Canada Post Pension Plan 2019 year-end results
A message from Barbara MacKenzie, Interim Chief Financial Officer
In 2020, investments by the defined benefit (DB) component of the Pension Plan generated a return of 9.4%, compared to a benchmark of 10.3%. This reflected the impact of COVID-19 on global economies and investment markets. However, over the past 10 years, the Plan’s average annual return, at 8.8%, has outperformed the benchmark of 7.8%.
The current estimate of the Plan’s financial position as at December 31, 2020 is a going-concern surplus of $3.8 billion and a solvency deficit to be funded of $6.3 billion.1 By actively managing our portfolio, we have added value above the benchmark return by $1,959 million over the last 10 years.
Assets in the defined contribution (DC) component grew from $71 million in 2019 to $100.2 million as at December 31, 2020. Canada Post contributed $15.5 million and members contributed $9.2 million to the DC component in 2020. Refer to your personalized DC statement to learn about your personal rate of return.
The 2020 Report to Members is now available under Publications. It provides you with information about the Plan’s performance, investments and services to members, as well as an update on the funded status of the Plan.
Final year-end results for the Plan will be filed with the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Revenue Agency (CRA), our pension regulators, by the end of June.
1 The solvency deficit when using market value of Plan assets is estimated at $7.1 billion.