2025 Member Highlights
Provident10 is committed to helping our members thrive—today and in retirement. Explore this year's key achievements and how we delivered value for our members in 2025.
Explore the highlights
Building a strong, resilient
future for our members
The absolute performance of the plan was strong in 2024, with one-year net growth reaching 13%, and $1.1 billion CAD added to our investment portfolio. With $12.6 billion in total net assets, the Plan reached an all-time high as we moved into 2025.
Our policy benchmarks are based on our strategic asset allocation and standard market indexes.
We track and report performance over 1-, 4-, and 10-year periods, with an emphasis on long-term outcomes. When our returns exceed these benchmarks, we refer to it as “value-added” performance.
While performance for the year came in below our benchmark, the Plan delivered positive returns and continues to grow. As long-term investors, we remain focused on sustained performance over time, where the Plan has demonstrated strong, stable results.
A decade of growth
As we approached the end of our first decade of the Public Service Pension Plan following pension reform, the long-term value of our approach is clear. With each passing year, we have strengthened the overall health of the Plan, growing our assets by nearly 50% since 2015 and expanding our reach to support over 65,000 members across Newfoundland and Labrador.
In 2024, the Plan remained fully funded – meaning it holds more assets than it needs to meet the pension obligations for our current membership – for life.
While the Plan’s fully funded status and overall financial health continue to improve, we ensure to carefully manage the Plan through a disciplined funding strategy and long-term investment approach. What matters most is that the Plan remains on a sustainable path and is well-positioned to continue delivering secure pensions to the members who count on us.
A long-term approach to
today’s challenges
Each year, we use two key metrics to evaluate our portfolio performance, prioritizing the performance of the Fund over two long-term periods:
- Long-term (10-year) returns on invested assets in excess of the Funding Policy’s discount rate
- The Plan’s ability to exceed the return of the policy benchmark on a 4-year annualized basis
Our success in 2024 — both year-over-year and across the longer-term view underscores the effectiveness of our approach. In the face of continued economic and geopolitical uncertainty and ongoing challenges related to interest rates and broader global macroeconomic trends, our team worked strategically to ensure strong risk-adjusted, long-term gains for our members.
7.5%
10-year net
annualized
returns
We look at our 10-year returns, measuring them against the Plan’s discount rate of 6.0%. We were able to deliver on this performance metric, with a 10-year net rate of return of 7.5%.
6.8%
four-year net
annualized
returns
We also look at the Plan’s ability to exceed the return of the policy benchmark over a four-year investment period. In 2024, our four-year annualized net return was 6.8%, compared to the four-year policy benchmark of 6.6%.
Learn more about the discount rate
What is a discount rate?
The discount rate is the rate we use to value the current cost of future pension obligations of the Plan.
We derive the discount rate from the expected rate of return on our investment portfolio, while also considering the general and administrative costs of the Plan as well as macro-events that could affect the Plan, such as rising inflation and increasing interest rates, as well as the global pandemic.
Why does the discount rate matter?
The discount rate is a key assumption in calculating the funded ratio.
It helps us measure our ability to fund the Plan. For example, if our investment portfolio earned less than the discount rate, the Plan risks not being fully funded. Alternatively, if our investments outperform the discount rate, this may result in a temporary surplus in the Plan.
What is our discount rate?
The discount rate can be calculated on an annual basis or a three-year Actuarial Assumption Basis and Valuation which is set out in the Plan’s funding policy.
The three-year valuation evens out the variations in annual returns. Assessing the discount rate in this way takes a more stable, long-term view of investment performance when setting contribution rates and benefits. The annual assessment uses year end values based on best estimates and can vary year over year.
In 2022 and 2023, the funded ratio was calculated at a discount rate of 6%. 2024 is a valuation year for our Plan and this work is still ongoing.
Our team closely monitors financial markets, policy changes and other factors that could impact the Plan. This information is used by management to formulate their best estimate of the future rates of return on our investments. And it’s also used by our actuaries to determine the value of the Plan’s liabilities (or the current cost of our future obligations to members).
Keeping your pension secure:
The role of three-year funding valuations
Funding valuations are an important tool to assess the financial health of the pension plan. It helps us:
- Compare how much money the plan currently has to how much it will need to pay future pensions.
- Calculate the funding ratio, a key measure of whether the plan is on track.
- Make informed decisions about contributions, investments, and benefits.
This process supports responsible governance and ensures we can meet our commitments, now and in the future.
To learn more about the Plan’s performance, download our 2024 Annual Report.
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