The New Brunswick Public Service Pension Plan is providing a full cost of living adjustment to its almost 38,000 members for the sixth straight year.
The 1.88 per cent adjustment, which is based on Canada’s consumer price index, is the highest its ever handed out, according to a news release. The adjustment is applied to all plan members, including those still actively working and those who have deferred their pension.
Read: New Brunswick public service pension board approves cost of living increase
“We’ve continued to have strong returns through 2017, allowing us to again provide the full cost of living adjustment to our members,” said Marilyn Quinn, chair of the board of trustees for the plan, in the release. “Being able to do so every year since the plan’s conversion in 2014 is a very positive achievement.
“It is important to keep in mind that as a shared-risk plan, the plan is susceptible to external factors such as economic downturn and changes in plan demographics, for example. For these reasons, the board remains vigilant in ensuring the plan is well-governed and positioned for long-term sustainability.”
The plan’s assets saw a gross return of 7.8 per cent in 2017, which exceeded the performance benchmark of 6.7 per cent. In 2017, the plan added $559.2 million in net investment income.
Read: There’s more to New Brunswick’s shared-risk plan story