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COST OF MANAGING THE PLAN
by Vestcor
Costs related to managing the plan, referred to as the “Administration Costs” in the Statement of Changes in Net Assets in the audited financial statements, consist of pension administration services and investment management services provided by Vestcor and the NBTPP’s share of the operating costs of Vestcor Corp. These costs are further itemized in Note 11 to the audited financial statements (see page 52).
The costs for the year ended December 31, 2022 totaled $12.4 million compared to $11.6 million for the same period in 2021, an increase of $0.8 million. This increase relates mostly to investment manager performance related expenses and custody fees.
As a percentage of average pension fund assets, total Administration Costs were 0.18% in 2022 compared to 0.17% in 2021. The Plan continues to benefit from the cost competitiveness of its investment and administration service provider as this expense is significantly lower than would be charged by other private sector service providers.
Funding Excess of $711.6 million
99.90% probability that past base benefits earned will not be reduced over the next 20 years*
