Since its inception, the TPPC has been focused on maintaining a return over the long-term that is equal to or greater than the assumed actuarial discount rate of 6%. This focus has been matched by a continued emphasis on de-risking the Plan’s investment strategy and lowering the volatility of returns.
These priorities have been achieved through continued investment and asset class diversification. The Plan’s strategic asset allocation is approved by the Board of Directors, based on asset liability modelling (“ALM”) studies which form the foundation of the Plan’s investment strategy. Such studies are conducted periodically to validate the Corporation’s financial projections against a variety of diverse economic and demographic scenarios, and to determine if any adjustments to the strategic asset allocation are needed to optimize the likelihood of the Plan meeting the funding requirements contained within the JSA.
The TPPC initiated an ALM study in August 2020; this process resulted in the approval of the current Strategic Asset Allocation by the Board of Directors in December 2020: