Pension Life - Summer 2022

Growing your pension: A long-term view

Four small to large piggy banks in a row

A secure pension means more time to focus on the things that matter, whether that’s spending time with family or planning for that trip you've always dreamed of. More than 375,000 retired and active members look to the Municipal Pension Plan to provide a stable income in retirement. Our focus is ensuring the plan is sustainable and in a strong financial position for all members—now and in the future.

How the plan invests

The board is responsible for overseeing assets of $66.5 billion in the interest of members like you. This requires our investments to produce steady earnings, even during times of financial uncertainty.

We oversee and monitor the performance of British Columbia Investment Management Corporation (BCI) as our investment agent. BCI is responsible for implementing the plan’s investment strategy. This includes analyzing risks and moving on opportunities to grow your pension.

We provide guidance to BCI on its investment decisions before they are made. This guidance considers factors such as the environmental, social and governance performance of assets. Decisions on where and when to invest are then validated by measuring our performance. Our investment return target is a 6.5 per cent annual return on investments. In 2020, the plan had an investment return of 11.7 per cent. From 2010 to 2020, annual returns averaged 9.1 per cent.

Lowering risk, generating long-term value

Considering risk factors like climate change is a priority when identifying assets that can create long-term value for the plan. The board tests the plan’s resiliency against different economic scenarios. This helps guide actions that serve the interest of members.

For more about the board’s management of plan assets, read the Statement of Investment Policies and Procedures, found in the right sidebar under Read related investment documents on the Responsible investing page.

Upcoming valuation results

We complete an actuarial valuation at least every three years to measure the plan’s funding position. The most recent valuation was performed as at December 31, 2021, and will be reported in fall 2022.

Valuations ensure the plan is sustainably meeting its funding requirements. This helps us make decisions on capping cost-of-living adjustments for a three-year period. This can help your pension keep pace with inflation.

These strategies are how we keep your plan sustainable and in a strong financial position. Your pension is secure, so you can start planning that next adventure and enjoy time with the people you care about.

External link for growing your pension

British Columbia Investment Management Corporation (BCI)