Member news: November 24, 2022
The WorkSafeBC Pension Plan is stable and secure: Latest valuation results are now available
You will be pleased to know that the WorkSafeBC Pension Plan has sufficient money to pay all current and anticipated future pensions, as shown by the plan’s most recent actuarial valuation as at December 31, 2021.
An actuary (a specialist in financial modelling, statistics and risk management) assessed the plan from both a going-concern and solvency perspective:
- The going-concern valuation assumed the plan will continue into the future at least as long as the lifetime of all current members. It showed an actuarial surplus of $529 million in the basic account. This represents a funded ratio of 132.8 per cent.
- The solvency valuation measured the ability of the plan to pay out pensions if the plan had shut down December 31, 2021. It showed an actuarial surplus of $326 million in the basic account. This represents a funded ratio of 116.3 per cent, meaning the plan would have had enough funds to pay out all pension benefits in the unlikely event of the plan having ended.
What this means for you
At this time, your contribution rate will not change.
The plan’s last actuarial valuation date was as at December 31, 2019, with the next valuation scheduled to be measured was at December 31, 2022. However, that date was moved up to December 31, 2021, in response to investment market conditions and to ensure stability of contribution rates. The next valuation will be no later than as at December 31, 2024.
Inflation adjustments for retired members
The valuation showed the plan’s inflation adjustment account (IAA) remains well funded. The IAA is the account from which non-guaranteed cost-of-living-adjustments to retired members are paid. It is anticipated that retired plan members will continue to receive annual inflation adjustments for the foreseeable future.
What is a valuation?
A valuation compares money coming into the plan (assets) against money going out of the plan (liabilities). Assets include plan funds, future contributions and anticipated investment returns. At least every three years, the plan’s actuary measures these assets against the plan’s liabilities, which are paid out as pension benefits in the future.
Valuations are required by provincial legislation, and they help assess the financial position of the plan and its funding requirements. That information is used to ensure there is enough money available to pay for the current and future pensions of all members, whether active, inactive or retired.
Getting a regular valuation checkup is just one of the steps taken to ensure the plan maintains its value and remains secure and financially sustainable for all members.
To read the full valuation report, visit the Reports page under About us on the plan website.