Pension Life - Summer 2021
The plan—here for you
Your plan is here for you today and will be there for you tomorrow—providing peace of mind and financial security in retirement. We continue to work toward this goal, as you can see in recent milestones below.
In March, the plan partners and board announced changes to the plan effective January 1, 2022, to improve equity and sustainability. Your pension will not change; however, the plan changes include important benefits for retired members:
- Strengthened inflation adjustment account (IAA), which funds cost-of-living adjustments: A portion of future surpluses will be used to cover any funding shortfalls. Remaining surpluses will be shared equally between the IAA and the rate stabilization account (to reduce the likelihood of contribution rate increases for active members and employers).
- Creation of a new retiree benefit trust: This will provide more flexibility in funding health benefits. A specific proportion of employer contributions will fund the trust, which will be able to accumulate and earn investment income over time. Premiums will continue to be a component of health benefits funding.
There is nothing you need to do at this time other than stay informed.
Your plan is here for you today and will be there for you tomorrow—providing peace of mind and financial security in retirement.
We undertake long-range strategic planning every few years. This ensures we remain focused on the plan’s sustainability for current and future members. The latest update is provided in our 2020–2023 strategic plan.
2021 and beyond
Your plan has a solid track record lasting more than 80 years—the Municipal Superannuation Act was enacted on April 1, 1939, and 2020 marked the 20th year of the plan’s joint trusteeship model. The model is part of the plan’s success. Your plan is here for you today and will be there for you tomorrow—providing peace of mind and financial security in retirement.
After a year of uncertainty in 2020, one thing you can be sure of is the plan’s strong standing. Here for you, the plan continues to provide a reliable lifetime pension to every member.