A new longevity improvement scale that reflects recent Canadian experience has been developed for Canadian life insurers. Most Canadian pension plans, on the other hand, are still relying on a longevity improvement scale that was developed close to 20 years ago.

Not surprisingly, the new life insurer scale results in longer life expectancies than the older pension plan scale. This means that many pension plans are likely underestimating the life expectancies of their plan members and consequently, their liabilities. 

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