INSIDE:

2001 ANNUAL REPORT

2002 POCKET-FACTS PULLOUT

S P R I N G • 2 0 0 2

TimeWiseTimeWiseTimeWise

You are unique......so are your retirement needs!There are many different factors to consider when planningyour retirement - flexibility, convenience and security to namejust a few. Knowing your options is important in helping youdecide what’s best for you.

What do all the letters mean?GIC - Guaranteed InvestmentsLIF - Life Income FundLIRA - Locked-In Retirement AccountLRIF - Locked-In Retirement Income FundRPP - Registered Pension PlanRRIF - Registered Retirement Income FundRRSP - Registered Retirement Savings Plan

CO-OPERATIVE TRUSTCOMPANY OF CANADA

A Choice That’s Right for You and Your Family!

Learn More!To learn more about which plan fits your retirement needs, attend a CSS Pension Planretirement seminar – they’re a great way to explore all your choices – or contact the experts atCo-operative Trust.

Toll Free: 1-800-788-6311Web site: www.co-operativetrust.ca

Plan Source Investment Length of Can I Change Lump SumType of Funds Options Plan My Payments Withdrawals

RRIF RRSP GICs Choice of Life, Yes (annually) YesRPP (unrestricted funds) Mutual Funds* Specified Amount

Self-Directed Plans or Specified Term

LIF RPP (restricted funds)** GICs Age 80 - plan Yes (annually) NoLIRA/Locked-in RRSP Mutual Funds* converts to LifeLRIF Self-Directed Plans Annuity or LRIF1

1in certain jurisdictions

LRIF RPP (restricted funds)** GICs Life Yes (annually) NoLIRA/Locked-in RRSP Mutual Funds*LIF Self-Directed Plans

Annuity RRSP N/A Life or Can be indexed NoQuotation Service RPP Guaranteed Period to allow for

LIF inflation

Note: LIF/LRIF products are governed by provincial legislation and vary by province. Contact your plan administrator for further details.** Proposed legislation in Saskatchewan will affect the transfer of funds from RPPs.

* Mutual funds are offered through Credential Asset Management Inc., a wholly-owned subsidiary of Credit Union Central of Canada. Unless otherwise stated, mutualfund securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer which insures deposits incredit unions. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

A HALF CENTURYOF BUILDING TRUST

TimeWiseTimeWise is published at least twice a year by the Co-operative Superannuation Society Pension Plan (registrationno.0345868), Box 1850, Saskatoon, Saskatchewan S7K 3S2. Phone (306) 244-1539.TimeWise is the official publication of the Co-operative Superannuation Society Pension Plan and is provided freeto all active contributing members of the Pension Plan through the Pension Plan’s member organizations and to allretired members of the Pension Plan.Opinion and comment expressed in TimeWise does not necessarily reflect the official policy of the CSS Pension Plan.This issue of TimeWise is printed on RESOLVE COATED GLOSS which contains 50% recycled fibre of which aminimum of 15% is post-consumer waste.

CONTENTSSPECIAL FEATURES

Election of Employee Delegates 2

Income Allocation Policy Revised 5

Board of Directors

President – Peter Zakreski

Vice-President – Don Pavelick

Directors – Wayne King

Jeanette Kirchner

Don Russell

Gerry St. Pierre

Staff

General Manager – Bill Turnbull

Investment Manager – Eldon Braun

Accounting/Investment Officer – Joel Sawatsky

Member Services Manager – David Kapeluck

Information Officer – Muriel Baribeau

Systems Administrator– Vaun John

Office Administrator – Fiona May

Office Administrator – Rhonda McDiarmid

Office Administrator (Part-time) – Joanne Anderson

SPRING, 2002 Volume 25, Number 1

FEATURES4 News Briefs

8 Canada Pension Plan

9 Attention Pensioners

12 “I Know That!” Contest

REGULAR COLUMNS10 In Remembrance

11 New Pensions

Rob FehrVice President - Member Services

& TechnologySherwood Credit Union, Regina

(Saskatchewan Region)

SPECIAL

FEATURE

2 TimeWise • Spring 2002

The upcoming Annual Meeting of theCo-operative Superannuation Society

is being held on March 15, 2002 at theSheraton Cavalier Hotel in Saskatoon,starting at 9:00 a.m.

The election of employee delegates tothe 2002 Annual Meeting involved theAlberta/BC/Northern Canada region, theManitoba/Eastern Canada region, and thePensioners.

Seven candidates were nominated forthe four delegate positions in theAlberta/BC/Northern Canada region. Thesuccessful candidates elected for a two-year term are: Dan Bruinooge,Calgary Co-operative, Calgary; Ken Edey,Federated Co-operatives Limited,Calgary; Jeanette Kirchner, Calgary Co-operative, Calgary; Gerry St. Pierre,Barrhead District Co-op, Barrhead.

Four candidates were nominated forthe three delegate positions in theManitoba/Eastern Canada region. The suc-cessful candidates elected for a two-yearterm are: Jim Huggard, Federated Co-oper-atives Limited, Winnipeg; Don Pavelick,Hy-Line Credit Union, Winnipeg; BjarniWalterson, Minnedosa Credit Union,Minnedosa.

Arthur Matley of Saskatoon was electedby acclamation as the Pensioner delegate.

The above delegates are joining theseven Saskatchewan region delegates(who were elected to a two-year termlast year) at this year’s Annual Meeting.The Saskatchewan region delegates are:Rob Fehr, Sherwood Credit Union,Regina; Mike Gartner, Federated Co-operatives Limited, Saskatoon; BrianGustafson1, Federated Co-operativesLimited, Saskatoon; Earl Hanson,

Southwest Credit Union, Swift Current;Ronald Inkster, Battlefords CreditUnion, North Battleford; CelesteLabrecque, Teachers Credit Union,Saskatoon; and Larry Rupert, FederatedCo-operatives Limited, Saskatoon.

The above fifteen employee delegates,along with the fifteen employer dele-gates, are representing employee andemployer members at the 2002 AnnualMeeting in Saskatoon.

