We have tested the pensions paid, the lump-sums paid, and the contributions for consistency with the membership data for the Plan members who have received benefits or made contributions. The results of these tests were satisfactory.
Investment Policy
The plan administrator has adopted a statement of investment policy and procedures. This policy is intended to provide guidelines for the manager(s) as to the level of risk that is consistent with the Plan’s investment objectives. A significant component of this investment policy is the asset mix.
The plan administrator is solely responsible for selecting the Plan’s investment policies, asset allocations, and individual investments.
The constraints on the asset mix and the actual asset mix at the valuation date are provided for information purposes:
| Investment Policy Target | Actual Asset Mix as at December 31, 2019 | |
|---|---|---|
| Public equity | 22.0% | 18.8% |
| Bonds | 46.0% | 13.8% |
| Private equity | 14.0% | 20.1% |
| Infrastructure | 23.0% | 22.5% |
| Real Estate | 18.0% | 18.3% |
| Cash and economic leverage | (23.0%) | 6.5% |
| 100% | 100.0% |
Because the Plan’s assets (which are invested in accordance with the above investment policy) are not matched to the Plan’s liabilities (which tend to behave like long bonds), the Plan's financial position will fluctuate over time. These fluctuations could be significant and could cause the Plan to become underfunded or overfunded even if the Company contributes to the Plan based on the funding requirements presented in this report.