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The Importance of Impact

Our Plan and our members are making a lasting impact. Together, we’re building strong, vibrant communities for all.

With over 60,000 members, our reach extends into every corner of Newfoundland and Labrador – and beyond. We are proud to generate economic benefits and offer our members the freedom and flexibility to give back to their communities, their way.

Since 2016, Provident10 has paid over $4.7 billion in pension benefits to members across the province. The positive impact of these benefits extend beyond individual pensioners to their families, communities and our provincial economy.

Our impact is amplified when we work together. Our members make a difference where they live by investing in their communities and giving their time and talents in service of others. And we are here to support them with a stable, lifetime income they can depend on.

Message from
the Board

In 2023, Provident10 made steady progress against our Five-Year Strategic Plan, Now to Next: Our Path to 2026, as well as solid investment performance for the Plan. The organization entered 2024 well positioned to continue delivering on our pension promise of providing members with a secure retirement income, well into the future.

As stewards of the Public Service Pension Plan, the Board remains steadfast in our

Message from
the CEO

Each year I look forward to this formal opportunity to share our annual highlights with you, our stakeholders.

I’m pleased to report that despite another year of persistent challenges in the economic landscape for 2023, the Fund achieved strong returns, reinforcing our solid foundation and positioning Provident10 for sustained success in fulfilling our

2023 at a Glance

0
%

Total net
investment
return

0
%

Funded ratio

$
0
billion

Total net assets

0

Total
members

The impact of our pensioners

In 2023, we provided benefits to 24,082 pensioners across the province and beyond. These benefits have a significant economic impact, returning approximately $600 million to our provincial economy. But more importantly, our Plan allows our members to enjoy their retirement.

Joannie

After more than three decades working in Long Term Care, Mental Health and Acute Care, Joannie’s not slowing down in retirement – and neither is her husband Gary! With the peace of mind provided by their Provident10 pensions, this pair is staying active and giving back to the causes and community that are near and dear to them.

Since 2016, Provident10 has paid over

$
0
billion

in pension benefits to members across the province.

Measuring our Performance

In 2023, our Plan generated strong returns, with total net investment returns of 9.1% for the year.

The Plan is fully funded as of December 31, 2023, with net assets increasing by $618 million year-over-year. At the end of 2023, the net assets available for benefits in the Fund was $11.52 billion.

This strong performance was achieved in a world best characterized by unpredictability – from geopolitical conflict to persistent inflation to interest rate volatility. This underscores the importance of maintaining a sharp focus on the execution of our strategy to ensure the health and resilience of the Fund.

For our members, our performance is also more than just numbers on a balance sheet. It is about delivering on our pension promise, year after year.  We know they count on us to be there in their retirement – and that requires strategic investment that prudently manages risk and prioritizes the long-term health of the Fund.

To that end, we are pleased to report that the Fund’s long-term performance continues to be solid. As of December 31, 2023, the Fund’s ten-year return was 7.4%, 1.4 points above the Plan’s annual discount rate of 6%.

The Plan is also measured against a short-term (one-year) policy benchmark, which is a compilation of several different market indices. In 2023, this short-term policy benchmark was 11.4%, driven higher by concentrated performance in global equities, compared to the Fund’s 2023 net investment return of 9.1%.

Key Facts and Figures

Total net investment return for 2023

0
%

Contributions:

$
0

million

Benefits Paid:

$
0

million

Net assets available for benefits

$
0

billion

10-year total net investment return

0
%

Across the country, Public Service Pension Plans like Provident10 are a significant source of retirement income. Our pensioners rely on us to achieve sustainable, long-term returns to deliver on our promise to them. And the benefits they receive go back into their communities and the economy.

Public Service Pension Plans generate

$5.8 billion

of economic activity across Atlantic Canada*

*Source: Canadian Centre of Economic Analysis. Economic Benefit of Canadian Public Service Pension Plans (November 2021).

Our investment strategy

Our investment strategy is set out in the Statement of Investment Policies and Procedures (SIP&P). Our team oversees that strategy with the goal of maintaining a well-diversified portfolio of investments, which will ultimately deliver the best risk-adjusted returns to support our members.

