LAPP Board’s Statement of Intention

Our intention is to achieve a sustainable, defined benefit LAPP that meets present needs without compromising the ability of future generations to meet their needs.

A sustainable LAPP will ideally have the following elements:

  • Funded ratio over 100%
  • Total contribution rates (employer and employee) not exceeding 25% of pay
  • Assets closely matched to liabilities
  • Liquidity of assets sufficient to pay benefits
  • Appropriate benefits that provide adequate retirement income

When you read the Statement of Intention, a question likely to come to mind is:
What exactly is an adequate retirement income?

Of course, the answer to that is different depending on who you are and what type of goals you have set for your retirement. Someone who retires with plans to spend a lot of money travelling the world will likely need a higher retirement income than someone who plans to stay close to home and spend less.

Moreover, lifestyle goals for retirement will also depend on what income sources you have planned for your retirement.

A workplace pension is just one source of retirement income and for most people it will not be enough to pay for everything needed in retirement years. RRSPs, savings accounts, capital investments and money invested in the family home will also play a part in determining whether your income will be adequate for your retirement.

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