Actuarial Matters

Every two years, an actuarial valuation for the Fund is completed by the Consulting Actuary. The valuation provides the present and future liabilities of the Fund and compares that to current and projected Fund assets, respectively. The 2017 valuation revealed a small deficit of 0.05% of pensionable remuneration, well within the corridor of +/-2% of pensionable remuneration recommended by the Fund’s actuaries, which indicates that the Fund is very close to actuarial balance and is considered to be well funded.

Valuations are performed using economic assumptions such as inflation and investment return and demographic assumptions for projecting participant growth, mortality, separation, and disability. The regular valuation that was performed as of 31 December 2017 used the following three economic assumptions: (a) an assumed rate of increase in pensionable remuneration of 3.0 per cent per annum; (b) an assumed rate of nominal investment return of 6.0 per cent per annum; and (c) an assumed rate of inflation of 2.5 per cent per annum. It was also assumed that the growth in participant population for each of the next 10 years would be 0.5 percent per annum, with a “zero participant growth assumption”, thereafter.

ALM Study 2019

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