The fifteen employer delegates areappointed by the following employer orga-nizations: Credit Union Central of Alberta(one delegate), Credit Union Central ofManitoba (one delegate), Credit UnionCentral of Saskatchewan (two delegates),Co-operative Trust Company of Canada(one delegate), and Federated Co-opera-tives Limited (ten delegates). The follow-ing employer delegates were appointed bythe above organizations as follows:• Credit Union Central of Alberta:

Diane Dittberner, Calgary;• Credit Union Central of Manitoba:

Mike Safiniuk, Winnipeg;• Credit Union Central of Saskatchewan:

Pieter McNair, Kelvington; KarenMcBride, Regina;

• Co-operative Trust Company ofCanada: Wayne King, Saskatoon;

• Federated Co-operatives Limited(FCL): Dennis Banda, FCL Director;Wayne Haughn, FCL Director;Andrea L’Ecuyer, FCL Saskatoon;Dave Mysak, FCL Saskatoon; CarlaOlson, FCL Saskatoon; Art Postle,FCL Saskatoon; Vern Pusch, FCLDirector; Don Russell, FCL Director;Laura Vance, FCL Director; and PeterZakreski, FCL Saskatoon.The CSS Pension Plan extends its

appreciation and thanks to all of this year’scandidates for their interest in the PensionPlan’s democratic process.

ELECTION OF EMPLOYEE DELEGATES

Ken EdeyRegion Finance & Control Manager

Federated Co-operatives Limited,Calgary

(Alberta/BC/Northern Canada Region)

Dan BruinoogeVice President - Human ResourcesCalgary Co-operative Association,

Calgary(Alberta/BC/Northern Canada Region)

1 Brian Gustafson was appointed by the employeedirectors to complete the balance of KayRobertson’s term as employee delegate.

TimeWise • Spring 2002 3

Arthur J. MatleyRetiree

Saskatoon(Pensioner Delegate)

Gerry St. PierreGeneral Manager

Barrhead Co-operative Association,Barrhead

(Alberta/BC/Northern Canada Region)

Bjarni WaltersonAgricultural Loans Officer

Minnedosa Credit Union, Minnedosa(Manitoba/Eastern Canada Region)

Larry RupertRegional Manager

Federated Co-operatives Limited,Saskatoon

(Saskatchewan Region)

Brian GustafsonMarket Research & Member

Relations ManagerFederated Co-operatives Limited,

Saskatoon(Saskatchewan Region)

Mike GartnerRetail Facilities Manager

Federated Co-operatives Limited,Saskatoon

(Saskatchewan Region)

Ronald InksterManager - Financial Operations

Battlefords Credit Union, North Battleford

(Saskatchewan Region)

Earl HansonVice President - Wealth Management

Southwest Credit Union, Swift Current

(Saskatchewan Region)

Jeannette KirchnerController

Calgary Co-operative Association,Calgary

(Alberta/BC/Northern Canada Region)

Celeste LabrecqueBranch Manager

Teachers Credit Union, Saskatoon(Saskatchewan Region)

Don PavelickGeneral Manager

Hy-Line Credit Union, Winnipeg(Manitoba/Eastern Canada Region)

Jim HuggardGeneral Merchandise ManagerFederated Co-operatives Limited,

Winnipeg(Manitoba/Eastern Canada Region)

4 TimeWise • Spring 2002

The tentative schedule of RetirementIncome Options (RIO) workshops for

2002 is as follows:Lethbridge, AB April 6Dauphin, MB May 11Regina, SK June 1Winnipeg, MB September 7Edmonton, AB October 5Saskatoon, SK November 2All of the above workshops are sched-

uled for Saturday mornings from 8:30am -12:00 noon (local times).

The 31/2-hour RIO workshops aredesigned for members and their spouseswho are approaching retirement.Participants will receive a wealth of infor-mation with respect to all the retirementincome options available to them for theirfunds in the CSS Pension Plan.

Members 50 and older with more than$30,000 in the Pension Plan will receivean invitation to attend the RIO workshopin their area. Members and their spousesare encouraged to attend this very worth-while workshop.

The 2-day Retirement PlanningSeminar (RPS) will undergo an extensiverevision during the first half of this year.

Accordingly, the tentative schedule for the2-day RPS for 2002 is as follows:

Saskatoon, SK September 23 & 24Brandon, MB October 7 & 8Calgary, AB November 13 & 14The RPS is designed for members and

their spouses who are nearing retirement(i.e., 50 years of age and older). The objec-tives of the RPS is to provide informationand help participants search for their ownanswers in planning for a meaningful, suc-cessful and happy retirement.

Over the course of the two days thetopics that are covered include health,housing, legal matters, psychologicalaspects of retirement, use of time, sourcesof income, and financial planning.Members and their spouse are encouragedto attend a RPS about 10 years before theyexpect to retire.

Registration brochures for the RPS aresent to the employer members for distri-bution to the appropriate employeemembers.

The above RIO and RPS schedule isalso posted on the CSS Pension Plan’s website: www.csspen.com

2002 RIO & RPS Schedule

Congratulations to the 10 lucky win-ners of the Fall 2001 “I Know That!”

contest. Each winner has either received acopy of Sandra E. Foster’s book “Who’sMinding Your Money?” or Kevin Wark’sbook “Everything You Need to Knowabout Estate Planning”. The 10 luckywinners whose names where drawn atrandom on December 3, 2001 are: ArnoldBeresh, Regina, SK; Sue Bernt, Balgonie,SK; Lynn Cruikshank, Calgary, AB; SylviaJohnson, Fort St. John, BC; Donna Larner,Sanford, MB; Dean Layman, Woodrow,SK; Robert Lutomsky, Gunn, AB; NadineMillen, Unity, SK; Larry Mills, Roblin,MB; and Joan Schaubel, Welland, ON.The crossword puzzle solution for theFall 2001 contest is as follows:

Across:1. The management expense ratio (MER) ofthe Non-Retired Lives Portfolio is approxi-mately one-tenth of the MER for a typicalCanadian balanced mutual fund.6. Your Canada Pension Plan retirement pen-sion is based on how much, and for howlong, you contributed to the Plan.8. Don Pavelick from Hy-Line Credit Unionin Winnipeg was re-elected to the board byacclamation for a three-year term.9. The CSS Pension Plan does not process anywithdrawal or transfer requests from the mid-dle of December until January 31.

