Pension security and investments

Although the spread of COVID-19 continues to affect the global economy, you can be reassured about your plan. As a defined benefit pension, the amount of your pension payment isn’t dependent on the performance of the financial markets.


I’ve read that the stock market has dropped. Is my pension safe?

The spread of COVID-19 continues to affect the global economy and financial markets. You can be reassured about your plan.

Your pension is a defined benefit pension. This means the amount of your pension payment isn’t dependent on the performance of the financial markets.

If you’re a retired member, your pension payments will be paid on time, today and into the future. You can sign in to My Account for pension payment dates, and access to other tools and services.

How do you know my plan investments are safe?

The plan is well positioned to withstand the turmoil in the financial markets and the slowing global economy.

Plan investments are broadly diversified, which helps lessen the impact of the current market downturn. Investments are split between a wide variety of public equities, bonds, real assets and other investments.

While there was no way to anticipate the COVID-19 pandemic, our investment agent, British Columbia Investment Management Corporation (BCI), anticipated a correction in the rising financial market. As a result, the pension fund’s investments were adjusted to reduce risk.

The challenge facing investors today reinforces the importance of following a disciplined, long-term approach.

How is the plan’s investment agent responding to the crisis?

While there was no way to anticipate the COVID-19 pandemic, our investment agent, British Columbia Investment Management Corporation (BCI), anticipated a correction in the rising financial market. As a result, the pension fund’s investments were adjusted to reduce risk.

BCI is also actively monitoring the markets and assessing investment opportunities to acquire investments at a better value.

How do you know my pension won’t be affected?

Your pension is a defined benefit pension. This means the amount of your pension payment isn’t dependent on the performance of the financial markets. You can have confidence that your pension will be there when you need it.

What do you expect will happen to plan investments?

This has been a shock to the economy, and we’re not expecting a quick recovery.

The significant market downturn will mean a decline in the value of the plan’s investment portfolio. However, there will also be opportunities to acquire investments at a better value.

We expect the value of the plan’s fund to bounce back over time, and we’re on track to satisfy our long-term obligations.

Is my pension invested in risky stocks?

Plan investments are broadly diversified, and this helps lessen the impact of the current market downturn. Investments are split between a wide variety of public equities, bonds, real assets and other investments.

Will my contribution rates go up to make up for poor investment returns?

Be assured, your plan is well positioned to lessen the impact of the current market downturn. Plan investments are broadly diversified, and the balance of plan funds has been adjusted to reduce risk.

It’s too early to tell what the plan’s investment returns might be and how contribution rates may change. Every three years, a valuation is conducted by an independent actuary (a professional with specialized knowledge of finance, statistics and risk theory). The valuation determines whether the plan has sufficient funds available to meet its pension obligations for all active, inactive and retired plan members, and the contribution rates needed to ensure the long-term funding of the plan.


Updates from the chair of the Municipal Pension Board of Trustees

May 20, 2020

We’re working hard to keep you updated on matters related to your pension. We have news for retired members who participate in the plan’s extended health and dental program.

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May 12, 2020

In these rapidly changing times, there’s a lot we don’t know about the impacts of COVID-19. However, we want to provide you continued reassurance about your pension plan and information on how we’re working to stay safe while keeping business as usual.

Read the full message


March 20, 2020

The coronavirus (COVID-19) continues to affect the world, and as chair of the Municipal Pension Board of Trustees, I want to offer reassurance about your pension plan.

Read the full message