At the close of 2013, the Teachers’ Pension Plan held $20.7 billion in net assets (up from $18.3 billion at the close of 2012) and had earned a 14.6 per cent return on its investments for the year.
What do those numbers really mean? They mean the plan funds have continued to grow, and more funds mean a stronger plan. The numbers mean the plan is financially healthy. Most of all, for members at all stages of plan membership, those numbers mean a reliable, secure retirement income.
If you look a little deeper, those numbers reveal even more. The plan is one of the most efficient retirement savings options available, with exceptionally low investment and management fees. For BC communities and the province at large, those numbers mean opportunity because some of the plan’s assets are invested locally, for example in infrastructure and real estate developments. In addition, retirees throughout the province spend much of their pension income in local communities, contributing to our provincial economy.
Based on its performance in many areas, the Teachers’ Pension Plan was named the 2014 Pension Fund of the Year, Canada by World Finance magazine. The award is based on excellence in service to members, innovation, risk management and investment performance. Pension plans were researched and judged on their administrative skills and foresight, their service and financial performance. The Teachers’ Pension Plan earned a full five-star rating.
It is gratifying when others recognize the plan as World Finance magazine has done because it reinforces the pride and confidence that the trustees share: we know it is an excellent plan and we are thrilled that others know it, too.
And while 2013 has been a great year, well deserving of recognition, we are also cognizant of and grateful for the years of work done throughout the plan’s history. Today’s successes are the culmination of years of hard work and sometimes some tough decisions. Joint trusteeship, with plan members and plan employers sharing management of the plan, is an exemplary method for governance.
As you read this report, join us in celebrating the work done this year as well as the work done in years past, which brought us to our current, award‑winning position.
Joann Cain, 2013 chair
Teachers’ Pension Board of Trustees
2013 Chair, Teachers’ Pension Board of Trustees
Did you know?
The large scale and professional management of the plan enables it to operate very efficiently.
Total investment management and pension administration costs are a quarter of one per cent, significantly less than what individual investors would commonly pay for investment management fees.
In 2013, the plan paid out close to $1 billion in pension benefits and much of that money flowed straight into the BC economy.