Canada’s flexible pension plan for unions, employers, and members has released it’s 2024 annual report. Valuation results in the report reveal the plan’s funded position as 136.1% as of Dec 31, 2024, with the plan holding $887.6 million in assets, up $155.5 million in the year.
Building on a solid investment return of 10.9% in 2024, CWIPP Trustees granted pension increases to 18,000 members and pensioners with more than half the active employer groups receiving an average increase of 4.9% to their pensions earned to date.
“As a target benefit plan, CWIPP holds prudent but not excessive margins, which means we can ensure excess assets get into members’ pockets whenever it is appropriate to grant pension increases,” said Shawn Rahbek, Managing Director, CWIPP. “With a funding policy that balances adequacy, intergenerational equity and security, CWIPP is designed to provide generous but prudently managed pensions, with a high likelihood of regular pension increases. “
The pension increases for 2024 reflect a similar outcome as in 2023, when a 5.5% average increase was provided to 37 groups, and 2022, when the average increase provided to 33 groups was 7.9%. In 2021, 30 groups received an average increase of 6.6%.
With CWIPP assets now approaching $900 million, the plan achieved 5-year and 10-year annualized returns of 8.0% and 8.3%, respectively. The returns continue to support the plan’s long-term sustainability and commitment to providing secure monthly pension payments for life to CWIPP members.
Gary Goddard, CWIPP Board Facilitator and Chair, noted in the annual update that “CWIPP is a growing and
dynamic pension plan, focused on delivering outstanding service to our members, and dedicated to making
improvements that support members in building a more stable and financially secure retirement. Over the
past year, we made gains in both these objectives.” He observed that, “Target benefit pension plans are a
modern, innovative and accessible solution for organizations and unions seeking fair, secure and equitable
retirement financial outcomes.”
ABOUT CWIPP
CWIPP is Canada’s flexible pension plan built for unions, employers, and members. CWIPP was established in 1970 and operates as a multi-employer, target benefit pension plan.
Employers joining CWIPP have the flexibility to set their contribution rates and structure based on what
is bargained with their unions. Stable and fixed negotiated costs are protected by pension legislation, while member contributions are permitted but not required. Plan members’ pensions at retirement are paid as a monthly income for life.
Providing an exceptional plan experience, CWIPP is an ideal pension solution for Canadians seeking predictable lifetime pension income.
For more information about CWIPP and the advantages of a target benefit pension plan like CWIPP, please visit www.cwipp.ca or contact David Le Roy at dleroy@cwipp.ca.