The MPP is reporting a surplus. It’s largely a result of higher than expected investment returns. That’s good news for the BCGEU members in Community Social Services and Community Health enrolled in the plan.
Here’s a snapshot of what we learned at the MPP’s board meeting on September 22, 2016:
· The MPP is fully funded at 104.6 per cent.
· The discount rate was adjusted from 6.5 to 6.25 per cent. The plan absorbed more than $800-million in liabilities. What this means is the plan has to produce less of a return to meet its funding requirements.
· The plan adjusted its mortality rate to take into consideration the latest figures on average life expectancy. This also adds a cost to the long term liabilities of the plan which have been absorbed.
· There was a surplus of $2.2-billion of which $297-million was used to balance the Early Age Normal Cost.
· The remaining surplus was $1.93-billion, which has been transferred to the Rate Stabilization Account (RSA). This was part of a partners’ agreement made in 2014. This will mitigate or eliminate a potential contribution increase in the future.
· The sustainable cost of living allowance (COLA) applied to pensions in pay each year will have the cap raised from 1.95% to 2.10% effective Jan. 1, 2017.
Check out MPP News for more information.