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OPERATION OF THE NBTPP
by Vestcor
Plan Administration Services
The Board has an administration agreement with Vestcor to conduct the day-to-day administration of the NBTPP. Vestcor collects employee and employer contributions and pays out benefits in accordance with the Plan provisions. They also provide pension services to help members understand their benefit entitlements. In 2022 Vestcor processed the retirements of 315 teachers, and had 4,404 contacts with Plan members through phone, email, mail, as well as in-person meetings.
Vestcor prepares annual statements for each member, communicates with members and stakeholders through semi-annual newsletters and other communication tools, and prepares regulatory submissions to the Superintendent of Pensions and the Canada Revenue Agency.
Investment Management Services
Vestcor is also the investment manager for the NBTPP, as outlined in an investment management agreement. Vestcor is responsible for the implementation of the NBTPP Statement of Investment Policies.
Vestcor also provides investment advice to the Board. By using its asset/liability modelling and risk management capabilities as well as portfolio optimization tools, they project the specific pension plan cash flow data to model the risks and returns of potential investment strategies. From this work, Vestcor develops recommendations for an asset mix which is presented to the Board of Trustees for review and approval.
Vestcor receives employers’ and employees’ pension contributions and invests them in a diversified mix of asset classes according to the NBTPP Statement of Investment Policies. Vestcor also transfers sufficient funds from the pension fund to provide for the monthly pension benefit payment requirements.
Further information on Vestcor is available at vestcor.org.
Actuarial Services
An actuary is an expert in the mathematics of finance, statistics and risk theory. The Teachers’ Pension Plan Act requires that the NBTPP undergo an Actuarial Valuation by a professionally accredited actuary at least once every three years following the July 1, 2014 conversion date. The Board of Trustees approves the actuarial assumptions used for the valuation.
The Actuarial Valuation of the pension plan is conducted on a funding and a going concern basis (i.e., both assume the Plan continues to operate indefinitely) and on an hypothetical wind-up basis (i.e., assumes the Plan is to be wound up on the valuation date) in accordance with standards set by the Canadian Institute of Actuaries. To prepare these valuations, the actuary obtains current membership data and asset mix information from Vestcor.
In the years in which an Actuarial Valuation Report is not undertaken, a Cost Certificate with respect to the funding basis is prepared.
TELUS Health (formerly known as LifeWorks) was reappointed as the actuary for the preparation of the NBTPP Actuarial Valuation Report as at August 31, 2022.
Auditing Services
The external auditor is responsible for expressing an independent opinion as to whether the financial statements of the NBTPP have been presented fairly by conducting an audit in accordance with Generally Accepted Auditing Standards.
KPMG was reappointed as the auditor for the NBTPP for 2022.
