HALIFAX, NS -- Public Service Superannuation Plan Trustee Inc. (PSSPTI) announced today that the Public Service Superannuation Plan (Plan) achieved a positive net return of 7.93 per cent, which generated $595 million in total investment income for the fiscal year 2023-2024. This performance exceeded the actuarial assumed rate of return of 5.75 per cent but fell short of the policy benchmark of 9.96 per cent. Notably, benchmarks for real assets such as real estate, infrastructure, and agriculture/timber have risen significantly in the recent higher inflationary environment, setting challenging short-term targets.
“Despite these challenges, the PSSP’s diversified asset mix proved beneficial,” said PSSPTI Board Chair, Leo McKenna. “The Plan’s absolute return for the combined years of 2023 and 2024 placed it in the top quartile of its peer group, demonstrating the value of diversification across fluctuating market conditions.”
On a going-concern basis, the Plan was 103.8 per cent funded as of March 31, 2024, an increase of 0.9 per cent from the previous year. The Plan reported a surplus of $287 million, with net assets available for payment of benefits totaling $7.906 billion and actuarially calculated liabilities of $7.619 billion. “This increase in the funded ratio is attributed to asset gains during the fiscal year,” stated McKenna.
Membership growth remained a priority for PSSPTI in 2023-2024, with the introduction of the Private Sector Pension Plan Transfer Act. This legislation enables private sector pension plans to transfer into the PSSP, broadening the scope of potential participation and enhancing the Plan’s financial stability. The guiding principle for each membership growth opportunity is that it must be both cost-neutral to existing members and likely to enhance the long-term sustainability of the Plan.
Looking ahead, the PSSPTI Board is preparing for the 2025 funded health review, as mandated by the Public Service Superannuation Act. This comprehensive review, conducted every five years, assesses the Plan’s ability to afford cost-of-living adjustments and determines if any changes are necessary to Plan benefits and contribution rates. The Board will commence this review later in 2024, with completion expected in the first half of 2025.
The full 2023-2024 Annual Report is available on the PSSP website at: www.nspssp.ca/investments/plan-performance
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For more information, contact:
Gisèle March, Senior Communications Advisor
Nova Scotia Pension Services Corporation
marchgd@nspension.ca | www.novascotiapension.ca