Funding & Investment Publications

Actuarial Valuation

An actuarial valuation is a mathematical analysis of the financial condition of a pension plan. An external actuary (called the Plan Actuary) prepares an actuarial valuation for the Public Service Pension Plan (PSPP or Plan) at least once every three years. The valuation determines the financial position of the Plan and the future contribution rates needed to ensure its long-term funding. The actuary determines how much money the Plan needs to pay pension benefits by making assumptions about future investment returns, future inflation rates, future increases in salaries, expected retirement ages, life expectancy and other factors.

By legislation, an actuarial valuation must be conducted at least once every three years and filed with the Canada Revenue Agency (CRA). However, the Board may conduct actuarial valuations more frequently to continually monitor the financial health of the Plan.

PSPP Experience Study

An experience study is an analysis of the actual events that happened in the Plan, in respect to termination rates, retirement rates, mortality rates and seniority/merit/promotion (SMP) increases. The study provides important insight into how PSPP's demographic experience is trending and is used to set demographic assumptions for future actuarial valuations. Experience studies are conducted at least every five years.

PSPP Funding Policy Statement

The Funding Policy Statement outlines the Plan's funding principles, the process for assessing the adequacy of contribution rates, assumptions and methods, and provides guidelines for action based on the Plan's financial position. The Board reviews this document with the Plan Actuary as part of the actuarial valuation process.

​PSPP Annual Report and Financial Statements

Each year, PSPP publishes an annual report detailing the previous year's financial operations. The annual report includes financial statements, updates on Plan performance and investments, and a summary of operations.

The financial statements provide different information and results than actuarial valuations because they use different assumptions. Financial statements report the market value of the Plan's assets and liabilities, whereas actuarial valuations use a smoothed value of the Plan's assets and include a margin in the calculation of liabilities.

PSPP Quarterly Investment Performance

PSPP invests in a variety of stocks, bonds and investment products. Alberta Investment Management Corporation (AIMCo) is responsible for managing the Plan's investments. Quarterly reports provide investment performance updates on an ongoing basis.

PSPP Statement of Investment Policies and Guidelines

The Board sets investment policies and guidelines for the investment of the Plan assets in the Statement of Investment Policies and Guidelines (SIP&G). The SIP&G sets out the target asset mix for the Plan. Although AIMCo has the discretion to make investment decisions, AIMCo must invest and manage the Plan's assets according to the Board's SIP&G. The Board reviews the SIP&G annually.