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Thirty-fifth Annual Report of the Business Done in Pursuance of the Teachers' Pensions Act YEAR ENDED… British Columbia. Legislative Assembly 1977

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 PROVINCE OF BRITISH COLUMBIA
Thirty-fifth Annual Report
of the Business Done in Pursuance of the
Teachers' Pensions Act
YEAR ENDED DECEMBER 31
1975
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1977
  To Colonel 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,
1975.
GRACE MCCARTHY
Provincial Secretary
Provincial Secretary's Office,
Victoria, B.C., January 10, 1977. >
 The Honourable Grace McCarthy,
Provincial Secretary, Victoria, B.C.
Madam: 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, 1975.
I have the honour to be,
Madam,
Your obedient servant,
H. E. TURNER
Deputy Commissioner of Teachers' Pensions
January 10, 1977.
 TEACHERS' PENSIONS ACT
ANNUAL REPORT
Report of Business Done in Pursuance of the
Teachers' Pensions Act During the Fiscal Year Ended
December 31, 1975
Section 4d—Cost-of-living supplements totalling $2,746,850 paid during the
year were charged to Pension Account. Effective May 1, 1976, when the accumulated payments exceeded 1 per cent of the average annual total of contributory
salaries, cost-of-living supplements are being financed by additional employee and
employer contributions, each at the rate of 0.5 per cent of salary. The section
provides for a further similar increase in contributions when the accumulated payments again exceed 1 per cent of the average annual total of contributory salaries.
Sections 6, 7, and 10—Contributions received from teachers totalled
$23,834,451, made up as follows:
$
Basic contributions   23,493,046
Voluntary contributions  38,706
Repayment of refunds for reinstatement        111,755
Contributions for approved periods of leave of absence  39,206
Contributions for approved military or other service        151,738
As at December 31, 1975, there were 38,530 teachers with contributory
credits in the fund, made up as follows:
Current contributors—
Teachers employed by school districts  29,315
Teachers employed other than by school districts        104
Open inactive accounts—
Teachers out of service less than two years     4,520
Teachers with deferred vested pension rights        343
Teachers out of service more than two years     4,248
Costs assumed by the Minister of Finance in respect of recognition of approved military or other service amounted to $127,925.
Section 8 (1)—Employer basic contributions received from the Minister of
Finance, matching the amount paid by teachers employed by school districts,
amounted to $23,340,302.
Section 8 (3), (4), and (5)—Employer contributions received from the British
Columbia Teachers' Federation and employers other than school districts for 104
teachers on loan, etc., amounted to $152,744.
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 $3,694,477.
Sections 11, Ilk, 14, and 15 (1)—Superannuation allowances were granted in
respect of 440 teachers as follows:
Normal retirement age  406
Total and permanent disability     11
Death in service     23
 L 6 BRITISH COLUMBIA
For analysis and comparative statistics, see Schedules 2, 3, and 4 appended.
Transfers totalling $459,930 were received from four reciprocal pension plans
in respect of 53 contributors upon grant of allowance and in respect of 17 contributors following transfer of service, as follows:
Upon grant of allowance— $
Public Service Superannuation Fund     1 63,586
Province of Alberta Teachers'Pensions Fund  20        155,792
Province of Saskatchewan Teachers' Pensions Fund 32        122,255
During service—
Public Service Superannuation Fund     1 1,124
Government of Canada Public Service Pension Account   16        117,173
Transfers totalling $1,321,297 were made to six reciprocal pension plans in
respect of 22 contributors upon grant of allowance and in respect of 13 contributors following transfer of service, as follows:
Upon grant of allowance— $
College Pension Fund     7        514,465
Public Service Superannuation Fund  12        763,545
Province of Alberta Teachers' Pensions Fund  1 1,815
Province of Saskatchewan Teachers' Pensions Fund    1 5,606
Province of Ontario Teachers' Superannuation
Fund      1 606
During service—Government of Canada Public Service
Pension Account  13 35,260
Section 13 (4)—The matching portion of medical premiums deducted from
eligible recipients of a superannuation allowance was paid by the Minister of
Finance.
