annualreport

Transcription

annualreport

AN N U AL
REP ORT
A N N U A L
R E P O R T
FRAT ERN AL
2014
BEN EFI T
S O C I E T Y
AFBS
ACTRA
2014
TA B L E
OF
C O N T E NTS
S O C I E T Y
REP ORT
BEN EFI T
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FRAT ERN AL
AFBS
ACTRA
2014
01. Report from Your Chair
05. Report from Your President and CEO
13. Report from Your CFO
22. 2014 Financial Statements
83. Board of Governors and Committees
AFBS
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AFBS
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Report from Your Chair,
David Ferry
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2014
ACTRA
Chair, Board of Governors
Growing up in St. John’s, Newfoundland, I was always aware of the concept of
giving back. My father, a broadcaster and actor, used his extraordinary voice
to record some of the earliest books for the blind. At work, he would help
organizations and unions by donating air time for promoting their causes. My
mother, a director, stage manager, and homemaker, was the first woman to direct
live TV drama in Newfoundland and was always ready and eager to volunteer for
local charities.
When I was 15, my father helped me to join him as an ACTRA member and I
quickly learned to enjoy the pleasures of CBC radio drama work. No wonder then,
that I ended up not only as an actor and director in theatre and film, but also as
someone who has served his fellow artists - as councillor, contract negotiator,
proactive lobbyist, and organizer for our unions and associations - for more than
30 years. At AFBS Board meetings I look around at the table of dedicated Governors
and see my reality reflected back at me. Each Governor has not only excelled in
their chosen careers, but has chosen to contribute their time to their cultural
community.
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The Leslie Yeo Award for Volunteerism is presented annually to an AFBS Member who
exemplifies the same volunteer spirit that guided one of our founders and long-time
treasurer, Leslie Yeo. The same spirit that has guided our Governors in their careers has
guided this year’s recipient. He has taken that spirit of volunteerism to the zenith. The 2015
recipient is Tom Jackson.
Tom Jackson, OC, borne at One Arrow Reserve near Batoche, Saskatchewan, is not only an
extraordinarily accomplished actor and musician, but is also a spokesperson, artist, mentor,
and fundraising wiz for a myriad of worthy causes. Tom is part of an inspirational generation
of First Nations artists and actors (Tantoo Cardinal, Gary Farmer, Graham Greene, etc.) who
have broken barriers and created new narratives for understanding the culture and history of
our First Nations.
“Tom has raised awareness of the plight of the
homeless, the hungry, the disadvantaged, flood
victims, those seeking affordable housing, and
those living with the challenges of depression
and addiction, and has been instrumental in
campaigns that have raised hundreds of millions
of dollars for these causes."
He is a great representative of our brother/sister hood. He has been significantly honoured
elsewhere for his tireless volunteerism, receiving the following accolades and designations:
a CCMA Humanitarian Award; Officer of the Order of Canada; two Queen’s Jubilee Medals;
Alberta and Saskatchewan Centennial Medals; a Juno Humanitarian Award; a Gemini
Humanitarian Award; four years as Chancellor of Trent University; honorary Degrees from
nine universities; and the Governor General’s Performing Arts Award for Lifetime Artistic
Achievement.
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And now Tom is the outstanding recipient of the 2015 AFBS Leslie Yeo Award for Volunteerism.
As a recipient, Tom joins a tremendous group of Members from across the country who have
made exceptional, non-financial, voluntary contributions of time or talent to the Canadian
artistic community. We are thrilled to have him at our 2015 Annual General Meeting to
receive this honour from his colleagues.
Leslie Yeo, Tom Jackson, and past recipients of this award are part of why AFBS is one of
the singularly most successful artist-driven, artist-owned organizations in the world. Who
would have imagined that a group of performers, screenwriters, and broadcast journalists
could have created an insurance company, Fraternal Benefit Society, and retirement savings
plan administrator, almost 40 years ago, that would grow into an organization that manages
nearly $600 million in investments for artists’ retirement savings? And run insurance plans
that are the envy of the entertainment industry, while supporting a myriad of good causes
that contribute to the general welfare of cultural industry workers?
It is an honour for me to begin my next stage of service to you as your new Chairperson of
AFBS. I follow humbly in a line of extraordinary Chairs who have done so much to help build
this great organization. I look back at Thor Bishopric, David Atkins, Pierre Racicot, Peter
O’Neil, and John Ross, and I think of the words of our first Leslie Yeo Award recipient, Joy
Coghill. She spoke so beautifully of being in a long line of artists, walking toward a horizon,
hands held out in front to the person that came before them, and hands reaching behind to
take the hand of the person following. I think too of the logo of AFBS, two hands touching,
and I think: yes, that is us. It is what we are and what we do. It is Tom Jackson. It is all of us.
Thank you all for your hands.
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AND C EO
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AFBS
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Report from Your President
and CEO, Bob Underwood
FRAT ERN AL
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2014
ACTRA
President and CEO
AFBS… In the beginning
We are proud to celebrate our 39th year.
When the Society was created more than 39 years ago by a visionary group of
performers, writers and producers, the founders of AFBS had no idea that they
were sowing the seeds of what has become an artist-driven financial success
story.
More than 39 years later, who would have imagined that AFBS would now be
responsible for investing more than $600 million in insurance and retirement
assets for more than 17,000 performers and writers across the country.
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Historical Graph - Total Assets Administered by AFBS
$ 640+ million
2014
2006
2001
1997
1993
1987
1983
1977
50 m
100 m
150 m 200 m
250 m 300 m
350 m
400 m 450 m
500 m
550 m
600 m
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0
S O C I E T Y
$ 500+ million
$ 400+ million
$ 300+ million
$ 200+ million
$ 100+ million
$ 50+ million
$ 10+ million
FRAT ERN AL
AFBS - Supporting our Members
AFBS has a tradition of returning surplus from operations and investment income to our
Members in the form of an annual Fraternal Premium Subsidy.
Our Member-owned model enables surpluses from investments and operations to be
returned to Members in the form of Premium Subsidies. Over the past 10 years, more than
$20 million in Fraternal Premium Subsidies have been distributed back to Members.
Fraternal Premium Subsidies distributed to Members ACTRA
2014
(in thousands of dollars)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
1,775
2,740
2,625
2,381
2,611
2,231
1,886
1,787
935
1,300
0 250 500 750 10001250 150017502000 2250250027503000
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Members’ Insurance and Retirement Contributions
This trend is a reflection of steady increase in film, television and commercial production
across Canada, and ACTRA and the Writers Guild’s diligence in expanding their jurisdictions
and in negotiating favorable collective agreements for their members and our Members.
(in dollars)
20102011201220132014
Insurance
10,189,217
10,600,294
11,328,796
11,245,280
12,798,472
Retirement
23,333,066
24,713,122
27,303,802
25,953,944
27,303,802
Total Contributions
33,522,283
35,313,416
38,632,598
37,199,224
40,102,274
ACTRA
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Members’ Insurance and Retirement contributions for 2013 continued to rise in 2014 with a
20% increase since 2010 as noted in the chart below.
A 10% increase in Members’ Voluntary Insurance Contributions for 2014 is a solid vote of
confidence from Members for our AFBS insurance program. Close to 20% of our insurance
premium is now contributed directly by Members through voluntary payments processed at
renewal to retain insurance levels from the prior year.
Members’ Voluntary Insurance Contributions
2012
$ 1,373,008
2013
$ 1,652,374
2014
$ 1,817,018
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The AFBS Tax-Free Savings Account
Expanding our Successful Business Model
FRAT ERN AL
AFBS is a feel-good story about a Canadian organization serving people who are actively
contributing to Canada’s Creative Economy.
Over the past 39 years, AFBS has grown to become one of the country’s top financial services
companies with more than $600 million of Members’ assets hard at work.
AFBS has become generally recognized as the brand standard for
insurance benefits within the Canadian artistic community.
We are proud to say that AFBS is owned and governed by creative professionals.
Because we are “creatives” ourselves, we understand the unique insurance needs of others
who earn their livelihoods in the creative sector. So when AFBS designs and offers programs,
it does so with nearly 40 years of expertise, knowledge and compassion that can’t be matched
by traditional insurers and financial institutions for whom insurance is merely a business.
In addition to providing members of our Founding Guilds (ACTRA and the Writers Guild of
Canada) with comprehensive Insurance, Retirement and Fraternal Benefits and Services,
drawing on our 39 years of designing, investing in and administering these programs, we are
beginning to demonstrate some real success in expanding our footprint into the broader
Canadian Artistic Community.
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Tax-Free Savings Accounts are well-suited to performers and writers whose incomes may
fluctuate, as the TFSA funds can be made available to help cover day-to-day living expenses
during periods of reduced work opportunities. We will continue to communicate the virtues
of our TFSAs to help provide a rainy-day fund for our Members with fluctuating earnings.
S O C I E T Y
Our Tax-Free Savings account, introduced in 2008, reached $2.8 million in 2014.
Competitive fees and solid investment performance have helped build Member confidence
in this program.
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Some of the examples of our ventures beyond providing Insurance, Retirement and Fraternal
services to members of our Founding Guilds include:
The AFBS Accident on Set Program
Recognizing that many of our performer and stunt performer members (based on provincial
workers’ compensation rules) were excluded from protection under many of these provincial
programs, in 2009, working with ACTRA, AFBS designed and implemented the AFBS Accident
on Set program that now provides all performers and stunt performers with comprehensive
protection from on-set accidents and injuries from coast to coast.
In those seven provinces where performers and stunt performers are
excluded from coverage under the provincial workers compensation programs,
our Accident on Set benefit provides accident protection for performer
Members regardless of location.
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2014
In addition to providing income disability and medical support benefits to injured performers
and stunt performers, our AoS insurance program continues to generate underwriting surplus
for the Society, which makes a meaningful contribution to our operating surplus and ultimately
to our Members’ Fraternal Premium Subsidy.
AFBS Writers Coalition Program and Arts & Entertainment Plan®
In 2007, we were approached by the Writers’ Union of Canada that represents Canadian
novelists to help them develop an affordable Health and Dental insurance program for their
writer members.
Interest in this initiative quickly spread to more than 20 writer organizations, and now most
writer organizations in Canada are offering this plan to their members.
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Interest further spread to other organizations within the Canadian Artistic Community,
including the Canadian Actors’ Equity Association, SOCAN (representing music creators and
publishers), CARFAC (representing visual artists) ACTRA Performers Rights Society – RAC’s,
and more than 30 organizations representing a broad diversity of artists, musicians,
composers and other creatives.
FRAT ERN AL
We have a potential participation base of new ‘Associate
Members’ in excess of 200,000 and our Writers Coalition
Program and Arts & Entertainment Plan® have set the
industry standard for individual health and dental
programs for self-employed artists in Canada.
In May 2015, we will re-launch both these programs with new and refreshed websites that
will include expanded benefit offerings, and a new e-commerce payment option through
secure card transactions.
Both of these programs continue to make a positive financial contribution to AFBS and help
to further strengthen our overall insurance business model.
Benefits of Membership - Strength in Numbers
AFBS introduced our Group Home and Auto insurance program 16 years ago, and in 2014
that program was transferred to HUB International to help maintain the competitive service
and price advantages available from our combined purchasing power.
This program has been a successful venture into the world of bulk-purchasing and premium
discounting for homeowners, tenants, home offices and auto insurance.
We have more than 3,000 members currently participating in this very successful program.
This optional program will be extended to Members of our Writers’ Coalition Program and
Arts & Entertainment Plan®, and if you are not a current participant, you should investigate the
potential premium savings available from the industry’s most successful volume-purchasing
initiative.
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Solid and on Track
We are proud to celebrate our 39th year providing affordable insurance and retirement
services to our performer and writer Members across Canada.
The AFBS story is based entirely on successful industry collaboration. We are proud of our
successes and of what we have made possible for our community. We remain committed to
searching for new and creative programs and services for our Members.
I would like to thank Thor Bishopric, our past Chair, for his mentorship and support over many
years, and welcome David Ferry as the new Chair of AFBS.
Our past and future success is the result of a true collaboration between the AFBS management
team - supported by our dedicated and loyal staff - under the care and guidance of our
committed Board of Governors.
Remembering Beverley Smith
In January AFBS lost one of our longest-standing employees, Bev Smith. Bev joined AFBS
in 1996, and would have spoken to thousands of Members in her role as Senior Benefits
Claims Adjudicator. While we have lost a dear friend and colleague, we continue to send our
thoughts and condolences to Bev’s mother, sister, two daughters, and three grandchildren.
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F R O M YOUR
CFO
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Report from Your CFO,
Ron Zammit
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2014
Chief Financial Officer
ACTRA
Financial Year in Review
Being a Fraternal organization, the Society is by definition an organization owned
by its Members. Being owed by its Members is a significant feature for all Fraternals,
however for AFBS, being owned by Canada’s most creative professionals provides
the Society with a compelling and interesting business model that is, in and of
itself, a creative one.
The Society is an Insurance company, but a unique one. Consistent with our
not-for-profit model the Society prices its insurance product on a break-even
basis. As a result, our Members’ Gross Premiums represent only the true cost of
providing insurance benefits. Very little, if any, surplus is provided from our core
insurance operations.
Although it is the Gross Premium that drives our business model, it is the Net
Premium that is experienced by our Members. The Net Premium is the amount
of premium that is actually paid by the Members; the premium that is required
to be paid AFTER the deduction of the Fraternal Premium Subsidy.
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We are aware that the Fraternal Premium Subsidy is highly valued by our Members. The
subsidy is a significant part of ensuring that Net Insurance Premiums for our Members remain
at affordable levels. However, the subsidy is far from guaranteed. A subsidy can only exist
when the Society’s financial operations generate a surplus.
The Society is pleased to report that it is once again able to provide a Fraternal Premium
Subsidy to its Members. In 2014, distribution of the Fraternal Premium Subsidy provided our
Members with a 16% reduction of their Gross Premium.
Not only is the Society an insurance company, as the name implies, AFBS is also a Fraternal
organization. As a Fraternal organization, the Society provides unique benefits to its Members
free of charge. Although provided free of charge, these benefits do have a real cost, and this
cost is provided for through the Society’s business operations. In 2014 the Society is pleased
to report that once again it was able to provide free services that exceed $1 million to its
Members.
AFBS continues to perform well in its investment operations. The combined market value of
the Society’s invested assets, which include cash, direct investments in Canadian Equities,
and pooled investments in Bonds and Canadian Commercial Mortgages, increased by more
than $4.5 million in 2014. Excluding the Segregated Funds’ net assets, which are held exclusively
for the Members themselves, the Society maintains total assets of $75 million that continue
to work hard for our Members in providing sustainable insurance and Fraternal Benefits.
The Society achieved positive performance in 2014. For the year ending December 31, 2014,
the Society generated Comprehensive Income of $2.9 million before declaring a Fraternal
Premium Subsidy. In keeping with the Society’s not-for-profit model, the entirety of this
income was declared as a Fraternal Subsidy to provide funds to Members that will stabilize
the cost of insurance in current and future years.
