Pension Life - Winter 2024

No changes to coverage and subsidy levels: MRBT’s first valuation

The Municipal Retiree Benefit Trust (MRBT) has completed its first valuation. As at December 31, 2022, the MRBT has enough funding for 31.3 years at the current coverage and subsidy levels. The MRBT board aims for a funding target of 35 years.

There will be no changes to coverage and subsidy levels following the valuation. Premiums for February 1, 2024, are provided in this issue.

Like your pension plan, the MRBT has a valuation done at least every three years. A valuation determines how many years MRBT can continue to provide the same benefits at the same subsidy level. This is important because, unlike your pension, your group benefits are not guaranteed.

Following a valuation, the MRBT board may change subsidy or benefit levels to maintain the trust’s long-term sustainability. Premiums are set by the MRBT board each year and are not directly affected by valuation results. However, premiums can be affected by changes to claiming patterns and demographics. These changes may then influence future valuation results.

Valuations help the MRBT board provide sustainable access to group benefits for current and future retired members. To learn more, read the trust’s first Annual Report, available under related content.