MEETING WITH PREMIER CALVERT

                                                     July 13, 2006
Attendance: Premier Calvert
                    Finance Minister Thompson
                    ADM, PEBA ?Brian Smith
                    One male staff of Premiers office

                    Frank May
                    Ron Reavely
                    Marg Mickelborough
                    Alf Zimmerman

SRA staff arrived at the Prince Edward Room at 9:40 AM. Minister Thompson arrived at 9:50 AM and the Premier, Brian Smith and the Premiers Aide arrived at 10:00 AM. Introductions were exchanged.

The meeting followed the SRA suggested agenda.

Immediate agreement the meeting was ¥Sithout prejudice?

The Premier asked Zimmerman to open the discussion. Zimmerman made a presentation (as attached and in its entirety) and concluded with the stating of our goals as being to arrive at a fair and equitable agreement respecting 5 issues, namely ?br> -        Legislated COLA
-        Medical/Health and Dental Benefits
-        Compensation for the lost years
-        Improvements for Spouses Allowances
-        Standardization of Death Benefits

The Premier and Minister wanted to discuss COLA. Particular emphasis was put by them on Alberta and Manitoba. Zimmerman countered that Alberta at 60% CPI, due to the high costs in Alberta, compared favorably with 100% CPI in other Provinces. Zimmerman stressed that Sask. with its preferred economic situation should be able to at least equal the indexing of the Have-Not Maritime Provinces (100 % CPI).
Discussion back and forth re the Manitoba and Alberta situations, however we pointed to the McDowell report as a fair indexing pursuit for Retirees.

The Premier said he wanted this general situation resolved, and resolved relatively quickly. He stated we were in a good time frame for some fall legislation (later he hedged a bit to the 2007 Spring sitting). In any event, he suggested on quite a number of occasions that he preferred an ¤žgreed on?solution (negotiated - but he never used this word) and quickly (politician time frame).

Zimmerman indicated again that we were there because we believed there was a better way to resolve this than through the courts. The Premier indicated he supported that.

In closing, Zimmerman indicated we preferred negotiation, however would not back off litigation if negotiation is fruitless. Also indicated that retirees, with their families, friends and relatives, do have some clout and particularly in the cities. Zimmerman concluded that litigation is a no win for either side.
Zimmerman also stated that with an acceptable agreement our Association ¥Iay?be a popular friend of the Government.

In wrapping it up, the Premier indicated to Minister Thompson that he wanted this situation resolved. He suggested that the Finance staff put together a package that could be presented and discussed with us. He said he hoped we can come to an agreement so that legislation could be brought in this fall. The Premier said the Finance staff will contact Zimmerman as soon as they have something put together.

Thanks from all sides

The meeting closed at 10:45 AM.

July 13th 2006

Yours sincerely

Alfred Zimmerman
President