Over the past five years, Provident10 has focused on the strategic diversification of our asset mix, with strong results. In 2023, we also continued our investment in the tools and resources our team uses to research, monitor and report on the market.

Our investment strategy is made up of four key asset classes:

We believe that our long-term success will depend – in part – on our well-diversified portfolio of investments.

45%*

Equities

Also known as stocks, these can be shares of a publicly traded company – something you would see listed on an exchange (like the Toronto or New York Stock Exchanges) – or investments in private equity, which involves buying (and eventually selling) privately-held companies through funds managed by specialized investment firms. In all, equity is often seen as more volatile and typically carries greater risk, but has the potential to deliver stronger performance over a long-term period.

15%*

Real Assets

Real assets are investments like real estate and infrastructure. These can offer strong risk-adjusted returns and often respond to the market differently relative to asset classes like stocks. This makes real assets a popular choice when diversifying an investment portfolio. Since these are tangible assets, they’re typically also a longer-term investment (since they are less liquid than other assets).

35%*

Fixed income

Fixed income includes bonds and other debt instruments – investments that generate returns in the form of interest. They are typically seen as lower risk than equities, as they can be more predictable in their returns. Typically, when we think of bonds, we picture government bonds, but companies can also issue bonds as a way to raise capital. Private debt – or interest collected on loans to corporations or individuals – is also part of Provident10’s fixed income portfolio.

5%*

Absolute return

Absolute return is an asset class that focuses on delivering a positive return over time, regardless of how the broader market performs. Unlike the other three classes, absolute return funds can use a number of different investment types to diversify, manage risk and deliver an absolute return. The performance of the fund is not benchmarked against the performance of the markets (i.e.: it’s not considered in relative terms). Instead, to be successful, it must achieve its stated, absolute returns.

*Percentage of the strategic asset mix

A year of strong returns
despite persistent headwinds

2023 was marked by persistent macro-economic challenges for investors, most notably the intense interest rate volatility that dominated markets through the year. For example, the US 10-Year yield, a significant benchmark for the global financial markets, fluctuated significantly during each quarter. This was followed in the fourth quarter by a substantial decline in long-term interest rates, which helped to rally the markets. The year ended with high single-digit returns across both public market equities and bonds, particularly in duration sensitive assets.

2023 Performance by Asset Class 2023 Performance by Asset Class

Delivering results for our members

In a world that has been characterized by unpredictability – from geopolitical conflict to interest rate volatility – we have moved strategically to ensure the health and resilience of the fund.

We use two key metrics to evaluate our portfolio performance. These performance indicators prioritize the performance of the Fund over the long-term (four and ten-year periods), and we are proud to share that we successfully delivered on both in 2023.

Overall, the Plan’s performance exceeded the discount rate across our short, medium and long-term investment windows, and it delivered significant value above our policy benchmark. As a result, we remain well-positioned to deliver on our promise to the members who rely on us.

7.4%

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 7.4%.

6.5%

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 2023, our four-year annualized net return was 6.5%, compared to the policy benchmark of 5.4%.

Sharron

As a passionate advocate of seniors and pensioners in the province, Sharron sees how Provident10 and other pension plans empower people to engage in and support their communities after retirement.

Looking ahead

As we look forward, we’re reminded of the unique and often unpredictable challenges our world has faced in recent years. The uncertainty around interest rates here in Canada and globally, the persistent threat of a possible recession and new and continued geopolitical conflicts will carry into the year ahead. All of this makes it very difficult to anticipate what the future will bring for our broader economic environment.

This extraordinary unpredictability also underscores the value of a robust long-term strategy, backed by strong governance and expertise. Our Plan has demonstrated its resilience over the past seven years, and we will continue to build on this foundation as we prioritize delivering on our pension promise to generations of Provident10 members.

Making an Impact Together

Our members – both active and retired – are at the heart of Provident10. In every corner of our province and beyond, they are working hard to support their families and communities and we are there to support them.

The impact of our Plan is amplified by each individual member. You can feel it across our economy, as pensioner benefits are reinvested in our communities. But it goes far beyond dollar and cents. Armed with the freedom and flexibility of a predictable retirement income, our pensioners are giving back through volunteerism, pursuing their entrepreneurial dreams and spending their time and talents on what matters to them.

