August 19, 2015• Sheraton Hotel
AGENDA
 Opening of the Meeting

Word of Welcome from the Retirement Committee President
•
NBP Profile and Presentation of Members
 Approval of the Minutes of the Meeting (August 20, 2014) and Follow-up
 Presentation
• Financial Statements
• Annual Report
• Salient Facts in 2014
 Ratification of Action Taken by the Retirement Committee during Fiscal Year 2014
 Varia
 Adjournment of the Meeting
Word of Welcome
Profile of the NBP
Presentation of Committee Members by
Mr. Norm Odjick
President of the Retirement Committee
NATIVE BENEFITS PLAN (NBP)
 The NBP represents the largest Aboriginal defined benefit
pension fund in Canada
• Registered with the Office of the Superintendent of Financial Institutions,
the Canada Revenue Agency and the Quebec Pension Plan (QPP).
• It meets the requirements of the federal Pension Benefits Standards Act,
the Income Tax Act and the Supplemental Pension Plan Act (SPPA).
 Mission
The mission of the Native Benefits Plan is to administer a Defined Benefit
Retirement Plan for First Nations employers and employees through an
organization owned by them.
 The NBP had 4,981 members as at December 31, 2014
RETIREMENT COMMITTEE
 The Retirement Committee serves as the Board of Directors
• The Committee acts as the administrator and trustee of the pension
fund.
• The Committee is made up of 8 members, 7 of whom are elected by
and from among employers, employees members and retirees.
RETIREMENT COMMITTEE MEMBERS
Norm Odjick, President
Jinny Thibodeau, Vice-president
Angèle Petiquay, Director
David Kistabish, Director
Isabelle Napess, Director
Johanne Castonguay, Director
Valérie Tremblay, Director
Michel Toupin, Independent Member
Approval of the Minutes of the Meeting held on
August 20, 2014 and follow-up by the General
Manager
Me Jacques Beaudet
Gagné Letarte, s.e.n.c.
Presentation
 Financial Statements
 Salient Facts in 2014
 Financial Soundness
(Solvency and Capitalization)
Mr. Sylvain Picard, CPA, CA, CGA, ASC. Adm. A.
General Manager
FINANCIAL STATEMENTS – STATEMENT OF NET ASSETS OF THE FUND
Available for the Provision of Benefits – December 31, 2014
Assets
2014
2013
$
$
545,126,954
478,340,431
Employees
1,214,216
1,531,365
Employers
2,237,324
2,403,505
573,894
591,515
Accrued interest and dividends
659,012
739,794
Related parties
272,977
340,547
Sales taxes receivable
329,585
134,557
52,137
17,756
1,419
7,854
158,448
147,219
Cash
1,987,305
1,792,971
Cash held for investment purposes
2,958,556
2,434,765
555,571,827
488,482,279
Units held in the global trust and other investment
Accounts receivable
Contributions receivable
Aboriginal Affairs and Northern Development Canada
Others
Prepaid expenses
Fixed assets
Total assets
FINANCIAL STATEMENTS – STATEMENT OF NET ASSETS OF THE FUND (continued)
Available for the Provision of Benefits – December 31, 2014
Liabilities
2014
2013
$
$
321,338
12,097
1,084,318
1,150,679
-
2,614
1,405,656
1,165,390
554,166,171
487,316,889
Accounts payable
Benefits and refunds payable
Accounts payable and accrued liabilities
Related parties
Total liabilities
Net assets available for benefits
FINANCIAL STATEMENTS – STATEMENT OF CHANGES IN NET ASSETS OF THE FUND
Available for the Provision of Benefits – December 31, 2014
2014
2013
$
$
59,958,130
60,655,548
(123,248)
(64,806)
Employees
9,895,278
9,713,357
Employers
15,097,199
14,851,532
2,884,013
2,802,763
551,576
869,262
88,262,948
88,827,656
Increase in net assets
Investment income from the units
held in the global trust
Share of results of Investissement Premières Nations du Québec
(limited partnership)
Contributions
Aboriginal Affairs and Northern Development
Canada (AANDC)
Transfers from other plans and
additional contributions
Increase in net assets
FINANCIAL STATEMENTS – STATEMENT OF CHANGES IN NET ASSETS OF THE FUND
(continued)
Available for the Provision of Benefits – December 31, 2014
2014
2013
$
$
Net operating expenses
2,050,889
1,665,148
Management fees on investments
1,679,987
1,503,509
10,821,421
9,001,415
Refund of contributions
2,518,799
2,250,752
Transfers to other plans
4,342,570
4,492,358
21,413,666
18,913,182
Net increase in net assets
Net assets available for benefits beginning of year
66,849,282
487,316,889
69,914,474
417,402,415
Net assets available for benefits end of year
554,166,171
487,316,889
Decrease in net assets
Benefits paid
Refunds and transfers
Decrease in net assets
FINANCIAL STATEMENTS – INVESTMENT REVENUE OF UNITS HELD IN THE GLOBAL TRUST