Sections 15 (5) and 16—Refunds were granted in respect of 1,251 teachers
and totalled $2,213,798, made up as follows:
$
Resignations  1,161    2,026,748
Death in service         19       111,578
Excess contributions on grant of allowance       58 72,288
Miscellaneous         13 3,184
For analysis and comparative statistics, see Schedules 2 and 3 appended.
Section 20—Actuarial and administrative expenses paid from the fund
amounted to $245,848.
Section 25—Securities held by the trustees at December 31, 1975, amounted
to $299,068,450, par value, as set out in Schedule 1 appended. Transactions
during the year (par values) were as follows:
$
Purchases  49,792,000
Redemptions  10,671,100
39,120,900
The average yield on securities purchased during the year was 10.161 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.
 TEACHERS* pensions act—annual REPORT L 7
Based on the mean of the opening and closing balances amounting to
$295,753,864, the net rate of interest earned during the year after charging
administration expense of $245,848 was 7.108 per cent.
Section 37—During the year the Teachers' Pensions Board held two meetings
at which it dealt with some 16 cases in accordance with Board policies. Applications considered related to contributions for periods of leave of absence and to
disability allowances.
H. E. TURNER
Deputy Commissioner of Teachers' Pensions
 L 8
BRITISH COLUMBIA
TEACHERS' PENSIONS FUND
STATEMENT OF FINANCIAL POSITION
AS AT DECEMBER 31, 1975
ASSETS
1975
1974
Cash and bank deposit notes _
Contributions receivable—
Employee and employer
9,097,114        7,429,323
4,047,381
Province of British Columbia re deficit in employer reserve    7,592,991
Accrued interest on investments     4,707,685
Investments at lower of cost or par value with amortization of discounts (Note 2)   296,843,692
(Par value 1975, $299,068,450; 1974, $259,947,550)
2,892,249
2,679,472
4,084,044
257,728,825
322,288,863    274,813,913
LIABILITY AND FUND BALANCE
Liability
Accounts payable 	
Fund Balance
Pensions Account, being the amount available for the payment
of current pensions
Employee Contributions Account
347,549
333,979
140,224,590    118,723,731
181,716,724    155,756,203
321,941,314    274,479,934
322,288,863    274,813,913
Approved by:
H. E. TURNER C. WEBSTER, CA.
Deputy Superannuation Commissioner Comptroller
Superannuation Commissioner,
Province of British Columbia.
AUDITOR'S REPORT
I have examined the statement of financial position of the Teachers' Pensions Fund as at
December 31, 1975, and the statement of changes in Fund balance for the year then ended.
My examination was made in accordance with generally accepted auditing standards, and
accordingly included such tests and other procedures as I considered necessary in the circumstances.
In my opinion, these financial statements present fairly the financial position of the Fund
as at December 31, 1975, 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.
The actuarial valuation of the Fund is referred to in Note 1 to the financial statements.
K. M. LIGHTBODY, CA.
Acting Comptroller-General, Province of British Columbia
Victoria, B.C., January 7, 1977.