Down:1. A New Brunswick LIF can extend beyondage 80.2. The deadline for 2001 contributions to theCSS Pension Plan is Friday, January 11, 2002.3. Same-sex common-law relationships areincluded in the definition of spouse underSaskatchewan pension legislation.4. Muriel Baribeau and her husband Mikehave four children.5. Canadian Investment markets have producedmixed results for the first 8 months of 2001.7. The T4A slips for 2001 will be maileddirectly to pensioners by early February 2002.

Details of the latest contest appear on pg 12.

“I Know That!”Contest Update

NEWS BRIEFS

The CSS Pension Plan regrets toannounce that effective October

2001, Bonnie Ralston has resigned herposition as Office Administrator to rejoina major-chartered bank she worked forprior to joining the CSS Pension Plan inNovember 2000.

We are however, pleased to welcomeRhonda McDiarmid as Bonnie’s replace-ment for the Office Administrator posi-

tion. Since graduating from high schoolin Hague, SK, Rhonda has gained exten-sive financial and administrative skillsthrough her previous work experiencesas well as a number of related courses.Most recently Rhonda was employed byNestle Canada in Edmonton.

We extend our best wishes to Bonnieand a warm welcome to Rhonda!

Staff Changes

TimeWise • Spring 2002 5

SPECIAL

FEATUREThe CSS Pension Plan invests the con-

tributions of its non-retired membersin stocks, bonds and short-term invest-ments. These investments make up a largeand well-diversified portfolio called the“Non-Retired Lives Portfolio”. Since theinvestment returns earned on this portfoliohave generally been excellent over the past20 years, CSS members have enjoyedexcellent annual income allocations ontheir pension equity over the period.

In response to the requirements ofCanadian pension legislation, the way inwhich the Plan has allocated investmentgains and losses, dividends and interest toCSS members has changed over the years.These changes began approximately sevenyears ago when the method used to valueinvestments held in the Non-Retired LivesPortfolio changed from a “book value” orcost basis to a “market value” basis. Thischange meant that, going forward, as mar-kets advanced and retreated, the annualallocation of gains and losses to non-retiredmembers would vary too. Members wouldtherefore see more volatility in the annualincome allocation to their accounts.

In order to permit a period of adjust-ment, the annual income allocation wasnot changed to a pure market value basisimmediately. Instead, a decision was madeto phase-in changes to the Plan’s incomeallocation policy over time, so that non-retired members would have some time toadjust their return expectations to the port-folio’s “new reality” – that investmentreturns and hence income allocationswould vary more from year to year.

How was the IncomeAllocation Rate calculatedbefore 1995?

Prior to 1995, dividends on the Non-Retired Lives Portfolio’s stocks and intereston the Portfolio’s bonds were recognizedand allocated to members in the year ofreceipt, just as they are today. However,

capital gains and losses on stocks andbonds in the portfolio, were only partiallyrecognized in the annual income allocationrate (IAR) for the year in which theyoccurred, and were eventually allocatedover time. This meant that to a large extent,members were “insulated” from short-termchanges in the market value of the Non-Retired Lives Portfolio in any given year.

The allocation rate for each year, there-fore, did not truly represent the invest-ment performance of the Non-RetiredLives Portfolio, but rather was more inline with the long-term average returnearned on the Portfolio. This income allo-cation method therefore resulted in moreconsistent returns to members from yearto year. But it also had the potential toproduce annual allocations that differedfrom the investment return earned on theportfolio for the year in question. Table 1below shows this relatively consistent pat-tern in the Plan’s IAR to non-retired mem-bers over the 20 years from 1975 to 1994.

1995 to 2001As required by pension legislation, the

Plan switched from a book value (cost) basisto a market value basis in 1995 for the valu-ation of the investments held in the Non-Retired Lives Portfolio. Given the nature ofthis change and its expected impact on thevolatility of short-term results, the CSS

Board of Directors resolved in 1995 to lessenthis volatility by creating the IncomeStabilization Reserve (ISR). This reserve wascreated so that the IAR calculation would“smooth” or blend capital gains and lossesover a moving four-year period. Even withthe creation of the ISR, however, the annualIAR to members was expected to vary morefrom year to year than it had in the past.Table 2 below demonstrates the resultingincreased volatility in the annual IAR.Members may recall that, the ISR wasintended to be a temporary measure thatwould someday be phased-out.

Over the past seven years the amount ofcapital gains and losses from the currentyear included in the annual IAR calculationgradually increased. This was done byreducing the maximum amount held in theISR from 7% of the value of the Non-Retired Lives Portfolio in 1995, to 4% in1998, and then finally to zero in 2002 (i.e.,discontinuing the ISR).

Please note that, the average IAR forthis period of 11.4%, is very similar to thelong-term IAR history for the Plan shownin Table 1 prior to the switch to “marketvalue”. Members can see, therefore thatthese changes have not had a great impacton the growth of CSS pension equity overtime. The changes, however, have resultedin a more accurate income allocation cal-culation for members entering and leav-ing the Plan.