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The Society’s 2014 operating expenses of $8.9 million remained materially unchanged from
those incurred in 2013. The following table provides a comparison of the 2014 operating
expenses to those incurred in 2013:
Description20142013
Inc/(dec)
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
Staff costs
$ 3,734
$ 3,561
Depreciation
532
560
(28)
Communications, media, mailing & printing
614
691
(77)
Systems maintenance
615
622
(7)
Investment management fees
797
724
73
Legal, actuarial, accounting and other professional fees
467
476
(9)
Claims administration
492
505
(13)
Member, staff and board meetings
330
366
(36)
Insurance
177
170
7
Rent and occupancy costs
335
329
6
Donations
180
174
6
Other expenses
623
638
(15)
$ 8,896 $ 8,816
$ 80
Total:
$ 173
The most significant changes in operating expenses from the prior year resulted from the
following:
An increase in staff costs of $173,000. Staff costs include expenses related to staff
(i)
payroll and expenses related to the remuneration of the Board of Governors.
Increases in staff payroll resulted from the payment of amounts under the terms of the Society’s collective bargaining agreement, an increase in key management compensation, and an increase in the number of staff. The Society increased the
number of staff by one individual in order to reduce outside expenses for communication services.
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A decrease in communication expenses of $77,000. In addition to the reduction
(ii)
in the use of outside expenses for communication services as cited above, further
decreases resulted from the conversion to electronic distribution of Members’
quarterly statements.
The capital surplus of the Society as at December 31, 2014, continues to be at a level in excess
of the target level set by the regulator, the Office of the Superintendent of Financial Institutions
(OSFI), and AFBS maintains its position as a strong and solid financial organization.
Business Segments
AFBS provides services to Members through three distinct business segments: Insurance
Operations, Fraternal Operations, and Retirement and Savings Operations. Each business is
distinctly funded and benefits provided to Members are integrated into the Society’s operation.
AFBS provides insurance, health care, life and fraternal benefits as well as retirement plan
programs to Members pursuant to collective bargaining agreements negotiated between the
Unions (ACTRA or the Writers Guild of Canada) and Engagers.
Insurance Operations
AFBS provides life, accident, extended health, dental and short-term disability insurance
to eligible Members. Eligibility for these programs is a function of the earnings a Member
generates in the previous calendar year and the insurance reserves a Member has available.
AFBS is pleased to report that Members’ earnings have increased 8% from 2013 providing
Members with greater access to insurance coverage.
AFBS uses an external Actuary to determine the level of premium required to fund each
insurance classification provided by AFBS. Factors that affect the price of insurance include
health and dental claim costs, investment income earned on the assets of the Society, and
expenses. Each of these factors affect the net income of the Society.
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FRAT ERN AL
Society’s invested assets and the Members’ Registered Retirement Income Funds.
The increase in fees is a result of the increase in the value of the assets under
administration and a change in the asset mix of those investments.
BEN EFI T
S O C I E T Y
An increase in investment management fees of $73,000. Investment management
(iii)
fees are incurred for the services of independent fund managers who manage the
ACTRA
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Insurance operations include the Accident on Set (AoS) insurance program. AoS is a
comprehensive insurance program that provides eligible performers with benefits and
financial protection should they be injured while on set. AFBS developed the AoS program
to provide insurance coverage to performers in those provinces where mandatory workers’
compensation is not available. The insurance premiums for this program are paid by
Engagers and are determined by an external Actuary.
In addition to AoS, insurance operations are enhanced by the Writers Coalition Program
and the Arts & Entertainment Plan®. The Writers’ Coalition Program is enjoying its fourth
year of operation and is successfully providing drug, health and dental protection to 20
participating writer groups. Introduced in late 2011, the Arts & Entertainment Plan now
provides drug, health and dental protection to 30 participating organizations which, in
addition to background and apprentice performers, includes musicians, recording artists,
composers, graphic artists and dancers.
Subsidy levels play a key role in the stability of the net premium levels that Members pay for
their insurance coverage.
The Guild subsidy is funded by Equalization Revenues received by AFBS, and results from
the amount of Equalization Revenue remaining after the payment for the cost of retirement
plan administration. Equalization Revenues increased by 7% from the prior year to $3.8
million. Guild subsidies differ for members of each of our founding guilds and are dependent
on the amount of Equalization Revenues received under their respective collective agreements.
Guild subsidies are reported as the “Members’ Insurance Credit” on the financial statement.
A “Fraternal premium subsidy” is funded by the overall surplus earned by the Society. As a
result this subsidy distributed to the Members is subject to the financial results of AFBS for the
previous calendar year. The Fraternal premium subsidy reduces the net cost of insurance by an
equal percentage for all Members in good standing with our founding guilds. Both subsidies,
when available and taken together, are provided to Members to reduce the cost of insurance.
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Benefits paid to Members remained consistent with those paid in 2013. In 2014, total
insurance benefits paid on behalf of Members (net of reinsurance recovered) amounted to
$8.1 million. The majority of these benefits are used in the payment of prescription drugs,
dental and other extended health care benefits for Members.
Member’s Insurance Reserve Accounts
Insurance contributions received from Engagers on behalf of Members are held in individual
interest bearing accounts for the Members and used to pay for a Member’s cost of insurance.
Balances in a Member’s account after paying insurance premiums are held to pay insurance
premiums in future years. As the amounts are interest bearing, Members benefit from
having a secure income-producing account that provides stability in insurance coverage.
Total Member insurance reserves, or “Contributions on Deposit”, were $27.8 million as
at December 31, 2014, compared to $26.7 million at the end of 2013. Interest is credited
monthly to Members’ insurance reserves based on an APR rate, which is the greater of
the 3 month rate for Treasury bills as determined by the Bank of Canada (V39065) or 1%.
Members who hold in excess of $4,000 in their Insurance Reserve account can access these
funds on an individual request basis.
Fraternal Operations
AFBS offers various Fraternal Benefits to eligible Members and their dependants at no cost
to the Member. These benefits are paid by the Society from income earned on the assets
of AFBS. The most significant of these benefits is the fully subsidized health care benefit
for qualifying senior Members. The Society considers this benefit essential in addressing the
health care needs of our senior Members.
Other benefits provided on a Fraternal basis by AFBS include a Scholarship Program for
Members and their dependants, funeral expenses, disability benefits, discounted insurance
coverage for all new Members, Seniors’ Care Advisory Plan and a subsidized Member and
Family Assistance Program (MFAP) for qualifying Members.
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ACTRA
2014
2014
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Fraternal Benefits are subject to review each year and may be amended on an annual basis.
Fraternal Benefits
2014
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
Subsidized Health Care, Senior Members
$ 642
Member and Family Assistance Program (MFAP)
103
Senior Care Advisory Program
104
Funeral Benefits
110
Return of Premium – Prolonged Illness
31
Scholarships
80
Special Need Benefit
21
Other
25
$ 1,116
Total:
Retirement and Savings Operations
AFBS offers three retirement fund options to Members for both the Registered Retirement
Savings Plan (RRSP) and the Registered Retirement Income Fund (RRIF). AFBS also offers
two fund options to Members for a Tax-Free Savings Account (TFSA).
The General and Balanced Funds are balanced funds that comprise a strategic mix of assets.
Formerly the balanced funds invested in two asset classes: bonds and domestic and foreign
equities. Since 2013, the two balanced funds now include pooled Canadian commercial
mortgages and pooled Canadian prime real estate.
Commencing in 2014, the name of the RRSP and RRIF Bond Funds has been changed to the
Fixed Income Fund. In 2014, investments in pooled funds--Canadian Commercial Mortgages
were introduced to the Bond Funds. As a result of the change in composition of the Bond
Funds, the name was changed to better reflect the true character of the Funds. While the
name of the RRSP and RRIF funds has changed, the TFSA Bond Fund has retained both
its composition and its name. The TFSA Bond Fund remains a fund that invests solely in
Canadian Bonds.
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The introduction of investment in “pooled” funds for Canadian commercial mortgages
and Canadian prime real estate indicates that AFBS does not invest directly in these asset
classes, but rather invests in funds that are managed by unrelated asset managers. These
asset managers are independent of AFBS and they apply various investment strategies to
accomplish the investment objective of each fund.
The Fixed-Term Interest Fund is a conservative option that invests primarily in fixed-income
securities of Canadian governments and short-term fixed-income securities of Canada’s five
largest Chartered “A” banks. As the name suggests, the fund is held by the Members to a
fixed term maturity, and as a result, rewards the Member with a stated fixed rate of return.
objective of providing consistent competitive performance returns over the long term.
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//
//
The RRSP General Fund experienced another positive year providing a return of 7.8%
for our Members in 2014. Furthermore the fund’s 39 year compounded rate of return
of 10.3% demonstrates the strong long-term performance of the General Fund.
The RRSP Fixed Income Fund returned to positive performance in 2014 providing our Members with a return of 6.5%. The fund was created in 1981 and over the 34 years, this fund too has demonstrated strong long-term performance with a compounded rate of return of 8.5%
The Board of Governors, management and an external advisor ensure the appropriate oversight procedures are in place to ensure effective governance of the Retirement and Savings funds.
Since June of 2004, the Society has allocated the fees paid to Investment Managers directly
to the RRSP funds (RRIFs are not charged). This allocation has resulted in a reduction in the
rate of return going forward equal to less than ½ of one percentage point (eg: Before this
allocation, if the fund returned 10% for the year, then after this allocation, the fund will
return 9.5% for the year). All rates published by the Society are reported net of these costs.
This allocation resulted in additional monies becoming available to provide a Fraternal Premium
Subsidy to Members to offset the rising costs of insurance and decreasing Guild Subsidy.
R EP ORT
F RO M
YO UR
CFO
21
BEN EFI T
Eight external professional fund managers manage the funds. The investment strategy
//
used by each manager emphasizes a conservative, prudent approach with the
FRAT ERN AL
Total assets of $573 million are held on behalf of Members for Retirement and
Savings purposes. Fund performance information is included in quarterly publications of Your Money Matters. These publications are posted on AFBS’s website at afbs.ca.
//
S O C I E T Y
A summary of the funds follows:
ACTRA
2014
AFBS
AN N U AL
REP ORT
FRAT ERN AL
BEN EFI T
S O C I E T Y
2 0 14
FINANCIAL
STATEMENTS
ACTRA
2014
INDEX
Balance Sheet
Statement of Operations
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Notes to Financial Statements
22
AFBS
AN N U AL
REP ORT
ACTRA
AFBS
A NNU A L
REP ORT
Report of the
Appointed Actuary
February 24, 2015
February 24, 2015
The Financial Statements of Actra Fraternal Benefit Society are prepared by management, who is responsible for the
integrity, objectivity, reliability and fairness of the data presented, including amounts which, of necessity, must be
based on estimates and informed judgements of current events and transactions.
To the Members and Governors of Actra Fraternal Benefit Society
The system of internal controls is further supported by the Audit and Risk Management Committee of the Board
of Governors, which oversees management’s responsibility for financial reporting. The Audit and Risk Management
Committee is composed of governors who are neither officers nor employees of the Society.
The Superintendent of Financial Institutions Canada makes such periodic examination and enquiry into the
affairs of the Society as it deems necessary to satisfy itself that the provisions of the Insurance Companies Act
of Canada are being duly observed and that the Society is in a sound financial position.
PricewaterhouseCoopers LLP is an independent auditing firm appointed by the Members of the Society.
Its responsibility is to report to the Members and the Superintendent of Financial Institutions Canada regarding
the fairness of the Financial Statements of the Society. This responsibility is fulfilled by carrying out an
examination in accordance with Canadian generally accepted auditing standards. The Auditor has full and
unrestricted access to the Audit and Risk Management Committee to discuss its audit and related findings
as to the integrity of the Society’s financial reporting. The Auditor considers the work of the Appointed Actuary
on the valuation of the policy liabilities included in the Financial Statements.
The Society’s Appointed Actuary, Aon Hewitt, is appointed by the Board of Governors pursuant to Section 357
of the Insurance Companies Act of Canada. The Appointed Actuary is responsible for ensuring that the assumptions
and methods used in the valuation of policy liabilities are in accordance with accepted actuarial practice, applicable
legislation and associated regulations and directives.
The Appointed Actuary is required to provide an opinion regarding the appropriateness of the policy liabilities
at the balance sheet date to meet all policyholder obligations of the Society. Examination of supporting data
for accuracy and completeness and analysis of Society assets for their ability to support the amount of policy
liabilities are important elements of the work required to form this opinion. The Appointed Actuary uses the work
of the Auditor in verifying certain data files used in the actuarial valuation.
S O C I E T Y
BEN EFI T
In discharging its responsibility for the integrity and fairness of the Financial Statements, management maintains a
system of internal controls designed to provide assurance that transactions are authorized, assets are safeguarded
and proper records are maintained. These controls include quality standards in hiring and training of employees,
providing for an effective segregation of responsibilities and accountability for performance of those areas of
responsibility.
I have valued the policy liabilities of Actra Fraternal Benefit Society for its balance sheet at December 31,
2014 and their change in the statement of operations for the year then ended in accordance with accepted
actuarial practice in Canada, including selection of appropriate assumptions and methods. In my opinion,
the amount of the policy liabilities makes appropriate provision for all policyholder obligations and the
financial statements fairly present the results of the valuation.
Merv G. Worden
Fellow, Canadian Institute of Actuaries
Toronto, Ontario
FRAT ERN AL
FRAT ERN AL
BEN EFI T
S O C I E T Y
Financial Reporting
Responsibilities
2014
ACTRA
2014
Independent
Auditor’s Report
February 24, 2015
The Appointed Actuary is also required each year to analyze the financial condition of the Society and prepare
a report for the Board of Governors. The analysis tests the capital adequacy of the Society for the following
five years under adverse economic and business conditions.
To the Members of Actra Fraternal Benefit Society
Robert M. Underwood
Ron Zammit
President and CEO
Chief Financial Officer
2 3
We have audited the accompanying financial statements of Actra Fraternal Benefit Society which comprise the
balance sheet as at December 31, 2014, the statements of operations, comprehensive income, changes in equity
and cash flows for the year then ended, and the related notes, which comprise a summary of significant accounting
policies and other explanatory information.
2014
FI N AN CI AL
S TATE M E N TS
24
(continued)
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with International Financial Reporting Standards, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
S O C I E T Y
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
ACTRA
FRAT ERN AL
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement.
BEN EFI T
Auditor’s responsibility
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Actra
Fraternal Benefit Society as at December 31, 2014 and its financial performance and its cash flows for the year
then ended in accordance with International Financial Reporting Standards.