December 31, 2014
2014
2013
$
$
Interests
6,156,136
2,859,872
Dividends
10,678,170
9,896,078
Gain on sale of investments
29,667,996
12,792,971
23,487
(850,429)
1,119,345
50,065
12,312,996
35,906,991
59,958,130
60,655,548
Gain (loss) on currency
Distribution from real estate companies and infrastructure
funds
Current period change in fair values of investments
SALIENT FACTS – EVOLUTION IN NET ASSETS
For fiscal years ended December 31 (in Canadian Dollars)
Period
Increase
Net Cumulative Assets
2014
66,849,282
554,166,171
2013
69,914,474
487,316,889
2012
41,369,135
417,402,415
2011
12,583,998
376,033,280
2010
41,663,481
363,449,282
SALIENT FACTS – CHANGE IN NET ASSETS
For fiscal years ended December 31 (in millions of Canadian Dollars)
600
2014
500
Increase
$ 66,849,282
400
Cumulative
$ 554,166,171
300
Augmentation
Increase
Actif
net cumulé
Net Cumulative
200
Assets
100
0
2010
2011
2012
2013
2014
FINANCIAL STATEMENTS - UNITS HELD IN THE GLOBAL TRUST AND OTHER INVESTMENTS
December 31, 2014
2014
2013
$
$
5,660,455
3,527,269
210,087,839
160,547,113
84,235,407
113,236,570
145,988,375
131,961,854
21,080,471
9,737,798
Real estate companies
55,955,135
43,234,705
Infrastructure funds
20,190,241
14,042,843
Global trust units value
543,197,923
476,288,152
1,929,031
2,052,279
545,126,954
478,340,431
Money market
Canadian bonds (yield between 3% and 6.65 %)
Canadian shares
Foreign investment funds
International shares fund
Global small cap fund
Real estate funds
2,334 units of IPNQ, limited partnership representing 29.17% of outstanding units
Total investments
FINANCIAL STATEMENTS – NET OPERATING EXPENSES
Year ended December 31, 2014
Budget 2014
Actual 2014
Actual 2013
$
$
$
Grant – Health Canada
39,600
39,575
39,575
Administrative expenses
35,000
25,726
54,481
Others
30,000
91,076
122,352
104,600
156,377
216,408
270,830
227,850
176,158
Amortization of fixed assets
54,500
41,618
36,766
Office supplies
16,075
15,550
24,163
Liability insurance
12,525
13,033
11,540
Office of the Superintendant of Financial Institutions
32,000
37,982
37,814
8,000
3,790
-
Professional fees – Actuaries
388,520
447,205
273,597
Professional fees
258,175
270,436
282,383
25,000
18,662
19,850
Cost of annual general assembly
104,000
103,165
97,539
Committees’ meetings
115,555
114,487
117,482
Salaries and fringe benefits
845,190
866,340
769,191
58,500
47,148
35,073
2,188,870
2,207,266
1,881,556
(2,084,270)
(2,050,889)
(1,665,148)
Revenue
Expenses
Administration fees
Quebec Pension Plan
Auditor fees- audit
Retirement seminars
Excess of expenses for the year
SALIENT FACTS
Breakdown of the Portfolio by Category of Asset – As at December 31, 2014
Canadian Shares
16%
Emerging Market
Equities
6%
Global Equities
(small & large cap funds)
21%
Cash and
Canadian Bonds
37%
Direct Real Estate
and Infrastructure
20%
SALIENT FACTS - CLIENTELE
Period
Active Members
Deferred
Retirees
Employers
2014
2,928
1,212
841
82
2013
2,944
1,097
741
80
2012
2,903
1,112
654
84
2011
2,831
1,098
574
84
2010
2,731
1,088
479
82
SALIENT FACTS - CLIENTELE
Period
Annual Contributions
2014
$ 27,876,490
2013
$ 27,367,652
2012
$ 25,937,139
2011
$ 24,928,048
2010
$ 23,144,104
SALIENT FACTS – BENEFITS PAID TO RETIREES
Period
Benefits Paid
2014
$ 10,821,421
Retirees as at
December 31
841
2013
$ 9,001,415
741
2012
$ 7,705,151
654
2011
$ 6,674,695
574
2010
$ 5,566,198
479
SALIENT FACTS - 2014
 To adapt to new realities to ensure Plan sustainability, we focused
on three realities in 2014:
1. First reality
•
Dealing with the financial health of our plan and our ability to cope
with it
2. Second reality
•
Addressing the economic context and changes in world markets
3. Third reality
•
Responding to members’ growing needs in a context of increased
administrative complexity (multi-jurisdictional)
First reality
“ Dealing with the financial health of our plan and our ability to cope
with it”
ACTION TAKEN TO DEAL WITH THE FINANCIAL HEALTH OF OUR PLAN
 Application of the amendments reducing benefits accepted by the OSFI
in November 2013:
• Defining their impact on our financial health
• Developing different scenarios for the actuarial assumptions to ensure
adequate financing costs in order to maintain sufficient capitalization
• Taking steps with the QPP to ensure fair and adequate treatment under
federal and provincial jurisdiction
ACTUARIAL VALUATION : CAPITALIZATION AND SOLVENCY REVIEW
The financial soundness of a defined benefit plan such as the NBP is measured primarily in two
different ways:

