The U.K.'s Brexit vote has had far-reaching ramifications — possibly dipping into the pockets of School District 43 pensioners.
In anticipation of the referendum that resulted in a decision by Britain to leave the European Union, managers of SD43's pension for non-teaching staff held off on buying global real estate because of concerns about the impact of the vote on assets.
"We held off pending Brexit knowing that this is a potential area of concern," SD43 assistant secretary treasurer Chris Nicolls noted in a report on the pension fund for SD43 non-teaching retirees, who include managers other than principals, as well as support workers, such as educational assistants, custodians and secretaries.
The fund was also hit by flat market conditions last year but still managed to increase assets 2.2% from $152.9 million to $156.3 million, according to a financial audit.
The plan also saw an increasing number of retirees drawing down on their pensions, with benefits increasing last year by 9.9%, but the year still ended with a surplus of $8.9 million.
Managing risk is a "big factor" in looking after the plan, Nicolls said, and the aging demographics of the district's workforce is something fund managers are going to pay attention to.
"It's an area we are taking a look at," Nicolls told trustees, who approved the 2015 financial audit of the pension plan for non-teaching retirees.
The non-teaching pension plan has a retirement committee made up of four individuals appointed by management and four appointed by CUPE. Currently, there are approximately 650 retirees receiving benefits.