2014
AFBS
A NNU A L
Balance
Sheet
As at December 31, 2014
2014
2013
$$
Assets
Cash and cash equivalents (note 6)
4,127
3,972
Investment income accrued
222
239
14,405
15,974
Equities (note 7)
38,816
36,346
Bonds (note 7)
12,092
8,549
Pooled funds - commercial mortgages (note 7)
606
610
Property and equipment (note 8)
535
349
Intangible assets (note 9)
378
337
Real estate (note 10)
926
825
Investment property (note 10)
Reinsurance assets
179
230
1,846
2,478
Receivables (note 15)
944
868
Other assets (note 16)
572,754
542,154
Segregated Funds’ net assets (note 25)
Liabilities
Unearned premiums
Insurance contract liabilities (note 11)
Provision for Fraternal premium subsidy (note 12)
Contributions on deposit
Provision for Members’ Insurance Credit (note 13)
Unqualified retirement contributions (note 14)
Accounts payable and accrued liabilities
Segregated Funds’ liabilities (note 25)
Equity
Chartered Professional Accountants,
Licensed Public Accountants
PricewaterhouseCoopers LLP
PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2
T: +1 416 863 1133, F: +1 416 365 8215
REP ORT
S O C I E T Y
REP ORT
Appropriated surplus (note 19)
Unappropriated surplus
Accumulated other comprehensive income
647,830
612,931
1,890
6,473
3,926
27,797
444
5,900
7,139
572,754
1,929
6,415
2,819
26,683
106
4,412
6,906
542,154
626,323
591,424
792
16,836
3,879
792
17,311
3,404
21,507
647,830
21,507
612,931
The accompanying notes are an integral part of these Financial Statements.
Approved by the Board of Governors
“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.
2 5
Sugith Varughese
David H. Atkins
Governor
Governor
2014
FI N AN CI AL
S TATE M E N TS
26
BEN EFI T
Independent
Auditor’s Report
AN N U AL
FRAT ERN AL
AFBS
ACTRA
2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Statement
of Operations
Net insurance premium revenue
Investment income (note 7)
Net unrealized gains on financial assets
at fair value through income (note 7)
Equalization revenue
Other income
Net investment property income (note 22)
Expenses
12,466
3,683
12,468
2,338
293
3,801
984
340
149
3,562
953
345
21,567
19,815
8,327
(210)
8,288
(200)
Net insurance benefits paid
Fraternal benefits paid (note 11)
Increase in policy liabilities (note 11)
Fraternal premium subsidy (note 12)
Members’ Insurance Credit (note 13)
Premium taxes
Interest on contributions on deposit
Operating expenses (note 20)
8,117
1,116
109
2,882
435
252
235
8,896
8,088
1,061
62
1,626
73
239
231
8,816
Net income (loss) for the year
22,042
(475)
20,196
(381)
2014
2013
(475)
(381)
$
$
Other comprehensive income (loss)
Change in net unrealized gains (losses) on
available-for-sale financial assets
Bonds (note 7)
917
(2,004)
Equities (note 7)
336
2,708
Reclassification of net realized gains to income (note 7) (778)
(323)
Comprehensive income
2 7
S O C I E T Y
For the year ended December 31, 2014
Insurance benefits paid (note 11)
Insurance benefits recovered from reinsurers
BEN EFI T
2014
2013
$$
Income
Insurance premiums earned
13,157
13,125
Insurance premiums ceded to reinsurers
(691)
(657)
Statement of
Comprehensive Income
FRAT ERN AL
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
475
-
381
-
2014
FI N AN CI AL
S TATE M E N TS
28
2014
AFBS
AN N U AL
REP ORT
Statement of
Changes in Equity
2014
AFBS
A NNU A L
REP ORT
Statement of
Cash Flows
Balance - Beginning of year
792
17,311
3,404
21,507
Comprehensive income (loss)
-
(475)
-
(475)
Other comprehensive income (loss)
for the year -
-
475
475
Balance - End of year
-
792
(475)
16,836
475
3,879
-
21,507
2013
Accumulated
other
Appropriated Unappropriated comprehensive
surplus
surplus
income (loss)
Total
$$$$
792
17,692
3,023
21,507
-
(381)
-
(381)
Other comprehensive income (loss) for the year
-
-
381
381
-
792
(381)
17,311
381
3,404
-
21,507
Cash provided by (used in)
2013
$$
Operating activities
Contributions from Engagers on behalf of Members
11,566
9,390
Equalization revenue received
3,753
3,541
Investment income received
3,701
2,463
Other income received
1,328
1,301
Insurance and Fraternal benefits paid
(8,715)
(8,252)
Payments to suppliers and employees
(8,121)
(8,141)
Premium taxes paid
(252)
(239)
Net amount paid on behalf of and due to/from
Segregated Funds
1,464
766
Other items - net
(8)
(18)
4,716
811
Investing activities
Total sales of equities (note 7)
2,182
1,938
Total purchases of equities (note 7)
(845)
(1,954)
Total sales of bonds (note 7)
66,675
37,491
Total purchases of bonds (note 7)
(68,438)
(27,899)
Total sales of pooled funds commercial mortgages (note 7)
2,243
Total purchases of pooled funds commercial mortgages (note 7)
(5,493)
(8,400)
Purchases of capital assets and real estate
(885)
(493)
Increase in cash and cash equivalents
Cash and cash equivalents - Beginning of year
3,972
2,478
Cash and cash equivalents - End of year
(4,561)
2 9
2014
S O C I E T Y
Total
$$$$
BEN EFI T
FRAT ERN AL
Accumulated
other
Appropriated Unappropriated comprehensive
surplus
surplus
income (loss)
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2014
683
155
1,494
4,127
3,972
2014
FI N AN CI AL
S TATE M E N TS
30
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
Financial Statements
December 31, 2014
Basis of presentation
1.
General information
The Actra Fraternal Benefit Society (the Society) is a fraternal organization incorporated in Canada in 1975 and
is licensed in all provinces to provide insurance programs to the Members of ACTRA and the Writers Guild of
Canada, as well as members of other arts groups and individual members of the arts community. The address
of its registered office is 1000 Yonge Street, Toronto, Ontario, Canada.
These financial statements have been authorized for issue by the Board of Governors on February 24, 2015.
The mission of the Society is as follows:
•to support the general and economic welfare of artists in Canada;
•to provide the security of an Insurance Plan with Life, Accident, Welfare, Health and Fraternal Benefits;
and a Retirement Savings Plan with Retirement Benefits;
•to maintain a high standard of performance, integrity and service consistent with a constructive and
arm’s-length relationship with client organizations;
•to exercise due care, diligence and prudence in undertaking its responsibilities and in the best interest
of the Members and Associates at all times; and
•to constantly review existing benefits and to encourage new ideas to better serve all Members
and Associates of the Society.
The Society provides four distinct programs to its Members. The Life Fund provides group life insurance.
The Sickness Fund provides dental, extended health and weekly indemnity insurance benefits, accidental
death benefits and insurance for loss of use of limbs or faculties. The Fraternal Fund provides a variety of
benefits to Members, including supplementary health care coverage and funding for scholarships, retirement
home/care facilities and funeral expenses. In addition, the Society maintains separate Segregated Funds that
provide a registered retirement savings plan, a registered retirement income fund and a tax-free savings
account to Members.
These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB) and effective as at December 31, 2014.
The financial statements have been prepared under the historical cost convention, as modified for the revaluation
of available-for-sale financial assets and financial assets at fair value through income, both of which have been
measured at fair value. The financial statements present, on a combined basis, the assets, liabilities, equity and
results of operations of the Life, Sickness, Fraternal and Segregated Funds.
The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the Society’s accounting
policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates
are significant to the financial statements are disclosed in note 3.
All amounts in the financial statements are shown in thousands of Canadian dollars, rounded to the nearest thousand,
unless otherwise stated.
• New and amended standards adopted by the Society.
There have been no new or amended standards adopted by the Society.
•New standards, amendments and interpretations issued but not effective for the financial year beginning
January 1, 2014 and not early adopted by the Society.
IFRS 9, Financial Instruments (IFRS 9), addresses the classification, measurement and recognition of financial
assets and financial liabilities. The complete version of IFRS 9 was issued in July 2014 and is effective for annual
periods beginning on or after January 1, 2018. The new standard includes requirements on the classification and
measurement of financial assets and liabilities, an expected loss model that replaces the existing incurred loss
impairment model, and new guidance with respect to hedge accounting. The Society is currently assessing the
impact of IFRS 9 on its financial statements.
IFRS 15, Revenue from Contracts with Customers (IFRS 15), introduces a single model for recognizing revenue
from contracts with customers. IFRS 15 was issued in May 2014 and is effective for annual periods beginning on
or after January 1, 2017. The new standard excludes insurance contracts from its scope and is primarily applicable to the Society’s non-insurance revenues. The Society is currently assessing the impact of IFRS 15 on its financial
statements.
The Society also provides insurance programs and savings accounts to both Members and other
industry-related organizations.
There are no other IFRS or International Financial Reporting Interpretations Committee interpretations that are
not yet effective that would be expected to have a material impact on the Society.
3 1
2014
FI N AN CI AL
S TATE M E N TS
32
FRAT ERN AL
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
BEN EFI T
S O C I E T Y
Summary of significant accounting policies
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2.
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
Available-for-sale financial assets are financial assets that are intended to be held for an indefinite period
of time, which may be sold in response to needs for liquidity or changes in interest rates or equity prices,
or that are not classified as loans and receivables, or as fair value through income.
c) Loans and receivables
ACTRA
The investments of the Life and Sickness Funds comprise cash and cash equivalents, bonds, pooled funds - commercial mortgages and equities.
The investments of the Fraternal Fund comprise cash and cash equivalents, bonds, pooled funds commercial mortgages and equities.
All bonds and equities in the Life, Sickness and Fraternal Funds have been classified as available-for-sale
financial assets.
a)Fair value through income financial assets
Regular way purchases and sales of financial assets are recognized on the settlement date, the date on which the
financial asset is delivered to or by the Society.
Financial assets are initially recognized at fair value. Transaction costs are expensed in the statement of operations. Any change in fair value is recorded in the statement of operations in the period in which they arise. Dividend and interest income are recognized as investment income in the statement of operations when the Society’s right to receive payments is established.
b)Available-for-sale financial assets
All commercial mortgages in the Life, Sickness and Fraternal Funds have been classified as fair value through income financial assets.
Regular way purchases and sales of financial assets are recognized on the settlement date, the date on which the
financial asset is delivered to or by the Society.
Cash and cash equivalents are classified as loans and receivables.
b)Segregated Funds
Financial assets are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition. Any change in fair value is recorded in other comprehensive income (OCI) until the financial asset is
disposed of or has become impaired. When the asset is disposed of, or its value has become impaired, the accumulated fair value adjustments recognized in accumulated other comprehensive income (AOCI) are transferred to the statement of operations as investment income.
The Segregated Funds’ assets comprise cash, short-term investments, bonds, equities, and pooled funds
consisting of commercial mortgages, commercial real estate, equities, and bonds, all of which are at fair value.
The effective interest rate method is used to amortize the premiums or discounts on the purchase of
available-for-sale financial assets.
Gains, income and losses arising from the Segregated Funds are disclosed in note 25 and are not reflected in
the Society’s statement of operations.
Transaction costs are included in the cost of available-for-sale financial assets on the date of acquisition.
Real estate in the Fraternal Fund is recorded at cost, less accumulated depreciation and any accumulated impairment losses. Net realized gains and losses are recognized in income (loss) in the year of sale.
Classification
a)Fair value through income financial assets
Financial assets classified as fair value through income financial assets are non-derivative financial assets that
management has designated as fair value through income at inception.
Financial assets are designated as fair value through income at inception where they are managed and whose performance is evaluated on a fair value basis. Information about these financial assets is provided on a fair value basis to the Society’s key management personnel. The Society’s investment strategy is to invest in commercial mortgage securities and to evaluate them with reference to their fair values.
b) Available- for- sale financial assets
Interest on available-for-sale debt instruments calculated using the effective interest method is recognized in the
statement of operations. Dividends on available-for-sale equity instruments are recognized in the statement of operations when the Society’s right to receive the payments is established. Both are included in investment income.
A provision for impairment for equity instruments and debt securities classified as available-for-sale is established when there is objective evidence that the investment is impaired.
c) Loans and receivables
Loans and receivables are initially recorded at fair value and subsequently measured at amortized cost using the
effective interest rate method.
A provision for impairment for loans and receivables is established when there is objective evidence the Society will not be able to collect all amounts due according to their original terms.
Financial assets are derecognized when the rights to receive cash flows from them have expired.
Available-for-sale financial assets are non-derivative financial assets that management has classified as
available-for-sale.
The Society’s accounting policies relating to the impairment of financial assets are disclosed below.
3 3
2014
FI N AN CI AL
S TATE M E N TS
34
S O C I E T Y
a)Life, Sickness and Fraternal Funds
Recognition and measurement
BEN EFI T
Financial assets, comprising cash, short-term investments, equities, bonds, and pooled funds - commercial
mortgages are recorded on the balance sheet at fair value on initial recognition and are subsequently accounted
for based on their classification, as described below.
FRAT ERN AL
FRAT ERN AL
BEN EFI T
S O C I E T Y
Financial assets
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. The Society’s loans and receivables comprise trade and other receivables,
and cash and short-term investments.
ACTRA
2014
AFBS
AN N U AL
REP ORT
Notes to
2014
AFBS
A NNU A L
REP ORT
In the case of loans and receivables, the criteria that there is objective evidence of an impairment loss include:
• significant financial difficulty of the issuer or debtor; and
• it becomes probable that the issuer or debtor will enter bankruptcy or other financial reorganization.
Cash and cash equivalents
FRAT ERN AL
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent
actual and regularly occurring market transactions on an arm’s-length basis.
Assets that have an indefinite useful life, for example, land, are not subject to amortization and are tested for
impairment annually, and where there are indicators of impairment, the test is performed on a more frequent
basis. Assets that are subject to amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for
the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s or a group of assets’ fair value less costs to sell and value in use.
The carrying values less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short term to maturity. The fair value of insurance contract liabilities for disclosure purposes
is estimated by discounting the future contractual cash flows at the current market interest rate that is available to
the Society for similar financial instruments.
Cash and cash equivalents include cash on hand, deposits held in banks and in investment portfolios, and other
short-term, highly liquid investments with original maturities of three months or less.
Impairment of assets
a)Financial assets
Real estate comprises the proportion of land and building at 1000 Yonge Street, Toronto, Ontario, Canada that is
occupied by the Society for use in its operations.
The Society assesses at the end of each reporting period whether there is objective evidence
that a financial asset or a group of financial assets is impaired.
For debt securities, the criteria that there is objective evidence of an impairment loss include:
• significant financial difficulty of the issuer or debtor;
• a breach of contract, such as a default or delinquency in interest or principal payments;
• it becomes probable that the issuer or debtor will enter bankruptcy or other financial reorganization;
Property, equipment and real estate
Real estate is shown at cost, less accumulated depreciation and any accumulated impairment. All other property
and equipment are stated at historical cost less accumulated depreciation and impairment. Historical costs include
expenditures that are directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Society and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the statement of operations during
the financial period in which they are incurred.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line basis to allocate their cost
over their estimated useful lives as follows:
• the disappearance of an active market for the financial asset because of financial difficulties;
• the credit rating of the issuer or debtor has been downgraded; and
Buildings
• relevant industry conditions and trends.
Office furniture and equipment
3 years
Computer equipment and systems 3 years
In the case of equity investments, the criteria that there is objective evidence of an impairment loss include:
20 years
• a significant or prolonged decline in the fair value of the security below its cost;
• the dividend payments are in arrears;
• there is information available with respect to adverse effects indicating the carrying amount may not be recovered; and
The asset’s residual values and useful life are reviewed at the end of each reporting period and adjusted as appropriate.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
• relevant industry conditions and trends.
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are included
under other income in the statement of operations
3 5
2014
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
In accordance with the Society’s investment policy, all investments in bonds and equities are in publicly traded,
highly liquid securities. All financial instruments are traded in active markets. The determination of fair values of the
investments is based on quoted market prices. The quoted market price used is the current bid price.
b)Other non-financial assets
BEN EFI T
In accordance with the Society’s investment policy, all investments in pooled funds - commercial mortgages are
invested within professionally managed commercial mortgage funds. All managed funds are unitized and valued on
a monthly basis by independent third party valuators. The managed fund units are highly liquid and traded in an
active marketplace based on the monthly unitized price.
ACTRA
BEN EFI T
S O C I E T Y
Determination of fair value
FRAT ERN AL
If any such evidence exists, the cumulative loss, measured as the difference between the acquisition cost for
equities and the amortized cost for debt securities and the current fair value, less any impairment loss on that financial asset previously recognized in the statement of operations, is removed from AOCI and recognized in the
statement of operations. Impairment losses recognized in the statement of operations on equity instruments are not reversed. If, in a subsequent period, the fair value of a debt instrument classified available-for-sale increases and the increase can be objectively related to an event occurring after the impairment loss was recognized in the statement of operations, the impairment loss is reversed through the statement of operations.
36
ACTRA
December 31, 2014
AN N U AL
REP ORT
2014
AFBS
A NNU A L
Notes to
Investment property
FRAT ERN AL
BEN EFI T
S O C I E T Y
The proportion of land and buildings at 1000 Yonge Street, Toronto, Ontario, Canada held for long-term rental yields
that is not occupied by the Society is classified as investment property.
Investment property comprises land and buildings at cost, less accumulated depreciation and any accumulated
impairment.
Land is not depreciated. Depreciation on buildings is calculated using the straight-line basis to allocate their cost
over their estimated useful lives of 20 years.
If an investment property becomes owner-occupied, it is reclassified as real estate at its proportionate carrying
value.
Intangible assets
Costs associated with maintaining computer software programs are recognized as an expense as incurred.
Where computer software is not an integral part of related computer hardware, it is treated as an intangible asset
and is reported at cost, less accumulated amortization and any impairment. Amortization on computer software
is calculated using the straight-line method to allocate the cost over its estimated useful life, which has been
estimated to be three years.
Insurance contracts
The Society issues contracts that transfer significant insurance risk. Insurance contracts are those contracts that
transfer significant insurance risk.
Liabilities arising from insurance contracts are presented as a single line item on the balance sheet, insurance
contract liabilities.
A number of insurance contracts contain discretionary participating features, which the Society terms Fraternal
benefits. Fraternal benefits entitle the Member to receive other benefits in addition to standard benefits for which:
• they are likely to represent a significant portion of the overall contractual benefits;
• their amount or timing is contractually at the discretion of the Society; and
• they are contractually based on the performance of the investment returns of a financial asset portfolio and/or the Society’s surplus from operations.
The Society classifies its insurance contracts into three categories:
AoS contracts protect the engagers of the Society’s Members from the consequences of events that occur while the
Members are on set in their performance of their contracts. The protection offered is designed for engagers who
become legally liable to pay compensation to injured performers. Benefits are payable to the Society’s Members on
occurrence of the specified insurance event and are limited to annual maximum amounts.
For all insurance contracts, premiums are recognized as revenue (insurance premiums earned) proportionally over
the period of coverage. The portion of premium received on in-force contracts that relates to unexpired risks at the
balance sheet date is reported as unearned premiums liability.
Claims and loss adjustment expenses are charged to income (loss) as incurred based on the estimated liability for
compensation owed to Members. They arise from events that have occurred up to the end of the reporting period
even if they have not yet been reported to the Society. Liabilities for claims incurred but not reported (IBNR) are
estimated from a development technique using empirical evidence and statistical analysis specific to each Member
group and separately for each category of insurance. Separate statistical analysis is performed to allow for a
provision for adverse deviation (PFAD) for each category of insurance. The PFAD is determined at each reporting
period to ensure the appropriate provision has been made for risk and uncertainty. Changes in the PFAD are
charged to the statement of operations.
Reinsurance
Reinsurance has been purchased by the Society to reduce insurance risk by limiting the Society’s exposure to any
single claim for life and accident and sickness insurance benefits to $50 and $35 (2013 - $50 and $35), respectively.
In addition, the Society has dual layer catastrophic excess of loss reinsurance coverage limiting its exposure to a
single common event, net of reinsurance recovery, to $500 (2013 - $500) on the first layer up to $3,725
(2013 - $3,725).
The Society also purchases reinsurance to reduce insurance risk by limiting the Society’s exposure to any single
claim for AoS benefits to two years of disability payments and reimbursements of health-care expenses.
The benefits to which the Society is entitled under its reinsurance contracts held are recognized as reinsurance
assets. These assets consist of short-term balances due from reinsurers, as well as longer-term receivables that are
dependent on the expected claims and benefits arising under the related reinsured insurance contracts.
• Short-duration Accident on Set (AoS) contracts
The Society assesses its reinsurance assets for impairment on a regular basis for any events that may trigger
impairment. If there is objective evidence that the reinsurance asset is impaired, the Society reduces the carrying
amount of the reinsurance asset to its recoverable amount and recognizes that impairment loss in the statement of
operations. The Society determines impairment using the same process adopted for financial assets.
Short-duration life insurance contracts protect the Society’s Members from the consequences of events (such as
death or dismemberment) that would affect the ability of the Members to maintain their current level of income.
Guaranteed benefits paid on occurrence of the specified insurance event are based on age and level of coverage
and are fixed. There are no maturity or surrender benefits.
Reinsurance is used to manage insurance risk. This does not, however, discharge the Society’s liability as primary
insurer. If a reinsurer fails to pay a claim for any reason, the Society remains liable for the payment to the Member.
The creditworthiness of reinsurers is considered on an annual basis by reviewing their financial strength prior to
finalization of any contract.
3 7
2014
• Short-duration life insurance contracts
• Extended Health Care (EHC) contracts (eligible for Fraternal benefits)
FI N AN CI AL
S TATE M E N TS
38
BEN EFI T
EHC contracts protect the Society’s Members and their dependants from the consequences of events that result
in additional health-care costs that are not covered under health-care programs provided by governmental
bodies or other first-payer insurance policies from other insurance organizations. Dental benefits and weekly
income benefits are a component of EHC contracts. Benefits are paid on occurrence of the specified insurance
event, are based on age and level of coverage, and are limited to annual maximum amounts. Providing a Member
meets eligibility criteria, EHC contracts provide the Member with additional Fraternal benefits. Additional
Fraternal benefits are enhanced benefits that are paid on occurrence of the specified insurance event and are
limited to annual and lifetime maximums. The availability of Fraternal benefits is at the discretion of the Society
and is dependent on the performance of the investment returns of the Society’s investment portfolio and/or the
Society’s surplus from operations.
S O C I E T Y
December 31, 2014
ACTRA
REP ORT
FRAT ERN AL
AFBS
ACTRA
2014
2014
AFBS
AN N U AL
REP ORT
Notes to
2014
AFBS
A NNU A L
REP ORT
Income taxes
The Fraternal, Sickness and Segregated Funds of the Society are not subject to income taxes.
Income taxes relating to the Life Fund are determined using the asset and liability method. Deferred income tax
assets and liabilities are recognized for temporary differences between the income tax and accounting bases of
measuring assets and liabilities, as well as for the benefit of losses available to be carried forward to future years for
income tax purposes that are more likely than not to be realized.
December 31, 2014
Revenue recognition
Revenue comprises the fair value of compensation received for services. Revenue is recognized as follows:
The provision has no fixed terms of payment and is payable at the discretion of the Board of Governors.
b)Provision for Members’ Insurance Credit
Equalization revenue represents amounts received from engagers in respect of equalization revenue generated
by guild collective bargaining agreements. Such amounts are recognized as income to the extent they are
retained by the Society.
The Society reached an agreement in principle with ACTRA and the Writers Guild of Canada, whereby equalization revenue is used to fund premium subsidies for the Members of those guilds (the Members’ Insurance Credit). These amounts are for the benefit of those Members working in each guild jurisdiction that generates equalization revenue. The amounts available to be distributed to the Members are determined annually after a reduction of all expenses related to the administration of the retirement plans associated
with each guild.
b)Investment income
Investment income from fair value through income, pooled funds - commercial mortgages, except those in the
Segregated Funds, is recognized within investment income in the statement of operations when the right to
receive payment is established; this is the distribution date as determined by the fund manager of the fund.
Interest income on available-for-sale interest bearing financial instruments, except those in the Segregated Funds, is recognized within investment income in the statement of operations using the effective interest rate method. When the financial instrument is impaired, the Society reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the financial instrument, and continues unwinding the discount as interest income.
Dividend income for available-for-sale equities, except those in the Segregated Funds, is recognized when the right to receive payment is established; this is the ex-dividend date for the equity security.
c) Equalization revenue
The provision is expected to be paid within one year.
Equalization revenue represents amounts received from engagers in respect of equalization revenue generated
by guild collective bargaining agreements. Such amounts are recognized when received.
Contributions on deposit
d)Rental income
Contributions on deposit represent amounts received from engagers (plus accrued interest) in respect of Members,
which are used to fund insurance premiums in the following year.
Rental income from investment properties is recognized when it is earned and is recorded net of operating and
management expenses.
Contributions on deposit in excess of $4 are payable on demand.
e)Other income
Accounts payables and accrued liabilities
Other income represents amounts received from asset management and other related services offered by the
Society and is recognized in the accounting period in which the services are rendered.
Trade payables and accrued liabilities are classified as other financial liabilities and are presented separately as
accounts payable and accrued liabilities. Trade payables and accrued liabilities are measured at amortized cost.
Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified
as operating leases. Payments made under operating leases are charged to the statement of operations on a
straight-line basis over the period of the lease.
Fees consist primarily of investment management fees arising from services rendered in conjunction with the withdrawals of Members’ investments in the Segregated Funds and the transfer of Members’ segregated balances to other financial institutions.
The Society leases certain property and equipment. The Society does not have substantially all the risks and
rewards of ownership and these leases are, therefore, classified as operating leases.
Comprehensive income (loss) comprises net income (loss) and OCI. OCI includes changes in unrealized gains and
losses on financial assets classified as available-for-sale. The changes in unrealized gains and losses are included
in AOCI until recognized in the statement of operations. AOCI is included on the balance sheet as a separate
component of equity.
3 9
2014
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
The provision for Fraternal premium subsidy represents amounts owing to Members to fund subsidized
insurance premiums of future years. The provision is increased by the Fraternal premium subsidy, which is
expensed annually after approved by the Board of Governors. The provision is reduced by the distribution of
the Fraternal premium subsidy to the Members at the discretion of the Board of Governors on an annual basis.
BEN EFI T
a)Provision for Fraternal premium subsidy
Insurance contracts for Life and Sickness are single premium contracts that have a term of 12 months or less.
The premiums are charged to Members on the renewal/inception date of the insurance contract. The
consideration received is deferred as a liability and recognized in the statement of operations over the life
of the contract on a straight-line basis. The portion of premiums received on in-force contracts that relate to
unexpired risks at the balance sheet date is reported as unearned premiums.
FRAT ERN AL
Provisions
a)Insurance premiums
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
40
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
b)Allocation of real estate between own-use and investment property
ACTRA
S O C I E T Y
The determination of the allocation between real estate and investment property requires significant judgment.
In making this judgment, the Society determined that the allocation is to be based on commercial area available for use and proportionate area available for rental use relative to the area available for own-use.
c) Estimate of insurance contract liabilities
3.
Critical accounting estimates and judgments
The Society makes estimates and assumptions that affect the reported amounts of assets and liabilities within the
next financial year and the disclosure of contingent assets and liabilities as at the date of the financial statements.
Estimates also affect the reported amounts of income and expenses for the reporting period of the statement of
operations.
Estimates and judgments are continually evaluated and based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. Actual results could
differ from those estimates.
FRAT ERN AL
FRAT ERN AL
BEN EFI T
Property considered as investment property is property that is held to generate both rental income and capital appreciation.
The process of determining insurance contract liabilities, including the Fraternal benefit liability, involves the
estimation of the occurrence of events, which are uncertain. The risks of misestimation vary in proportion to the
length of the estimation period and the volatility of assumptions.
The Fraternal benefit liability is estimated by projecting the benefits based on actual experience over the five preceding years and, after adjusting for anticipated trends, discounting the projected benefits.
In the computation of insurance contract liabilities, best-estimate assumptions have been made for many variables, including mortality, morbidity, investment returns, cost of claims, levels of administrative expenses and inflation.
The methods for arriving at the most important of these assumptions are outlined below.
a)Impairment of available-for-sale financial assets
Mortality - The ultimate mortality rates on a sex-distinct basis from the 1982-88 Canadian Institute of Actuaries tables are used.
The Society follows the guidance of IAS 39, to determine when an available-for-sale financial asset is impaired.
This determination requires significant judgment.
Morbidity - The rate of claims is derived from industry experience studies, adjusted where appropriate for the Society’s own experience.
In making this judgment for impairments for the value of debt securities, the Society considers whether:
(i) the interest and payments are in arrears; (ii) the issuer of any debt securities held by the Society has reported any significant financial difficulty; (iii) the active market for that security has disappeared; (iv) the credit rating of the issuer of the debt security has been downgraded; (v) the extent and duration of the decline in value;
and (vi) r elevant industry conditions and trends.
In making this judgment for impairments for the value of equities, the Society considers whether: (i) the dividend payments are in arrears; (ii) there has been a significant or prolonged decline in the fair value of the equities held by the Society; (iii) there is information available with respect to adverse effects indicating the carrying value o
f the equities may not be recovered; (iv) the extent and duration of the decline in value;
and (v) relevant industry conditions and trends.
Investment returns - Investments in bonds and short-term investments are used to support insurance contract liabilities. Uncertainty exists as to projections of future interest rates. The estimated investment rate used in the estimation of insurance contract liabilities is 1.75% (2013 - 2.25%) for the provision for fraternal benefits and 2.00% (2013 - 2.75%) for the provision for paid-up insurance.
Expenses - Policy administration expenses and the cost of medical claims are derived from actual expenses incurred in the prior year and are sensitive to inflation.
Had declines in fair values below cost or amortized cost been considered significant or prolonged, the Society would suffer reduced income of $106 (2013 - $688) as a result of transferring the unrealized losses from the AOCI reserve in bonds to the statement of operations.
4 1
2014
PFAD - The basic assumptions made in establishing insurance contract liabilities are best estimates for a range of possible outcomes. To recognize the uncertainty in establishing these best estimates, to allow for possible deterioration in experience and to provide greater comfort that the insurance contract liabilities are adequate to pay future benefits, actuaries are required to include a margin in each assumption. A range of allowable margins is prescribed by the Canadian Institute of Actuaries. The value of the PFAD included in the insurance contract liabilities is approximately $336 or 4.3% (2013 - $370 or 4.8%) of total liabilities. The Society maintains the margins near the middle of the applicable ranges.
FI N AN CI AL
S TATE M E N TS
BEN EFI T
Property considered as real estate is property that is occupied by the Society in order to maintain its physical operations.
42
ACTRA
S O C I E T Y
The Society follows the guidance of IAS 40, Investment Property, and IAS 16, Property, Plant and Equipment,
with respect to property held at 1000 Yonge Street, Toronto, Ontario, Canada. This property is held as both
property for own-use and as investment property. IAS 40 requires that where property is used for both own-use and income-generating purposes, the Society should account for each of these uses separately. The portion that is used for own-use should be presented as real estate, and the portion used to generate income should be presented as investment property.
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
b)Sources of uncertainty in the estimation of future claims payments
The Society issues contracts that transfer insurance risk. The risk under any one insurance contract is the possibility
that the insured event occurs and the uncertainty of the amount of the resulting claim. By the very nature of an
insurance contract, this risk is random and, therefore, unpredictable.
In determining the liability for waiver of premium, it is necessary to make estimates on the potential amount of insurance that remains in force as a result of the members claiming total disability.
c) Process used to decide on assumptions
For a portfolio of insurance contracts where the theory of probability is applied to pricing and provisioning, the
principal risk that the Society faces under its insurance contracts is that the actual claims and benefit payments
exceed the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims
and benefits are greater than estimated. Insurance events are random, and the actual number and amount of
claims and benefits will vary from year to year from the level established using statistical techniques.
The assumptions used for the insurance contracts disclosed in this note are as follows:
Short-duration life insurance contracts
• Claims incurred with lags beyond seven calendar years were assumed to be $nil.
a)Frequency and severity of claims
• Waiver of premium
For contracts where death is the insured risk, the most significant factors that could increase the overall
frequency of claims are epidemics (such as AIDS, SARS and influenza) or widespread changes in lifestyle,
such as eating, smoking and exercise habits, resulting in earlier, or more, claims than expected.
•The valuation basis is the Group Life Waiver Study based on the Canadian Institute of Actuaries 1988-94
Canadian Group LTD Termination Experience Study with 2% interest.
• IBNR
•The delay in the reporting of claims is considered to be consistent with that of prior year’s delay included in
the statistical analysis.
d)Changes in assumptions
As life benefits are provided under group insurance principles, there are no liabilities relating to most ongoing coverage. Although Members have certain individual rights and the Society does not have the unilateral right to cancel coverage, Members must generally remain active within a guild to qualify for and maintain coverage. Members do not have the option of continuing coverage if they cease to belong to one of the eligible classes.
In order to reduce insurance risk, the Society purchases reinsurance.
The following table reports the year-end aggregated insured benefits for the in-force short-duration life insurance contracts.
The Society has changed its interest rate assumptions for the insurance contracts disclosed in this note.
The interest rate used in the valuation of the waiver of premium liability was 2.00% (2013 - 3.00%).
The reason for the change in the assumption was the lower interest rate environment.
The effect of the change in assumption was an increase of $11 in the liability.
e)Sensitivity analysis
Before reinsurance
Life
After reinsurance
AD&D
Life
AD&D
439,852
450,338
290,282
293,480
221,284
222,868
Incurred but not reported
$$$$
2014
2013
435,983
445,936
In addition to basic life and Accidental Death and Dismemberment Benefits (AD&D), included in life benefits
is the waiver of premium on disability for basic life insurance coverage only. This benefit comes into force
when a Member or employee is deemed to have been permanently and totally disabled and has satisfied the
prescribed waiting period as at the policy anniversary date.
4 3
Change in liability
Before reinsurance
Short-duration insurance contracts
(life risks only)
Delay in reporting increase of 10%
Delay in reporting decrease of 10%
After reinsurance
2014201320142013
$$$$
9
(9)
9
(9)
6
(6)
6
(6)
The above analysis is based on a change in one assumption while holding all other assumptions constant.
2014
FI N AN CI AL
S TATE M E N TS
BEN EFI T
Management of insurance risk
FRAT ERN AL
4.
In determining the liability for claims IBNR, it is necessary to make estimates. Uncertainty exists as to the number of claims and the amount of such claims. The method by which the Society makes these estimates is disclosed in note 2, summary of significant accounting policies.
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
S O C I E T Y
Other than for the testing of adequacy of the liability representing the unexpired risk at the end of the reporting
period, there is no need to estimate mortality rates or morbidity rates for future years because these contracts
have short duration.
44
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
Notes to
REP ORT
c) Process used to decide assumptions
December 31, 2014
The assumptions used for the insurance contracts disclosed in this note are as follows:
In addition to the liability for extended health care and dental claims, included in EHC liabilities are provisions for
(i) paid-up insurance, (ii) Fraternal benefits, (iii) IBNR claims, and (iv) weekly income benefits (WIB).
WIB represent benefits paid on the occurrence of total disability.
ACTRA
BEN EFI T
Paid-up insurance represents EHC benefits provided for life for eligible Members. Effective January 1, 1995, there are no new entrants to this benefit.
• Claims experience growth rate at 12% annually first five years, 10% annually next five years, 8% annually thereafter
ii) Fraternal benefits
• Trend analysis applied to actual experience over the five preceding years
• Discounted value of projection of claims over next three years
• Risk-free rate of return of 1.75%
iii)IBNR and WIB
•The delay in the reporting of claims is considered to be consistent with that of prior years’ statistical
analysis.
For liabilities arising from EHC contracts, the most significant factors that could increase the overall frequency of claims are: epidemics (such as AIDS, SARS and influenza) or widespread changes in lifestyle, such as eating, smoking and exercise habits, and the inflationary cost of existing and new drugs available to treat the diseases and ailments.
The Society has changed its interest rate assumptions for the insurance contracts disclosed in this note.
As EHC benefits are provided under group insurance principles, there are no liabilities relating to ongoing coverage. Although Members have certain individual rights and the Society does not have the unilateral right to cancel coverage, Members must generally remain active within a guild to qualify for and maintain coverage. Members
do not have the option of continuing coverage if they cease to belong to one of the eligible classes.
The reason for the change in the assumption was the lower interest rate environment.
The Society has the right to re-price the risk on renewal, which occurs on an annual basis. It also has the ability to impose deductibles and reject fraudulent or ineligible claims. These contracts are underwritten by reference to the defined benefits and limits imposed in each level of coverage made available. The Society uses its actual claims experience in its pricing determination.
Insurance risk under WIB is also dependent on economic conditions in the industry. Historical data indicates that recession and unemployment in an industry will increase the number of claims for disability benefits as well as reducing the rate of recovery from disability. The Society attempts to manage this risk through its underwriting and claims handling policies. The amount of disability benefit cover provided per individual is restricted in amount to the lesser of 60% of eligible earnings or $1 per week, and in duration to one year.
In determining the liability for paid-up insurance, uncertainty arises from estimates used for mortality, morbidity
and interest rates.
The interest rate used in the valuation of the Paid-up insurance liability was 2.00% (2013 - 2.75%), and the interest rate used in the valuation of Fraternal benefits was 1.75% (2013 - 2.25%).
The effect of the change in assumption was an increase of $49 in the liability for Paid-up insurance, and an increase of $29 in the liability for Fraternal benefits.
i) Paid-up insurance
Sensitivity of the liability arising from paid-up insurance to interest rate and morbidity estimates is evaluated
by the Society on an annual basis. The variance arising from the sensitivity analysis is provided for by the Society
in its PFAD calculations. The PFAD arising from interest rate and morbidity sensitivity is $115 (2013 - $158).
ii) Fraternal benefits
Sensitivity of the liability arising from fraternal benefits to interest rate and morbidity estimates is evaluated by
the Society on an annual basis. The variance arising from the sensitivity analysis is provided for by the Society
in its PFAD calculations. The PFAD arising from interest rate and morbidity sensitivity is $73 (2013 - $71).
iii)IBNR and WIB
In determining the liability for Fraternal benefits, uncertainty arises from the estimates used for projections and the risk-free interest rate used to value the projected benefits.
EHC contracts – IBNR and WIB
Delay in reporting increase of 10%
Delay in reporting decrease of 10%
In determining the liability for EHC claims and WIB claims, the Society must estimate the value of claims IBNR. IBNR factors are derived from the Society’s actual EHC and WIB claims data. The Society maintains records stored by grids by the month incurred versus the month paid on a group-by-group basis. The Society’s claim history is well-established and the use of empirical data specific to each individual group provides sound liability estimates.
4 5
S O C I E T Y
• Interest rate used for present value 2.00%
BEN EFI T
EHC contracts
•Mortality experience based on 1982-88 Canadian Institute of Actuaries sex-distinct ultimate mortality rates
FRAT ERN AL
Sensitivity of the liability arising from the waiver of premium to interest rate and morbidity estimates is evaluated by
the Society on an annual basis. The variance arising from the sensitivity analysis is provided for by the Society in its
PFAD calculations. The PFAD arising from interest rate and morbidity sensitivity is $32 (2013 - $29).
FRAT ERN AL
S O C I E T Y
Waiver of premium
i) Paid-up insurance
ACTRA
Change in liability2014
2014
FI N AN CI AL
S TATE M E N TS
2013
$
$
116
(116)
108
(108)
46
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
For AoS risks, the frequency of claims is affected by the number of active productions and the number of performers employed by each production. The severity of claims is affected by the nature of the production (number of stunts involved) and the number of performers employed.
All AoS contracts are provided on a production-by-production basis with a term limited to the duration of each production. As a result, there are no liabilities relating to ongoing coverage.
The Society contracts a specialist claim unit to evaluate and mitigate the risks of claims. The specialist claim unit investigates and adjusts all claims on an individual basis to evaluate the extent of injury and fitness to return to work.
In order to reduce the insurance risk, the Society purchases reinsurance as disclosed in note 2.
In determining the liability for AoS claims, the Society must estimate the value of IBNR claims. The estimation of IBNR is subject to a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Society, where information about the claim event is available.
In estimating the liability for the cost of reported claims not yet paid, the Society considers any information available from its specialist and medical opinions of the claimant, and information on the cost of settling claims with similar characteristics in previous periods. Large claims are assessed on a case-by-case basis and projected separately in order to allow for the possible distortive effect of their development and incidence on the rest of the portfolio.
When possible, the Society adopts multiple techniques to estimate the required level of IBNR provisions.
This provides a greater understanding of the trends inherent in the experience being projected. The projections given by the various methodologies also assist in estimating the range of possible outcomes.
c) Process used to decide on assumptions
The delay in the reporting of claims is considered to be consistent with that of prior years included in the
statistical analysis.
The Society’s approach to risk management involves common measurement of risk and scope of risk coverage to
allow the Society’s risk position to be managed. The Society has an external investment adviser to review the risk
profile of the Society’s investments and provide an independent third party report on the Society’s exposure to the
various risks associated with its investments. Risk management functions are applied by management of the Society,
while Board of Governors’ oversight remains independent of business activity, providing oversight and review.
To manage its risk exposure, the Society has risk policies in place. These policies limit the Society’s exposure to
major risks, such as equity, interest rate, credit and currency. The limits in these policies in aggregate remain within
the Society’s overall tolerance for risk, as well as its financial resources. Operating within this policy framework, the
Society employs risk management models.
The Society also measures the sensitivity of net income (loss) under various scenarios. Management uses the insight
gained through these scenario analyses to manage the Society’s risk exposure and capital position. The models,
scenarios and assumptions used are reviewed regularly and updated as necessary.
Results from the Society’s analyses are presented to show the estimated sensitivity of net income (loss) and
unappropriated surplus to various scenarios. For each type of market risk, the analysis shows how comprehensive
income would have been affected by changes in the relevant risk variable that were reasonably possible at the
reporting date. For each sensitivity test, the impact of the reasonably possible change in a single factor is shown.
The Society has classified its investment portfolio of pooled funds - commercial mortgages as fair value through
income. As a result, economic sensitivities affecting pooled funds - commercial mortgages predominantly impact
net income (loss).
The Society has classified the balance of its investment portfolio as available-for-sale, which is one of the main
reasons why the sensitivity analysis performed on bonds and equities has a different impact on net income (loss)
than OCI. Unrealized gains and losses on these assets are not recognized in the statement of operations but
are recorded in AOCI. As a result, economic sensitivities predominantly impact OCI but leave net income (loss)
unaffected.
The sensitivity of the AoS liability incurred but not reported is included with EHC contracts above.
The sensitivity analyses reflect what the operating surplus for the year would have been had risk variables been
different, based on the exposures in existence during the year. The results of the sensitivity analyses are not
intended to be an accurate prediction of the Society’s future unappropriated surplus or net income (loss). The
sensitivity analyses do not consider all methods available to management to respond to changes in the financial
environment, such as changing investment portfolio allocations or adjusting premiums. Furthermore, the results
of the sensitivity analyses cannot be extrapolated for wider variations since effects tend not to be linear. No risk
management process can clearly predict future results.
4 7
2014
The Society did not change its assumptions for the insurance contracts disclosed in this note.
S O C I E T Y
The Society’s most significant exposures to financial risk are to changes in financial markets (e.g. interest rate and
equity market risks) that affect the value of the Society’s investments. The Society manages its liquidity risk through
its investment policy requirement that all investments in bonds, pooled funds - commercial mortgages, and equities
of the Society are in publicly traded or highly liquid securities.
BEN EFI T
AoS contracts
Objectives and policies
FRAT ERN AL
Management of financial risk
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
5.
FI N AN CI AL
S TATE M E N TS
48
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
S O C I E T Y
The Society’s financial assets and financial liabilities are subject to interest rate risk, as the fair value or future
cash flows will fluctuate because of changes in market interest rates. The Society generates interest income on its
commercial mortgage and bond investments and pays interest to Members on their contributions held on deposit
by the Society. Interest income generated on commercial mortgage investments is measured against the FTSE TMX
Short-Term Bond Index/FTSE TMX Mid-Term Bond Index (60/40). Interest income generated on bond investments
is measured against the FTSE TMX Universe Bond Index. Interest is paid to Members on contributions on deposit
monthly, and is based on the 90-day T-Bill rate as established by the Bank of Canada.
In periods of rapidly increasing interest rates, withdrawals of funds from the Society may increase. This activity
may result in cash payments by the Society, requiring the sale of invested assets at a time when the prices of those
assets are adversely affected by the increase in market interest rates. This may result in realized investment losses.
