3.6 percent experience apportionment granted, effective July 1

March 19, 2019

​The Board of Directors of the Board of Pensions approved a 3.6 percent experience apportionment for the Pension Plan, effective July 1.

financial report

The Board of Directors approved a 3.6 percent experience apportionment for the Pension Plan, recognizing the continuing long-term performance of the Board of Pensions Balanced Investment Portfolio. For the 10 years ended December 31, 2018, the portfolio returned 9.3 percent, even in the face of a one-year decline of 3.9 percent.

The apportionment is effective July 1, 2019. The seventh in as many years, it results in a seven-year cumulative increase of 23.9 percent.

The granting of the apportionment complies with the Board of Pensions experience apportionment policy guidelines. Those guidelines, which tie apportionments to the overall funded status of the plan, establish three goals: ensure long-term financial stability of the plan, protect members against inflation, and maintain generational equity.

An experience apportionment increases pension benefits or credits:

  • For retirees and eligible survivors, it is expressed as a percentage of benefits currently received and is a lifelong increase in an individual's pension benefit. In July, pensioners will be notified of how much their pension payments increase, and payments that month will reflect the increase.
  • For active and terminated vested members, an experience apportionment is expressed as a percentage of an individual's pension credits accrued as of December 31, 2018. For active members, it will be reflected in their pension estimate on Benefits Connect in July. Terminated vested members will be notified in July of their pension credit increase.

This article originally ran in The Board Bulletin Spring 2019.