Pension Report Highlights November 2020

10-year Annualized Return Remains Well Above Target

The 2019 Annual Report on the Teachers’ Pension Plan showed a return on investments of 13% during that year.  While we can expect a much lower return during 2020 because of the financial strain caused by the pandemic, the 10-year annualized return was 9.1%.  That means our pensions are secure as there is a comfortable cushion in investment returns; the plan needs to earn 6% per year, on average, to pay the pension promise.

During 2019 $1.2 billion was paid to the 39,146 pensioners in our plan.  That money returned to support the BC and Canadian economy as we purchased goods and services and paid taxes here at home.

The Consumer Price Index for Canada was 0.5% for September 2020 over September 2019.  This means that we may expect to receive an increase in our January pension payment of .5% although that has not been formally approved by the Trustees yet.

Submitted by Gerry Tiede, Chair, Pensions and Benefits Committee