Hello everyone,

Happy 5th anniversary of the Trust! On June 1 we will celebrate our first five years together, and it has been a true pleasure to be part of your Trust, serving as your Trustees.

This spring, the ongoing impact of COVID-19 has made us all think more than ever about our loved ones, our communities, and our healthcare.

Have you ever wondered about the Trust’s community – and how it’s changed after five years? Members have asked about things like: how many people the Trust covers and how many dependants and surviving spouses there are; what ages members are; and how much is paid each year to cover all the healthcare claims. There are some answers inside.

Enjoying enhanced benefits

This year started on a great note on January 1, with the implementation of your new $500/year Healthcare Spending Account (HSA), the vision care enhancement, and the switch of our Life Insurance to Canada Life to keep our rates as low as possible for another three years.

These changes were possible because the Trust is in great financial shape, and we wanted to be able to pass some of that on to you.

We’re also happy to share an update on the new member portal discussed at the member meeting last fall. There were some technical challenges which delayed the introduction for a few months. Sorry for the delay with no update – but it’s now ready to use. See the insert in this package for more information and instructions to log in.

Strong through tough times

We know that the recent stock market declines have caused some concerns amongst members, but we assure you that the Trust is in solid financial shape, and we are confident that we will successfully weather the storm.

As always, we are keeping a close eye on our investments. Remember, the majority of Trust assets (85%) are tied to bonds with fixed interest rates that we plan on holding to maturity. The financial summary on page 2 will provide you with more details on our healthy financial status.

Member meeting this year?

Given the current situation with COVID-19 and staying safe through social distancing, we won’t know for a while if a member meeting in September will be feasible this year or not. We’re really hoping to celebrate our 5th anniversary with you in person, however, keeping you and your family safe and well is far more important. We’ll let you know as we get a little closer to the fall.

In the meantime, keep yourself and your loved ones safe and well – and as always, send us a note any time at info@cwbrtrust.ca.

Best regards,

David Pennycook, ChairOn behalf of your Trustees: Sym Gill, Larry Nentwig, Bob Romphf

Annual Member ReportMay 2020

YOUR BENEFITS, YOUR TRUST 5 years already? Where does the time go?

Moving soon? Please let us know your new address. Contact J&D Benefits at 1-800-218-7018 or cwbrt@jdbenefits.com.

Year ending Dec 31, 2018

Year ending Dec 31, 2019

Assets available at beginning of period

$56,334,000 $54,033,000

Investments and retiree contributions

($541,000) $ 8,368,000

Benefits costs (drugs, dental, life, etc.)

($1,174,000) ($1,176,000)

Operating expenses ($586,000) ($657,000)

Net assets available at end of period*

$54,033,000 $60,568,000

Benefit liabilities and administration

$36,391,000 $38,187,000*

Claims and investment fluctuation reserve

$17,642,000 $22,381,000

Total liabilities at end of period

$54,033,000 $60,568,000

*Incorporates plan changes made in 2019

Claims and investment fluctuation reserve: Since the Trust has no further income coming from the government or the former Canadian Wheat Board, we secured a healthy claims and investment fluctuation reserve at plan inception and have been able to keep it strong, to be drawn upon if needed. These funds allowed us to improve plan benefits, and in 2020 are being used to protect against market downturns as a result of COVID-19.

On the investment front: Our investment strategy, as well as the claims and investment fluctuation reserve, continued to perform well through 2019. And, the reserves that we hold, combined with our conservative investment policy, have allowed us to weather the economic impacts that COVID-19 has had on financial markets in 2020.

According to the investment policy developed by the Trustees – with input from our financial advisors – the Trust’s funds are invested primarily in conservative fixed income securities. This helps to protect from swings in the equity markets and ensure there is money available when needed to pay claims and expenses.

Financial review/summary

2 CWBR Trust Member Report: Spring 2020

2019 year in reviewKeeping things running smoothly…

GovernanceAs part of their commitment to the Trust, during the 2019 plan year your Trustees met quarterly, and also:

• Reviewed regular reports from investment managers, and the overall financial status of the Trust, plus reviewed and assessed benefit plan costs, premiums and expenses

• Finalized the Trust’s privacy policy• Renewed the contracts for all advisors

and administration

Board of Trustees

Board of Trustees

LegalCounsel

Dentons

LegalCounsel

Dentons

Actuary/Consultant

Eckler

Actuary/Consultant

Eckler

AuditorKPMG

AuditorKPMG

PlanAdministration

J&D Benefits

PlanAdministration

J&D Benefits

CustodianCIBC Mellon

CustodianCIBC Mellon

InvestmentManagers

TD Asset Management, Sun Life Institutional

Investments

InvestmentManagers

TD Asset Management, Sun Life Institutional

Investments

InsurersManitoba Blue Cross,

Canada Life

InsurersManitoba Blue Cross,

Canada Life

Global equity 7.3%

Fixed income82.6%

Canadian equity 7.9%

ASSETS

Cash & short-term investments 2.2%

To the end of March 31, 2020, it’s expected that the claims and investment fluctuation reserve decreased by about $3.1 million. Even considering this reduction, there remains a healthy reserve against future market volatility.

