Message From The President Highlights It's A Defined Benefit Plan Sources Of Funding Buyer Beware Cost-Of-Living Adjustments Membership Benefit Changes Pension Commmittee Investment Committee Asset Mix Investments At December 31, 2000 Asset Types Investment Managers Custodian/Trustee Pension Plan Performance Financial Statements

You are in: The Plan : Publications : 2000 Annual Report : Message From The President   Message From The President Each year we present this report to advise you on the status of the MTS Pension Plan and its operations during the past year. For 2000, our fourth full year of operation, I am pleased to report that the status of the Plan remains unchanged and that operations are continuing as intended. It’s business as usual. And, business as usual for the MTS Pension Plan is good news. Here’s why: The assets of the Plan increased to just under $965 million. Even though almost all world markets suffered a decline in value, the MTS Pension Plan earned 6.3%. Retirees received a 1.72% cost-of living increase as guaranteed by the Plan. The Plan continues to be fully funded – that is, the assets of the Plan exceed the estimated amount necessary to pay the promised benefits. A surplus remains in the Plan due to better than expected investment returns. Should the Plan become unfunded, MTS would be required to make special payments to ensure that the Plan could meet its obligations – just as was done in the first year of operation. The Investment Committee met seven times in 2000. This year, the Committee undertook a major asset/liability study to confirm the appropriateness of the Plan’s asset mix (the types of investments held in the Plan's trust fund). As a result of this study, the Investment Committee increased the foreign content of the fund’s investments as allowed by recent legislation. This increase in foreign content provides more diversification plus the opportunity for better returns with lower risk. The Pension Committee met twice. Among other things, they reviewed the funding reports for the Plan (the actuarial valuations) and examined the results of the readership survey that was part of last year’s annual report. You may notice some changes in this year’s annual report as a result of your feedback. The objective of all the organizations involved in the operation of your Pension Plan remains the same: to protect and enhance the security of the Plan to make sure every member receives the full benefits promised. The operation of the Plan in 2000 is evidence that this objective is being realized. Bill Fraser President and Chief Executive Officer Copyright 2004. All rights reserved.