Plan grants 2.01% inflation-matching increase as funded status reaches 136.5% for 2024
A 2.01 percent cost-of-living adjustment (COLA), matching the change in the Consumer Price Index (CPI), will be provided to all members of the New Brunswick Public Service Pension Plan (NBPSPP) for 2025, as the Plan reports a robust funded status of 136.5 percent as of 31 December 2024.
This adjustment aims to ensure that members’ pensions keep pace with inflation and reflects the Plan’s ongoing commitment to benefit security and sustainability.
Katherine Greenbank, chair of the Board of Trustees, said the ability to grant cost-of-living adjustments annually for more than a decade demonstrates the Plan design working as intended.
“Our focus has always been to deliver on the pension promise—providing all members with secure, sustainable retirement income that helps support their needs today and into the future,” Greenbank said.
The CPI-linked increase is described as a key feature of the Plan, playing a vital role in supporting financial security for current and future retirees.
By aligning benefit adjustments with inflation, the Plan aims to help members manage the rising costs of everyday living and reinforce the long-term value of their pension.
The Plan achieved a nominal investment return of 12.65 percent in 2024.
Since 2014, the long-term rate of return has increased to 7.14 percent, continuing to surpass the discount rate of 5.00 percent set by the Board of Trustees in consultation with TELUS Health, the Plan’s independent actuary.
Vestcor Inc. serves as the Plan’s investment manager and day-to-day administration services provider and is described as fundamental to the NBPSPP’s success.
The Board notes that, although market volatility is inevitable at the moment, the NBPSPP’s diversified investment portfolio is crafted to withstand fluctuations and continues to ensure the long-term security of member benefits.
The New Brunswick Public Service Pension Plan Board of Trustees currently consists of nine Trustees (out of a possible 10, with one vacancy) and two Observers.
Four Trustees were appointed by the unions that signed the NBPSPP’s Memorandum of Understanding, and five Trustees were appointed by the provincial government, including at least one retiree.
