Teachers' Pension Plan reaches key funding milestone in 2025
Halifax, NS – Teachers' Pension Plan Trustee Inc. (TPPTI) today announced the release of the 2025 Annual Report for the Teachers' Pension Plan (Plan), highlighting significant progress in the Plan's financial position, strong investment performance, and the achievement of an important long-term funding milestone.
As at December 31, 2025, the Plan's funded status increased to 86.8 per cent, up from 81.1 per cent one year earlier. The improvement was driven largely by investment performance and resulted in a $455 million reduction in the Plan's funding deficit, which now stands at $987 million.
The Plan also achieved the funding target established under the 2014 Agreement between the Plan Sponsors, reaching the required range of 80 to 90 per cent funded status by the end of 2025.
"The progress made in 2025 represents an important milestone for the Teachers' Pension Plan," said John Rogers, KC, ICD.D., Chair of Teachers' Pension Plan Trustee Inc. "While the Plan remains underfunded and faces ongoing demographic challenges, we are encouraged by the meaningful improvement in its financial position and the achievement of the 2025 funding target."
The Fund generated a one-year investment return of 8.02 per cent, net of investment management fees, exceeding the actuarial assumed rate of return of 6.10 per cent. Investment performance contributed significantly to the Plan's improved funded status and strengthened financial position.
At year-end, Plan assets totalled $6.511 billion, while actuarial liabilities were $7.498 billion.
The Plan continues to face challenges associated with its maturity. In 2025, approximately $458 million was paid in benefits compared to $312 million in contributions, resulting in a continued net cash outflow. The ratio of active members to retirees improved modestly to 0.99 active members for every retiree, though demographic pressures remain a long-term consideration for the Plan.
During 2025, TPPTI completed a comprehensive Asset Liability Modelling (ALM) study to evaluate the Plan's long-term investment strategy. The study resulted in enhancements to the asset mix, including an expanded allocation to private equity, as well as the introduction of leverage and portable alpha strategies designed to improve risk-adjusted returns over the long term.
To read the full 2025 Teachers’ Pension Plan Annual Report, visit the Plan’s website at: https://www.nstpp.ca/investments/plan-performance