Account B


Actuarial valuation results – Account B (Province account)

January 1, 2021 actuarial valuation results

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

pg 27 Account B 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 B, can be found here.

On a going-concern basis, as at January 1, 2021, Account B had an accrued deficit of $1,769.7 million (which is a deterioration from the $1,537.5 million accrued deficit at January 1, 2018). This equates to an accrued funded ratio of 60.0%.

Reconciliation to the prior valuation

The table below reconciles the items that contributed to the Account B accrued deficit increasing from $1,537.5 million as at January 1, 2018, to a $1,769.7 million deficit as at January 1, 2021.

Reconciliation Account B 2021

The primary factor with a positive impact on the funded status of Account B was the strong investment returns for the years 2018 to 2020. The impact was an improvement of $122.2 million to the funded status. However, both the interest on the deficit and the change in discount rate had negative impacts on the funded status. The impacts were decreases of $280.8 million and $135.8 million to the funded status, respectively.

January 1, 2022 Extrapolated Results

The accrued funded ratio of Account B was extrapolated to be 64.8% as at January 1, 2022. This figure was based on an extrapolation of the January 1, 2021 funded status. An extrapolation incorporates actual investment results, contributions received and benefits paid since the last formal valuation. The limitations are that the plan's actual experience with respect to mortality, retirement and termination since the date of the last valuation will not be accounted for until the next formal actuarial valuation (i.e., the extrapolation will continue to rely on assumptions for these variables). The formal actuarial valuation as at January 1, 2021 revealed an accrued funded ratio of Account B of 60.0%. The increase is largely due to net investment earnings of approximately 16.56% during 2021, which was greater than the assumed rate of 5.50%.