New actuarial rules shine the spotlight on longevity risk
January 01, 2011
By Brent Simmons, Senior Vice-President & Head, Defined Benefit Solutions
People living longer is a good thing, right? An upcoming change to the rules for calculating commuted values will increase the amount that pension plans pay to plan members cashing their entitlements out of the plan, as well as increase pension plans’ solvency funding requirements compared to 2010 valuations. The changes are the final instalment of a package of changes previously introduced in 2009 by the Canadian Institute of Actuaries (CIA).
