Beginning with the May 2018 issue of the 'Members Only Website', we will be featuring this new section.
If you have a question about Yellow Pages Limited, your pension, our pension fund or your benefits, please send it in an email to info@yppg-gppj.com or use the form below.
They will be assigned to an officer of the YPPG Board and we will respond to you by email. With your permission, we will also post the answer on this page. Simply complete the form on the right OR, send us an email directly at info@yppg-gppj.com
This is your chance to get your important questions answered by the same people who work hard to protect our pensions and our rights.
Question: "Hello, I wasn’t able to attend this meeting (YPG meeting, Toronto June 4/19
and Montreal June 5/19). On reading the highlights, I have some questions.
YP stated a funding of 109.6% as of Dec 2017, YPPG states 76% as of Dec 2017. Why the large difference? Which number is true?
Regarding PBGF, I live in BC which does not have this law. However as the pension fund is based in Ontario, do I still come under this protection?
Thank you to all of you who are working so diligently on behalf of all the YP pensioners."
Answer:
Hi Wendy,
Thanks for your questions.
The ratios you are questioning show 2 different factors from the Dec 2017 pension valuation.
Valuations can be complicated and provide many different numbers.
The 109.6% ratio is based on the Going Concern basis (GC).
GC assumes the pension plan will continue to be funded indefinitely.
The 76% ratio is on the wind-up basis meaning that if the fund were to be wound up tomorrow the payout to pensioners would be reduced to 76% monthly.
This 76% wind-up deficit is almost $155,000,000.
In past years, YP has been responsible to fund this deficit with special payments.
But with new pension legislation in Ontario and YP's latest solvency ratio at over 85%, there will be no further contributions to the deficit for the next 3 years from the Dec 2017 valuation.
With previous legislation, companies were responsible to fund to 100% solvency but now
the cut-off for any additional special payments is 85% solvency.
The Pension Benefit Guarantee Fund (PBGF) is part of pension legislation in Ontario that only applies to those members that were employed in Ontario.
Those that worked in Ontario for part of their career will have that time pro-rated to calculate what they would be entitled to.
Unfortunately, no other provinces have pension legislation similar to the PBGF in Ontario.
Canadian Federation of Pensioners (CFP) recently began an initiative through their Quebec members to investigate the possibility of a similar fund there.
This Quebec Pension Insurance Plan (QPIP) initiative is in the very early stages with no resolution at this time.
I hope I have answered your questions satisfactorily.
Lesley
Lesley O'Leary
Corporate Secretary YPPG
Question: "As I worked my whole 40 year career in Alberta and it seems all communication is always focused on either Ontario and/or Quebec. Is that because of where the head office was located and, therefore, my Pension regulation is under those Provinces’ jurisdiction, or is it all under Federal laws?"
Answer:
Hi Dianna,
If I understand your question, you are asking about the registration of our Yellow Pages Defined Benefit Pension Plan.
The head office for YP is in Montreal but our pension plan is regulated provincially in Ontario.
As such, the Financial Services Commission of Ontario (FSCO) regulates the YP pension under the Pension Benefits Act (PBA).
Effective June 10, 2019, the Financial Services Regulatory Authority of Ontario (FSRA) assumed the regulatory duties of FSCO.
I hope this info helps.
If you have further questions please let us know.
Question: "How do I confirm whether or not I have medical and dental benefits?"
Answer:
Thanks for your question, Shelley.
The Benefits Administrator will have your coverage details if you are a member of the Yellow Pages Health Care Program.
They can be reached by calling toll free 1 800 417-2114, Monday to Friday, 8:00 AM to 5:00 PM (Eastern Time).
Question: "What is status for Pension Insurance for Pensioners in other Provinces?"
Answer: This is to let you know that the pension insurance program to be established in other provinces is under the responsibility of the Canadian Federation of Pensioners (CFP). Since there is no pensioners association member of CFP that is located in Alberta, unfortunately we do not have any volunteer to try to implement this pension insurance program in Alberta.
The Quebec Pension Insurance Program (QPIP) is an initiative of a group of retirees residing in the province of Québec of which their associations are members of CFP. It is important that you have volunteers residing in the province where they would like to implement a pension insurance program, since they will have to often interact with their MPP and government responsible.
Currently we have a YPPG volunteer residing in BC and she is a liaison with 2 BC associations located in this province who are working to secure pensions when a company goes bankrupt.
Question: "If YPG does God forbid go bankrupt in your documents, it states we would lose 24% of our pension. Is that monthly?
Would we still receive pension for the rest of our lives at the reduced rate?"
Answer: Based on the latest actuarial valuation report dated December 31, 2017, related to YPG’s pension fund, your monthly pension would have been reduced by 24% if the company would have been bankrupt at that date.
Also, If the Company goes ‘’Bankrupt’’, Medical and Dental benefits will be cancelled and finally, indexation will not be applied to your reduced pension.
Yes, you would still receive a pension for the rest of your life at the reduced rate.
Question: "Following the Toronto general meeting, there was lots of fear and fear mongering about the future of our Pension. What is the plain truth? If the Company goes ‘’Bankrupt’’, does our pension STOP? Or, will it be reduced?"
Answer: If the Company goes ‘’Bankrupt’’, your pension will be only reduced.
For example, based on the latest actuarial valuation report dated December 31, 2017, related to YPG’s pension fund, your monthly pension would have been reduced by 24% if the company would have been bankrupt at that date.
Also, If the Company goes ‘’Bankrupt’’, Medical and Dental benefits will be cancelled and finally indexation will not be applied to your reduced pension.
Question: "Are we going to lose money on our pension?"
Answer: The best security for the long-term health of our pensions is the continued existence of Yellow Pages as a viable business entity. As we know, our pension plan is fully funded when it is evaluated that the Company is operating as a "going concern".
Unfortunately, Yellow Pages has been having a difficult time as a business - its revenues, profits, operating margins and customer counts have all been in decline for a number of years now. The Company has a new leadership team in place as of this past fall and it would appear that its efforts to reduce costs have at least contributed to improved profitability (smaller losses) and improved operating margins. And the new President and CEO has made it clear that the Company needs to address the issue of declining revenues and return those revenues to growth. The long-term health of Yellow Pages is probably dependent on that happening.
Should the Company be unsuccessful in turning itself around, then our pensions may very well be at risk. The pension plan, when evaluated in a "Solvency Funded Status" has a deficit of approximately 10%. When evaluated in a "Hypothetical Wind-up Funded Status", the deficit grows to almost 25%.
Another scenario for Yellow Pages involves the sale of the Company. Our pensions may or may not be affected by such a sale. It is our hope that such an event would create a positive outcome for our pension plan, but there is uncertainty.
So there is no simple answer to the question. At this point, the Company is operating and making improvements to its financial results. If it is successful in doing so, our pensions are safe. If it is not, our pensions as we know them are not protected.