Administration Division Costs

Vestcor administration clients continue to benefit from our cost-effective not-for-profit model and our focus on their specific needs and service requirements. Our overall Administration Division costs of $10.7 million increased by approximately $744 thousand, or 7.5%, versus the prior year.

Salaries and benefits Information systems Client directed administration Office rent Office and business Professional services Amortization

Year ended December 31, 2021

($ thousands) 6,793 1,399 594 495 348 314 726 10,669

Year ended December 31, 2020

($ thousands) 6,430 1,394 467 468 305 245 615 9,924

The Administration Division expenses include salaries and benefits for approximately 84 employees on a full-time, part-time, casual or contract basis. Salaries and benefits for the year ended December 31, 2021 were 5.6% higher than the costs in 2020. This reflects modest annual compensation increases as well as the filling of vacant positions. Further information on Vestcor’s compensation program can be found in the Compensation Discussion and Analysis section of this Annual Report (see page 39).

Information systems costs continued to represent a large portion of the Administration Division’s annual expenditures; however, with the implementation having been completed on the new administration system in 2020, information systems costs remained consistent with the prior year. For the year ended December 31, 2021, total information systems costs were $1.4 million and only increased by 0.4% over 2020.

Office rent costs of $0.5 million for the year ended December 31, 2021 were 5.7% more than the prior year, mainly as a result of double rent being paid for January 2021 during our office move to 140 Carleton Street.

Professional services costs in the amount of $0.3 million for the year ended December 31, 2021 were $0.1 million more than the prior year reflecting the costs associated with the preparation and audit of Vestcor’s initial Service Organization Control Report on internal controls of financial reporting.

Amortization costs of $0.7 million reflect the continuing amortization of the administration system project costs of approximately $4.5 million.