Understanding the ACAW Trust Funds Boards of Trustees

At ACAW Trust Funds, the Boards of Trustees are responsible for administering Pension and Health & Wellness benefits for active and retired ACAW Trust Funds Members and their Beneficiaries. The Boards ensure that the assets are sufficient to pay the promised benefits and are paid in accordance with the terms of the Plan Texts, and in a timely manner.

Fiduciary Responsibility

The Boards of Trustees hold a fiduciary responsibility to act solely in the best interests of Plan Members and beneficiaries. This means:

• Trustees must act with prudence, skill, and diligence in managing the funds

• Trustees must make decisions that prioritize the financial security of Plan Members

• Trustees are legally obligated to put the interests of Plan Members ahead of their own or any other parties

This fiduciary duty is at the core of everything our Boards do, from investment decisions to Plan administration. It ensures that every action taken by the Boards is aimed at preserving and growing the benefits for our Members.

Key Responsibilities of the Boards of Trustees

In fulfilling their fiduciary duty, our Trustees:

• Oversee investment strategies that have led to well-performing Pension and Health & Wellness benefits for Members

• Make informed decisions to safeguard workers' futures and maximize returns

• Ensure compliance with legal and regulatory requirements

• Maintain transparent fund management to prevent external interference and protect Member assets

Commitment to Member Interests

Serving as a Trustee requires significant commitment and expertise. Our Trustees:

• Prepare for and attend quarterly meetings, as well as additional meetings to address pressing matters

• Participate in continuing education programs, such as the International Foundation of Employee Benefit Plans (IFEBP Website), to stay informed about industry trends, investments, and best practices

• Comply with provincial statutory regulations, which impose specific obligations and duties on Trustees

• Prioritize financial decisions that benefit our Members

Trustee Compensation: Understanding Stipends

Since 2021, our Trustees have received stipends for their work, aligning with industry standards for boards overseeing pension and benefit funds.

What is a stipend?

A stipend is a fixed sum of money commonly used for Boards and paid periodically for services. This form of compensation recognizes the expertise, time, and effort required of Trustees.

Why pay stipends?

• To acknowledge the increasing complexity of fund management

• To recognize the significant growth of our Plans, now holding combined assets over $2.25 billion

• To ensure we can attract and retain qualified individuals to make informed decisions

• To align with best practices in the pension and benefits industry

Current ACAW Trust Funds stipend structure

• Trustees receive $10,000 per year for each Board they sit on

• An additional $10,000 is provided for those who serve on the Investment Committee

Our Commitment to You

We encourage Members to seek factual information about their Pension and Health & Wellness benefit Plans directly from trusted sources. Our focus remains on:

• Maximizing returns and securing benefits for our beneficiaries

• Maintaining the independence of our Trust Funds to protect Member benefits

• Providing accurate information to maintain trust and stability in our Pension and Health & Wellness Plans

• Preserving the independence and proper administration of funds for the benefit of our Members

By maintaining transparent fund management and balanced representation, we strive to support long-term financial security for all our Members.