The Manitoba government plans to borrow $1.5 billion to fund 75% of the province’s unfunded liability for the Teachers’ Retirement Allowances Fund.

Hewitt Associates was asked by the province to provide independent advice on the impact to Manitoba of accelerating the funding of its pension obligations.

Projection of the province’s pension costs for the next 50 years confirmed that due to the low cost of long-term debt financing, accelerated funding is financially beneficial to the province.

The province continues to work on a similar solution for the unfunded pension liability of the Civil Service Superannuation Fund and expects to address this obligation in future years.

To comment on this story email craig.sebastiano@rci.rogers.com.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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