We recognize the COVID-19 pandemic might have brought additional challenges and stress to your lives. Lockdowns to halt the spread of COVID-19 have effectively paused Canadian and world economies and financial markets have fallen.
We want to assure you that despite the impact of COVID-19, your pension plan is still well funded according to the latest estimate. The members’ accrued benefits are secure, and retirees can rest assured that they will continue to receive their pension in full.
Your pension benefits are based on a formula tied to how long you have worked for participating employers and payable for your life. They are not based on the value of the investments at retirement.
To ensure that the Plan can pay the benefits according to the formula, the Trustees prepare the pension plan to weather financial storms that occur from time to time. For this, they use:
- Safe investments that can pay pensions regardless of whatever is happening in the financial markets.
- A wide range of investments. Not putting all eggs in one basket keeps the pension plan safe when the unexpected happens.
- Professional advisors, including investment consultants, actuaries, and investment managers. The Trustees receive expert advice from professionals and use investment managers to manage the pension plan to ensure investments are safe and pensions can be paid.
Additionally, before this crisis, an actuarial valuation showed that the Plan had more money than required to pay pensions. This buffer was held by the Trustees to provide a cushion against events such as these.
Please rest assured that the Trustees and professionals who help them manage the Plan are closely monitoring the situation and working together to protect your pensions.