The FEI Plan is a defined benefit pension plan that will provide you with a lifetime monthly income throughout your retirement years. Your pension income is based on a formula that considers your Earnings and years of Credited Service in the plan.
Here’s an overview of how the FEI Plan works:
You and the company contribute an equal amount to the pension fund.
The money is invested in a wide range of investments.
Contributions and investment returns are used to pay the promised pensions to retired members.
On retirement, you receive monthly payments based on a formula that considers your Earnings and years of Credited Service.
With a defined benefit pension plan, you don’t have to worry about the ups and downs of the stock market! Your plan provides a monthly pension benefit based on the Pension Formula, which is dependent on your Earnings and Credited Service, not on investment returns.
Check out these two videos about defined benefit pension plans and retirement planning:
You can also jump to the Retiring section to learn about how the monthly pension is determined and paid.
The FEI Plan is a defined benefit pension plan that will provide you with a lifetime monthly income throughout your retirement years. Your pension income is based on a formula that considers your Earnings and years of Credited Service in the plan.
Here’s an overview of how the FEI Plan works:
You and the company contribute an equal amount to the pension fund.
The money is invested in a wide range of investments.
Contributions and investment returns are used to pay the promised pensions to retired members.
On retirement, you receive monthly payments based on a formula that considers your Earnings and years of Credited Service.
With a defined benefit pension plan, you don’t have to worry about the ups and downs of the stock market! Your plan provides a monthly pension benefit based on the Pension Formula, which is dependent on your Earnings and Credited Service, not on investment returns.
Check out these two videos about defined benefit pension plans and retirement planning:
You can also jump to the Retiring section to learn about how the monthly pension is determined and paid.
FortisBC is responsible for overseeing the operation of the FEI Plan and has established the Joint Pension Committee to do so, with reporting up to the Executive Pension Committee.
Monitoring the day-to-day administration of the FEI Plan and compliance with plan terms and government legislation
Overseeing the completion of triennial Actuarial Valuation reports, and recommending the resulting contribution rates to the Executive Pension Committee for adoption.
Monitoring the performance of all external service providers including the outsourced chief investment officer, third-party administrator, plan actuary and others
Monitoring fund performance and investment strategy
Overseeing all member communications
Reviewing membership activity
Providing recommendations (when necessary) on investment managers, service provider or plan terms to the Executive Pension Committee
Monitoring that the other committees are carrying out their respective duties
Ensuring the effectiveness of the overall pension plan governance structure and committee composition
Monitoring fund performance
Reviewing the triennial Actuarial Valuation reports, and adopting contribution rates
Monitoring the funded status and membership activity
Considering all recommendations, including any recommended investment manager changes, external service provider changes, changes to the plan terms, and material changes to the investment strategies
The FEI Plan is administered by FortisBC, with day-to-day support carried out by the FortisBC Pension Department in conjunction with an external third-party administrator (currently TELUS Health).
The custodian (currently RBC Investor Services Trust) holds the pension fund assets. All contributions are pooled together and remitted to the custodial account. All pensions and benefits are paid out of this same account.
The outsourced chief investment officer (currently Willis Towers Watson) makes investment decisions within guidelines and objectives set by the Executive Pension Committee.
The actuary (currently Willis Towers Watson) prepares the periodic Actuarial Valuation reports, setting out the recommended contribution requirements.
The FortisBC Pension Department is responsible for ensuring:
Member data is accurately uploaded to the external third-party pension administration system
Member enrolments, terminations and retirements are processed
Members have access to pension information and resources
Pension contributions are correctly calculated and remitted to the custodian
The external third-party pension administrator keeps records of service and contributions for all members, calculates pensions and benefits under the plan, and prepares all legislated member disclosure documents. This includes processing member termination and retirement benefits. TELUS Health is the third-party pension administrator.
The FEI Plan is subject to the rules for registration under the Canadian Income Tax Act and the British Columbia Pension Benefits Standards Act and is subject to changes from time to time.
The Joint Pension Committee is comprised of representatives from management and plan members who meet at least quarterly in order to fulfil their responsibilities which include: