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Thirty-second Annual Report of the Business Done in Pursuance of the Teachers' Pensions Act YEAR ENDED… British Columbia. Legislative Assembly 1973

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 PROVINCE OF BRITISH COLUMBIA
Thirty-second Annual Report
of the Business Done in Pursuance of the
Teachers' Pensions Act
YEAR ENDED DECEMBER 31
1972
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1973
  To the Honourable Walter S. Owen, Q.C, LL.D.,
Lieutenant-Governor of the Province of British Columbia.
May it please Your Honour:
The undersigned respectfully submits the Report of the business done in pursuance of the Teachers' Pensions Act during the fiscal year ended December 31,
1972.
ERNEST HALL
Provincial Secretary
Provincial Secretary's Office,
Victoria, B.C., December 3,1973.
 The Honourable Ernest Hall,
Provincial Secretary, Victoria, B.C.
SIR: I have the honour to lay before you the Report of the business done in
pursuance of the Teachers' Pensions Act during the fiscal year ended December 31,
1972.
I have the honour to be,
Sir,
Your obedient servant,
W. H. FORREST
Commissioner of Teachers' Pensions
December 3,1973.
 TEACHERS' PENSIONS ACT
ANNUAL REPORT
Report of the Business Done in Pursuance of the Teachers' Pensions Act
During the Fiscal Year Ended December 31, 1972
Sections 6,  7, and 10 — Contributions received from  teachers  totalled
$14,017,285, made up as follows:
$
Basic contributions  13,735,389
Voluntary contributions   55,330
Repayment of refunds for reinstatement        137,063
Contributions for  approved period of leave  of
absence   33,875
Contributions for approved military or other service 55,628
As at December 31, 1972, there were 30,516 teachers with contributory credits
in the fund, made up as follows:
Current contributors—
Teachers employed by school districts  23,526
Teachers employed other than by school districts __       129
Open inactive accounts—
Teachers out of service less than two years     3,423
Teachers with deferred vested pension rights        267
Teachers out of service more than two years     3,171
Costs assumed by the Minister of Finance in respect of recognition of approved
military or other service amounted to $47,118.
Section 8 (1)—Employer basic contributions received from the Minister of
Finance, based on 23,793 teachers contributing in December 1971, amounted to
$8,089,620.
Section 8 (3), (4), and (5)—Employer contributions received from the British
Columbia Teachers' Federation and employers other than school districts for 129
teachers on loan, etc., amounted to $86,916.
Section 8 (8)—Reimbursement to employers of Canada Pension Plan employer
contributions paid by them in respect of employees to whom the Teachers' Pensions
Act applies amounted to to $2,194,024.
Sections 11, 14, and 15 (1)—Superannuation allowances were granted in respect of 322 teachers as follows:
Normal retirement age  301
Total and permanent disability     14
Death in service       7
For analysis and comparative statistics, see Schedules 2, 3, and 4 appended.
Sections 15 (5) and 16—Refunds were granted in respect of 1,706 teachers and
totalled $2,132,556, made up as follows: c
$
Resignations   1,637 1,966,878
Death in service        22 109,947
Excess contributions on grant of allowance         36 55,345
Miscellaneous         11 386
For analysis and comparative statistics, see Schedules 2 and 3 appended.
5
 I 6 BRITISH COLUMBIA
Section 20 — Actuarial and administrative expenses paid from the Fund
amounted to $130,888.
Section 25—Securities held by the trustees at December 31, 1972, amounted
to $216,147,750, par value, as set out in Schedule 1 appended. Transactions during
the year (par values) were as follows:
$
Purchases   24,175,000
Redemptions     3,376,600
Net increase during year  20,798,400
The average yield on securities purchased during the year was 7.432 per cent. Every
effort is made to invest the funds as soon as they become available and at the maximum yield possible at the time of purchase.
Based on the mean of the opening and closing balances amounting to
$200,626,767, the net rate of interest earned during the year after charging
administration expense ($130,888) and matching portion of pensioners medical
premiums ($78,123) was 6.359 per cent.
Section 37—During the year the Teachers' Pensions Board held two meetings
at which it dealt with some 39 cases in accordance with Board policies. Applications
considered included reinstatement of previous teaching service, payment of employee-
employer contributions for periods of absence, and disability allowance.
LEGISLATION
The Teachers' Pensions Act was amended during the 1973 Spring Session of
the Legislative Assembly.  Among the more important changes are the following:
(1) Providing for payment, effective luly 1, 1973, to persons in receipt
of an allowance prior to January 1, 1972, of a supplementary allowance calculated by applying to the lifetime portion of the allowance
percentages ranging from 3 per cent for allowances granted in 1971
with an additional 3 per cent for each prior year to 66 per cent for
allowances granted in 1950 and before.
(2) Permitting a former contributor, who has not obtained a refund of
all his contributions, upon completing one year of full-time service
after again becoming a contributor, to count his previous service as
pensionable service. Where, after July 1, 1973, a refund has been
taken, reinstatement of previous service is no longer permitted.
(3) Changing, effective January 1, 1974, the basis of contributions by
the Minister of Finance on behalf of employers in each calendar year
from a stated amount per employee to a percentage of employee
contributions, as follows:
Per Cent
1974     70
1975      80
1976      90
1977 and subsequent years  100
(4) Providing pro rata reciprocal portability of contributions and service
with other British Columbia public pension plans where the service
in one plan commences not more than three years after the service
in the other plan terminated.
 TEACHERS' PENSIONS ACT—ANNUAL REPORT
I 7
(5) For the purpose of calculating a contributor's allowance upon retirement, using the 2 per cent of highest average salary per year of
service formula, changing the averaging period from seven years to