These cash payments to Members result in a decrease in total invested assets and a decrease in net income (loss).
During periods of sustained low interest rates, investment income may be lower because the interest income on
new fixed income investments is likely to have decreased with the market interest rates. The Society employs
interest rate monitoring and measurement techniques and actively manages its interest rate risk exposure.
Increases in interest rates have a negative effect on unappropriated surplus and comprehensive income in the
current year because they result in unrealized losses on investments that are carried at fair value. Over time, the
short-term reduction in net income (loss) due to rising interest rates would be offset by higher net income (loss) in
later years, all else being equal. Therefore, rising interest rates are not considered a long-term risk to the Society.
The Society manages its interest rate risk through conservative investment policies that restrict the Society’s
investment managers’ investment choices.
The sensitivity of investments to changes in interest rates is dependent on the maturity of debt securities. Due to
the time value of money, a reduction in the interest rates would normally produce a higher value of debt securities,
but would not materially affect the fair value of short-term securities and equities.
Sensitivity analysis of OCI to interest rate
movements on available-for-sale financial assets
Estimated effects on OCI
20142013
$$
FTSE TMX Universe Bond Index
Increase 100 basis points
Decrease 100 basis points
Increase (decrease)
349
(349)
696
(700)
Sensitivity analysis of net income to interest rate
movements on fair value through income financial assets
Estimated effects on net income
20142013
$$
FTSE TMX Short-Term Bond Index/FTSE TMX Mid-Term Bond Index (60/40)
Increase (decrease)
107
(107)
213
(215)
The following tables show the sensitivity of the Society’s comprehensive income to a 1% (100 basis points) and
2% (200 basis points) increase or decrease in the relevant FTSE TMX Bond Indices. This analysis assumes that the
Society’s asset performance in 2014, relative to the relevant index performance in 2014, would be consistent with
the actual performance achieved.
The sensitivity analysis reflects the financial assets and financial liabilities held at the end of the year
(excluding Segregated Funds’ assets).
4 9
2014
FI N AN CI AL
430
(431)
859
(862)
S TATE M E N TS
55
(56)
110
(112)
50
BEN EFI T
Interest rate risk
FRAT ERN AL
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
December 31, 2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2013
Liquidity risk is the risk that an entity will encounter difficulty meeting cash flow commitments associated with
financial instruments. The purpose of liquidity management is to ensure that there is sufficient cash to meet all
commitments and obligations as they fall due. To manage liquidity risk and cash flow requirements, the Society’s
investment policy requires all investments in bonds, pooled funds - commercial mortgages and equities be publicly
traded or highly liquid.
The maximum exposure to credit risk of the Society is equal to the carrying values of these financial instruments as
at December 31:
The Society’s expected payment of current and future obligations is $9,028 in 2015. The Society’s remaining financial
obligations have no fixed contractual payment obligations.
Equity market and other investment risks
Fluctuations in the equity, real estate and capital markets have, in the past, affected the Society’s profitability, capital
position and sales of equity related products and may continue to do so. Exposure to equity and capital market risks
exists in the financial assets of the Society. Financial asset exposure exists through direct equity investments, where
the Society bears all or most of the volatility in returns and investment performance risk. Volatile or poor market
conditions may also significantly reduce the popularity of some of the Society’s retirement savings products, which
could lead, ultimately, to lower financial assets’ fair value held on account by the Society, increasing the fees paid by
the Society to manage those accounts and, thereby, reducing net income (loss). General economic conditions may
lead to significant decreases in the values of the Society’s equities.
The Society monitors the performance of its equities against the S&P/TSX Composite Index. It also closely monitors
other indices that will affect the retirement savings accounts of its Members and indirectly impact the performance
of the Society’s investment in equities.
The following table illustrates the Society’s equities (excluding Segregated Funds’ assets) that are exposed to market
risk. The table demonstrates a sensitivity analysis of OCI to reasonably possible changes in the fair value of those
instruments.
Maximum exposure to credit risk
Equity values increase of 10%
Equity values decrease of 10%
5 1
Estimated effects on OCI
20142013
$$
Increase (decrease)
1,383
(1,411)
1,224
(1,252)
2013
$$
Investment income accrued
Receivables
Reinsurance contracts
Bonds
Pooled funds - commercial mortgages
4,127
222
1,846
179
38,816
12,092
3,972
239
2,478
230
36,346
8,549
57,282 51,814
The Society manages credit risk by maintaining an investment policy restricting investment managers’ ability to
invest in less than investment grade bonds. The Society also utilizes a value-based investment manager to manage
the equity investments of the Society. The following table sets out the credit ratings of bonds held by the Society at
the balance sheet date.
Credit rating of bonds held
Sensitivity analysis of OCI to equity markets
2014
2014
2013
$$
AAA
AA
A
BBB
8,726
14,958
10,118
5,014
18,692
4,276
13,378
-
38,816 36,346
There are no overdue or impaired receivables as at December 31, 2014 and 2013.
2014
FI N AN CI AL
S TATE M E N TS
52
S O C I E T Y
Credit risk is the risk that one party to a financial instrument fails to discharge its obligation and causes financial loss
to another party. The Society is exposed to credit risk primarily on financial assets and receivables balances.
Liquidity risk
BEN EFI T
Credit risk
FRAT ERN AL
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
AN N U AL
REP ORT
2014
AFBS
A NNU A L
Notes to
6.
December 31, 2014
Cash and cash equivalents as at December 31 consisted of the following:
20142013
FRAT ERN AL
Cash in the bank and on hand
Cash held in investment portfolio
Short-term investments
Capital risk management
3,805
322
-
3,649
173
150
4,127 3,972
The Society’s objectives when managing capital are:
• to safeguard the Society’s ability to continue as a going concern so that it can continue to provide services to Members at affordable prices; and
• to maintain adequate levels of available capital to provide sufficient margin over capital levels required by the Office of the Superintendent of Financial Institutions (OSFI).
The Society’s capital is targeted to be managed well in excess of the minimum level of capital. The Society’s
Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio during December 31, 2014 and 2013
exceeded the minimum level required.
The Society’s capital surplus comprises the excess of the Society’s assets over its liabilities. The Society’s assets
comprise primarily investments in bonds, pooled funds - commercial mortgages and equities and include the
other operating assets of the Society, such as furniture and equipment and the building from which it operates.
The Society’s liabilities comprise primarily contributions held on deposit for Members in order to pay for future
insurance programs, as well as amounts held for future payment of existing policy obligations. In addition, liabilities
include operating liabilities of the Society, such as outstanding payments to suppliers and amounts held for future
distribution to Members.
The Society is regulated by OSFI and, pursuant to that oversight, is required to maintain a minimum level of capital
to ensure it remains solvent. These minimum levels are calculated in accordance with the MCCSR ratio prescribed
by OSFI. This formula requires amounts of surplus be maintained that vary directly with the risk characteristics of
each category of financial assets and financial liabilities held by the Society.
The Society’s capital level is forecast in conjunction with the annual preparation of the Dynamic Capital Adequacy
Testing report prepared by the Society’s independent actuary and reported on an annual basis to the Board of
Governors. If at any time this ratio falls below the target range, the Board of Governors may take the following steps
to restore the ratio to its target levels:
The effective rate on short-term investments is 0.4% (2013 - 0.6%).
7.
Investments
The financial assets of the Society include both investments that are held directly and investments that are held
through pooled funds.
Pooled funds are managed by unrelated asset managers and apply various investment strategies to accomplish their
respective investment objectives. The Society holds redeemable units in each of the investee funds that entitle the
Society to a proportional share in the respective fund’s net assets. The right of the Society to request redemption of
its investments in pooled funds ranges in frequency from daily to monthly.
The carrying value of the Society’s investment in pooled funds at December 31 is:
20142013
$$
Available-for-sale financial assets
Equities
14,405
Fair value through income financial assets
12,092
b)develop annual operating budgets that consider generating surpluses that are to be retained until such time as the Society’s MCCSR ratio is within the target range;
8,549
20142013
$$
d)seek other methods to generate operating surplus for the Society.
Equities
336
293
5 3
2014
c) price the Society’s insurance programs in such a manner that an underwriting surplus is expected to be generated; and
15,974
During the year, the recorded unrealized gain from the changes in the fair value of the pooled funds is:
a)cease distribution of annual operating surpluses to the Membership as a Fraternal benefit for the subsidization of
Members’ costs for insurance;
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
$$
BEN EFI T
BEN EFI T
S O C I E T Y
ACTRA
REP ORT
2,708
149
54
FRAT ERN AL
AFBS
ACTRA
2014
AFBS
AN N U AL
REP ORT
Notes to
A NNU A L
REP ORT
Pooled funds - commercial mortgages classified in level 2 comprise primarily debt secured by office, retail,
industrial, and commercial residential properties. Fair value is determined utilizing relevant information generated
by the pooled fund managers, who determine the price per unit at which the Society may transact.
The maturity profile of bonds as at December 31 is as follows:
•Level 1 -unadjusted quoted prices in active markets for identical financial assets and financial liabilities;
2014
•Level 2 -inputs, other than quoted prices, that are observable for the financial asset or financial liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
FRAT ERN AL
The following table summarizes fair value measurements recognized in the balance sheet or disclosed in the
Society’s financial statements by class of asset and categorized by level according to the significance of the inputs
used in making the measurements. This excludes the segregated funds’ assets which are disclosed in note 25:
ACTRA
•Level 3 -inputs that are not based on observable market data. The Society does not hold any financial assets classified within this category.
Financial assets at fair value as at December 31
Equities
Bonds
2014
Level 1
Level 2
Level 3
$$$$
4,127
-
-
-
-
14,405
38,816
12,092
4,127 65,313
-
-
-
-
Level 1
Level 2
4,127
14,405
38,816
12,092
- 69,440
Total
Level 3
3,972 60,869
Bonds
Over
3 to 5 years
Over
5 years
Carrying
amount
$
%
$
%
$
%
$
%
$
2,720
7
5,433 14
8,119
21
22,544
58
38,816 100
Within
1 year
$
Bonds
%
7,846 22
%
Over
1 to 3 years
Over
3 to 5 years
Over
5 years
Carrying
amount
$
%
$
%
$
%
$
16,527 45
166
1
11,807
32
36,346 100
%
The fair value of the Society’s available-for-sale investment portfolio by type of financial instrument as at December 31 is:
Total
- 64,841
Over
1 to 3 years
2013
During the years ended December 31, 2014 and 2013, there were no transfers between level 1, level 2 or level 3 of
the fair value hierarchy.
5 5
2013
$$$$
3,972
-
-
3,972
Equities
-
15,974
-
15,974
Bonds
-
36,346
-
36,346
-
8,549
-
8,549
Within
1 year
20142013
$$
Corporate bonds
Government bonds
Equities
18,211
20,605
14,405
16,112
20,234
15,974
53,221 52,320
The fair values of cash and cash equivalents, receivables, contributions on deposit, unqualified retirement contributions,
and accounts payable and accrued liabilities approximate their carrying values due to their short-term nature.
All financial assets of the Society are measured on a recurring basis.
2014
FI N AN CI AL
S TATE M E N TS
56
S O C I E T Y
Fair value hierarchy
Bonds classified in level 2 comprise primarily government and agency securities and certain corporate debt
securities. Fair value is determined utilizing relevant information generated by market transactions involving
comparable securities.
BEN EFI T
The Society categorizes all financial assets carried at fair value in its balance sheet based on a three-level valuation
hierarchy. The hierarchy gives the highest level of priority to quoted prices in an active market for identical assets
(level 1), whereas the lowest level of priority is assigned to unobservable valuation inputs (level 3). If the inputs used
to measure the financial asset cross different levels of the hierarchy, categorization is based on the lowest level input
that is significant to the fair value measurement. Management’s assessment of the significance of a particular input
to the overall fair value measurement of a financial asset requires judgment and considers factors specific to the
financial asset. The three levels are described below.
Equities are investments held primarily in the S&P/TSX Composite Index and have been included in level 2. The fair
value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date.
A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker,
industry group, pricing service or regulatory agency, and those prices represent actual and regularly occurring
market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Society
is the current bid price.
FRAT ERN AL
S O C I E T Y
AFBS
December 31, 2014
BEN EFI T
2014
ACTRA
2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
Management has reviewed currently available information regarding available-for-sale financial assets with
unrealized losses of $106 (2013 - $688) and determined that there was no impairment.
Net fair value gains on financial assets at fair value through income relate entirely to assets designated to be in this
category upon initial recognition.
ACTRA
As at January 1, 2013
Additions
Disposals
Change in fair value
Additions
Disposals
Change in fair value
Bonds
$$ $
13,512
1,954
(1,938)
2,446
15,974
15,974
845
(2,182)
(232)
-
8,400
-
149
48,003
27,899
(37,491)
(2,065)
8,549 36,346
8,549
5,493
(2,243)
293
36,346
68,438
(66,675)
707
14,405 12,092 38,816
Dividend income
Interest income
Realized gains
Realized gains
5 7
Year ended December 31, 2013
Opening net book value
Additions
Amortization
20142013
$
845
1,227
1,074
$
454
1,561
323
3,146 2,338
537
-
3,683 2,338
Closing net book value
Cost
Accumulated amortization
Net book value
Year ended December 31, 2014
Additions
Amortization
Investment income for the year ended December 31 was derived from the following:
Office
furniture and Computer
equipment equipment
Cost
Net book value
Computer
systems
Total
$$$$
134
154
(96)
127
161
(92)
264
51
(93)
525
366
(281)
192
196
222
610
523
(331)
741
(545)
2,558
(2,336)
3,822
(3,212)
192
196
222
610
192
103
(101)
196
77
(105)
222
143
(121)
610
323
(327)
194
168
244
606
626
(432)
818
(650)
2,701
(2,457)
4,145
(3,539)
194
168
244
606
Amortization for the year of $327 (2013 - $281) has been charged to operating expenses.
Lease rentals amounting to $46 (2013 - $42) relating to the lease of office equipment have been charged to
operating expenses.
Office leases for 1155 Pender Street W. in Vancouver, B.C. in the amount of $31 (2013 - $32) have been charged to
operating expenses.
2014
FI N AN CI AL
S TATE M E N TS
58
S O C I E T Y
Pooled
funds commercial
Equities mortgages
Property and equipment
BEN EFI T
Fair value
8.
FRAT ERN AL
FRAT ERN AL
BEN EFI T
S O C I E T Y
The changes in the Society’s investments are summarized in the table below:
ACTRA
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
9.
