Why we're Changing

The Healthcare Employees’ Pension Plan (HEPP) Board of Trustees is committed to the defined benefit promise for all Plan members – for the lifespan of Plan membership. The Board continually monitors and evaluates the Plan to ensure its long-term sustainability.

imageYour Plan has been very well-managed and its investments have experienced strong returns over the Plan’s lifetime. HEPP is ranked as one of the top 50 pension plans in Canada in terms of plan assets, and its investments have had positive returns in 16 of the 19 years since HEPP was established. However, the combined impact of challenging economic conditions and increased member longevity have created risk that the Board has decided to address by changing certain elements of the Plan.

The Board took significant time and effort to analyze the Plan and consider a variety of potential options before deciding to make these changes. They have determined that this is the best path forward for our membership and the Plan.

Risks to Defined Benefit Pension Plans

  • People are living longer in retirement, drawing from their lifetime pensions.
  • Global Market investment risks remain high.
  • Historically low interest rates have weakened normally reliable forms of investment income such as bonds.
  • As plan membership matures fewer active members are paying into the plan, while more retired members are receiving a lifetime monthly pension.

The Board is acting now to help ensure the Plan is adequately funded so it can provide for all the future pension promises it has in place.

Our Guiding Principles for the Changes

  • Affordable to all stakeholders.
  • Financially sound (sustainable) over the lifespan of Plan membership.
  • Minimize impact to current members.
  • No impact to the pension formula.
  • No impact to current retirees.
The defined benefit calculation is not changing.

Benefits of the Changes

These changes will allow HEPP to:

  • Focus on providing retirement benefits to members who are active in the Plan when they retire,
  • Offset the longer period that members who retire before 55 are being paid their pensions, and
  • Ensure our Plan is consistent and competitive with other plans in the province and across the country.

© 2017 HEB Manitoba

 

Disclaimer - This website provides a basic overview of the Healthcare Employees' Pension Plan (HEPP) and the Healthcare Employees' Benefits Plan (HEBP) (collectively the HEB Manitoba Pension and Benefit Plans). Not all employers participate in all Plans. Please check your eligibility for benefits with your employer.

HEB Manitoba is a name notation registered by the Healthcare Employees’ Pension Plan – Manitoba and the Healthcare Employees’ Benefits Plan – Manitoba and under which each of their respective undertakings is carried out.

The information on this website is for convenience of reference only and has no official sanction. View our full disclaimer here.