Capitalization review
•
The evaluation on the basis of capitalization serves to assess the financial situation of the Plan at the
time of evaluation based on the premise that the Plan will continue to exist indefinitely.
o
A rate exceeding 100%: sufficient financing
o
Rate under 100%: action must be taken to correct the situation.

Solvency review
•
The evaluation on the basis of solvency serves to assess the financial situation of the Plan at a given
date, based on the premise that the Plan will be terminated on this time. Using hypotheses
prescribed by law, the aim is to determine the capacity of the Plan to fulfil its obligations to its
members on the evaluation date.
o
A rate exceeding 100%: sufficient financing
o
Rate under 100%: action must be taken to correct the situation. Please note that solvency improves
only on the basis of a hypothetical wind-up.
SOLVENCY REVIEW
As at December 31, 2013
Hypothetical
Wind-up
($)
Value of assets
As at December 31, 2014
Solvency
($)
Hypothetical
Wind-up
($)
Solvency
($)
486,316,900
422,516,800
552,966,200
545,958,600
- Active participants & disabled
individuals
281,856,600
281,856,600
333,186,600
333,186,600
- Retirees and beneficiaries
148,707,800
148,707,800
193,071,000
193,071,000
38,181,700
38,181,700
40,663,100
40,663,100
1,114,100
1,114,100
1,147,800
1,147,800
469,860,200
469,860,200
568,068,500
568,068,500
16,456,700
(47,343,400)
(15,102,300)
(22,109,900)
103.5%
89.9%
97.3%
96.1%
Actuarial value of assets
- Deferred pensions and cases pending
- Additional contributions
Total assets
Surplus (lack of assets)
Degree of solvency(1)
(1) The solvency ratio is calculated on the basis of hypothetical wind-up. The solvency ratio made on the basis of solvency is a 3-year average ratio.
SOLVENCY REVIEW
140%
120%
100%
91%
99%
98%
97%
98%
97%
90%
92%
90%
96%
80%
60%
40%
20%
0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
CAPITALIZATION REVIEW
Value of assets
As at December 31, 2013
As at December 31, 2014
($)
($)
461,350,700
511,107,300
- Active participants & disabled individuals
194,992,600
225,710,300
- Retirees and beneficiaries
161,901,100
185,508,000
23,875,600
23,227,400
- Additional contributions
1,114,100
1,147,800
- Future indexation reserve
32,313,500
42,162,900
414,196,900
477,756,400
47,153,800
33,350,900
111.4%
107.0%
Actuarial value of assets
- Deferred pensions and cases pending
Total assets
Actuarial surplus (deficit)
Capitalization ratio
PLAN CAPITALIZATION (HISTORY - %)
160%
142 % 144 % 145 %
118 %
111% 115 %
111 %
140%
120%
104 % 111 % 107 %
100%
80%
60%
40%
20%
0%
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Second reality
“ Addressing the economic context and changes in markets ”
ACTION TAKEN TO DEAL WITH THE ECONOMIC CONTEXT AND CHANGES IN
WORLD MARKETS

