Like all defined benefit pension plans, SHEPP must follow strict laws and regulations that keep pensions safe.

SHEPP is governed by the Agreement and Declaration of Trust and follows specific rules set out in the Plan Text, The Pension Benefits Act, 1992 (Saskatchewan) and the Income Tax Act (Canada).

Among other things, this legislation requires SHEPP to ensure it understands the value of the Fund compared to how much money leaves the Plan through pension benefits and plan operations.

SHEPP’s Statement of Investment Policies and Procedures (SIP&P) sets out how the Plan’s money will be invested and managed responsibly. These legislative requirements help ensure the Fund is guided by clear standards, oversight, and safeguards so you can be confident your SHEPP pension will be there when you retire.

Built-in Safety Nets

Your pension plan is designed with extra protection to give you peace of mind:

• The Benefit Security Margin ensures extra funds are set aside to protect pensions against unexpected changes like lower investment returns or people living longer than expected.
• The Contribution Stabilization Margin stabilizes contribution rates by ensuring contributions provide enough cushion to withstand changes in the market without having to make sudden increases.

Together, these margins act like a safety net, giving the Plan more resilience and helping ensure your pension is there for you when you retire.

SHEPP utilizes both external investment managers and internal experts to implement the Plan’s investment strategy which allows the Plan to access best-in-class services while remaining cost effective.

Both external and internal investments must comply with the Board’s Responsible Investment Policy. This includes the integration of environmental, social, and governance (ESG) factors into investment decisions. Due diligence processes for existing and potential investment managers include reviewing manager practices and measures related to ESG integration.

The Board also undertakes an annual review of Responsible Investing (RI) issues and trends.

For more information refer to the Summary of Investments and Investment Managers.