Fund Investment Experience

The National Pension Plan is financed entirely by employer contributions negotiated during collective bargaining, plus investment earnings from the Fund's assets. Participants do not contribute to the plan.

The Fund's prudent diversification and management of assets has resulted in a strong investment track record. The Fund's Trustees adhere to a disciplined, long-term investment policy based on solid fundamentals and meticulous research and analysis. They maintain a broadly diversified portfolio and employ an active rebalancing mechanism.

In recent years, the plan has broadened its holdings by adding managers in a number of areas, increasing diversification. The Fund's investment program is structured to include both actively managed portfolios (where a manager decides which securities to invest in) and index funds (a pre-set basket of securities usually based on a market index such as Standard & Poor's S&P 500 Stock Index).

The investment committee of the Board of Trustees reviews performance and activity reports on the investment managers. In addition, the Board also regularly receives strategic input from independent consultants and academic institutions.

The Fund's long-term investment results are remarkably strong. Since 1985, the Fund's investments returned an average of 11.49% per year.

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Frequently Asked Question (FAQ)

How is the plan funded?

The plan is funded through employer contributions and earnings on investments.

Who manages the Fund's assets?

The Fund's assets are managed by professional investment managers who follow the investment objectives set by the Fund's investment committee.

What does the Fund do with earnings on investments?

The Fund is a not-for-profit organization. All investment earnings are used to provide benefits to pensioners and beneficiaries, and to cover the cost of running the Fund.

Is the Fund financially sound?

Yes. Unlike many single-employer or company pension plans, the National Pension Plan is well funded and financially sound. View copies of the plan's Annual Funding Notice here.

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