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Account A

 

Actuarial valuation results – Account A (Member account)

January 1, 2021 actuarial valuation results

The most recent actuarial valuation of TRAF prepared by the independent plan actuary for funding purposes was as at January 1, 2021, which included an assessment of the financial condition of Account A. The valuation results for Account A are summarized in the following table.

pg 24 Account A Funded Status as at Jan. 1 2018

The next actuarial valuation is scheduled to be performed as at January 1, 2024.

Actuarial valuations of the fund, including Account A can be found here.

On a going-concern basis, as at January 1, 2021, Account A was determined to have total assets that exceeded its total liabilities, resulting in a surplus of $83.6 million (which is an improvement over the $34.6 million deficit at January 1, 2018). This equates to a funded ratio of 101.5%. It is noted that there was a surplus of $323.3 million in respect of service accrued as of the valuation date, but this surplus was offset in part by the deficit of $239.7 million in respect of future service.

The fact that the present value of future contributions from current members (i.e., assets) is $239.7 million (or 17.5%) less than the present value of the corresponding liabilities related to benefits for future service indicates that, based on the assumptions used in the valuation, future contributions from current members are not expected to be sufficient to fund their expected future benefits.  Based on the results of the January 1, 2021 valuation, such shortfall is covered by the accrued surplus resulting in a total surplus of $83.6 million.