Canadian Pension Risk Strategies Summit
Toronto, Ontario

Workshop: Throw away your crystal ball: why interest rates may not matter as much as you think

Presenters: Heather Wolfe and Mathieu Tessier

With the recent surge in interest rates, many Canadian pension plans are now at or close to fully funded. As political and economic uncertainty continues around the world, plan sponsors are taking action now to reduce pension risk and avoid regret risk. This workshop presented non-conventional thinking around managing interest rate risk and shared innovative steps that plan sponsors can take today to reduce pension risk.

Panel Discussion: Managing Risks that Impact Funded Status

Participant: Brent Simmons

Much attention is paid to managing pension risk, and with good reason. Diligent risk management is essential for ensuring that assets are available to pay pensions and that contributions are affordable. Plan sponsors are now shifting their focus from assets only to a more holistic view of the assets and liabilities together, since funded status volatility is driven by their interaction. Measuring and predicting funded status can be challenging because of the uncertainty around future longevity, interest rates and inflation rates. This panel discussed risks that impact a plan’s funded status and various options for managing those risks.

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