Staying Resilient Amid Economic Uncertainty

In 2025, global economic uncertainty is top of mind, driven by factors such as US tariffs, geopolitical risks, and fluctuating consumer confidence. We understand these turbulent times may raise concerns about the security of your pension. Rest assured, your defined benefit pension remains secure and protected from short-term market fluctuations. The teachers’ pension plans are in strong financial health, and contribution rates remain unchanged.

To understand why your pension is secure, it helps to examine the key features that make it resilient through economic ups and downs.

Defined Benefit Plans Offer Predictability
Defined Benefit (DB) plans like the teachers’ pension plans provide predictable, lifelong pensions through all economic cycles. DB plans are designed to cushion members from short-term market swings, offering peace of mind and long-term stability.

A Long-Term Focus
Your pension plan is built for the long haul. With a time horizon that spans decades, the plan can ride out economic disruptions while maintaining stability over the years.

Resilient Financial Strategies
The pension fund is diversified across asset classes, countries, and sectors. This diversification reduces risk because not all investments move in the same direction at the same time. While stock markets may experience significant swings, other asset types, such as infrastructure, often behave differently, adding more stability to the portfolio. This strategic approach has proven effective in safeguarding pension assets during times of uncertainty.

Strong Financial Position
Our most recent annual report underscores the robust health of your pension fund. As of 2024, the Teachers’ Pension Plan had a funded ratio of 102%, and the Private School Teachers’ Pension Plan had a funded ratio of 110%. This strong funded position, along with robust risk mitigation mechanisms that we have in place, contributes to plan stability, even in challenging economic times.

Confidence in Every Climate
In a world where market shifts can impact retirement outcomes, the teachers’ pension plans continue to be a source of security and reliability. With strong governance, robust risk management and a sound investment strategy, ATRF is committed to protecting the benefits you’ve earned, despite economic challenges that may lie ahead.