Over the Wire: Fall 2016
Sep 01, 2016 › Over the Wire
Understanding your Pension Plan
This is the first in a series of planned articles that are intended to help you understand how your pension plan works.
The Electrical Industry Pension Trust Fund of Alberta (the "Plan") is a defined benefit plan designed around the concept of pooling of contri- butions and risks. This is one of the most significant advantages and strengths of defined benefit plans.
With pooling, all of the assets are held in a single trust fund account that belongs to all the Plan Members. There are no individual accounts for each Plan Member and no single Plan Member owns any specific assets or portion of the assets. There are a few significant advantages arising from the pooling of assets. Firstly, with a larger pool of assets, the Plan has access to some investments that are not available to smaller investors.
The Plan currently has over $1 billion in assets and can attract the interest of all professional investment managers.
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