While the total number of pension plans in B.C. declined to 610 in 2024, overall membership increased by four per cent to 1.34 million members, according to a new report from the BC Financial Services Authority.
The decline in the number of plans, from 613 in 2023, was attributed to plan mergers and windups. The province also took in 15 new plans last year. Assets held by these plans rose by 10 per cent to $237.6 billion, while contributions also increased to $7.5 billion.
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Defined benefit pension plan sponsors reported the higher number of members (956,000) and assets ($209.4 billion) spread across 127 plans, followed by target-benefit plan sponsors ($16.9 billion in assets with 292,600 plan members across 34 plans) and defined contribution plan sponsors ($11.3 billion across 449 plans counting with 91,100 members).
In 2024, 82 per cent of DB and target-benefit plan sponsors reported a going-concern funded ratio of 120 per cent or higher, followed by 14 per cent reporting between 100 per cent and 120 per cent. Only four per cent of plans reported a ratio below 100 per cent.
The report found B.C. pension plans are showing resiliency navigating the economic challenges of the past few years, including existing and emerging risks.
Last year, nearly three in 10 (28 per cent) DB plans reported using excess assets to offset required employer contributions. The report noted total contributions to B.C. plans rose by nine per cent, despite the use of contribution holidays by some plan sponsors.
“With British Columbians facing financial uncertainty, it’s important for pension plans to be robust and sustainable so that people can count on their pensions to meet their long-term financial goals,” said Nez Aquino, the BCFSA’s senior vice-president of financial institutions, in a press release.