Update on the Pension Surplus – Marco Dubé – May 23, 2024

Here is an updated from Marco Dubé, Chief Transformation Officer & Executive VP, People and Culture on the pension surplus.

Further to our last update on this topic, we continue to wait on approval from the Office of the Superintendent of Financial Institutions (OSFI) for the distribution of the 2021 and 2022 surplus.

Last month, we contacted the Office of the Superintendent to check the status on our surplus application. They advised us that while they are unable to provide an estimated timeline for a decision, their review of our file is ongoing and they are treating this application as a high priority, which will ensure that it proceeds as quickly as possible. So while we await further clarity from them regarding expected timelines, the Corporation is doing everything it can to proceed as quickly and diligently as possible, within legislative and regulatory requirements, to be in a position to issue surplus payments.

New surplus declared for 2023

On a related note, the Pension Board of Trustees, who meet quarterly, have recently confirmed that the Plan is once again in a surplus position for the year that ended on December 31, 2023, as also noted in their quarterly communiqué dated March 2024.

As a result of this surplus, CBC/Radio-Canada is required to maintain a contribution holiday in accordance with the Income Tax Act. Therefore, the Corporation’s renewed contribution holiday will continue through to the end of 2024. As with the contribution holiday announced at this time last year, the funds that are usually contributed to the Plan will be reinvested in our programs and services to Canadians for the duration of the contribution holiday. It should be noted that the confirmation of this surplus was anticipated and was incorporated fully in our budget estimates and planning for 2024-25.

The level of this latest surplus will also trigger another surplus amount to be shared with eligible Plan members. The actuarial valuation report of the Plan has been submitted to government authorities at the end of April to begin with the process for sharing this surplus.

We’d like to thank everyone for their continued patience regarding the payment of past surplus assets. The CBC Pension Plan remains in a healthy position and Plan members can feel confident about their pension. More on this will be communicated once we have received the required consent from the pension regulator. If you have any general questions or concerns about the Pension Plan, please contact the Pension Administration Centre, but remain mindful that they do not have access to more information than relayed here about the distribution of Pension assets.