Funding and Sustainability Policy

TRAF has established a funding and sustainability policy that is intended to establish a framework for the sound financial management of the pension benefits provided by the fund and provides guidance on the assessment, monitoring and communication of the financial condition and sustainability of the fund with a view to improving the likelihood that the fund will be sustainable over the long term.

The funding and sustainability policy establishes a target funded ratio range of 100% to 110%. It also sets out the specific action the Board and plan actuary will take when the plan’s funded status falls outside this range.

It is important to note that the Board does not have authority to modify contribution or benefit levels. Amendments to the plan require changes to The Teachers’ Pensions Act, which are made through the Legislative Assembly of Manitoba. As such, the policy focuses on the action that the Board, in consultation with the plan actuary, will take to properly inform the Province of Manitoba and The Manitoba Teachers’ Society of the plan’s current and projected funded status. The Board will also work with the plan actuary to make recommendations when appropriate. In general terms, the funding policy promotes timely action to address deficits and avoid using temporary surpluses to improve benefits.

The policy also outlines the Board’s funding beliefs.