Beginning January 1, 2024, the CSSF discount rate will increase from 5.75% to 6%.
If you already receive a pension, the discount rate increase does not impact you. If you want a monthly pension, the rate increase does not affect how much you get or when you can retire.
The rate increase does reduce the amount payable to members who:
- take a lump sum amount instead of a monthly pension
- must divide their pension because of a divorce or separation, and the date of separation occurs after January 1, 2024
If you’re planning to take a lump sum when you retire and are approaching age 55 and 10 years of service, please contact the CSSB office. The additional benefit you receive when you reach that age and service milestone may be greater than the reduction from the new discount rate.
What is a discount rate?
We use the discount rate to figure out how much the plan will owe members in the future. The discount rate helps us measure our ability to fund the pension plan. If our investments earn less than the discount rate, the plan risks not being fully funded.
How is the rate determined?
We determine the discount rate based on the expected rate of return on our investments and the current economic situation. It is important to choose a realistic discount rate for a pension plan to stay financially stable over the long term.
If you have questions, please contact the CSSB office (askus@cssb.mb.ca or 204 946 3200).