Halifax, NS – April 28, 2022 – Nova Scotia Teachers’ Pension Plan Trustee Inc. (TPPTI) announced today that the Teachers’ Pension Plan’s (Plan) funded status at the end of 2021 increased to 82.5% on a goingconcern basis, compared to 79.0% at the end of 2020. This is the highest funded status the Plan has achieved since the 2008 financial crisis. The Plan’s net assets grew from $5.519 billion to $5.856 billion as at December 31, 2021.
At year-end 2021, the Plan achieved a one-year return of +9.63%, net of investment management fees (+9.84% gross of investment management fees). The Fund outperformed the policy benchmark of +9.22% on a net basis and outperformed the actuarial assumed rate of return of 5.70%. “It is due to the Plan’s 2021 robust investment performance that enabled this modest increase in the funded status,” stated TPPTI Chair, John Rogers.
As at December 31, 2021, the Plan had a ratio of 0.94 active members to each pensioner. The continuing maturity of the Plan remains a very significant concern. Each year, approximately $200 million more in pension benefits is paid out than is collected by way of contributions from active members and employers. This places an ongoing and unfair burden on active members paying high contribution rates.
“While there is no immediate risk that the Plan will be unable to meet its ongoing pension obligations, TPPTI continues to urge the Plan Sponsors to act decisively and effect amendments that will improve the Plan’s long-term financial sustainability,” added Rogers.
In October 2020, the Plan Sponsors, the Province of Nova Scotia (Province) and the Nova Scotia Teachers Union (NSTU), agreed to jointly appoint an independent panel of pension experts (NSTPP Panel) to review the ongoing challenges facing the Plan. The NSTPP Panel’s mandate is to review and analyze the Plan, educate and consult with stakeholders, and make non-binding recommendations to fully fund the Plan within a reasonable period of time. The NSTPP Panel’s non-binding recommendations will be submitted to the Province and the NSTU by July 31, 2022.
To read the 2021 Teachers’ Pension Plan Annual Report, visit the Plan’s website at: