Effective July 1, 2007, Teacher Pension Plan contributions increased by 1.61% for both teachers and employers. The most recent three-year independent valuation of the pension plan found an unfunded liability that will be corrected by this increase over the next 15 years. The pension fund’s investment returns in recent years have been strong (16.2% in 2006); however, the fund’s average returns are still recovering from downturns in the markets in 2001 and 2002.
As a result, part of the 2.5% salary increase for July 1, 2007, will be going into the pension plan to ensure its financial viability.
The 2006 Annual Report notes that “the pension plan is financially sound,” and your basic pension is secure.
For further information, the complete Annual Report is available at http://www.pensionsbc.ca/pls/portal/docs/PAGE/PENCORPCONTENT/TPPPAGE/