In 2022, TRAF engaged Aon, the plan actuary, to conduct an analysis on the funding of Account B by the Province of Manitoba.
The report, which was presented to the Honourable Wayne Ewasko, Minister of Education and Early Childhood Learning on August 16, 2022, confirmed that Account B is projected to be depleted in 2053. As a result, the Province’s annual funding obligation will more than double at that time, from $270 million in 2052 to $568 million in 2053. The report concluded that there would be many benefits for the Province to pre-fund its pension liabilities now to fully avail itself of a globally diversified, low-cost investment program and avoid material funding increases in the future. Pre-funding Account B would also bring the plan more in line with other teachers’ pension plans across the country.
While pre-funding Account B has multiple benefits, please note that, under the terms of The Teachers’ Pensions Act, the Province has a statutory obligation to reimburse the pension plan for its 50% portion of pension payments made.
Learn more about the funding of the TRAF plan and read the Aon report.