2002 At its January 25, 2002 meeting, the

Board of Directors of the Co-operative

IINNCCOOMMEE AALLLLOOCCAATTIIOONN PPOOLLIICCYY RREEVVIISSEEDD

1975 7.75%1976 8.50%1977 9.25%1978 9.75%1979 10.20%1980 11.00%1981 13.50%1982 13.85%1983 13.50%1984 12.25%

1985 12.70%1986 12.40%1987 11.60%1988 11.00%1989 11.60%1990 11.00%1991 10.75%1992 11.00%1993 12.50%1994 10.25%

TABLE 1IAR from 1975 to 1994

(Calculation based on Book Value) 1995 12.90%1996 16.75%1997 17.50%1998 7.82%

1999 7.50%2000 12.33%2001 5.02%

TABLE 2Annual Allocation Rates 1995 to 2001

(IAR based on Market Value with “Smoothing”)

6 TimeWise • Spring 2002

Superannuation Society passed a motionto discontinue the Income StabilizationReserve (ISR) effective January 1, 2002. Asa result, when calculating the annualincome allocation rate (IAR) from now on,the market gains/losses for the year will nolonger be “smoothed” with a portion ofthe market gains/losses from each of theprevious three years. Under this newincome allocation policy, the IAR will bethe actual total investment return earnedfor the year in question. This is the “annu-al return” reported by most other DC(defined contribution or money purchase)pension plans like CSS. As of January 1,2002 there was approximately $5,000,000remaining in the ISR. This amount will beincluded as 2002 income and equates toabout 0.3% in the IAR for 2002.

Members should note that this changein the Plan’s income allocation policy is an“accounting” change and not an “invest-ment” change. It changes the way in whichthe returns earned on the investments arerecorded and allocated annually to themembers. It does not, however, change theactual returns earned on the investments.The Non-Retired Lives Portfolio’s broadlydiversified asset mix remains as it was in2001. The Portfolio’s investment managersand their investment mandates also remainthe same as they were in 2001.

How will this impact the IAR?

Members may recall that the Plan’sAnnual Report and Quarterly Updatenewsletter have been reporting the actualtotal investment return earned by the Non-Retired Lives Portfolio in addition to the“smoothed” income allocation rate for sev-eral years. From now on, the IAR will bethis actual total investment return.Members can therefore expect greatervolatility in future IAR’s, although thebroad diversification of the Non-RetiredLives Portfolio will dampen this volatility.

To demonstrate the increased volatilityin the IAR that might be expected in thefuture members can review the actual total

lated in two different ways. The first cal-culation smoothes the gains and lossesover four years, with a maximum deferralof 4% of the value of the account (this wasthe CSS income allocation policy from1998 to 2001). The second calculationallocates the gains and losses withoutsmoothing. That is, the earnings allocatedto the member’s account each year areassumed to be the total investment returnearned by the hypothetical benchmarkportfolio in that year.1

The Chart demonstrates two things.Firstly, it shows that the “winning” calcu-lation method varies, depending on theperiod over which the growth of the mem-ber’s account is measured. Secondly, itshows that the accumulated balances for

return earned by the Non-Retired LivesPortfolio over each of the past 7 years.

Table 3 confirms that, although theactual investment returns earned in eachyear varied more than the IAR’s over thissame time period (i.e., Table 2), the aver-age return over the seven years from 1995to 2001, at 11.45%, is very similar to the11.4% average of the IAR’s received byCSS members.

A study of the Plan’s income allocationpolicy done by the Plan’s InvestmentConsultant, James P. Marshall in 2001,confirmed that the accumulation of amember’s account over the past twentyyears would have been similar, with orwithout the smoothing of capital gainsand losses. The Chart above compares theperformance of a hypothetical member’saccount invested in the Non-Retired LivesPortfolio’s current benchmark (17%Canadian Equities, 17% U.S. Equities,16% Non-North American Equities, 48%Canadian Bonds & 2% Short Term). Itdemonstrates the growth of this member’saccount, assuming annual contributionsof one dollar per year. It includes earningsallocated to this member’s account, calcu-

1995 19.73%1996 16.82%1997 17.62%1998 3.37%

1999 8.96%2000 12.38%2001 1.27%

TABLE 3Total Investment Return – 1995 to 2001

(all gains and losses without “smoothing”)

Smoothed: 4% Cap Pure Market

120

100

80

60

40

20

0

Do

llars

Year

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Non-Retired Lives Portfolio Benchmark Performance

TimeWise • Spring 2002 7

the two calculation methods are very sim-ilar. This is because the capital gains/loss-es, dividends and interest earned on themember’s account each year are the same,no matter which allocation method isused to add them to the member’s accountbalance at year-end.

The results of this study suggest thatthe method of allocating income to mem-ber’s accounts does not have a significantimpact on the growth of the member’saccount over time. In the end, the sameinvestment earnings are added to themember’s contributions and compoundedover time.

What are the benefits toNon-Retired Members?

Now that the phase-in process is com-plete, the annual income allocation tomembers will recognize all of the actualchanges in the market value of the Non-Retired Lives Portfolio’s investments forthat year. This will result in the followingbenefits:1. The income allocated on funds trans-

ferred into and out of the Plan willmore accurately reflect the actual per-formance of the investments in theNon-Retired Lives Portfolio at the timeof transfer.

2. The Plan’s IAR will be more directlycomparable to those of other DCPension Plans and the returns earned bymembers on their other investments.

3. The Plan’s IAR calculation will be moretransparent and easier for the membersto understand.

What are the Risks for Non-Retired Members?

As has been stated above, the volatili-ty of annual allocations will increase.This means that highs will be higher, butlows will also be lower. Historical analy-sis tells us that a portfolio of broadlydiversified stocks and bonds will likelygenerate periodic negative annualreturns. Under the new income allocationpolicy, therefore, the possibility of a neg-ative IAR is somewhat greater than underthe former income allocation policy. (Yes,it was possible to have a negative IAReven with “smoothing”!)

The impact of periodic negative annualreturns, however, will not make a signifi-cant difference to a member’s final balanceat retirement in most cases. This is becausethe higher highs and lower lows thatmembers can now expect going forward,will continue to provide an average returnsimilar to the Plan’s fifty year average ofapproximately 9%.

