New Brunswick’s two largest public pension plans on Thursday announced the creation of an independent corporation to administer and provide investment services for the province’s public plans.
The new entity, Vestcor Corp., will oversee the C$6.95 billion ($5.3 billion) New Brunswick Public Service Shared Risk Plan and the C$5.4 billion New Brunswick Teachers’ Pension Plan, both of Fredericton.
It will also manage assets and administration for the province’s other public plans and funds — the combined C$524 million in two NB Power plans, the C$42 million Provincial Court Judges Pension Trust Account Fund, and the C$22 million University of New Brunswick Endowment Fund, all of Fredericton.
The pension plans’ investments are managed by the New Brunswick Investment Management Corp., Fredericton, a corporation that’s part of the province’s finance department, while administrative services are handled by the province’s department of human resources. The two functions would be moved away from provincial control and renamed Vestcor Investment Management Corp. and Vestcor Pension Services Corp., according to a fact sheet on the New Brunswick government’s human resources website.
Vestcor would operate independently from the government under direct oversight of the pension plans.
“Creating this jointly-owned, not-for-profit organization … follows industry best practices and is a natural evolution in governing and managing these plans,” Marilyn Quinn, the public service plan’s board chairwoman, said in a separate news release.
Vestcor is scheduled to begin operations Oct. 1. Ms. Quinn said the provincial government has cooperated in the planning for Vestcor.