Plan Changes

MESSAGE FROM BOARD OF TRUSTEES

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Dear Participant,

CCWIPP is one of the largest, jointly-sponsored, private sector pension plans in the country with close to 400,000 participants.

For many public and private sector pension plans in North America, the last few years have proven to be very difficult and CCWIPP is no different. CCWIPP has been impacted by declining financial markets, low interest rates, longevity and other challenges.

As many of you know, we have previously made changes to the Plan. While significant work has been done to stabilize our investment returns, further changes need to be made. Retirement income planning is a long-term process and with these changes we strongly believe the plan is sustainable in the long run.

Pension plans are highly regulated and certain changes require the input of provincial pension regulators. We have worked with our actuaries, lawyers and other pension professionals on a plan that will strengthen the pension fund.

The changes to the plan include:

Higher employer contributions:up to $0.20/hour above the current contribution rate;

Introducing employee contributions with a range of $0.00/hourto $0.40/hour;

Reducing pension benefits credited to active participants by 20%, and to deferred participants (those who are no longer active) by 25%. The amount of benefit paid to pensioners will be reduced by 10%;

Transitioning to a benefit plan as described at www.ccwipp.ca; and

Building a reserve fund for when investment returns are less than expected.

We did not want to affect retirees, however, the fund’s legal and financial requirements left us no choice as we are required to be evenhanded, meaning that all three groups, active, deferred and retirees must be considered when restructuring the plan.

Going forward we look to a modernized, stronger pension plan with a vision to its long term viability for all of our participants. Further details on the changes are available on this site - see Q&A or call 1 (800) 357-1632.

Board of Trustees

CCWIPP

Registration No. 0580431