CWBR Trust Member Report: Spring 2020 3 3

Our Trust member community

Membership services/communication• Delivered an annual member report in May• Provided members with a new Benefits Quick

Reference Guide• Held a member meeting luncheon in September• Ongoing: Communicated benefits changes/enhancements

through mail and email/website• Maintained and updated the cwbrtrust.ca website –

including new HSA page• Ongoing member support through J&D Benefits and

Eckler Ltd., with email correspondence through info@cwbrtrust.ca

Benefits plan changes – starting on January 1, 2020• New $500 per year Healthcare Spending Account• Vision care coverage increased to $300 per person every

two years• Plan 7168 members no longer pay for benefits premiums• Dental orthodontic lifetime maximum was separated

from the overall annual dental maximum

Trust administration and supportThe Trustees continue to work together with a team of skilled and qualified experts to help achieve their fiduciary duties and deliver on the Trust’s promises to plan members.

• Switched Life Insurance to Canada Life with a three-year guarantee to help keep premiums (Trust-paid) as low as possible

• A clean audit with no qualifications from our auditors

355 members

150 male

225 spouses

5 male

205 female

52 children

39 female

277 dependants 44 surviving spouses

COVERED BY THE TRUST AT INCEPTION

As the group ages, fewer dependent children are covered (down from 52 to 15), and fewer dependent spouses.

As the group ages, overall healthcare costs will increase, but fewer people will be covered.

676 people

315 members 211 dependants 46 surviving spouses

COVERED BY THE TRUST AS OF DEC 31, 2019

572 people

+

+

+

+

50-54 | 55-59 | 60-64 | 65-69 | 70-74 | 75-79 | 80-84 | 85+ years old

0 25 67 73 64 39 30 63AGE OF MEMBERS & SURVIVING SPOUSES AS OF DEC 31, 2019

Youngest member is 56

Oldest member is 97

The final wordThis member report is intended to provide summary information about the CWBR Trust Retiree Benefits Plan. It is not intended to be comprehensive. The specific details of the benefits are contained in the actual plan contracts that govern the program. If there is any discrepancy between the information presented here and the terms of the plan contracts, the plan contracts will prevail.

4 CWBR Trust Member Report: Spring 2020

In memoriam...We extend our condolences to the family and friends of…

Constance English, age 91 March 2019 Larry Schwean, age 71 June 2019 Dorothy McLaren, age 85 July 2019Gabriel Berkis, age 88 July 2019Nels Malmas, age 92 November 2019Yvonne Ramsoomair, age 72 November 2019Daniel Stuck, age 92 February 2020Carl Ennis, age 80 March 2020

Stay informed and up-to-date

If you need any information about your benefits or the Trust, use cwbtrust.ca as your central resource, or refer to your handy CWBR Trust fridge magnet. You can learn about your benefits and any news or changes, identify the right contacts, and submit any questions you might have.

You can also email questions directly to info@cwbrtrust.ca.

Your TrusteesDavid Pennycook Executive Vice Chairman, Fiera Capital

Sym Gill Retired Director of Pension and Benefits, CAW (now Unifor)

Larry Nentwig Retired CFO, Canadian International Grains Institute and former VP Finance, Canadian Wheat Board

Bob Romphf Retired Labour Relations Officer, Manitoba Nurses Union; Chair & Trustee Healthcare Employees Benefits Plans-Manitoba

Remember to use your $500 HSA money each year!

It’s yours to use and submit claims, but it cannot be carried over from year to year – it’s use it, or lose it.

Have HSA questions?

Just call Manitoba Blue Cross

In Winnipeg: 204-775-0151

Outside of Winnipeg, but inside Manitoba: 1-800-873-2583

Outside of Manitoba, but inside Canada: 1-888-596-1032

1-800-218-7018cwbrtrust@jdbenefits.com

General questions Address changes Life insurance claims support

J&D Benefits Inc.

mb.bluecross.ca1-800-USE-BLUEWinnipeg: 204-775-0151

Medical and dentalclaims or questions

Manitoba Blue Cross

cwbrtrust.caGet all your benefits details and contacts at

Where members live

• Most members still live in Manitoba

• 17% are outside the province

• Some are snowbirds

Average of claims paid2015 TO 2019 – FAIRLY CONSISTENT

Extended health16%

Dental40%

PrescriptionDrugs44%

2019 Total health claims paid

$703,031Approx. avg/year total

health claims paid$705,000

Total health claims paid since inception$3,526,87723 Life Insurance claims

since inception $1,675,476