Nova Scotia Teachers' Pension releases results

    HALIFAX, April 20 /CNW/ - Results for 2008 indicate the Nova Scotia
Teachers' Pension Plan performed as well as, or better than, other large
Canadian pension plans. The Nova Scotia Teachers' Pension Plan had an
investment return of -16.8 per cent for the year ended December 31, 2008.,
while some of the biggest Canadian pension plans had average investment
returns of -18.4 per cent for 2008(*).
    "We have experienced the worst equity markets in more than 30 years,
which have affected the plan's performance. But the investments are
diversified and have always been managed in a disciplined fashion with a long
term focus," said Pat O'Neil, Chair of the Nova Scotia Teachers' Pension
Trustee Inc. the board that oversees investment of the Plan's assets. "We
closely monitor the funds to minimize risk and ensure the investments are
positioned to take advantage of a market rebound when it happens."
    The funding level of the Nova Scotia Teachers' Pension Plan has decreased
to 70.8 per cent, meaning those who retired after August 1, 2006 will not
receive indexing this year. These retirees will continue to receive the same
regular pension payments from the Teachers' Pension Fund.
    Except for the pre-August 1, 2006 pensioners who chose the variable
pension option, teachers who retired prior to August 1, 2006 are not affected
by the change in the funding level. These pensioners will receive indexing on
July 1, 2009 at a rate of Consumer Price Index (CPI) minus one per cent.
    "According to the 2005 agreement between the Province and the Nova Scotia
Teachers Union, pensioners who retired after August 1, 2006 can not receive
indexing when the plan's funding level drops below 90 per cent," said O'Neil.
"The Nova Scotia Teachers Union and the provincial government have an
agreement to only offer indexing when the plan is at least 90 per cent
    As part of the 2005 agreement, the Province will make a contribution to
the Nova Scotia Teachers' Pension Fund equal to the actuarial value of
indexing not paid. This amount is estimated to be $3.5 million.
    "In the context of large pension plans, this contribution is relatively
small," said Alexis Allen, President of the Nova Scotia Teachers Union. "We do
remain confident with how the plan's investments are managed and believe
returns on investment will improve as the economy begins to recover."
    The Nova Scotia Teachers' Pension Trustee Inc. received its actuarial
valuation results on April 15 and will publish its financial statements and
annual report in May. More information about the Nova Scotia Teachers' Pension
is available at .

    About the Nova Scotia Teachers' Pension Trustee Inc.

    The Teachers' Pension Plan Trustee Inc. is a board of representatives who
act as trustee of the fund and are responsible for directing and monitoring
investment of fund assets. The Nova Scotia Pension Agency administers and
invests the pension assets at the direction of the Trustee. There are
currently nearly 14,000 active members of the plan and approximately 11,000

    (*) RBC Dexia DB Plans with assets over $1 billion.

For further information:

For further information: Holly Dunn, M5pr, (902) 422-2988, (902)

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Nova Scotia Teachers Union

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