Toronto Fire Department Superannuation and Benefit Fund - Funding Valuation Report as at December 31, 2023

The Fire Pension Plan has specific criteria in its By-law which, if satisfied, grants members an automatic cost-of-living increase paid from the fund, and therefore Council is not required to approve the increase. So long as sufficient surpluses exist on both a Going Concern and Solvency basis, members are entitled to an increase comprised of the lesser of (a) The Plan's 5-year average rate of return less the discount rate used for the current year's Solvency valuation; or (b) the increase in the year-over-year level of the average Consumer Price Index (CPI) as published by Statistics Canada. In this case, the first criterion is the lesser of the two, and hence members are entitled to an automatic increase of 1.00 percent. The provincial funding rules for defined-benefit pension plans which came into effect on May 1, 2018, are incorporated into the 2023 Valuation Report, which sets forth the financial position of the Fund for the year ended December 31, 2023 on Going Concern and Solvency bases and confirms that the Fund does not require any special payments by the City of Toronto. The Charts below summarize the financial position of the Fund as at December 31, 2023 and December 31, 2022 based on the Actuarial Valuations for those years. Going Concern Valuation - This type of valuation assumes that the Plan will continue to operate until all pensions are paid out. Table 1 : Going Concern Valuation ($ millions) December 31, 2023 December 31, 2022 Assets $159.6 $161.2 Liabilities $126.9 $139.9 Surplus / (Deficit) $32.7 $21.3 Solvency Valuation - This type of valuation assumes that the Plan was wound up on the valuation date (i.e., December 31st, 2023) and the assets used, to the extent necessary, to meet existing liabilities including the purchase of annuities for the pensioners and any unretired members. Table 2 : Solvency Valuation ($ millions) December 31, 2023 December 31, 2022 Assets $159.4 $161.0 Liabilities $116.5 $129.7 Surplus / (Deficit) $42.9 $31.3