A Principled Approach

Introducing five key principles that will guide the Comprehensive Plan Review

To be effective, the Comprehensive Plan Review must consider the needs and expectations of a broad range of constituents, many with differing perspectives and competing priorities. To help ensure that risks, rewards, and responsibilities are managed appropriately, the Board has adopted the following five key principles to guide the Comprehensive Plan Review:

1. Secure

  • Remain a defined benefit model that provides a predictable, formula- based benefit
  • Provide certainty that all accrued benefits earned under the Plan will be paid to members and beneficiaries
  • Address the needs of the current generation of members without compromising the ability to meet the needs of future generations

2. Relevant

  • Deliver benefits that are valued by Plan members
  • Support the preferred people practices of employers, unions and ​stakeholders
  • Where practicable, offer cost-neutral options (e.g., survivor benefit options) that help address the personal goals and circumstances of individual members

3. Affordable

  • Set contributions – employer and member – at a level that: 
    • is deemed affordable by Plan members and employers,
    • ensures an appropriate reallocation of member money during active employment,
    • supports the accrual of a commensurate and relevant benefit, and minimizes the prospect of over-saving
  • Use appropriate levers to ensure that contribution levels remain consistent and predictable over time (i.e., do not experience sudden, frequent or large changes)

4. Equitable

  • All members should receive the same benefits under the same conditions
  • To the extent possible, pool only appropriate risks and minimize cross subsidies (e.g., subsidized spousal benefits)
  • Ensure that benefit and contribution levels are consistent with a judicious allocation of risk between different generations of members.

5. Simple

  • The Plan design should enhance member understanding and appreciation
  • Plan provisions should be clear, rational, and easy to communicate and administer
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