Actuarial valuation: what it is and what happens next
The overall health of the pension plan is measured through an actuarial valuation every three years. An actuarial valuation is an assessment of the fund carried out by an actuary to determine what changes (if any) need to be made to the plan in order to meet existing and future benefit obligations. The planís next valuation results are scheduled to come out in 2015.
Hereís what happens once the valuation is completed:
The results are reported to the Teachersí Pension Board of Trustees and filed with the Superintendent of Pensions approximately nine months after the valuation date. The superintendent regulates pensions based on the British Columbia Pension Benefits Standards Act.
We communicate the results to you.
You will be notified of any impacts such as contribution rate changes and effective dates.
Details from the December 31, 2011 actuarial valuation can be found here.
Retirement income security is an important issue to your employees and potential employees and a new study shows that the defined benefit (DB) model that the BCís public sector pension plans are based on remains an excellent way to provide better value. Read on to learn more.
Got members reaching 35 years of pensionable service? Take the right steps
When a member reaches 35 years of pensionable service, they are no longer required to continue contributing to the plan. However, you are required to keep contributing the employer portion until November 30 of the calendar year in which the member turns 71.
Not sure how to submit your contributions for members with over 35 years of pensionable service? Thatís okay.
Hereís what you need to do:
Keep reporting service and salary for members with over 35 years of pensionable service until November 30 of the calendar in which they turn 71, even though theyíre not contributing.
Remit your portion of the contributions on Line 4 of your remittance form and remit on a regular basis.
Use your year-end payroll report to correctly report all required data for members who reach 35 years of pensionable service during the fiscal year.
Be aware that we will bill you based on the salary and service you report for the member, so the year-end reconciliations processed by our Finance department may result in extra billings to you. This happens when information on payroll reports differs from remitted contributions. The letter that comes with your bill will explain any outstanding debts or credits.
If you have questions about remitting contributions for members with over 35 years of pensionable service, please contact firstname.lastname@example.org.
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