December 9, 2003
Pension Funding Policy Approved
VANCOUVER, B.C. - The Carpentry Workers' Pension Plan Trustees have recently developed a funding policy. (Read the full policy).
The funding policy sets out the Trustees’ objectives for managing the Pension Plan’s financial position. First, the pension fund needs to have enough money to:
•
Be able to pay the promised benefits, and
•
Provide a cushion against a rainy day (for example, poor investment
markets).
Once the fund has reached a certain level, the funding policy allows the Trustees to use some money to improve the Plan’s pension benefits. The funding policy also sets out the priorities for improvements over time, as money become available.
The Trustees wish to ensure that future improvements to the pension benefits are done prudently. Trustees would hate to improve pensions just to find they had to cut them again! This funding policy is a major step in making sure that the Plan is managed properly.