The Medicus Pension Plan is reporting a 152 per cent funded status on a going-concern basis and a 120 per cent funded status on a solvency basis as of Jan. 1, 2025.
In its annual report, the multi-employer defined benefit pension plan designed exclusively for incorporated physicians in Canada, also reported an investment return of 9.1 per cent in 2024, above its benchmark of 5.8 per cent.
“Market fluctuations are a natural part of investing, so we’ve built a strong, diversified strategy designed to withstand periods of uncertainty while maximizing returns during periods of prosperity,” wrote Simone Reitzes, the plan’s managing director, in the annual report.
Read: Medicus Pension Plan reports 158% funded status at start of 2024
“We were thrilled to deliver a 9.1 per cent investment return for our members last year, well ahead of our 5.8 per cent benchmark.”
The pension fund’s target asset mix is 70 per cent equity and 30 per cent fixed income, according to the report, which further broke down the equity bucket into Canadian equity (22 per cent), U.S. equity (20 per cent), international equity (21 per cent) and emerging markets equity (seven per cent).
The report also provided two updates, including the Medicus Pension Plan’s first inflation increase and two new benefit features for plan members and their families.
The inflation increase, which aims to help members’ pensions keep pace with the rising cost of living, includes 100 per cent inflation protection for active members for the years they’ve contributed to the plan and a 2.7 per cent boost for retirees’ monthly pension payout starting July 1, 2025. In addition, plan members who participated in the 2024 buyback program will receive a four per cent increase for each additional year of pension they purchased.
Read: 2024 DB Investment Forum: A look behind the scenes at the Medicus Pension Plan
The Medicus Pension Plan has also added two new guarantee period enhancements: an increased base pension guarantee from 10 years to 15 years and a 10-year guarantee period added to the 100 per cent spousal program.
Under the first option, if a retired member passes away before receiving 15 years of pension payments, the remainder will go to their designated beneficiary or estate. And for the second option, if a retired member passes away, their spouse will receive 100 per cent of their pension for life.
The report also noted the average plan member contribution is $30,400 per year, with some members on track to receive an annual pension of more than $200,000.
Read: New multi-employer pension plan coming for incorporated physicians