge / education Respect our contributions and the great value that we as individuals bring to this organization We are paid reasonably, but certainly not excessively, for the responsibilities we hold October 2006 Equity / Fairness / A Shared Solution w 16 October 2006 We have demonstrated, time and again, our commitment to community and to citizens. We expect honesty, fairness, respect and an ethical workplace. All of us need to be accountable, to each other and to our public, for a solution to Pension funding. Equity / Fairness / A Shared Solution W 17 Much more than funding a financial deficit Pensions: integral part of HR management structure ... serious potential consequences Integrity of employment /retirement system Long -term investment management crucial Good people are essential to City's future October 2006 Equity / Fairness / A Shared Solution f'L ff61 October 2006 Protect core benefits: 2% / service year Governed by Provincial legislation Continue promised plan benefits Equalize percentage contributions Indexing essential to long -term viability Artificial "cap" is offensive, must go Equity / Fairness / A Shared Solution October 2006 Parties commit to a shared solution* Support solvency exemption* Equalized regular contributions: 8.5 %* Equal shortfall payments: up to 12.6 %* Fair "economic" salary adjustments* Equivalent benefit: 2% / service year* Equity / Fairness / A Shared Solution �' 20 We urge Council, the City Manager, CUPE Local 18 (Outside Workers), IAFF Local 771 (Firefighters), CUPE Local 486 (Inside Workers), COPE Local 61 (Police Officers), and Plan Retirees to join together with us in working out the details of a shared solution. October 2006 Equity / Fairness / A Shared Solution 21 1. 2. 3. 4. 5. 6. 7. Dialogue with all member groups /urgent! Canvas Plan members on Solvency / next 2007 Operating Budget preparation / must Legislative amendments / shared solution Meet with Superintendent of Pensions Comply with accounting principles (GAAP) Possible alternatives * ?* ... after dialogue October 2006 Equity / Fairness / A Shared Solution ;` 22 SANT JOHN A Vision 2015: Excellence Public service ... is a special vocation. We care deeply ... about what we do. People who care ... create excellence. 4 g Y i Leadership ... respects those people. Respect ... underlies all achievement. _a October 2006 Thank You for this opportunity Equity / Fairness / A Shared Solution AS 24 I- I Common Clerk's Office Bureau du greffier communal www.saintjohn.ca October 13, 2006 Your Worship and Councillors P.O. Box /C.P. 1971 Saint John, NB /N. -B, Canada E2L 4L1 Subject: Committee of the Whole Meeting — Employee Groups' and Retirees' Plans to Solve the Pension Issue At the Council meeting of October 10, 2006, Council adopted the following resolution. "RESOLVED that item 12.11, Pension Issue, A Plan of Action, be tabled until Monday, October 16, 2006 and that employee groups and retirees be provided with the opportunity to present their plans to solve the pension issue to Council at a Committee of the Whole meeting to be held in the Council Chamber at 6:00 p.m. Monday, October 16, 2006." This resolution will be the subject of the open Committee of the Whole meeting on Monday, October 16, at 6:00 p.m. in the Council Chamber, Sincerely, Elizabeth GormleyC/ Assistant Common Clerk ��UPE" CFP Canadian Union of Public Employees front On the Syndicat canadien de la fonction publique SAINT JOHN AREA OFFICE 208 Lancaster Avenue, Saint John, NB E2M 2K9, (506) 635 -1622, Fax: (506) 6351624 cupe.ca scfp.ca October 13. 2006 Mayor and Common Council City of Saint John P.O. Box 1971 Saint John, NB E2L 4L1 Response to City Manager's Presentation of October 9th on Subject: Funding the Pension Plan: A call to Action Dear Hon. Norm McFarlane & Councillors: On behalf of the four Civic Unions, CUPE Local 18, 61, 486 and IAFF Local 771, we offer the following suggestions in order to do diligence to the serious pension matter. We would like to thank the City Manager, Mr. Totten, for giving us the opportunity to meet last Thursday, October 5th, informing us on what was being recommended to City Council concerning our pension plan. As part of the recommendations put forward by the City Manager was to meet with the Bargaining Agents. We understand that Council passed a motion on Tuesday, October 10th, to give the Bargaining Agents the opportunity to appear in front of a special session of the Council. We welcome that opportunity but before that meeting takes place, we would encourage Council to direct the City Manager and Senior Staff to meet with the Bargaining Agents. We would like to explore all options including the City Manager providing to the Bargaining Agents a full cost analysis of each of the recommendations, including the impact to the plan and as well the plan recipients. We would also request an opportunity to appear in front of Council and would suggest a special meeting of Council during the week of October 30th or at the next regular Council meeting in November to be on the Agenda. We feel strongly that this will give the Parties the opportunity to explore not only the options put forward by Mr. Totten but all options that can be explored. We respectfully take the opportunity to remind Council that this pension matter has been ongoing and in early 2006 the four bargaining agents, including the Retirees' Association, made a presentation to council regarding the solvency issue. To date Council has not acted on that. If the City wants cooperation from PAUL MOIST — National President / President national CLAUDE GENEREUX — National Secretary- Treasurer / Secretaire- 11`6S011er national MARIO GERVAIS — TOM GRAHAM — RICK MACMILLAN — BARRY O'NEILL — PATRICK (SID) RYAN — General Vice - Presidents / Vice - presidents g6neraux 4 :� & R01 the Bargaining Agents, we cannot be forced by deadlines. Let's give the quality of time that is required to find solutions on this serious matter. Thanking you in advance for your prompt response to this request. Signed: D v' oul P sident Local 18 Kim Phillips,'President Local 61 7 Paul ohnson, si ent Local 486 Charles Hickey, Preside IAFF L771 RH: ch`cope 491 October 13, 2006 His Worship Mayor Norm McFarlane and Members of Common Council Your Worship and Councillors, Re: Pension Funding Given the short notice for the Council meeting, I did not have an opportunity to consult with the Pensioners of the City of Saint John Pension Plan in order to prepare a formal response to the City Manager's proposal. I am however comfortable in making it clear that the Pensioners do not want the City to take any action that would result in a reduction of benefits to the pensioners or their surviving spouses. The benefits our pensioners receive were fully funded by contributions from the members over many decades. We do support the City's efforts to put the pension plan on strong financial footing and are willing to participate in discussions with the City in this regard. I think it would be helpful for Mr. Totten to meet with the pensioners to explain the current situation and to alleviate any concerns the pensioners may have about the security of their pensions. Respectfully submitted, FlaudeacKinnon President City of Saint John Retiree's Association