Canada Post’s pension plan lost 19.3% in 2008
OTTAWA – The pension plan at Canada Post lost 19.3 per cent in 2008, hammered by the financial and economic turmoil in Canada and around the world.
The plan held total net assets of $11.71 billion at Dec. 31, 2008, compared with $14.67 billion at the end of the previous year.
The Canada Post pension plan ended 2008 with an estimated solvency deficit of $1.19 billion, representing a solvency funding ratio of 91 per cent.
However, chief investment officer Douglas Greaves said the plan was fully funded on a going-concern basis, with an estimated surplus of $675 million totally free credit score.
"While the short-term impact on investment returns has been negative, the plan is designed to achieve the long-term returns required to fund pension benefits for members, retirees and beneficiaries," Greaves said in a statement.
The Canada Post pension plan is a defined benefit plan that provides inflation-protected benefits to almost 80,000 active members, retired members, deferred pensioners and beneficiaries.