Board Communique: January 29, 2024

BC’s Public Service Pension Plan is fully funded: 2023 valuation results

The Public Service Pension Board of Trustees is pleased to announce the Public Service Pension Plan 2023 valuation results (as of March 31). The valuation determined the plan has actuarial assets of $38.0 billion, exceeding actuarial liabilities of $33.5 billion, leaving the plan with surplus funds of $4.5 billion.

The plan’s funding ratio shows whether the fund has enough money in reserve to pay out pension benefits to current and future plan members. The valuation determined the plan’s funding ratio is 113 per cent. This is great news and demonstrates the strength of the plan.

Active members, retired members and employers can remain confident that pensions are secure. The next valuation is scheduled for March 31, 2026.

What is a valuation?

A valuation is a review of the plan’s funded position, done at least every three years by an independent actuary. The actuary determines how much money the plan needs to pay pension benefits by making assumptions about future investment returns, inflation rates, increases in salaries, retirement ages, life expectancy and other factors.

What the 2023 valuation means for plan members

Inflation adjustments
Annual inflation adjustments to member pensions are a valuable but non-guaranteed benefit of the plan. As part of the 2023 valuation, the actuary reviewed the plan’s ability to maintain inflation adjustments, and determined the plan’s inflation adjustment account remains well funded and full inflation adjustments are projected to be sustainable. We anticipate retired plan members will continue to receive annual inflation adjustments in line with the average annual changes in the Canadian consumer price index (measured from November to October).

Group health benefits
The plan offers an optional group benefits program for retired members. This program has a different funding model and is not related to the plan’s valuation results. Valuation surplus funds cannot be used for group health benefit programs.