Everett

When Everett retired, he had more time to spend on the things he loves – like working on the family farm in Wooddale, NL, and writing songs. With the freedom and flexibility to pursue his passion for music, he’s built a catalogue of over 2000 songs played around the world and is living his life to the fullest.

The economic benefits of plans like Provident10 are widespread. For example, the benefits payments received by pensioners help support jobs and businesses in their communities. In turn, this activity supports wages that households and families rely on.

Across Atlantic Canada

67,000 households
and 54,400 children

are supported by Public Service Pension Plans*

*Source: Canadian Centre of Economic Analysis. Economic Benefit of Canadian Public Service Pension Plans (November 2021).

Strength in Numbers*

0

Active Members

0

New Plan
Members

0

Pensioners

0

New Pensioners

0

Pensioners
Over 100

0

Participating
Employers

0

Ratio of Active
Members to
Pensioners

* As of December 31, 2023

Supporting our members, every day

We know that our members rely on us to answer their questions and support them through every stage in their pension journey. And we’re committed to being there for them every day.

In 2023, our Pension Administration team received 11,431 phone calls and consistently delivered on their commitment to supporting our members through their important life events. With a focus on timeliness, efficiency and service, we exceeded targets in key areas including processing retirements, aiding in job changes and supporting families through survivor benefits.

Our goal is to provide each individual with the information, service and assistance they need. To measure our success, we invite callers to participate in a short Member Experience Survey before hanging up. Nearly 1,400 members provided their feedback, and the results were overwhelmingly positive.

100%
agreed that they were treated in a courteous, professional manner

98%
reported their inquiry was addressed

Connecting with our members

We are committed to actively engaging with our members to make sure they have the information and answers they need to understand and maximize their pension benefit.

Our team hit the road in 2023, delivering seven full-day Retirement Ready seminars in different regions of the province. With two key areas of focus (planning ahead and facing life events), these sessions reached maximum capacity in every location, with over 440 members attending.

We also introduced new digital offerings for members to support ongoing education and information sharing.

Retirement Ready Hub

After the launch of our refreshed Provident10 website in June 2023, we developed the Retirement Ready Hub – an online resource to help members navigate their path to retirement. This resource features a newly created quick reference guide and complementary tools like our pension calculator and a retirement ready checklist.

Provident10 Pulse

We heard feedback from both members and employers that they were looking for an easy way to get updates about the Plan – and we responded by launching Provident10 Pulse, our first electronic newsletter. Members can sign up to receive updates in their inbox, giving them a way to receive information directly from us faster than ever before! The launch was a success with more than 2,700 people subscribing by the end of 2023.

Understanding Your Pension Statement

Annual pension statements contain personalized information that can add significant value for members – but they can also be very complex. To help members make the most of their statements, we produced a new animated explainer video that walks through the statement and offers some guidance on why it’s important.

After a career in nursing and public health, Cathy is still committed to giving back in retirement.

After a career in nursing and public health, Cathy is still committed to giving back in retirement.

With the stability of my pension, I have time and flexibility to do what I love.
I’m able to spend time with my grandchild, travel with my husband and support those in need in our community.

Cathy

Research suggests that membership in defined benefit pension plans like Provident10 can increase rates of volunteerism, community involvement and charitable donations. Members reported improved financial security, positive impacts on their personal health and less stress.

In a 2021 study,

90% of pensioners

attributed their higher life satisfaction to being part of a defined benefit pension plan.

Source: Canadian Centre for Economic Analysis. Social Value Benefits: OMERS Pension Plan (December 2021)

Partnering with Employers

Our participating employers are more than partners. They are a critical source of information for our members, and they support their employees as they navigate the life events and career changes that define their journey to retirement.

In 2023, we proudly welcomed Cara House as a new participating employer. Productive conversations with potential partners across the province have also set the Plan up for further growth in the year ahead.

We reached a major milestone with the successful launch of our Case Management System (CMS), a new tool that will make our processes more efficient and improve service for our employers and members. This also is a significant step in achieving our strategic goal of modernizing pension administration service delivery.