Intangible assets
As at December 31
Real estate
Investment property
As at January 1
Cost
Net book value
Net book value
825
825
Real estate - building
2014
2013
20142013
$
$
1,165
(816)
1,041
(537)
349
504
349
391
(205)
-
504
124
(279)
-
535
349
As at December 31
Cost
1,556
(1,021)
1,165
(816)
535
349
Net book value
$
239
586
As at January 1
Cost
Year ended December 31
Additions
Amortization
Reclassified
$
Net book value
Additions
Amortization
Cost written off
As at December 31
Cost
Net book value
5 9
2014
FI N AN CI AL
S TATE M E N TS
$
$
239
(141)
238
(133)
98
105
98
50
(9)
-
105
1
(8)
-
139
98
289
(150)
239
(141)
139
98
60
S O C I E T Y
2013
239
586
Computer software
2014
BEN EFI T
Land - 1000 Yonge Street, Toronto, Ontario
BEN EFI T
FRAT ERN AL
ACTRA
Real estate and investment property
FRAT ERN AL
10.
ACTRA
S O C I E T Y
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
As at January 1
Cost
Net book value
Additions
Amortization
As at December 31
Cost
2014
$
2013
$
585
(346)
583
(326)
239
257
239
121
(20)
257
2
(20)
340
239
706
(366)
585
(346)
340
239
$$
Within 1 year
After 1 year but within 5 years
After 5 years
Insurance contract liabilities
Insurance contract liabilities represent the amounts that, together with estimated future premiums and
investment income, will be sufficient to pay estimated future benefits and expenses on the life and accident
and sickness policies in force. Insurance contract liabilities are determined using generally accepted actuarial
practices, according to standards established by the Canadian Institute of Actuaries.
The Society provides life and accident and sickness insurance to its Members. The composition of the Society’s
insurance contract liabilities is as follows:
20142013
Amortization for the year of $20 (2013 - $20) has been charged to net real estate income.
The Society’s investment in real estate and investment property is located at 1000 Yonge Street, Toronto, Ontario.
Classification of the property between real estate and investment property is based on the amount of square
area used as owner-occupied purposes versus the square area used for the generation of rental income. The fair
value of the property on a combined basis is $5,500. The fair value was determined by an independent appraisal
using the direct capitalization and discount cash flow methods. The appraisal was performed on February 6, 2015.
Where there has not been a material change in fair value the Society performs an appraisal on its real estate and
investment property on a triennial basis.
475
748
-
496 1,223
11.
356
140
-
$$
Life
Accident and sickness
947
5,526
1,071
5,344
6,473 6,415
The Society leases out its investment property under operating leases. The leases typically run for an initial period
of two to five years. None of the leases include contingent rentals.
Included in insurance contract liabilities in the accident and sickness line of business is the Fraternal benefit liability
in the amount of $3,834 (2013 - $3,736), representing the present value of such benefits expected to be provided
over the three-year period following the financial statements’ date. Although these benefits are not guaranteed
under the terms of the contracts issued by the Society, establishment of the liability follows a principle of actuarial
practice, whereby provision is made for what might be considered as Members’ reasonable expectations.
6 1
2014
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
20142013
Investment property - building
BEN EFI T
FRAT ERN AL
As at December 31, 2014, the total future minimum lease payments in respect of investment properties under
non-cancellable operating leases are receivable as follows:
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
62
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
S O C I E T Y
20142013
$$
Within 1 year
Over 1 to 2 years
Over 2 to 3 years
1,228
1,309
1,401
1,207
1,285
1,374
3,938 3,866
All other insurance contract liabilities are expected to be paid within one year.
Change in insurance contract liabilities
Life
Claims incurred in the year
Claims paid in the year
Change to actuarial reserve
739
607
(266)
(9)
Accident
and
sickness
Fraternal
3,679
1,061
(1,061)
57
Total
6,012
9,349
(9,008)
62
1,071 1,608 3,736 6,415
Claims incurred in the year
Claims paid in the year
Change to actuarial reserve
6 3
1,071
482
(533)
(73)
1,608
7,794
(7,794)
84
3,736
1,116
(1,116)
98
12.
Provision for Fraternal premium subsidy
Surpluses generated by the Society as a result of insurance operations and investment portfolio performance that are
not required to maintain the operating assets or regulatory capital of the Society, are returned to the Members in the
form of a Fraternal premium subsidy. A Fraternal premium subsidy of $2,882 (2013 - $1,626) was recognized in the
statement of operations. The Fraternal premium subsidy is distributed as a reduction from the gross insurance premium
required to be paid by the Members for Life and EHC insurance on an annual basis (for policies 1000 and 3000).
Assumptions
$$$$
1,594
7,681
(7,681)
14
6,415
9,392
(9,443)
109
947 1,692 3,834 6,473
The amount of the Fraternal premium subsidy distributed is determined by the Society on an annual basis and is
based on estimates of insurance premium for the following policy year, which commences on March 1. In its estimates,
the Society assumes that all Members will elect to maintain the highest level of insurance coverage available.
20142013
Provision for Fraternal premium
subsidy as at January 1
Fraternal premium subsidy distributed
Fraternal premium subsidy declared
Provision for Fraternal premium
subsidy as at December 31
Analysis of total provision
Current
Non-current
FI N AN CI AL
2,819
(1,775)
2,882
3,933
(2,740)
1,626
3,926 2,819
1,937
1,989
2,000
819
3,926 2,819
2014
$$
S TATE M E N TS
64
BEN EFI T
FRAT ERN AL
The expected maturity of the gross undiscounted Fraternal benefit liability is as follows:
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
Other assets
20142013
S O C I E T Y
Provision for Members’ Insurance
Credit as at January 1
Members’ Insurance Credit distributed
Members’ Insurance Credit declared
BEN EFI T
20142013
Provision for Members’ Insurance
Credit as at December 31
$$
106
(97)
435
33
73
17.
20142013
Unqualified retirement contributions
Unqualified retirement contributions are amounts received by the Society on behalf of Members for retirement
accounts yet to be registered and amounts that are in excess of the maximum contribution limits as determined by
the Canada Revenue Agency. Amounts that are in excess of the maximum contribution limits are distributed to the
Members in the following fiscal year
Trade receivables
Other receivables
20142013
$$
2,445
33
1,846 2,478
-
41
41
20
46
26
-
102
72
Lease payments for the year of $46 (2013 - $42) have been charged to operating expenses.
18.
1,811
35
$$
2014
2015
2016
2017
The provision for the Members’ Insurance Credit is distributed in the following fiscal year.
868
Aggregate future commitments as at December 31 under operating leases for office equipment are as follows:
444 106
Receivables
944
Operating lease commitments
In 2014, an amount of $58 (2013 - $53) was paid to ACTRA and deducted from equalization revenue.
15.
620
98
150
Commitments
14.
665
107
172
Related party transactions
Key management compensation
20142013
$$
Salaries and short-term employee benefits
Post-employment benefits
982
73
917
71
1,055
988
Receivables are expected to be collected within one year. Management has reviewed the receivables for impairment
and has determined that no provision for impairment is required.
Key management of the Society includes Governors, the Chief Executive Officer, the Chief Financial Officer and the
Director of Benefits. These costs have been included within operating expenses on the statement of operations.
6 5
2014
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
Prepaid expenses
Deferred charges
Other assets
Pursuant to the execution of a service agreement with ACTRA in 2007, the Society received equalization revenue net
of amounts that are retained by ACTRA in accordance with collective bargaining agreements.
FRAT ERN AL
ACTRA
Provision for Members’ Insurance Credit
$$
BEN EFI T
13.
66
FRAT ERN AL
ACTRA
16.
December 31, 2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
S O C I E T Y
BEN EFI T
Operating expenses
FRAT ERN AL
ACTRA
To date, $208 has been incurred on such development. As at December 31, 2014, $792 (2013 - $792) remained
appropriated for these future expenditures.
Salaries and benefits Governors’ honoraria and benefits Investment management
Other operating expenses 21.
20142013
$$
3,446
289
797
4,364
3,294
267
724
4,531
8,896 8,816
23.
6 7
4,240
672
Expenses
Amortization
Repairs and maintenance
Other operating expenses
(19)
(49)
(273)
(20)
(49)
(258)
(341)
340
(327)
345
Pension benefits
Contingencies
The Society, like all other insurers, is subject to litigation in the normal course of its business. The Society does not
believe that such litigation will have a material effect on its statement of operations or its financial position.
$
681
The Society contributes between 8% and 12% of each employee’s annual salary to the Society’s Retirement
Savings Plan. The net pension expense in 2014 was $321 (2013 - $313). As at December 31, 2014, there were no
contributions outstanding in respect of employer contributions.
24.
799
309
25
532
107
527
833
328
326
454
Investment property
Rental and other income
Net investment property income
The non-capital income tax losses and unclaimed income tax reserves expire in the following years:
2015
2026
2027
2028
2029
2030
2031
2032
2033
2034
$$
Income taxes
The Life Fund has non-capital income tax losses and unclaimed income tax reserves of approximately $4,240
(2013 - $4,299), the future benefit of which has not been recognized in the accounts of the Society.
20142013
During 1993, the Society appropriated $1,000 in the Fraternal Fund to enhance or maintain the property located at
1000 Yonge Street, Toronto, Ontario, Canada.
20.
Net investment property income
No provision has been made in the financial statements for the periods ended December 31, 2014 or 2013.
Any losses that may be incurred are expected to be recovered by the Society’s reinsurance policy.
25.
Segregated Funds
The Society offers various annuity contracts to its Members. Annuity considerations received are directed to the
appropriate plan in the Retirement Funds, as authorized by Section 542 of the Insurance Companies Act (Canada).
The plans are administered separately from the Life, Sickness and Fraternal Funds and are unitized and valued on a
monthly basis.
The Society receives contributions from engagers for the Retirement Funds and makes payments on behalf of the
Retirement Funds, including amounts related to refunds, withdrawals and income tax withholdings. Payments are
also made by certain funds on behalf of other funds. The unsettled balances relating to these transactions as at
December 31 have been reflected as other assets and liabilities.
2014
FI N AN CI AL
S TATE M E N TS
S O C I E T Y
22.
BEN EFI T
Appropriated surplus
FRAT ERN AL
19.
ACTRA
68
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Segregated Fund net assets as at December 31
2014
$
2013
$
Registered Retirement Savings Plan
Assets
460,429
S O C I E T Y
481,549
88
Registered Retirement Income Fund
Assets
Directly held
Cash and short-term investments
1,410
2,987
Bonds
247
247
Other assets
332
199
Held through pooled funds
10
2,169
Equities
33,353
30,122
Bonds
36,909
37,544
Commercial mortgages
12,189
2,364
Prime Canadian commercial real estate
4,005
3,822
Liabilities 1
7
Net assets
88,455
79,454
88,454
79,447
Tax-free Savings Account
Assets
Directly held
56
26
Other assets
62
12
-
100
Equities
1,414
1,201
Bonds
953
859
266
102
Liabilities
-
22
Net assets
Segregated Funds’ net assets - End of year
6 9
2,751
2,300
2,751
2,278
572,754
542,154
Changes in Segregated Funds’ net assets
2014
$
Segregated Funds’ net assets - Beginning of year
542,154
2013
$
498,017
Contributions
Net investment income
Contract surrenders and transfers
460,429
23,970
34,756
(37,606)
424,741
22,768
48,942
(36,022)
481,549
460,429
88,454
79,447
2,751
572,754
2,278
542,154
79,447
71,637
Contributions
12,650
11,581
5,986
5,116
(9,629)
(8,887)
Tax-free Savings Account
2,278
1,639
Contributions
827
711
147
164
(501)
(236)
Segregated Funds’ net assets - End of year
2014
FI N AN CI AL
S TATE M E N TS
70
BEN EFI T
460,517
FRAT ERN AL
481,915
Liabilities 366
Net assets
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
Directly held
5,998
6,399
Equities
131,564
143,076
Bonds
1,234
49,879
Other assets
2,345
2,600
3
344
Equities
114,664
121,473
Bonds
129,394
78,122
58,630
22,220
38,083
36,404
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
2013
$
$
General Fund
Fixed Income Fund Fixed-Term Interest Fund
Probationary Members Fund
Retired Members Fund
467
187
10
89
136
434
176
10
89
131
Balanced Fund
Fixed Income Fund
Fixed-Term Interest Fund
25
21
10
23
20
10
The Society’s approach to risk management of the Segregated Funds involves common measurement of risk and scope of risk coverage to allow the risk position of the Segregated Funds to be managed, including the use of an external investment adviser to review the risk profile of the investments and provide an independent third party report to the Society on the exposure to the various risks associated with its Segregated Funds’ assets.
Risk management functions are applied by management of the Society, while Board of Governors’ oversight remains independent of business activity, providing oversight and peer review.
Risk management functions are applied by management of the Society, while Board of Governors’ oversight remains independent of business activity, providing oversight and peer review. To manage the risk exposure of the Segregated Funds, the Society has risk policies in place. These policies limit the Segregated Funds’ net assets’ exposure to major risks, such as equity, interest rates, credit and currency.
The Society also measures the sensitivity of Segregated Funds’ net assets under various scenarios. Management uses the insight gained through these “what if?” scenarios to manage the Segregated Funds’ net assets’ risk exposure. The models, scenarios and assumptions used are reviewed regularly and updated as necessary.
Results of these sensitivity analyses are presented to show the estimated sensitivity of the Segregated Funds’ net
assets to various scenarios. For each type of market risk, the analysis shows how the Segregated Funds’ net Tax-free Savings Account
assets would have been affected by changes in the relevant risk variable that were reasonably possible at the General Fund
17
16
reporting date. For each sensitivity test, the impact of the reasonably possible change in a single factor is shown.
Bond Fund
13
12
The sensitivities reflect the impact on the net assets of the Segregated Funds during the year had risk variables been different, based on the exposures in existence during the year. The results of the sensitivities are not intended to be an accurate prediction of the Segregated Funds’ net assets’ performance. The analyses do (in thousands of dollars)
not consider all methods available to management to respond to changes in the financial environment, such as changing investment portfolio allocations. Furthermore, the results of the analyses cannot be extrapolated for Effective June 1, 2004, investment management fees, custodian fees and monitoring fees paid by the Society
wider variations as effects tend not to be linear. No risk management process can clearly predict future results.
were charged to the Retirement Funds as agreed with the founding guilds. From January 1, 2014 to December
b)Interest rate risk
31, 2014, a total of $2,126 (2013 - $2,003) was charged to these funds, representing a total charge of 0.46%
(2013 - 0.46%) of the average balance of funds managed during the year.
The Society’s Segregated Funds’ net assets are subject to interest rate risk as the fair value or future cash flows
will fluctuate because of changes in market interest rates. The Segregated Funds’ net assets generate interest
income on commercial mortgage and bond investments. Interest income generated on commercial mortgage
Segregated Funds’ net assets - financial risk management
investments is measured against the FTSE TMX Short-Term Bond Index/FTSE TMX Mid-Term Bond Index (60/40).
a)Objectives and policies
Interest income generated on bond investments is measured against the FTSE TMX Universe Bond Index.
The Segregated Funds’ most significant exposures to risk are to changes in financial markets (e.g. interest rate
and equity market risks) that affect the value of the Segregated Funds’ assets. Liquidity risk is managed through
investment policy requirements that all Segregated Funds’ investments in bonds and equities are in publicly
traded highly liquid securities.
