Page 11 - Transforming To Stay Successful

eturns are important. On average, 75 cents of every pension What does
dollar a pensioner receives comes from BCI’s investment “Actuarial Rate of
R returns.
Return” Mean?
We have a proud history of meeting or exceeding our clients’
return requirements over the longer term. And although clients
are well-funded today, if we’re unable to generate their actuarial
rate of return down the line, it could lead to a funding gap, putting Our clients’ actuarial rate of
pressure on them and their plan members. If this happened, they return (AROR) is the long-term
could choose to either increase the amount their members need to rate of return that plans need
contribute, or lower the benefits paid out to pensioners… in order to pay pensions and
What If We To put that in perspective: even a two-percentage difference in liabilities. Also known as the

“basic rate of return.”
average annual returns over an extended period would require
today’s 30-year-old to work seven years longer or almost double their
Don’t Adapt? savings to secure their retirement. Now, take our scale into account.
Think about the number of people that would affect, and the impact
on the people of our province.

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WHAT IF WE DON’T ADAPT? 11