five years.
(6) Where a contributor retires before qualifying for an unreduced allowance, changing the basis of the reduction from an actuarial equivalent
factor to a 5 per cent per annum factor.
(7) Providing for payment by the Minister of Finance, instead of out of
interest earnings of the Fund, of one-half of monthly premium payable the British Columbia Medical Services Plan by persons in receipt
of an allowance.
(8) In the event of the contributor's death in service, providing for
widowers on the same basis as widows, and providing for continuance
of the spouse's allowance in the event of remarriage.
(9) Providing for refund of voluntary contributions upon retirement at
the option of the contributor.
(10) Authorizing the Trustees to invest also in the capital stock of a
corporation.
W. H. FORREST
Superannuation Commissioner
 I 8 BRITISH COLUMBIA
TEACHERS' PENSIONS FUND
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31  1972
ASSETS
Cash in bank            $401,152
Accounts receivable         1,432,443
Investments at the lower of cost or par value after amortization of discounts
(Schedule No. 1)     213,498,061
(Par value $216,147,750)
Accrued interest on investments        2,829,345
$218,161,001
LIABILITIES AND  FUND  BALANCE
Liabilities
Accounts payable         $ 179,761
Fund Balance
Pensions Account, being the amount available for the payment of
current pensions   $89,007,675
Employee Contributions Account  117,589,145
Employer Reserve Account       11,384,420
217,981,240
$218,161,001
W. H. FORREST C. WEBSTER, CA.
Commissioner of Teachers' Pensions Accountant
AUDITOR'S REPORT
I have examined the statement of financial position of the Teachers' Pensions Fund as at
December 31 1972 and the statement of changes in fund balance for the year then ended. My
examination included a general review of the accounting procedures and such tests of accounting
records and other supporting evidence as I considered necessary in the circumstances, except
that my work did not include a review of the actuarial soundness of the plan. It is the responsibility of the actuary appointed by the Fund to make actuarial valuations at intervals of not
more than five years.
In my opinion, with the foregoing explanation concerning the actuarial soundness of the
plan, these financial statements present fairly the financial position of the Fund as at December
31 1972 and the changes in fund balance for the year then ended, in accordance with generally
accepted accounting principles applied on a basis consistent with that of the preceding year.
J. W. MINTY, CA.
Comptroller-General
Province of British Columbia
Victoria, British Columbia
October 1, 1973
 TEACHERS' PENSIONS ACT—ANNUAL REPORT
I 9
TEACHERS' PENSIONS FUND
1 STATEMENT OF CHANGES IN FUND BALANCE
YEAR ENDED DECEMBER 31, 1972
Fund Balance Increased During Year by
Contributions per requirements of the Teachers' Pensions Act—
Employees:
Basic contributions  	
Voluntary contributions 	
Repayment of refunds for reinstatement	
Contributions for approved periods of leave of absence
Contributions for approved military or other service ....
$13,735,389
55,330
137,063
33,875
55,628
Employers:
Basic contributions
Contributions paid by employers other than school districts
for teachers on loan, etc. 	
Transfers from College Pensions Fund re four pensions granted
Interest on investments 	
Fund Balance Decreased During Year by
Superannuation allowances	
Refund of contributions—
Resignations  	
Death in service 	
Excess on grant of allowance
Miscellaneous 	
$1,966,878
109,947
55,345
386
Transfers to Civil Service Superannuation Fund of present value of
eight pensions granted	
Portion of medical premiums in respect of eligible recipients of a
superannuation allowance	
Reimbursement to employers of Canada Pension Plan employer contributions paid by them in respect of employees to whom the
Teachers' Pensions Act applies	
Actuarial and administration expenses 	
Net increase in Fund balance during year .
Fund balance—December 31 1971	
Fund balance—December 31 1972	
$8,089,620
86,916
$8,736,776
2,132,556
203,472
78,123
2,194,024
130,888
$14,017,285
8,176,536
42,386
12,974,289
$35,210,496
13,475,839
$21,734,657
196,246,583
$217,981,240
 I 10 BRITISH COLUMBIA
SCHEDULE 1
TRUSTEES OF THE TEACHERS' PENSIONS FUND AND THE
MINISTER OF FINANCE FOR THE PROVINCE OF BRITISH COLUMBIA
Securities Held as at December 31, 1972
Short-term Deposits
Canadian Imperial Bank of Commerce
Province of British Columbia Guaranty
B.C. Hydro and Power Authority 	
B.C. Electric  Company Limited  	
B.C. Power Commission 	
B.C. Railway Company
Greater Vancouver Water District 	
Greater Vancouver Sewerage and Drainage District
B.C. School Districts Serials 	
B.C. School Districts Capital Financing Authority Serials       4,523,000
B.C. School Districts Capital Financing Authority              25,127,000
B.C. Municipal Serials
B.C. Improvement Districts
Nechako Improvement District Serial 	
B.C. Hospital Improvement Districts Serials
B.C. Irrigation Districts Serials 	
B.C. Irrigation Districts 	
B.C. Water Works Districts 	
Par Value
Book Value
$
$
1,180,000
1,180,000
126,139,000
124,760,523
1,450,750
1,379,624
6,256,000
6,211,910
25,476,000
25,404,361
1,528,000
1,525,386
980,000
979,815
17,917,000
17,218,809
4,523,000
4,484,873
25,127,000
24,888,978
1,392,500
1,337,888
664,000
655,325
732,000
725,046
856,000
845,751
265,000
261,862
592,500
591,415
94,000
93,228
3,000
2,949
500,000
483,000
458,000
453,489
Saltair Water Works District Serial 	
Greater Vancouver Water District Serial 	
Greater Vancouver Sewerage and Drainage District Serial 	
Province of Alberta Guaranty
Alberta Municipal Financing Corporation   14,000 13,829
216,147,750    213,498,061
 TEACHERS' PENSIONS ACT—ANNUAL REPORT
I 11
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 I 12
BRITISH COLUMBIA
SCHEDULE 3
Teachers' Pensions Fund
Comparative Statistics, January 1,1959, to December 31,1972,
Subdivided According to Sex of Contributor
Fiscal Year
Number of
Contributors
Number of
Refunds
Granted
Number of
Allowances
Granted
Number of
Deaths and
Expirations
Number of
Allowances
in Force at
End of Year
Male
Female
Male
Female
Male
Female
Male     Female
Male
Female
1959      ....
4,982
6,640
103
524
19
39
12
13
397
478
Nonactive1	
409
1,321
	
