Board Communique: June 2, 2025
2024 valuation results: members' pensions are secure
We are pleased to announce that the College Pension Plan’s 2024 actuarial valuation determined that the plan remains fully funded and pensions are secure. Member and employer contribution rates will remain unchanged.
Measured as at August 31, 2024, the valuation shows that the plan has actuarial assets of $8.451 billion and actuarial liabilities of $8.455 billion, resulting in a small deficit of $4 million. On the advice of the plan actuary, we also strengthened our valuation assumptions to take into account that people are living longer. To maintain the plan’s fully funded status after accounting for this improved longevity, the board transferred funds from the plan’s rate stabilization account (RSA) to the basic account.
The RSA is a notional account composed of surpluses generated in prior years that have been set aside to mitigate future increases in contribution rates. Following the transfer, the RSA retained a healthy balance of $307 million. The RSA is a great example of how the board plans for contingencies.
Cost-of-living adjustments are sustainable
The valuation also showed that the plan’s inflation adjustment account (IAA) is healthy and sustainable. The IAA is the account from which non-guaranteed cost-of-living adjustments (COLAs) for retired members are paid. The board anticipates that retired plan members will continue to receive COLAs that match the full annual increase in the Canadian consumer price index. The board will reassess the financial position of the IAA at the next valuation.
About valuations
A valuation is a review of the plan’s funded position, completed at least once every three years by an independent actuary. Using a series of economic and demographic assumptions, the valuation determines how much money the plan needs today to pay current and future pension benefits.
The latest valuation results demonstrate the continued strength of the plan’s investment principles and policies, as well as its governance structure. The next valuation will be measured as at August 31, 2027.
Read the 2024 valuation report
Valuation reports provide the board with a full picture of the plan’s health and help the board make decisions about plan design, governance and investments. You will find a link to the valuation report page in the related content block.