Future Benefit Changes
Since the TRIP Plan is a Target Benefit Plan, it includes specific provisions addressing future benefit reductions and enhancements that would occur depending upon the financial condition of the plan. The financial condition of the Plan is reviewed on an annual basis. In the case of the Regina Police Pension Plan, the Regina Board of Police Commissioners has assumed responsibility for the existing as at June 30, 2014. No changes can be made to the Plan’s benefits or contribution rates without the agreement of all sponsors.
The TRIP Plan includes specific provisions for annual ‘affordability testing’, also conducted annually. The affordability test calculation is the ratio of Plan Assets to Plan Liabilities: