GLOSSARY

Actuarial Valuation

A report which is prepared every three years, as required by legislation, which determines the financial status of the pension plan. It documents the results of the funding valuation, the going concern Actuarial Valuation, a hypothetical wind-up valuation, and the risk management procedures; the most recent Actuarial Valuation prepared for the NBTPP was as at August 31, 2022.

Ancillary Benefits

Benefits that are in addition to the Base Benefit, such as the Indexing Adjustment Benefit (i.e., indexing) and early retirement subsidies.

Cost Certificate

A report as required by legislation which is prepared as at the Plan year end in the years when an Actuarial Valuation is not required. It outlines the extrapolated financial position of the Plan, the estimated contribution requirements and normal cost of benefits to accrue over the plan year following the Cost Certificate plan year end, and a review of any actions which may be required under the terms of the Funding Policy; the last Cost Certificate prepared for the NBTPP was performed as at August 31, 2021.

Indexing Adjustment Benefit (IAB, also known as “indexation”)

The cost of living adjustment applied to NBTPP pension benefits based on all or a portion of the changes in the Consumer Price Index averaged over 12 months.

NBPSPP

The New Brunswick Public Service Pension Plan, member in equal parts with the NBTPP of Vestcor Corp.

NBTPP

The New Brunswick Teachers’ Pension Plan, member in equal parts with the NBPSPP of Vestcor Corp.

NBTPP Fund

The pension fund for the NBTPP.

PBA

The Pension Benefits Act, provincial legislation that the New Brunswick Teachers’ Pension Plan is subject to and must comply with for certain provisions as stipulated under the TPPA.

TPPA

The Teachers’ Pension Plan Act, provincial legislation that governs the New Brunswick Teachers’ Pension Plan. The TPPA also specifies the PBA provisions applicable to the New Brunswick Teachers’ Pension Plan.

Vestcor Corp.

Formed in July 2016, Vestcor Corp. is as an independent private not-for-profit holding company under the Vestcor Act of the New Brunswick Legislature. It is the oversight body for Vestcor Inc. Vestcor Corp. is jointly owned by the New Brunswick Teachers’ Pension Plan (NBTPP) and the New Brunswick Public Service Pension Plan (NBPSPP). For more information, please visit: vestcor.org/about-us

Vestcor Inc.

Provides investment management and administration services to the NBTPP. For more information, visit: vestcor.org/about-us