Update on the CPBI Quebec regional council As some of you may be aware, on September 15th, 2015 the first day of the CPBI Quebec regional conference, it was announced that Jean-Pierre Canuel and all other members of the Quebec regional council had resigned from their positions. As justification for these resignations, it was explained that the CPBI National Board had failed to provide concrete answers to the letter of June 24, 2015 that the regional council had distributed to CPBI members in Quebec and to the National Board. In the interest of transparency, we wanted to describe some of the events that lead to this situation, and our plan for the future. Background In 2014, a number of committees (comprised of regional council representatives and board directors) were established to help develop recommendations for the Board of Directors respecting the CPBI’s strategic direction and objectives for the next 4 years. The committees prepared reports that were provided to the Board of Directors in the fall of 2014 that addressed issues relating to CPBI’s vision statement, the allocation of membership dues, transparency, and recommendations for CPBI’s national programs. At that meeting all reports were approved and adopted, except for the funding formula, as the Board had concerns that it wasn’t equitable for all stakeholders (regions). The allocation of membership dues has been modified from time to time according to a funding formula. A key objective of the CPBI funding formula has been to facilitate operational requirements (such as information technology and other back-office support), while also providing resources to support regional activities. The funding committee was asked to further investigate alternatives to CPBI’s current funding formula. Through the efforts of this working group, three funding formula options were presented to the members of the Board of Directors at its meeting in May 2015, but as there had been no consensus on any of the submitted proposals, no recommendations were made to the Board of Directors by the working group. The Board of Directors resolved to consider the funding formula further, keeping in mind the long term sustainability of the organization and the principle of regional equity. The Board also resolved to have a new funding formula by July 31, 2015. The Individual Resignations Dissatisfied with the situation, the Quebec regional council issued its June 24th letter, setting out a number of demands. The Quebec regional council indicated that the Board of Directors would have 90 days to respond, and threatened to “separate”. In the interest of cooperation and good faith, the Board of Directors considered the Quebec regional council’s demands, with a focus on the funding formula. After much deliberation, the Board of Directors resolved to take the following actions: 1- Adopt an interim funding formula, allowing more funds from membership revenues to be redistributed to the regions; 2- Reduce expenses of the national office to mitigate the impact of the interim funding formula while maintaining services offered to the regions; and 3- Consult further with the regions over the coming fiscal year to develop a longer-term funding formula. On August 26, 2015, the Board of Directors sent a letter to all the regional councils to give notice of these decisions. Further, with the goal of a longer-term solution in mind, the Chair and Vice-Chair of the CPBI Board of Directors expressed their desire to have a meeting in person with all members of the Quebec regional council in Montreal to discuss next steps, and to solicit further input. But, the Quebec executive group’s preference was for a teleconference call with just the executive group and this call took place in late August. On August 31st the Board sent a letter to the CPBI Quebec members to provide a further update on the actions that had been taken to date. The Quebec regional council followed with a second letter to the CPBI membership in Quebec, which stated their dissatisfaction with the decisions made and that according to them no solution had been found. The next step was the resignation of the members on the CPBI Quebec regional council. The ex-members of the CPBI Quebec regional council have since created a new association, offering the same networking and educational events as are offered by CPBI. We are very disappointed with this outcome, and with the division that this has caused within the industry. Our Plan for CPBI’s Future We reaffirm that the CPBI will continue to offer the best services, educational activities and events for the benefit of its members. Active in Quebec for more than 40 years, CPBI was able to count on the valuable collaboration of thousands of volunteers and members who have actively contributed to the Institute and have made it the respected and recognized organization that it is in Quebec and across Canada. For 55 years and as a national not-for-profit organization incorporated under the federal Not for Profit Act, the CPBI has developed and established a set of internal governance policies and By-laws which serve and define the organization. The CPBI intends to continue its activities and service its membership throughout Canada. Rest assured that the CPBI will carry out its mission with the same vigor its members have always shown and will continue to maintain the equilibrium between regions and national objectives; through collaboration, innovation and accountability. We are the standard within the Canadian pension and benefits industry when it comes to educational activities, professional development and networking. Keep in contact with your local regional councils through the CPBI website to insure that you don’t miss out on any of the activities that these industry volunteers are organizing for you this year. *** Should your company’s representatives in Quebec wish to participate on the new Quebec regional council or should you have any questions, please feel free to contact your regional council chair or Peter Casquinha, CEO, CPBI. |