Issue #7 Notebook – December 5, 2018
GOOD NEWS: Pension Changes are Coming
Contribution rates for your pension will decrease as a result of the 2017 valuation. Effective January 1, 2019, rates will be reduced for both member and employer contributions to BC’s Teachers’ Pension Plan. Currently, members contribute 12.92 per cent of salary. Effective January 1, 2019, members will contribute 11.17 per cent of salary. Employers currently contribute 13.23 per cent of salary. Effective January 1, 2019, they will contribute 11.30 per cent of salary.
This means that you will pay less money to the plan: for every $1,000 of salary, members will pay $111.70, a reduction of $17.50, and employers will pay $113.00, a reduction of $19.30. That will result in more money in your pocket come January.
Why are the contribution rates being reduced?
The most prominent factor in allowing the board to reduce contribution rates was the plan’s strong investment returns. The valuation showed the plan’s basic account has actuarial assets of $26.8 billion and actuarial liabilities of $26.2 billion, meaning the plan is 102.5 per cent funded as of December 31, 2017, with a surplus of $644 million. These figures consider not only the plan enhancements already announced in March but also the contribution rate reductions described above.
In addition to a reduction in contribution rates, last March the Pension Board also announced three other improvements resulting from this positive news.
- Increase in the rate at which your pension grows
- A change to the default (normal form) pension
- More money allotted to pay COLAs into the future (This is the Cost of Living Allowance that provides an adjustment to your pension once you have retired.)
More information on these improvements can be found online in the 2017 Report to Membersat tpp.pensionsbc.ca. This report was also mailed out to active members this past June.
Issue #6 Notebook – November 20, 2018
You are invited to the
North Vancouver Teachers’ Association Christmas Party!
When: Friday, December 7, 3:30 pm to 7:00 pm
Where: Two Lions Pub, 2601 Westview Drive
Please join the NVTA Executive for delicious hot and cold appetizers, door prizes and good times!
No Host bar with Happy Hour drink specials. Make a cash donation to the North Shore Harvest Project and earn an entry into the coveted NVTA Turkey Raffle!