 TEACHERS' PENSIONS ACT—ANNUAL REPORT L 9
TEACHERS' PENSION FUND
STATEMENT OF CHANGES IN FUND BALANCE,
YEAR ENDED DECEMBER 31, 1975
1975 1974
Fund Balance Increased During Year by
Contributions—
Employees: $ $
Basic    23,493,046      18,741,226
Voluntary   38,706 45,549
Reinstatement   111,755 132,534
Leave of absence   39,206 32,784
Military or other service  151,738 136,239
23,834,451      19,088,332
Employers:
Basic—paid by the Province of British Columbia ....    23,340,302      13,043,273
Contributions paid by employers other than school
districts for teachers on loan, etc.   152,744 107,974
23,493,046      13,151,247
Province of British Columbia:
re deficit in Employer Reserve Account      4,913,519       2,679,472
Transfers from other funds            459,930 345,395
Interest on investments      20,545,413      17,185,283
73,246,359      52,449,729
Fund Balance Decreased During Year by
Superannuation allowances—
Contributory allowances      15,562,709      13,295,741
Cost-of-living supplements   2,746,850 622,365
18,309,559      13,918,106
Refunds   2,213,798 2,213,370
Transfers to other funds   1,321,297 753,707
Reimbursement  to  employers  of  Canada  Pension  Plan  employer contributions paid by them in respect of employees
to whom the Teacher!? Pensions Act applies  3,694,477 3,089,240
Actuarial and administration expenses   245,848 168,932
25,784,979      20,143,355
Net increase in Fund balance during year     47,461,380       32,306,374
Fund balance at beginning of year  274,479,934    242,173,560
Fund balance at end of year  321,941,314    274,479,934
 L 10 BRITISH COLUMBIA
TEACHERS' PENSION FUND
NOTES TO FINANCIAL STATEMENTS,
DECEMBER 31, 1975
1. Actuarial valuation—According to the Act applicable to the Fund, an actuarial valuation of the assets and liabilities of the Fund is required to be made by an actuary from time to
time at intervals of not more than five years. The most recent valuation was carried out as at
December 31, 1970. This valuation noted that the funding level provided for under the Act
requires that the assets of the Fund are at all times at least equal to the sum of active employees' contributions accumulated with interest plus the present value of pensions being paid
to pensioners and of vested pensions. The report indicated that, to maintain this level of
funding, employer subsidy contributions would be required by 1978. Such employer subsidy
contributions were initiated in 1974. An actuarial valuation as of December 31, 1974, is
presently in progress, which will reflect the additional costs attributable to the significant
improvements in benefits enacted during the four-year period then ended.
2. Investments—As the majority of the investments comprise bonds and debentures
guaranteed by the Province of British Columbia and as there is no short-term need or intention
to liquidate them, it is not considered necessary to make any provision for a temporary reduction in market value below cost.
3. Cost-of-living supplementary allowances—During April 1976 the accumulated payments exceeded 1 per cent of the average annual total of contributory salaries. Effective May
1, 1976, these supplements are being financed by additional employee and employer contributions, each at the rate of 0.5 per cent of salary. The Act provides for similar increases when the
net accumulated payments again exceed 1 per cent of the average annual total of contributory
salaries.
4. Pertinent information—These financial statements show only the position of the Fund
as at December 31, 1975, and the changes in Fund balance for the year then ended and do
not purport to show the adequacy of the Fund to meet the obligations of the pension plan.
 TEACHERS' PENSIONS ACT—ANNUAL REPORT L 11
TEACHERS' PENSION FUND
Schedule 1
TRUSTEES FOR THE TEACHERS' PENSIONS FUND AND THE MINISTER OF
FINANCE FOR THE PROVINCE OF BRITISH COLUMBIA
Securities Held as at December 31, 1975
Par Book
Value Value
