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102%
Funded*
$0.2B
Funding surplus*
5.45%
Discount rate
$559M
In pension benefits paid to members in 2023
*On a smoothed asset basis
Funding highlights as at December 31, 2023
UPP is fully funded with a surplus
Funded status at December 31, 2023
Delivering plan sustainability
We use various measures and tools to maximize the Plan’s funded status and stability while maintaining stable, sustainable contribution and benefit levels over time, including:
Actuarial valuations—a steady view of Plan health
Regular actuarial valuations provide point-in-time assessment of the Plan’s financial health, based on a range of assumptions and in line with the Canadian Institute of Actuaries’ standards about future trends and events.
Every three years, at a minimum, UPP must file a funding valuation with regulators showing the Plan’s funded status and contribution requirements. Whether or not a valuation is filed in a year, UPP produces an annual funding valuation to maintain a line of sight to the Plan’s financial health and discloses this information in our annual report.
Joint Sponsors’ Funding Policy
In the event of a funding surplus or deficit, the Joint Sponsors’ Funding Policy provides a decision-making framework for maintaining or bringing the Plan to a fully funded status. The guiding document is based on sound actuarial and economic principles and contains specific provisions to promote Plan sustainability and maintain stable contributions and benefit levels.
Asset-liability (AL) analysis
UPP uses comprehensive asset-liability (AL) modelling to identify challenges and develop strategies to manage the Plan’s long-term investment and funding dynamics. These AL studies bring together all important aspects of the Plan to simulate possible funding outcomes under thousands of economic scenarios.
Unlike the typical three-to five-year cycle followed by similar-sized organizations, UPP conducts comprehensive AL modelling internally whenever necessary. Regular AL modelling allows us to stay ahead of potential challenges that could impact our sustainability. It also helps us closely align the investment portfolio with the pension commitments it is built to fund and to project and manage the Plan’s long-term contribution requirements, funded conditional indexing, and benefits. All of these aspects help maintain a stable Plan experience over time.
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