With the launch of the CMS, we also introduced a new tool – and training support – for our participating employers. The Employer Portal is a new e-service for employers, supporting their integration into the CMS so they can benefit from the operational improvements.

Across Canada, plans like ours support

877,100+ jobs
$33.1 billion in wages

Source: Canadian Centre of Economic Analysis. Economic Benefit of Canadian Public Service Pension Plans (November 2021).

Building strong relationships

Our 42 participating employers are essential to Provident10’s success, and we are constantly seeking opportunities to foster robust connections and show our appreciation for their support.

In 2023, we hosted over forty representatives from our participating employers at our inaugural Employer Appreciation Event. It was our chance to say thank you, but also to answer questions, provide updates and ensure that employers and the members who work for them feel supported with the information they need.

We also offered a total of six virtual Asked and Answered sessions throughout the year. Four of these sessions focused on payroll, and the remaining two sessions focused on pension administration. Nearly all of our employers participated in at least one Asked and Answered, representing more than 99% of our total active members.

Supporting our employers

Though these sessions, and our Stakeholder Perception Study, we have received valuable feedback from our participating employers. Access to the Plan is a great benefit for current and potential employees, and we’ve heard from our employers that it can support their recruitment and retention efforts.

We want to make it as easy as possible to deliver consistent, factual and compelling information about the Plan and its value. That’s why we started building an Employer Toolkit, which will officially roll out in 2024. With tools for employees at every stage – from job seeker to long-term member – this robust toolkit will support all participating employers, no matter their size or the channels they use.

The Provident10 Team

As we enter the final years of our five-year Strategic Plan, we continue to focus on building a purpose-driven culture. We cannot support our members without the efforts of our talented and dedicated team, and we are committed to providing them with the best possible workplace experience.

Together, we make an impact for our members, so they can make their impact on their communities.

Celebrating our award-winning culture

For the second year in a row, Provident10 was recognized as one of Atlantic Canada’s Top Employers, a list that celebrates exceptional places to work across the region. We were also honoured to receive Canadian Mental Health Association Newfoundland and Labrador’s Workplace Excellence Award, recognizing our commitment to fostering a safe and supportive work culture for employees.

Working together for our members

Everyone on the Provident10 team plays an essential role in supporting our members, and we know that we’re strongest when we work together, collaboratively and strategically. That’s why we introduced a new internal event in 2023, to bring the team together and foster co-operation and alignment across the organization.

Giving back to our community

We are proud to make an impact in the communities where we live and work – and we wanted to empower our team to invest their time and talents in causes that matter to them. That’s why we introduced Community Connections, a new internal program connecting Provident10’s employees with volunteer opportunities during National Volunteer Week and on Giving Tuesday.

Delivering on our promises

In our five-year Strategic Plan Now to Next: Our Path to 2026, we laid out our goals and priorities for Provident10. To achieve these goals (and to continue to deliver on our promise to members), we are investing in areas critical to our long-term success: our people, our processes, and our technology.

Governance

Good governance is a fundamental principle of Provident10, and a core pillar of our five-year Strategic Plan.

It provides us with our license to operate, and we are committed to investing in strong governance and risk management, and maintaining the highest standards of ethical conduct.

Our governance structure includes three groups as prescribed in the Joint Sponsorship Agreement (JSA): the Sponsor Body, Board of Directors and our management team.

Learn more about how we’re governed.  

Internal governance

Our team is united in our commitment to integrity, support and results in service of our members. To achieve these goals, we invest in internal governance, ensuring that our people and our business have the right tools, policies and training. These investments ensure that we are accountable and compliant today, and continuously improving for the future.

Disclosures

Board of Directors

We report on the attendance of our Directors at duly constituted and ad hoc meetings, as well as their annual compensation. Compensation is outlined in our Board of Directors Renumeration Policy, and includes an annual honorarium, a per-meeting attendance allowance and reimbursement for reasonable travel expenses. Government and Union employees are not eligible for per-meeting attendance allowances.

Executive compensation reporting

The organization is committed to transparency with respect to the compensation of members of our Executive Team. Our Board of Directors approves the compensation principles and philosophy for the organization, as well as the salary and variable compensation of our Chief Executive Officer.

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