Application of the liability-driven investment policy implemented
in January 2014.
Based on interest rate fluctuations and changes to actuarial liabilities, we will:
• Increase the terms of our bonds
• Reduce percentages held in Canadian, global and emerging market
countries equities
ACTION TAKEN TO DEAL WITH THE ECONOMIC CONTEXT AND CHANGES IN
WORLD MARKETS
In 2014, four meetings of the Investment Committee, where the emphasis
was placed on:
• Returns achieved versus returns anticipated
• Very close monitoring of managers and meetings with them
• Regular adjustments to the portfolio to ensure that it remained closely on
target
This allowed us to obtain a very appreciable return 12.56% for 2014, with an
added value of 1.91% equivalent to an additional $ 10 million for the NBP.
RETURN ON THE GLOBAL TRUST
Year
1 year
4 years
10 years
2014
12.56%
9.0%
6.5%
2013
14.6%
8.1%
6.2%
2012
7.7%
9.0%
6.3%
2011
1.6%
2.1%
4.7%
2010
9.1%
1.8%
4.8%
2009
18.3%
2.8%
5.1%
2008
-17.1%
0.9%
4.9%
2007
0.6%
8.0%
7.7%
2006
13.4%
11.8%
8.7%
2005
9.4%
6.4%
8.9%
 For 2014,
return of 12.56%
 Added value of
1.91% in relation
to the target
Third reality
“ Responding to members’ growing needs in a context of increased
administrative complexity (multi-jurisdictional) ”
ACTION TAKEN IN RESPONSE TO MEMBERS’ GROWING NEEDS IN A
CONTEXT OF INCREASED ADMINISTRATIVE COMPLEXITY (MULTIJURISDICTIONAL)
As indicated on several different occasions, the NBP is a very complex pension plan to
administer for several reasons:
•
•
•
•
•
•
Number of categories
Members’ status
Employers’ Legal status
First Nations’ specificities
Amendments reducing benefits implemented
And lastly, the multi-jurisdictional nature of the plan
(Mainly federal and in part provincial)
In light of this context, we must:
• Develop our own data calculation processing systems
• Ensure their operation and updating
• Ensure at all times that they are secure
Directions and goals for 2015
Based on 2015-2018 Strategic Plan
MAIN GOALS ESTABLISHED FOR 2015
ISSUE 1 – PROFITABILITY, SOLVENCY AND SUSTAINABILITY
The nature of the organization and regulatory environment in which the RBA
Financial Group operates requires careful management to ensure the profitability,
solvency and sustainability of our defined benefits plans.

Axis 1.1
Ensure the sustainability of defined benefits plans

Axis 1.2
Retain our clientele
MAIN GOALS ESTABLISHED FOR 2015
ISSUE 2 – CUSTOMER SERVICE DEVELOPMENT
The NBP wishes to offer improved customer service so members are better
informed of their rights and options in a context of increasingly complex pension
plans and financial sectors.