Province of British Columbia Guaranty $ $
B.C. Hydro and Power Authority   193,444,000 192,146,701
B.C. Electric Company Limited   1,450,750 1,394,970
B.C. Power Commission   5,606,000 5,569,140
B.C. Railway Company   52,091,000 51,984,637
Greater Vancouver Water District  1,528,000 1,526,139
Greater Vancouver Sewerage and Drainage District  980,000 979,857
B.C. School Districts Serials   10,466,200 10,043,786
B.C. School Districts Capital Financing Authority Serials   3,428,000 3,399,440
B.C. School Districts Capital Financing Authority   25,127,000 24,928,333
B.C. Municipal Serials   786,000 755,732
B.C. Improvement Districts   984,000 976,489
Nechako Improvement District Serial   669,000 662,644
B.C. Hospital Improvement District Serials   575,000 567,720
B.C. Irrigation District Serials   217,000 214,192
B.C. Irrigation Districts   715,500 714,558
B.C. Water Works Districts   94,000 93,331
Greater Vancouver Water District Serial  500,000 483,000
Greater Vancouver Sewerage and Drainage District Serial  393,000 389,129
Province of Alberta Guaranty
Alberta Municipal Financing Corporation     14,000 13,894
299,068,450   296,843,692
 L 12
BRITISH COLUMBIA
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 TEACHERS' PENSIONS ACT—ANNUAL REPORT
TEACHERS' PENSION FUND
L 13
Schedule 3
Comparative Statistics, January 1, 1959, to December 31, 1975,
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
409
169
5,638
479
325
7,123
607
323
8,329
704
404
10,009
886
524
10,914
1,195
649
11,132
1,052
713
11,466
1,126
784
12,965
993
852
13,665
1,074
970
6,640
1,321
810
7,206
1,341
1,321
9,020
1,239
1,422
10,665
1,882
1,410
12,445
2,144
1,711
12,991
2,798
2,266
12,520
2,638
2,458
12,896
2,823
2,704
15,403
3,393
2,779
15,754
3,789
3,278
103
131
261
316
1,7563
393
430
380
359
391
524
636
930
898
1,5033
1,204
1,276
1,031
918
860
19
30
33
73
93
86
125
85
147
166
39
61
92
112
174
153
197
206
242
274
12
9
16
8
21
24
15
15
21
18
13
14
~20
_34
"28
50
Ti
~32
30
~39
397
425
487
601
739
881
987
1,057
1,183
1,331
478
Nonactivel	
1961	
Nonactivel
Nonactive2	
1965
565
802
1967
1,003
rofio
1,250
Nonactivel 	
Nonactive2	
1971
1,486
Nonactivel	
197?.
1,650
1971
1,824
2,036
Nonactive i	
Nonactive2	
1974 	
Nonactive2	
1975	
2,271
Nonactive2	
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).
 L 14
BRITISH COLUMBIA
TEACHERS' PENSION FUND
Schedule 4
Summary of Normal Allowances Granted During 1975
SUBDIVIDED BY YEARS OF SERVICE AND VALUE OF ALLOWANCE
Years of Service
Number of
Allowances
Granted
Average
Salary
During
Last
5 Years
Average
Annual
Allowance,
Single Life
Plan
Average
Value of
Allowance
Average
Teachers'
Share
Average
Government
Share
Under 10.
10-14	
15-19	
20-24	
25-29	
30-34	
35-39	
40 and over~
3
42
81
54
76
46
51
30
$
10,054
12,357
12,485
13,727
13,831
15,316
16,540
18,257
$
1,152
2,472
3,792
5,532
6,972
9,156
10,968
12,120
$
14,597
26,765
40,988
59,135
74,400
96,875
117,895
118,814
$
4,442
7,599
11,241
15,012
17,448
21,670
22,286
21,519
10,155
19,165
29,748
44,123
56,952
75,205
95,609
97,295
AVERAGE OF NORMAL ALLOWANCES GRANTED DURING YEAR
26.
62
14,227
6,756
71,460
16,080      !       55,380
I
Total Value of Normal Allowances Granted During Year
SUBDIVIDED BY YEARS OF SERVICE AND AGE AT RETIREMENT
Years of Service
Age at Retirement
55
56
57
58
1
59
60
61
62
63
64
65
Total
Per
Cent
Under 10       	
1
5
1
1
1
1
1
1
1
1
1
4
5
1
1
3
2
1
5
1
3
2
8
4
7
3
6
6
10
~5
15
16
18
12
14
1
4
1
1
6
4
8
7
4
3
6
6
6
~2
1
3
8
4 .
5
1
12
6
7
1
7
15
26
15
19
9
18
3
42
81
54
76
46
81
1
10-14     	
11
15-19	
20-24        -	
21
14
25-29               	
20
30-34                	
12
35 and over	
21
9
5
15
22
36
80
25
32
23
34
102
383
100
Allowances Other Than Normal Granted During 1975
Number of
Allowances
Granted
57
Death
24
Disability
12
Deferred
21
Printed by K. M. MacDonald, Printer to the Queen's Most Excellent Majesty
in right of the Province of British Columbia.
1977
480-177-4969

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