Page 111 - Annual Report 2011

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111
19
th
A
nnual
M
eeting
8. Administrative and Fiscal Matters
G. Kristianson, F&A Chair
(1) F
inancial
S
ituation
in
C
urrent
F
iscal
Y
ear
Canada reported to the committee that it had recently received a
letter from the Pacific Salmon Commission (PSC) requesting that
the Government of Canada be responsible for funding its pension
unfunded liability. Canada asked the Secretariat if the NPAFC
Secretariat would follow a similar step. The Executive Director
explained the difficult financial situations that many fisheries
commissions in North America are facing. He reported that the plan
is for all seven commissions’ Executive Directors, who are members
of the International Fisheries Commission’s Pension Society
(IFCPS), to request the Governments of Canada and the United
States for the same funding assistance when the next Pension
Society meeting will be held in Washington D.C.
The committee noted the next two years’ budget reflects a request
to fund a lump sum payment of $50,000/year to gradually offset the
Commission’s unfunded liabilities with the current surplus balance.
All Parties agreed that it is a good practice to use the surplus from
the budget in this way and that this practice should be continued
instead of relying on the Governments.
Canada questioned the validity of having excessive balance in the
Working Capital Fund in light of the Commission’s surplus budgets
in the next few years. Canada asked if the committee should create
a policy of capping maximum balance in the fund and whether it
would be prudent to credit Contracting Parties against their future
contributions. Japan and Russia disagreed with the suggestion as it
would complicate their internal financial system.
The Executive Director explained to the group that a few years ago
the F&A discussed this subject and recommend that a minimum
balance of WCF be set at $200,000.