Total Plan

 

Actuarial Valuation Results – Total Plan

January 1, 2018 Actuarial Valuation Results

The most recent actuarial valuation of TRAF prepared by the independent plan actuary was as at January 1, 2018. The valuation results for the total plan (Account A, the Pension Adjustment Account and Account B, with and without certain Account B funding assumptions outlined below), is summarized in the following table.

TOTAL PLAN PRO FORMA FUNDED STATUS as at Jan 1 18

The next actuarial valuation is scheduled to be performed as at January 1, 2021.

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

Account B Funding Assumptions

The results regarding Account B have been prepared on a pro forma basis and incorporate certain assumptions regarding the funding of Account B. In particular, we have included the assets of the Province of Manitoba Trust Account (PMTA) and have further assumed that the Province will continue to deposit to the PMTA an amount equal to the aggregate contributions made by active members. However, there is no legal requirement for the Province to pre-fund any amounts in respect of the pension liabilities of Account B. Accordingly, these payments by the Province could be reduced or discontinued at any time.

The shaded column above illustrates the actual results without incorporating the funding assumptions regarding Account B ie. not crediting Account B with the current PMTA assets or any future deposits by the Province of Manitoba. Further details can be found under Account B.

January 1, 2018 Extrapolated Results

The 2017 Annual Report indicated that the total funded ratio of the plan (including Account B funding assumptions) was 86.9%. This figure was based on an extrapolation of the January 1, 2015 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 (ie. the extrapolation will continue to rely on assumptions for these variables). The formal actuarial valuation as January 1, 2018 revealed a total funded ratio (including Account B funding assumptions) of 84.5%. The primary reason for the decline is due to the change in the assumed discount rate from 6.00% to 5.75%.