The impact of these periodic negativereturns could have a greater impact, how-ever, on a member planning to retire in theyear in which they occur. The extent of thisimpact on such a member will depend onthe member’s need for an immediateincome from their CSS pension equity andon the type of retirement income optionthey select. Members who are approachingtheir planned retirement date during a peri-od when short-term investment returns arenegative, are encouraged to contact thePlan’s offices in order to discuss strategiesavailable to them that might help reducethe impact that short-term losses couldhave on their retirement income options.

Will this Change AffectRetired Members?

Members’ pension equity that hasalready been used to commence a CSSmonthly pension or that has been trans-ferred from the Non-Retired LivesPortfolio is not impacted by this change.

When a CSS member retires he or shemakes a choice with respect to the dispo-sition of his or her pension equity:

1. The member can leave his or her pen-sion equity in the Non-Retired LivesPortfolio up to the end of the year thathe or she becomes 69 years of age, ifthe member does not require an imme-diate retirement income from theirpension equity.

2. The member can transfer his or herCSS pension equity to a LIRA, LIF,LRIF or use it to purchase an annuityfrom an insurance company.

3. The member can convert his or her CSS pension equity into a CSSmonthly pension.Only where the retired member has left

all or part of his or her pension equity in theNon-Retired Lives Portfolio, will he or shebe exposed to the impacts of the changesmade to the CSS Pension Plan’s IncomeAllocation Policy described above.

Looking ForwardIn 2002, the final step has been taken

in a process that began in 1995 – a switchfrom “book” to “market” value and thegradual phasing out of “smoothing”, inorder to ensure the transparency and fair-ness of the Plan’s IAR calculation. Thecompletion of this process will alsoensure full compliance with pension leg-islation going forward.

To ensure that members understandthe risks and benefits that will result fromthe changes that have been made, the Planwill be revising its industry-leading com-munication and education programs. Inaddition, the Plan will continue to exam-ine how the retirement income optionsavailable to CSS members can beimproved, with a special emphasis onlocating or creating other permissible andcost-effective options that will help CSSmembers to manage the risks they face insaving and planning for retirement.

If members have further questionsabout these changes please contact theCSS Pension Plan’s offices at:

Tel: 306 244-1539Fax: 306 244-1088

Email: css@sk.sympatico.caPO Box 1850, Saskatoon, SK S7K 3S2

1 Benchmark returns were used in the studyrather than the Plan’s historical return history asshown in Tables 1, 2 and 3, because the Plan’sactual historical returns are based upon severaldifferent portfolio structures (asset mixes) overthe twenty year period studied. By maintaininga static portfolio, invested on the portfolio’s cur-rent benchmark and only varying the method ofallocating annual income, the impact ofsmoothing was isolated to ensure the validityand accuracy of the study.

8 TimeWise • Spring 2002

Applying for Your Retirement Pension8. When should I apply?

Note, if you delay in applying, theCanada Pension Plan cannot always makeback payments to the date you wish yourpension to begin. For information onCanada Pension Plan rules, HumanResources Development Canada (HRDC)(see 9 below).

9. How do I apply?You can print an application kit from

HRDC’s web site at www.hrdc-drhc.gc.ca,or pick up a kit at any HRDC office. Youcan also order an application kit by callingHRDC at 1-800-277-9914 or 1-800-255-4786 (TTY/TDD).

The application kit contains theinformation and instructions you willneed to apply. For instance, it tells youwhat documents you need, such as proofof date of birth.

10. What happens if an individualdies before applying for a retire-ment pension?If a contributor dies without having

applied, a retirement pension cannot neces-sarily be paid, but his or her spouse or com-mon-law partner may be eligible for CanadaPension Plan survivor benefits. Dependentchildren may qualify for benefits as well.You should contact HRDC for advice.

Receiving Your Retirement Pension11. When can my pension begin?

Your pension can start the latest of: • the month after your 60th birthday; • the month you specify on your

application;

• the month after Canada PensionPlan receives your application;

• the month after you reduce or stopworking (if you are under the ageof 65).

In some cases the Canada PensionPlan can make back payments of up to 12months.

12. What if I change my mind after Istart receiving my pension?You can cancel your retirement pen-

sion up to six months after it starts, but youmust request the cancellation in writing.You will also have to pay back all the ben-efits you received, and pay Canada PensionPlan contributions on any earnings youhad while you were receiving the pension.

13. Can I receive a disability pensionafter my retirement pension begins?You can apply to have your retirement

pension replaced by a Canada PensionPlan disability pension if:

• you become disabled (according toCanada Pension Plan legislation)before you reached age 65; and

• you became disabled before yourretirement pension began.

Any retirement pension paymentsyou have already received may be deduct-ed from your Canada Pension Plan dis-ability pension.

14. When can I expect my paymentseach month?Your Canada Pension Plan retirement

payments will usually arrive in the lastthree banking days of each month. HRDChas a calendar of payment dates on itsweb site.

Direct Deposit is a system HRDC uses

to automatically deposit your CanadaPension Plan and Old Age Security pay-ments each month into your bank accountin Canada or the United States. ContactHRDC for more information on how tosign up for direct deposit, how to changeyour bank information, or how to cancelthe direct deposit service.

15. When do payments stop?The last payment is for the month in

which the contributor dies.

Sharing Your Retirement Pension 16. What does “assignment” mean?

Assignment, or “pension sharing”, isfor spouses or common-law partners whoare together (not separated or divorced)and who are receiving their CanadaPension Plan retirement pension(s). Withassignment, each spouse or common-lawpartner can receive a portion of the other’spension, if they choose to share in thisway. It does not increase or decrease theoverall benefits paid.

If only one of you has been a CanadaPension Plan contributor, that one pen-sion can be shared.

Each spouse or common-law partnerpays income tax on the amount received.

17. Who is a “spouse”?For the purpose of the Canada

Pension Plan, a “spouse” is a person ofthe opposite sex with whom you are in alegal marriage.

A common-law partner is a person ofeither sex, with whom you have been liv-ing in a conjugal relationship for at leastone year.

CANADA PENSION PLAN

The following is the second in a series of two articles relating to the retirement pension under the Canada Pension Plan.The first article of the series appeared in the fall 2001 issue of TimeWise.

