CANADA POST

CANADA POST

April 30, 2007 13:20 ET

Canada Post Pension Plan Records Solid Results in 2006

OTTAWA, ONTARIO--(CCNMatthews - April 30, 2007) - Canada Post Corporation today announced solid financial results for its Registered Pension Plan in 2006, the sixth full year of operation.

At December 31, 2006, the Registered Pension Plan held total assets of $14.349 billion compared with $12.131 billion the previous year, representing an increase of $2.218 billion. The Canada Post Pension Plan, one of the largest in the country, earned a return of 14.3% over the year.

"The Canada Post Pension Plan continues to provide one of the best benefit retirement packages in Canada," said Moya Greene, Canada Post's President and CEO.

In 2006, to further strengthen its overall position, the Corporation as Plan sponsor contributed an additional $288 million to the Plan, over and above the normal contribution of $270 million, to fund a solvency deficit that had existed in previous years.

"I am pleased to announce that as a result of these further contributions and the high investment returns experienced in 2006, our pension plan moved to a fully funded position on all actuarial measures," said Ms. Greene.

The 2006 returns exceeded the benchmark return of 13.1% representing the blended return of various Canadian, U.S. and international stock and bond market indices weighted in accordance with the Canada Post asset mix target. Despite difficult economic conditions in 2001 and 2002, the fund earned a respectable annualized rate of return of 8.2% since inception against the benchmark return of 5.2%.

Canadian, U.S. and international equity markets provided strong returns during the year while fixed income returns were also positive. In addition to the strong return on assets, a modest increase in long-term interest rates led to a decrease in calculated pension obligations.

"We are pleased that our 2006 results have enabled the Plan to return to a fully funded solvency position," said Douglas Greaves, Vice-President Pension Fund and Chief Investment Officer. "Canada Post continues to hold the financial strength to meet all its obligations."

The Canada Post Pension Plan is a defined benefit plan that provides inflation-protected benefits to more than 74,000 active members, retired members, deferred pensioners and beneficiaries.

Contact Information

  • Canada Post
    Media Relations
    613-734-8888