We want to reassure our members and other stakeholders about the health of the Healthcare Employees’ Pension Plan (HEPP) following media reports about recent Pension regulation changes announced by the Provincial government and some suggestion that HEPP, along with two other public sector pension plans, may be headed for a $10 billion actuarial deficit.

Our most recent annual report to members (2019) notes that HEPP’s going concern funded status was 109.3%. Further, contrary to any external statements about contribution sufficiency, the HEPP ratio was 109.7% and remains at a healthy level going forward. 

Additionally, HEPP is designated as a multi-unit pension plan under the Pension Benefits Act (PBA). What this means is that a participating employer's liability for funding plan benefits is limited to the amount the employer is contractually required to contribute to the plan. Simply put, our Healthcare employers’ responsibility is limited to a defined contributions amount, which the HEPP Board of Trustees cannot change. The Provincial government has no responsibility for any HEPP liabilities or deficits.

HEPP, like most large pension funds, invests in a diversified portfolio to manage its risks. Our preliminary returns for 2020 are higher than the rate required to fund the benefits of the Plan.

Kerry Poole
CEO, HEB Manitoba