May 2023 Pension

The May Pension Newsletter includes:

• • GSI Notes
  • Investment Results & Notes
  • Pension Notes
  • Policy Notes

Please note our new address effective May 1 2023.

Phone and email stay the same.

A1-844 McLeod Ave.

Winnipeg, MB

R2G 2T7

Last month Pamela Giles shared her experience of serving on the GSI Board. Please check out the April 2023 Benefits Newsletter, if you missed it, and consider whether this could be of interest to you as we still have a vacancy for the upcoming term beginning in September 2023.

Please call the office (1-877-352-4247) or review the GSI website for information. Anyone interested should complete a biographical data form and forward it to the GSI office.

The global markets had positive returns this quarter, reflecting the optimism of investors. The pension plan’s consultants report that the improving economic data this quarter was a surprise, as the growth was better than expected by the economists. The outlook is still uncertain following the banking scare in the US, but the easing of inflation and supply chain issues is encouraging. 

Please note that investment information is not intended to be investment advice or to be a recommendation for your personal investment portfolio. The content is intended for information purposes only and should not be disclosed to other third parties or used for the purposes of market timing or seeking to gain an unfair advantage.

Growth Fund

Here is a closer look at each portfolio within the Growth Fund.

Fixed Income Fund

The Fixed Income portion of the portfolio is managed by PH&N and holds several Funds. Here is a closer look at each portfolio within the

Fixed Income Fund.

The 2022 ELCIC Pension Plan Annual Report tells the pension story using a theme of trees. Please take a few moments to read about the pension activities in 2022.

The Statement of Investment Policies & Procedures (SIP&P) sets out how the member pension account assets are invested. The format of the investment is called a Life Cycle; the allocation changes as a plan member ages. 

The assets under the ELCIC Pension Plan are divided into two Funds: Fixed and Growth. The pension contributions are invested 20% in the Fixed Income Fund and 80% in the Growth Fund for those members age 40 and under, and then shift over the years to 62% in the Fixed Income Fund and 38% in the Growth Fund. Each year at the end of the member’s birthday month their account is rebalanced to the new allocation.

When the Life Cycle was first developed in 2013 the final allocation assigned took place at age 65. With a change in the membership demographic, with more than double the members over age 65 since 2013 and the recent market volatility, a change the SIP&P was approved to extend to glide path to age 70. 

The final allocation at age 70 is 70% to the Fixed Income Fund and 30% to the Growth Fund. 

This change is effective on July 1, 2023. Individual member accounts will be rebalanced and the new allocation assigned under the usual process i.e., at the end of the birthday month for each respective member. 

Members are required to settle their pension accounts by the end of the year in which the member turns age 71. If a plan member transfers their account balance to a Life Income Fund (LIF), they will determine the asset allocation based on their personal risk tolerance and goals within the LIF.