What is the long-term outlook for LAPP?
Pension plans like LAPP are long-term investors. The contribution dollars of members joining the plan today will be invested and reinvested for many years into the future. The investments compound and grow over time before being used to pay out to members as pensions during their retirement years. In order to secure our pension promise, LAPP’s Board of Trustees sets funding and investment policies which are regularly monitored. The Board, with the advice of an actuary, sets a funding policy to ensure that employer and employee contribution levels are sufficient. The contributions, together with expected investment returns, will pay all future pension liabilities. We have designed LAPP’s investment policy to generate the required rate of return after inflation, which in turn will grow to a large pool of assets that will provide the pension benefits to our members over the long term.
