PSPP Corporation

The Plan’s funded status is a point in time indicator of its financial health, highlighting the Plan’s security of benefits. The funded status is determined through an actuarial funding valuation prepared by an independent actuary.

Funded status

Actuarial funding valuations are required to be filed with the regulators at least once every three years. The last actuarial funding valuation to be filed for PSPP was completed as at December 31, 2021. As at December 31, 2021, the Plan was 112% funded. Since that time PSPP Corporation has continued to extrapolate the valuation results and assess the health of the Plan on a regular basis. The Plan remains healthy and is well funded.

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Actuarial Funding Valuation Summary ($ million)

Going Concern Funded Status	2021
Total Actuarial Assets	$16,983
Total Actuarial Liabilities	$15,162
Surplus	$1,821

The actuarial funding valuation is:

A point in time look at the Plan’s financial health.
A comparison of the Plan’s liabilities to its assets.
Performed on a going-concern basis (assumes Plan will continue indefinitely).
Prepared by an independent actuary.
Based on best estimate assumptions about member life expectancy, future earnings, economic conditions and investment returns.
Filed with Alberta provincial and federal regulators at least every three years. The PSPP Sponsor Board may choose to file a valuation on a more frequent basis.

Protect the Plan
Our core focus is on serving the interests of our members and employers.

Plan Growth & Diversification
We must ensure that the Plan continually evolves to meet the needs of a diverse and changing workforce. Regarding growth, expanding the reach of PSPP should be pursued on a business case basis, and only if it brings greater Plan value. Opportunities for governance enhancements that better support PSPP Plan and members should be explored.

Plan Design
We achieve relevant Plan design through our work with the Sponsor Board. A systematic process to understand and assess Plan design (including affordability and utility) assures us of the relevance and competitiveness of the pension plan product for both employers and members.

From the PSPP Corporation Strategic Plan, 2024-2026

Funding Policy Statement

The PSPP Sponsor Board has established a Funding Policy which provides a framework to ensure that sufficient assets are accumulated to meet the cost of accrued benefits and guide decisions about the funding of the Plan.

The Funding Policy documents funding controls and risks to the Plan’s financial health. The Funding Policy also sets a margin of 15% which is added to the liabilities and current service costs to help manage contribution rate stability and benefit security.

Plan funding balances the following three Principles:

Benefit Security

The Plan’s funding level is a measure of how much money is available to pay current and expected pensions for all Plan members. A higher funding level generally means a higher level of benefit security.

Intergenerational Equity

The Plan’s funding should be managed so as to ensure a reasonably consistent level of cost is experienced across different generations of contributors.

Contribution Rate Stability

While contribution rates have to vary over the long term given different economic environments, large volatility can hurt the Plan’s sustainability, so an important goal is to ensure that the contribution rates remain as stable as possible.

Contribution Rates

Employers and employees contribute to the PSPP at the same rates. These contributions, when combined with investment income, are expected to provide for the benefits members earn while they participate in the PSPP.

Following the Actuarial Funding Valuation as at December 31, 2021, the PSPP Sponsor Board assessed the sufficiency of contribution rates and based on the funded status of 112%, approved a contribution decrease effective January 1, 2023.

	2023 Rates	2022 Rates
Below YMPE*	8.3%	9.6%
Above YMPE*	11.9%	13.7%

* Yearly Maximum Pensionable Earnings, set annually by the Government of Canada

8.3%

up to YMPE

11.9%

Above YMPE

Plan Growth & Diversification
We must ensure that the Plan continually evolves to meet the needs of a diverse and changing workforce. Regarding growth, expanding the reach of PSPP should be pursued on a business case basis, and only if it brings greater Plan value. Opportunities for governance enhancements that better support PSPP Plan and members should be explored.

From the PSPP Corporation Strategic Plan, 2024-2026

Management Discussion and Analysis

Plan Funding Investment Performance Plan Financial Highlights Pension Administration Expenses Serving our members and employers