AMOUNT OF PENSION / INDEXING
The amounts of pension available from the fund depend in the long run on many factors. For example, the following factors have to be considered:
- The level of future employer contributions;
- The investment earnings on the fund;
- The number of hours worked each year;
- The average age at which members decide to retire; and
- The length of time they will draw pensions.
The Trustees have the responsibility to revise the accrual rate from time to time as necessary in light of the Plan’s experience.
On the basis of assumptions approved by the Trustees, as of the June 2022 valuation, the Fund Actuaries have determined that the assets of the plan, and the present rate of employer contributions, can support pensions at $80.00 / full year of service from January 1, 2023 onward.
In addition, accrual rates for past service timeframes will be increasing by 10% for Active, Deferred vested and Limited members’ past service as of January 1, 2023. Past service between 2019 and the end of 2022 will increase to the $80.00 accrual rate plus another 10% (to $88.00) for that timeframe.
The new accrual rates effective January 1, 2023 and historical accrual rates are summarized below:
|1/1/2023 onward||1/1/2019 to 12/31/2022||1/1/2014 to 12/31/2018||1/1/2011 to 12/31/2013||1/1/2008 to 12/31/2010||1/1/1996 to 12/31/2007||pre-1/1/1996|
|Pre 1/1/2023||$ 70.00||$ 70.00||$ 70.00||$ 60.00||$ 50.00||$ 44.00||$ 37.00|
|Effective 1/1/2023||$ 80.00||$ 88.00||$ 77.00||$ 66.00||$ 55.00||$ 48.40||$ 40.70|
*A full year of service is 1200 hours. For partial years of pension service, 1/10th of the accrual rate will be credited for each completed 120 hours.
**July 1, 2016 to June 30, 2019 Valuation Report filed March 25, 2020 with the BC Financial Services Authority: a retroactive benefit improvement for actives effective January 1, 2018 was approved. The Plan was amended to provide a $50 per month benefit accrual rate for service earned during 2008 to 2010 inclusive and a $60 per month benefit accrual rate for service earned during 2011 to 2013 inclusive. The previous benefit accrual rate was $44 per month for both periods of service. The accrual rate for service after 2013 is $70 per month.