Non active2
169
810
	
	
1961	
5,638
7,206
131
636
30
61
9
14
425
565
Nonactive1	
479
1,341
Nonactive2
325
1,321
	
	
...
1963	
6,446
8,027
199
729
39
77
16
23
461
669
Nonactive1-	
493
1,255
	
	
	
Nonactive2	
222
1,034
	
.
	
	
1965
7,123
9,020
261
930
33
92
16
20
487
802
Nonactivei
607
1,239
Nonactive2	
323
1,422
	
1967-.	
8,329
10,665
316
898
73
112
8
34
601
1,003
Nonactive*
704
1,882
	
	
	
	
	
	
_.	
404
1,410
1969
10,009
12,445
1,7563
1,5033
93
174
21
28
739
1,250
Nonactive1- 	
886
2,144
	
	
;	
Nonactive2 	
524
1,711
	
	
	
	
1970 	
10,468
12,671
466
1,368
96
158
16
25
819
1,383
Nonactivei  ._ _
977
2,402
	
	
	
	
	
	
Nonactive2	
694
2,169
    i
	
	
	
	
	
1971  _ —-
10,914
12,991
393
1,204
86
153
24
50
881
1,486
Nonactive1  -
1,195
2,798
	
	
	
	
	
	
	
	
Nonactive2    	
649
2,266
	
	
	
. .
1972	
11,132
11,520
430
1,276
125
197
19
28
987
1,650
Nonactive1
1,052
2,638
	
	
	
	
	
	
Nonactive2	
713
2,458
	
	
	
'
1 Nonactive open accounts of teachers who have been out of service less than two years.
2 Nonactive open accounts of teachers who have been out of service over two years.
3 Includes refund of extra compulsory contributions only, 1,609.
 TEACHERS' PENSIONS ACT—ANNUAL REPORT
SCHEDULE 4
I 13
Teachers' Pensions Fund
Summary of Normal Allowances Granted During 1972
Number of
Allowances Granted
Years of
Service
Average
Salary
During
Last
5 Years
Average
Annual
Allowance,
Single Life
Plan
Average
Value of
Allowance
Average
Teacher's
Share
Average
Government
Share
51-
40-
28-
39-
49_
38-
43...
10-14
15-19
20-24
25-29
30-34
35-39
40 and over
$
8,632
9,109
9,882
10,008
10,118
11,281
11,490
$
1,680
2,592
3,612
4,776
6,312
7,644
7,788
20,011
30,410
40,752
55,110
74,919
90,558
86,089
$
7,035
9,768
12,786
15,320
16,206
18,035
19,058
$
12,976
20,642
27,966
39,790
58,713
72,523
67,031
Average of Normal Allowances Granted During Year
288	
1
1        $
27          |    10,035
$
5,010
$
57,829
$
14,991
$
42,839
Total Value of Normal Allowances Granted During Year
288
1
1         $
|     	
$
1,442,880
$
16,654,893
$
4,317,395
$
12,337,498
1
Allowances other than normal granted during 1972: Death, 7; disability, 14; deferred, 13; total, 34.
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1973
480-1273-346
 

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