This information is reproduced with permission from Human Resources Development Canada (HRDC).

TimeWise • Spring 2002 9

18. How much of our pensions will be shared?Each of you will receive part of the

other’s Canada Pension Plan retirementpension. The amounts depend on howlong you lived together and on your con-tributory periods.

For example, if you lived together for20% of both your contributory periods:

• you keep 80% of your pension;and the remaining 20% is dividedequally between you and yourspouse or common-law partner;and

• your spouse or common-law partner keeps 80% of his or herown pension, and the remaining20% is shared with you.

The combined total amount of thetwo pensions stays the same.

19. How can we start sharing our pensions?Either of you can apply. Your shared

pensions can start as soon as your appli-cation for assignment is approved. Thesharing arrangements cannot be backdat-ed. Contact HRDC to request that an

application be mailed to you, or print anapplication from their web site.

20. When does our pension sharing stop?Your pension sharing arrangement

stops: • if you and your spouse or common-

law partner ask Canada PensionPlan to end the assignment;

• the 12th month after you separate; • the month you divorce; • if one of you has never paid into

the Canada Pension Plan (orQuebec Pension Plan) and beginscontributing; or

• the month one of you dies.

21. What happens to my own retire-ment pension when a pensionsharing arrangement ends?You will return to your own pension

entitlement, just as if there had been noassignment.

Combining Canada Pension Plan Pensions22. Can I receive another pension

from the Canada Pension Plan atthe same time as my retirementpension?Yes, you could receive a survivor pen-

sion on the death of your spouse or com-mon-law partner as well as a retirementpension in your own right. The combinedbenefit comes as one monthly payment.

It is important to note that the amountof the combined benefit is not 100% ofyour retirement pension plus 100% ofyour survivor pension. The amount of acombined benefit is based on the maxi-mum retirement pension which you wouldreceive if you were age 65. Depending onyour retirement pension, your survivorbenefit could be reduced.

If you have any questions or requireinformation about CPP, Old Age Security(OAS) or Guaranteed Income Supplement(GIS) please call HRDC free of charge 1-800-277-9914. If you have a hearing orspeech impairment and you use a TDD/TTYdevice please call 1-800-255-4786. Or visittheir web site at www.hrdc-drhc.gc.ca

Don’t forget to take advantage of the$1,000 eligible pension income

amount on line 314 of your 2001 incometax return. Your monthly pension fromthe CSS Pension Plan or any other regis-tered pension plan qualifies for the eligi-ble pension income amount (up to amaximum of $1,000) when calculatingyour Non-Refundable Tax Credits.

The 2001 T4A slips were maileddirectly to eligible CSS pensioners inearly February. Please note that, CanadaCustoms and Revenue Agency (CCRA),does not require organizations to pre-pare T4A slips for individuals whosetotal payments for the year are less than$500. If you fall into this category, you

must still declare your total pensionpayments for the year.

Those who were 65 or older at the endof 2001 are eligible for some or the entirefederal and provincial Age amounts1,depending upon your total net income for2001. For 2001, if you were 65 or olderand your total net income was below aminimum threshold amount2, you are eli-gible for the full Age amount for 2001when calculating your Non-RefundableTax Credits. However, if your total netincome for 2001 exceeds the minimumthreshold amount, your Age amount isreduced by 15% of the amount that yourtotal net income exceeds the minimumthreshold amount. Once your total netincome exceeds a maximum thresholdamount3, you are not eligible for any ofthe federal and provincial Age amounts

when calculating your Non-RefundableTax Credits.

At anytime, if you wish to change theamount of income tax withheld fromyour CSS monthly pension in light ofyour income or eligible amounts whencalculating your Non-Refundable TaxCredits, please do not hesitate to contactthe Pension Plan to make the necessaryarrangements.

ATTENTION PENSIONERS!

1 The federal Age amount for 2001 was $3,619.The provincial Age amounts differ by province,however, such amounts are comparable to thefederal Age amount.

2 The minimum federal threshold amount for2001 was $26,941. For 2001 the variousprovincial minimum threshold amounts werecomparable to the federal amount.

3 The maximum federal threshold amount for2001 was $51,068. For 2001 the variousprovincial maximum threshold amounts werecomparable to the federal amount.

BRITISH COLUMBIA

Verna H. Blize Fort St. John Co-op

Janette Carwell Kelowna Co-op

Jacqueline M. Paterson Mackenzie Co-op

Jean M. Paulhus Mackenzie Co-op

Yvon Paulhus Mackenzie Co-op

ALBERTA

M. George Boschee Medicine Hat Co-op

Jane Brown Calgary Co-op

Dave Chapman Calgary Co-op

Ben Chiuppi Drumheller Co-op

Margaret Dunbar Calgary Co-op

Theresa Eaton Calgary Co-op

Sherry Flinn Grande Prairie Co-op

Donald E. Forth Wetaskiwin Co-op

Eileen Goruk Stony Plain Co-op

Conrad M. Muhr Consumers Co-operativeRefineries, Regina

Doris J. Nystuen Spalding Co-op

Gerald M. Olson Estevan Co-op

Janet Pfeifer Lee Yorkton Co-op

Diana Pyra Saskatoon Credit Union

Rose H. Radom Foam Lake Co-op

Eva Reddekopp Saskatoon Co-op

Myrna Runge Co-operative Trust, Regina

Evelyn St. Denis Lloydminster Co-op

Richard N. Stefan Battlefords Co-op, North Battleford

W. Lyle Sunley Craik Co-op

Mervin Vindevoghel Sherwood Co-op, Regina

Ken Yee Shaunavon Co-op

MANITOBA

Henry Dueck Winkler Co-op

Ronald M. Freeborn Neepawa-Gladstone Co-op

Verna P. Froese Credit Union Central, Winnipeg

G. John Higgins Killarney-Cartwright Co-op

Marlene E. Danylko Yorkton Co-op

Sr. Cecilia Fahl Fides Co-op, Saskatoon

Karen A. Fiechter Ceylon-Hardy Credit Union

Don W. Gammel Consumers Co-operativeRefineries, Regina

Madeline M. Gaw Sherwood Co-op, Regina

Evelyn C. Gorski Federated Co-op, Regina

Daniel J. Green Pioneer Co-op, Swift Current

Jim N. Hazell Montmartre Co-op

Larry K. Henton Federated Co-op, Saskatoon

Ronald Hyndman Prince Albert Co-op

Agnes Leepart Hendon Co-op

Abe Loewen Federated Co-op, Saskatoon

Keith Lonsdale Federated Co-op, Saskatoon

Sr. Therese Marin Fides Co-op, Saskatoon

Irma Markel Federated Co-op, Regina

Guy Masson Prince Albert Credit Union

Ann L. McCaughan Earl Grey Credit Union

Kenneth M. McLeod Consumers Co-operativeRefineries, Regina

William R. Jones Federated Co-op, Calgary

Vijand Kumar Federated Co-op, Edmonton

Cecile Lamoureux St. Paul Co-op

Bernice M. Olson Innisfail Co-op

Norman J. Reed Pincher Creek Co-op

Joan Rickard Pincher Creek Co-op

Oliver E. Stopsen Eckville Co-op

Selma Sudom Barrhead District Co-op

Deanna Vare Pincher Creek Co-op

Dave Yaremkevich St. Paul Co-op

SASKATCHEWAN

Stewart Ballantyne Credit Union Central, Regina

Ken E. Bettesworth Cypress Credit Union, Maple Creek

Beverley J. Brandt Sherwood Credit Union, Regina

Elmer Chandler Weldon Co-op

10 TimeWise • Spring 2002

PNew ensionsINCLUDING THE 42 NEW PENSIONS COMMENCED FROM OCTOBER

2001 TO DECEMBER 2001, A TOTAL OF 231 NEW PENSIONS COM-

MENCED IN 2001. THIS IS DOWN SLIGHTLY FROM THE 236 PENSIONS

COMMENCED IN 2000. THE FOLLOWING 78 NAMES REPRESENT THE

NEW PENSIONS COMMENCED FROM OCTOBER 2001 TO FEBRUARY

2002 INCLUSIVE.

An asterisk * denotes that these pensioners are surviving spouses ofdeceased members of the CSS Pension Plan.

*

*

Carole Ingram Portage la Prairie Co-op

Sherron A. Johnson Domain Co-op

Victoria E. Klimchuk Ukrainian Farmers Co-op,Fisher Branch

Helen Lemoine Cambrian Credit Union,Winnipeg

Terry W. Lustig Neepawa-Gladstone Co-op

William MacLean Arctic Co-operatives Ltd.,Winnipeg

Norman Mathe Dauphin Co-op

K. Lynn Nichol Brandon Co-op

Nick Sasyniuk Swan Valley Co-op, Swan River

Eva M. Sidoryk Parkway Co-op, Roblin

Marcella A. Tostowaryk Dauphin Co-op

Elizabeth Wolfe Winkler Co-op

ONTARIO

George Boynton Interprovincial Co-operatives,Mississauga

Shirley A. Fields Interprovincial Co-operatives,Mississauga

Trudy Pilkey Canadian Co-operativeAssociaton, Ottawa

TimeWise • Spring 2002 11

Jack Meggison Valleyview Co-op, Virden, MB

Maurice Michaluk Spruce Creek Credit Union, Dauphin, MB

Nobuo Minemoto Pincher Creek Co-op, Pincher Creek, AB

Beth Moore Calgary Co-op, Calgary, AB

Peter Palfenier Calgary Co-op, Calgary, AB

Mike Prytula Gilbert Plains Co-op, Gilbert Plains, MB

Gus Rein Consumers Co-operative Refineries,Regina, SK

Wilma Roth Calgary Co-op, Calgary, AB

Arthur Roy Consumers Co-operative Refineries,Regina, SK

Janet Rutley Federated Co-op, Edmonton, AB

Albert Schram Yorkton Co-op, Yorkton, SK

Virginia Syrnyk Assiniboine Credit Union, Winnipeg, MB

Bill Tod Federated Co-op, Saskatoon, SK

James Wallace Delta Co-op, Unity, SK

Alice Winchester Calgary Co-op, Calgary, AB

Ronald Wyton Killarney-Cartwright Co-op,Killarney, MB

R

Michael Bezubiak Vegreville Co-op, Vegreville, AB

Madeline Bosch Lloydminster Co-op, Lloydminster, SK

Jacob Braun Federated Co-op, Regina, SK

Albert Broome Federated Co-op, Saskatoon, SK

Leslie BrownFederated Co-op, Winnipeg, MB

David Bryson Young Co-op, Young, SK

Edward Burak Meadow Lake Co-op, Meadow Lake, SK

Iona Caragata Moose Jaw Co-op, Moose Jaw, SK

John Cire South Peace Grain Cleaning Co-op, Dawson Creek, BC

Florence Curtis Neepawa-Gladstone Co-op, Neepawa, MB

George Dering Watrous Credit Union, Watrous, SK

George Deye Federated Co-op, Canoe, BC

Vance Dickie Sherwood Credit Union, Regina, SK

Berta Dreyer Calgary Co-op, Calgary, AB

Doreen Garbutt Red River Co-op, Winnipeg, MB

Maurice Gauthier Federated Co-op, Winnipeg, MB

Verna Greene Meadow Lake Co-op, Meadow Lake, SK

Wilhelm Hembruch Federated Co-op, Winnipeg, MB

Mathias Herbach Mankota Credit Union, Mankota, SK

Alfred Hewlett Pierceland Co-op, Pierceland, SK

John Karle Pineland Co-op, Nipawin, SK

Lloyd Keillor Swan Valley Co-op, Swan River, MB

George KienMontmartre Co-op, Montmartre, SK

Bert Landis Drumheller Co-op, Drumheller, AB

Wayne LindsayPrairie Diamond Credit Union,Davidson, SK

Leo Marier Calgary Co-op, Calgary, AB

Frank Mason Calgary Co-op, Calgary, AB

Gladys McGill Calgary Co-op, Calgary, AB

Enid McKay Louise Co-op, Pilot Mound, MB

In emembranceIN THIS REGULAR COLUMN WE ACKNOWLEDGE THOSE PEN-

SIONERS WHO ARE NO LONGER WITH US. TO THEIR FAMILY

AND FRIENDS, WE EXPRESS OUR SINCERE CONDOLENCES.

