THIS NOTICE IS FOR INFORMATION PURPOSES ONLY. THE FUND IS REQUIRED BY LAW TO SEND THIS NOTICE EACH TIME AN ACTUARIAL VALUATION IS FILED.
SOMEPP Notice
January 1, 2025 Actuarial Valuation
An Actuarial Valuation of the Plan was performed as of January 1, 2025. It showed the Plan is funded 127.74% on a going-concern basis. This means that as of January 1, 2025, the Plan’s assets cover the costs of accrued benefits, based on the assumption that the Plan will keep operating indefinitely.
Under pension law, the Actuary must also do a solvency valuation on a wind-up basis as of January 1, 2025. This valuation assumes the Plan ceases to operate, liquidates all its investments and pays out all benefits as of the valuation date. Measured this way, the Plan’s assets would cover 100% (the transfer ratio) of the benefit costs.
Please note that this situation is purely hypothetical and the Trustees have never discussed or considered the possibility of a plan wind-up. The Trustees expect that the Plan will continue indefinitely.
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BOARD OF TRUSTEES
Musicians’ Pension Fund of Canada
