Shared Risk Plan for Academic Employees of University of New Brunswick

Under New Brunswick's shared risk framework, AESRP operates as a jointly governed trust where base benefits can be adjusted if the plan's funded ratio falls below regulatory thresholds. This shifts investment and longevity risk from the sole employer — the University of New Brunswick — to a shared structure where both the university and plan members bear the consequences of funding shortfalls or surpluses. The model was designed to prevent the unfunded liability accumulation that plagued traditional defined benefit plans across Canadian public-sector employers (per public record).

The plan is governed by a Board of Trustees with equal representation from the University of New Brunswick and the Association of University of New Brunswick Teachers (AUNBT). Jennifer Morrison serves as co-chair representing the employer, and Norm Betts serves as co-chair representing the academic employees. Day-to-day administration is handled by Mary Lou Doucette, UNB's Manager of Pensions & Benefits.

The portfolio spans global low-volatility equities, Canadian investment-grade bonds, and global high-yield bonds. Beyond liquid securities, the plan holds direct interests in real estate assets tied to UNB's campuses, including the Knowledge Park mixed-use development in Fredericton, the Corbett Centre commercial property, and land holdings such as the UNB Woodlot and the Noonan Woodlot.

AESRP is a legally distinct pension trust governed by its own Board of Trustees and New Brunswick's Pension Benefits Act. It is not commingled with the UNB Long-term Investment Fund or the university's general endowment assets, though both entities share an institutional connection to the university. The pension plan's funding comes from equal member and employer contributions, not from philanthropic gifts or operating surpluses.

The conversion was part of a broader provincial pension reform effort in New Brunswick aimed at stabilizing public-sector retirement plans that faced growing unfunded liabilities. By moving to a shared risk model, UNB capped its future contribution obligations and transferred a portion of investment and demographic risk to the plan's trust structure, where benefit adjustments — rather than supplemental employer contributions — serve as the primary stabilization mechanism.