Axis 2.1
Develop IT tools facilitating access to reliable, adapted
information

Axis 2.2
Develop information documents

Axis 2.3
Strengthen advisory services
MAIN GOALS ESTABLISHED FOR 2015
ISSUE 3 – ACHIEVEMENT OF ORGANIZATIONAL MATURITY
In its more than 35 years of existence, the organization has changed over the years
and experienced rapid growth. We believe that achieving organizational maturity is a
key requirement to be fulfilled prior to considering the next stages of organizational
development.

Axis 3.1
Strengthen human resources

Axis 3.2
Maintain strong governance

Axis 3.3
Develop means of communication and marketing; increase
our visibility

Axis 3.4
Strengthen our compliance practices and risk management

Axis 3.5
Rely on dependable technology tools that maximize
efficiency
MAIN GOALS ESTABLISHED FOR 2015
ISSUE 4 – GROWTH AND EXPANSION
For several years, the RBA Financial Group has considered expanding its range of
products and services, and geographical reach. However, this cannot take place
without first consolidating our current clientele.

Axis 4.1
Optimize the potential in Quebec

Axis 4.2
Canvass for expansion outside Quebec
MAIN GOALS ESTABLISHED FOR 2015
Concerned
organizations
Objectives
Deadlines
NBP & FNPSPP
Achieve solvency ratios above 100% for the plans
2015 and +
NBP
Plan financing
2015
NBP
Plan compliance with provincial jurisdiction
2015
NBP & FNPSPP
Portfolio investment management
2015 and +
NBP & FNPSPP
Allow members to access their information online
2015
RBA Foundation
Increase our sense of belonging
2015 and +
NBP
Manage the risk associated with replacing the General
Manager
2015
NBP & FNPSPP & RBA FG
Develop business continuity planning
2015 and +
NBP & FNPSPP & RBA FG
Develop and deploy a computer security management and
legal compliance plan
2015 and +
N.B. These objectives are based on the conclusions of the new, recently implemented 2015-2018 strategic plan.
Ratification of action taken by the Retirement
Committee in 2014
Mr. Sylvain Picard, CPA, CA, CGA, Asc. Adm. A.
General Manager
RATIFICATION OF ACTION TAKEN BY THE RETIREMENT COMMITTEE
Resolution No. Meeting Date
Subject
13032014-A
March 13, 2014
13032014-B
March 13, 2014
Actuarial firm for the actuarial valuation as at December 31,
2013
Amendment 2014-01
13032014-C
March 13, 2014
Fees of expert members sitting on the Investment Committee
13032014-D
March 13, 2014
Expansion of the premises
13032014-E
March 13, 2014
2014 action plan
13032014-F
March 13, 2014
2014 budget
13032014-G
March 13, 2014
Membership of a new employer
29042014-A
April 29, 2014
Remuneration - recommendation from the Human Resources
Committee
RATIFICATION OF ACTION TAKEN BY THE RETIREMENT COMMITTEE
Resolution No. Meeting Date
Subject
12062014-A
June 12, 2014
Audited financial statements as at December 31, 2013
12062014-B
June 12, 2014
12062014-C
June 12, 2014
Actuarial valuation project as at December 31, 2013 – preliminary
results
Membership of a new employer
19082014-A
August 19, 2014 Amendment to regulations
19082014-B
August 19, 2014 Amendment to the 2014 budget
19082014-C
August 19, 2014 NBP employer representative
20082014-A
August 20, 2014 Nomination of directors
20082014-B
August 20, 2014 Members of the FNPSPP Retirement Committee
RATIFICATION OF ACTION TAKEN BY THE RETIREMENT COMMITTEE
Resolution No.
Meeting Date
Subject
20082014-C
August 20, 2014
Members of the Audit and Risk Management Committee
20082014-D
August 20, 2014
Members of the Human Resources Management Committee
20082014-E
August 20, 2014
Members of the Investment Committee
18112014-A
November 18, 2014 Strategic planning
18112014-B
November 18, 2014 Multi-jurisdictional aspect of the NBP
03122014-A
December 3, 2014
Choice of auditor for fiscal year ended December 31, 2014
Varia
August 20, 2015 • Sheraton Hotel