12 TimeWise • Spring 2002

“I Know That!” Contest

Complete the crossword puzzle below and mail your entry to the address below. Entry forms must be received no later than Friday, May 3,2002. The first ten correct entries drawn at random on May 6 will each win a copy of Richard Croft’s and Eric Kirzner’s book “The Beginner’sGuide to Investing” or Tim Cestnick’s book “Winning the Estate Planning Game”. “The Beginner’s Guide to Investing” is guide written especiallyfor first-time Canadian investors on how to put their money to work, while “Winning the Estate Planning Game” addresses estate planning strate-gies for Canadians. Answers to all of the crossword puzzle clues below can be found in this issue of TimeWise and the 2001 Annual Report. Seepage 4 for a list of winners and the correct crossword puzzle solution to the Fall 2001 “I Know That!” Contest.

Entry FormMail to: “I Know That!” Contest, CSS Pension Plan

Box 1850, Saskatoon, SK S7K 3S2

Name (Please print): _________________________________________________________________________________________________________

Employer: ____________________________________________________________________________________________________________________

Address: ______________________________________________________________________________________________________________________

City: __________________________________ Province: ______________________________ Postal Code: ______________

If my entry is one of the first 10 correct entries drawn on May 6, 2002, I wish to receive a copy of:

❏ “The Beginner’s Guide to Investing” or ❏ “Winning the Estate Planning Game” (Please check one)

Enter Our “I Know That!” Contest and You Could Win a Copy of “The Beginner’s Guide to Investing” or “Winning the Estate Planning Game”

Across1. The Bank of Canada ________________ rates nine

times for a total of 3.50% to bring the bank rate to2.50% late in November.

4. The Plan’s “balanced” approach to investment man-agement continued to prove _______________ in 2001.

6. The ISR was intended to be a ______________ measurethat would someday be phased-out.

9. Retiring members of the CSS Pension Plan continueto be attracted to the ________________ offered byretirement income vehicles available through finan-cial institutions.

10. The election of employee delegates to the 2002Annual Meeting involved the Alberta/BC/NorthernCanada region, the Manitoba/Eastern Canadaregion, and the ________________.

Down2. Although it is not required, it helps Canada Pension

Plan if you apply about six ______________ before youwant your pension to begin.

3. Rhonda McDiarmid has extensive financial andadministrative skills, which she gained through herprevious work experiences as well as a number ofrelated ________________.

5. Over the past seven years the ______________ of capi-tal gains and losses from the current year includedin the annual IAR calculation gradually increased.

7. At the end of 2001, 49.2% of the NON-RETIREDLIVES portfolio was invested in _________________.

8. The 31/2-hour ______________ workshops aredesigned for members and their spouses who areapproaching retirement.

7

5

3

6

8

4

21

9

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ADVICE & PLANNINGNo matter where you are in life, a carefully constructed plan that realistically assesses your current finances and your future needs is an essential firststep toward helping you reach your financial goals. As your needs change, your goals may also change. For that reason, your plan should be care-

fully monitored and periodically reviewed by you and your financial advisor.

MEMBERCARE’S COMMITMENTTO YOUTake the first step on the road to a secure financial future now.

Our staff are committed to providing you with knowledgeable andobjective financial advice. They will work with you to help you meetyour financial goals.

PLAN NOW FOR YOUR FINAN-CIAL FUTUREDecisions you make now strongly impact your financial future. The fol-lowing questions are common among those thinking about theirfuture:

• Am I saving enough for retirement?• Do I have the proper amount of insurance?• Will I have enough money to buy a home or to send my children

(or grandchildren) to college?

MemberCARE♥

Financial Services

®

Call us, We can help answer these questions and start building your plan for a strong, secure future.

Linda Moulin, CLU

1-877-996-9950Saskatchewan Regional Vice-President

Serese Selanders, B.A., CFP

1-877-996-9950Associate Manager

MemberCARE Financial Services locations serving Saskatchewan: Melfort,North Battleford and region, Estevan and region, Humboldt, Kelvington,

Hudson Bay, Tisdale and region, Kindersley, Rosetown, Lloydminster,Nipawin and region, Prince Albert, Saskatoon, Swift Current and region,

Yorkton, Moosomin and region, Regina and surrounding area.

plan with the people youtrust

Sherwood Credit Unionwww.sherwoodcu.com 780-16661-800-567-0101

Prince Albert Credit Unionwww.princealbertcu.com 953-61001-800-667-7477

Battlefords Credit Unionwww.battlefordscreditunion.com 446-70001-866-446-7001

Southwest Credit Unionwww.swcu.sk.ca 778-17001-800-381-5502

Advantage Credit Unionwww.advantagecu.com 752-7416

FirstSask Financial GroupA subsidiary of Saskatoon Credit Union (2002)

www.firstsaskfinancial.com 934-4000 1-866-863-6237

You don’t need convincing that a Retirement Plan is a necessity. But there is something you might not know:

We have certified financial planners on staff.

Just as important is the trust: You know us – and we know you.

We will develop a Retirement Plan that’s right for you. We’ll takethe time to give you the best possible advice, free of charge.

You know you’ll receive what you expect from your credit unionand no less.

Every step of the way, we’re dedicated to your financial healthand wealth. Today, as always, we want to ensure you receive thefull benefit of credit union expertise.

Contact your certified financial planner today for your Retirement Plan.