A message from the chair of the Public Service Pension Board of Trustees: December 13, 2021
Your pension remains safe and secure
Dear plan member,
As it is nearing the end of 2021, I want to update earlier communication from the board to you, as well as beneficiaries and plan employers.
Just as COVID-19 has presented challenges to plan members and their families; it has also presented challenges to conducting the business of running the plan.
But the Public Service Pension Plan has weathered the pandemic effectively to date. Your pension remains safe and secure. Whether you are already receiving your pension or still contributing, the plan remains strong financially.
The board’s diversified portfolio and long-term approach to investing have paid off, with the 2020 valuation showing that the plan is fully funded and now has a larger surplus than it had at its last valuation in 2017.
The board will use the surplus funds to:
- maintain current contribution rates,
- improve accrual rates for active members, and
- prepare for the future by setting aside $1.1 billion in a rate stabilization account that will help to offset future contribution rate increases.
As well this year, we reviewed the extended health coverage available for plan retirees, using member feedback from an engagement survey to help us make changes to the program to improve its long-term sustainability and preserve its value to members.
Our two key agents, the BC Pension Corporation and the BC Investment Management Corporation, have performed well in these exceptional circumstances, both in the management of our investments and in ensuring that pensions are paid.
I encourage you to visit the plan website to learn more about work we’ve done this past year to strengthen the pension plan and position it for the future.
Lastly, I want to thank you.
The plan includes first responders, health care workers and many public servants working hard to mitigate the effects of COVID-19 and, more recently, the floods. Our plan members are vital to these efforts and we are sincerely grateful.
I wish you and your family a happy and healthy New Year.
Yours truly,
Tom Vincent
Chair
Public Service Pension Board of Trustees