Funding Policy

 

Funding Policy

TRAF has established a funding policy that is intended to establish a framework for the sound financial management of the basic pension benefits provided by the fund.

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

It is important to note that the Board of TRAF 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 independent 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 advocates timely action to address deficits and the avoidance of utilizing temporary surpluses to improve benefits.