7 1
2014
In periods of rapidly increasing interest rates, withdrawals of funds from the Segregated Funds’ net assets may increase. This activity may result in cash payments, requiring the sale of invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates. These cash payments to Members
result in a decrease in total assets.
FI N AN CI AL
S TATE M E N TS
72
S O C I E T Y
2014
BEN EFI T
FRAT ERN AL
As at December 31, the Segregated Funds’ unit values are as follows:
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
(in dollars)
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
ACTRA
FRAT ERN AL
During periods of sustained low interest rates, investment returns may be lower because the interest income on new fixed income investments is likely to have declined with the market interest rates. The Society engages investment managers who employ interest rate monitoring and measurement techniques and actively manage the interest rate risk exposure of the Segregated Funds’ net assets. Investment policies restrict the investment managers’ investment choices.
The following table shows the sensitivity of the Society’s Segregated Funds’ assets to a 1% (100 basis points) and 2% (200 basis points) increase or decrease in the relevant FTSE TMX Bond Indices. This analysis assumes that the Society’s asset performance in 2014, relative to the index performance in 2014, would be consistent with the actual performance achieved.
Sensitivity analysis of Segregated Funds’ assets to interest rates
Liquidity risk is the risk that an entity will encounter difficulty meeting cash flow commitments associated with
financial instruments. The purpose of liquidity management is to ensure that there is sufficient cash to meet
all commitments and obligations as they fall due. To manage liquidity risk and cash flow requirements, the
Society’s investment policy requires all investments in the Society’s Segregated Funds’ net assets to be publicly
traded or highly liquid. The Segregated Funds are subject to withdrawal by the Members but there are no
contractual obligations.
d)Equity market and other investment risks
Fluctuations in the equity and capital markets have in the past affected the performance of the Society’s
Segregated Funds’ net assets and will continue to do so. Exposure to equity and capital market risks exists in
the Segregated Funds’ net assets of the Society. Asset exposure exists through direct equity investments, where the Segregated Funds’ net assets bear all of the volatility in returns and investment performance risk.
Volatile or poor market conditions may also significantly reduce the popularity of some of the Society’s
Segregated Funds’ net assets. This could lead ultimately to lower assets held on account and the Society increasing the fees charged to the Segregated Funds to manage those accounts and, thereby, reducing returns. General economic conditions may lead to significant decreases in the values of the Segregated Funds’ equity investments.
2013
The Society monitors the performance of the Segregated Funds’ net assets against the S&P/TSX Composite Index and the MSCI World Index. It also monitors other indices that will affect the Segregated Funds’ assets.
$$
FTSE TMX Universe Bond IndexIncrease (decrease)
The following table illustrates the Society’s equity instruments that are exposed to market risk. The table demonstrates a sensitivity analysis of Segregated Fund net assets to reasonably possible changes in the fair value of those instruments.
Increase of 100 basis points
Decrease of 100 basis points
1,566
(1,570)
2,318
(2,324)
Sensitivity of Segregated Funds’ assets to equity markets
3,129
(3,143)
4,631
(4,653)
Estimated effects on Segregated Funds’ net assets
Estimated effects on Segregated Funds’ net assets
2014
FTSE TMX Short-Term Bond Index/FTSE TMX Mid-Term Bond Index (60/40)
540
(542)
88
(89)
1,078
(1,086)
176
(178)
7 3
2013
$$
Increase (decrease)
Equity values increase of 10%
Equity values decrease of 10%
2014
2014
FI N AN CI AL
S TATE M E N TS
26,183
(26,759)
23,338
(23,860)
74
S O C I E T Y
BEN EFI T
BEN EFI T
c) Liquidity risk
FRAT ERN AL
ACTRA
S O C I E T Y
December 31, 2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
The Society manages credit risk by maintaining an investment policy restricting investment managers’ ability to invest in less than investment grade bonds.
The Society’s Segregated Funds’ investments in bonds include both investments in bonds that are held directly and investments in bonds and commercial mortgages that are held through pooled funds. Investments held through pooled bond funds are all rated BBB or better as at December 31, 2014 and 2013.
26.
Segregated Funds’ net assets - Fund disclosures
The Segregated Funds consist of three plans composed of the following investments:
a)Registered Retirement Savings Plan (RRSP)
• General Fund
• Fixed Income Fund
• Fixed-Term Interest Fund
• Probationary Members Fund
• Retired Members Fund
b)Registered Retirement Income Fund (RRIF)
• Balanced Fund
• Fixed Income Fund
• Fixed-Term Interest Fund
c)TFSA
• General Fund
As at December 31, 2014, the Segregated Fund investments include both investments that are held directly and
investments that are held through pooled funds.
Pooled funds are managed by unrelated asset managers and apply various investment strategies to accomplish their
respective investment objectives. The Society holds redeemable units in each of the investee funds that entitle the
Society to a proportional share in the respective fund’s net assets. The right of the Society to request redemption of
its investments in pooled funds ranges in frequency from daily to monthly.
Each plan holds the assets in the following manner:
• RRSP Canadian equities - directly held
– Global equities - pooled
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
Credit risk is the risk that one party to a financial instrument fails to discharge its obligation and causes financial
loss to another party. The Society’s Segregated Funds’ net assets are exposed to credit risk primarily on investments
in bonds, commercial mortgages, cash and cash equivalents.
– Bonds - both directly held and pooled
– Canadian commercial mortgages - pooled
– Prime Canadian real estate - pooled
• RRIF - all assets are held in pooled funds
• TFSA - all assets are held in pooled funds
The Society categorizes all financial assets carried at fair value in its balance sheet based on a three-level valuation
hierarchy. The hierarchy gives the highest level of priority to quoted prices in an active market for identical assets
(level 1), whereas the lowest level of priority is assigned to unobservable valuation inputs (level 3). If the inputs
used to measure the financial asset cross different levels of the hierarchy, categorization is based on the lowest level
input that is significant to the fair value measurement. Management’s assessment of the significance of a particular
input to the overall fair value measurement of a financial asset requires judgment and considers factors specific to
the financial asset. The three levels are described below.
Fair value hierarchy
•Level 1 - unadjusted quoted prices in active markets for identical financial assets and financial liabilities;
• Level 2 - inputs, other than quoted prices, that are observable for the financial asset or financial liability either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Bond Fund
• Level 3 - inputs that are not based on observable market data. The Society does not hold any financial assets classified within this category.
7 5
2014
FI N AN CI AL
S TATE M E N TS
BEN EFI T
e)Credit risk
FRAT ERN AL
S O C I E T Y
S O C I E T Y
December 31, 2014
76
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
Level 1
Level 2
Level 3
Total
Equities
Pooled funds - cash and cash equivalents
Pooled funds - bonds
Pooled funds - prime Canadian
commercial real estate
5,998
131,564
-
3
-
-
-
114,664
1,234
-
129,394
58,630
-
-
-
-
-
-
5,998
246,228
1,234
3
129,394
58,630
-
38,083
-
38,083
S O C I E T Y
RRIF Plan
$$$$
137,565 342,005
- 479,570
2013
Level 1
Level 2
Level 3
Total
Equities
Bonds
Pooled funds - cash and cash equivalents
Pooled funds - bonds
Pooled funds - prime Canadian
commercial real estate
6,399
143,076
-
344
-
-
-
121,473
49,879
-
78,122
22,220
-
-
-
-
-
-
6,399
264,549
49,879
344
78,122
22,220
-
36,404
-
36,404
7 7
$ $$$
149,819 308,098
- 457,917
2014
Level 1
Level 2
Level 3
Total
1,410
-
-
247
-
-
1,410
247
10
-
-
-
-
-
33,353
36,909
12,189
4,005
-
-
-
-
-
10
33,353
36,909
12,189
4,005
$
Equities
Bonds
$
1,420 86,703
$
$
- 88,123
2013
Level 3
Total
2,987
-
-
247
-
-
2,987
247
2,169
-
-
-
-
-
30,122
37,544
2,364
3,822
-
-
-
-
-
2,169
30,122
37,544
2,364
3,822
$
5,156 74,099
FI N AN CI AL
Level 2
$
Equities
Bonds
2014
Level 1
S TATE M E N TS
$
$
- 79,255
78
BEN EFI T
2014
RRSP Plan
FRAT ERN AL
BEN EFI T
ACTRA
The following table illustrates the classification of the Segregated Fund investments within the fair value hierarchy:
FRAT ERN AL
ACTRA
S O C I E T Y
December 31, 2014
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
December 31, 2014
Equities
Bonds
Level 1
Level 2
Level 3
Total
56
-
-
56
-
-
-
-
-
1,414
952
266
-
-
-
-
1,414
952
266
56
2,632
-
$$$$
Equities
Bonds
Level 1
Level 2
Level 3
2,688
2013
Total
$ $$ $
26
-
-
26
100
-
-
-
-
1,201
859
102
-
-
-
-
100
1,201
859
102
126
2,162
-
2,288
Bonds classified in level 2 comprise primarily government and agency securities and certain corporate debt
securities. Fair value is determined utilizing relevant information generated by market transactions involving
comparable securities.
Pooled funds - commercial mortgages classified in level 2 comprise primarily debt secured by office, retail, industrial,
and commercial residential properties. Fair value is determined utilizing relevant information generated by the
pooled fund managers which determine the price per unit at which the Society may transact.
Pooled funds - prime Canadian commercial real estate classified in level 2 comprise ownership of units in pooled
funds. The pooled funds are invested in primarily office, retail, industrial, and commercial residential real property
located in Canada. Fair value is determined utilizing relevant information generated by the pooled fund managers
which determine the price per unit at which the Society may transact.
Commencing in 2014 all bonds held in the Segregated Funds’ assets are held through pooled funds. All bonds held in
the pooled fund are bonds issued by:
• the Government of Canada without limit;
• Canadian Provincial Governments rated at least BBB or equivalent;
• Canadian Municipal Governments rated at least BBB or equivalent; or
• Other debt obligations rated at least BBB or equivalent including, foreign issued Canadian dollar denominated bonds.
No more than 20% of the fixed income portfolio, measured at fair value, may be invested in BBB-rated bonds.
The maturity profile of bonds within the Segregated Funds portfolio as at December 31 is as follows:
During the years ended December 31, 2014 and 2013, there were no transfers between level 1, level 2 or level 3 of
the fair value hierarchy.
Canadian equities are investments held primarily in the S&P/TSX Composite Index and global equities are
investments primarily in the MCSI World Index. Canadian equities held in the RRSP plan are directly held and have
been included in level 1. Canadian equities held in the RRIF and TFSA plans, and global equities held in all plans
are held in pooled funds and have been included in level 2. The fair value of financial instruments traded in active
markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices
are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory
agency, and those prices represent actual and regularly occurring market transactions on an arm’s-length basis.
The quoted market price used for financial assets held by the Society is the current bid price.
7 9
RRSP Plan - directly held 2014 2013
$
%
$
%
Within 1 year
-
-
14,054
28
Over 1 to 3 years
-
-
15,941
32
Over 3 to 5 years
-
-
177
1
Over 5 years
-
-
19,707
39
-
Carrying amount
2014
FI N AN CI AL
S TATE M E N TS
-
49,879 100
80
S O C I E T Y
BEN EFI T
2014
FRAT ERN AL
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
TFSA Plan
2014
AFBS
AN N U AL
REP ORT
2014
AFBS
A NNU A L
REP ORT
Notes to
S O C I E T Y
BEN EFI T
The fair value of the Segregated Funds portfolio by type of financial instrument as at December 31 is:
Corporate bonds
Government bonds
Equities
FRAT ERN AL
RRSP Plan - directly held 2014 2013
$
$
-
48,631
-
1,248
-
-
-
131,564
143,076
ACTRA
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
December 31, 2014
All corporate bonds outstanding as at the balance sheet date have a minimum rating of BBB or better.
All government bonds outstanding as at the balance sheet date have a minimum rating of A or better.
All equity investments are actively traded.
Equities have no specific maturities.
The credit ratings of investments in bonds within the Segregated Funds portfolio are presented below.
RRSP Plan - directly held
2014
2013
$
$
AAA
-
1,249
AA
-
14,196
A
-
33,683
BBB
-
751
8 1
-
49,879
2014
FI N AN CI AL
S TATE M E N TS
82
AFBS
AN N U AL
B OARD OF
GO V E RNORS
AND
COMMITTEES
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2014
8 3
REP ORT
2014
AFBS
AN N U AL
REP ORT
Board of Governors
and Committees
David Ferry
Peggy Mahon
Chair, Central Region Representative
Central Region Representative
Norm Bolen
The Honourable Marie-P. (Charette) Poulin
Vice Chair, Special Board Member,
Canadian Media Production Association
Outside Governor
David H. Atkins
Pierre Racicot
Special Board Member, CBC
S O C I E T Y
William Samples
Corrie Coe
Western Region Representative
Sugith Varughese
Appointed Board Member, ACTRA
Appointed Board Member,
Writers Guild of Canada
Guy Gauthier
Jani Yates
Special Board Member, National Film Board
Special Board Member,
Institute of Communication Agencies
Richard Hardacre
BEN EFI T
Ferne Downey
FRAT ERN AL
Special Board Member, CTV Bell Media
Central Region Representative
Audit and Risk Management Committee
Conduct Review Committee
Investment Committee
Sugith Varughese, Chair
David H. Atkins
Guy Gauthier
Pierre Racicot
William Samples, Chair
Guy Gauthier
The Honourable Marie-P.
(Charette) Poulin
David H. Atkins, Chair
Norm Bolen
Peggy Mahon
Pierre Racicot
Jani Yates
Communications Committee
Donations Committee
Scholarship Committee
Jani Yates, Chair
Corrie Coe
Ferne Downey
Richard Hardacre
Sugith Varughese
The Honourable Marie-P.
(Charette) Poulin Chair
Corrie Coe
Richard Hardacre
Douglas Paulson, Chair
Keith Martin Gordy
Victor Knight
Dan MacDonald
Peter O’Neill
Lorraine Thomson
Compensation Committee
Elections Committee
Guy Gauthier, Chair
Norm Bolen
Richard Hardacre
William Samples
President of the Society, Chair
Board Chair
Board Vice Chair
BOAR D
O F
G OV E R NO R S
A ND
C OM M I T T EE S
84
ACTRA
FCA, Outside Governor
AFBS
AN N U AL
T O R O N T O
ACTRA
FRAT ERN AL
BEN EFI T
S O C I E T Y
2014
VA N C O U V E R
C O N N E C T
1000 Yonge Street,
Toronto, ON M4W 2K2
Phone: 416-967-6600
or 1-800-387-8897
Fax: 416-967-4744
or 1-888-804-8929
benefits@afbs.ca
320-1155 Pender St. West
Vancouver, BC V6E 2P4
Phone: 604-801-6550
or 1-866-801-6550
Fax: 604-801-6580
afbswest@afbs.ca
afbs.ca
@AFBSCANADA
facebook.com/ENRICHINGCREATIVELIVES
RE P ORT

annualreport

Transcription

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