Eliminating unfunded liability payments is an important step in achieving the overarching objective of financial viability. The Boards have a number of tools to work with in managing the Plan’s funding and investments, all while managing risk. The Long Term Funding Strategy identifies key objectives that form the basis of LAPP funding decisions. In order of priority, these objectives are:
- To secure plan benefits;
- To ensure the financial sustainability of the Plan, including stabilization of contribution rates whenever possible and alignment of investment policy risk to acceptable levels of stakeholder funding risk; and
- To ensure, to the extent possible, that each generation of active members funds only the cost of their future benefits.
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