The Board of Directors of the Board of Pensions approved a 3.6 percent experience apportionment for the Pension Plan, effective July 1.
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:
This article originally ran in The Board Bulletin Spring 2019.