News Release Archive
FINANCE--PENSION PERFORMANCE GOOD NEWS
-----------------------------------------------------------------
Public servants and teachers today received some good news about
their pension plans, from Finance Minister Bernie Boudreau.
For the first time in its history, the Public Service
Superannuation Plan is estimated to be 100 per cent funded. The
Teachers' Pension Plan is estimated to be approximately 78 per
cent funded, well ahead of a previous target, which was to attain
65 per cent funding by the year 2003.
Today, the fully-funded Public Service Superannuation Plan has $2
billion in assets, with a return on investment for the year
ending March 31, 1996 of 17.3 per cent. In 1987, less than 10
years ago, the plan was funded at 75 per cent with $753 million
in assets.
Mr. Boudreau said the impressive performance is the result of
prudent fiscal management and shrewd investment. "Within the
Public Service Superannuation Fund, superior investment returns
have eliminated the $135 million unfunded liability that existed
just a year ago," Mr. Boudreau said. "This gives public servants
the comfort they deserve, knowing their current and future
pension benefits are secure."
This performance is even more significant, he said, given that
1,100 additional civil servants took advantage of early
retirement over the past two years.
The Teachers' Pension Plan is also yielding impressive results,
returning 17.1 per cent in the fiscal year ending March 31, 1996.
Although challenges remain, the Teachers' Pension Fund is
estimated to be approximately 78 per cent funded as of March 31,
1996. This represents a $158 million reduction in the unfunded
liability, and an eight per cent improvement in the funded ratio
since March 31, 1995.
In 1991, the plan was only 47 per cent funded. A plan was
developed with the Nova Scotia Teachers Union that included
increased contributions and a target of 65 per cent funding by
2003, putting current results well ahead of schedule.
"Again, the right investments and solid management have yielded
better results, more quickly for our teachers," Mr. Boudreau
said.
-30-
Contact: Jim Vibert 902-424-4886
Donna MacDonald 902-424-8787
trp Apr. 30, 1996 - 12:20 p.m.
