Living up to its pension obligations, current and future, is HOOPP’s number one priority. But it is by no means our only priority. On the funding side, we’re also committed to:

• keeping contribution rates at reasonable levels, so the Plan remains affordable
• keeping contribution rates stable, so that members and participating employers can budget accordingly

To help achieve these important objectives, HOOPP has implemented and advanced a number of funding risk management safeguards. For example:

• HOOPP conducts a funding valuation each year to gauge the Plan's assets and liabilities (pension obligations). As part of the valuation process, HOOPP works with an independent actuarial advisor to prepare projections of its future funding requirements.

• HOOPP has established a detailed funding policy that:
  • provides a framework for making informed funding decisions
  • sets “trigger” points that flag potential adjustments to contribution and/or benefit levels

While these are important safeguards, risk management is an ongoing process. HOOPP lowered its long-term investment return assumption in 2007. Adopting a lower, more conservative investment return assumption is consistent with the Plan’s move toward a more risk-averse investment strategy.

We also moved ahead with the implementation of a multi-year funding and risk management program designed to:

• improve the quality and availability of funding data
• better measure and manage funding risk
• bring investment strategies more in line with funding needs

The Board will – as it has in the past – take a proactive, considered and consultative approach to any price or benefit changes needed to address funding concerns.