CIA (e)Bulletin/(e)Bulletin de l'ICA
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December 2013
 
 

December's Updates

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The following people have been appointed to the groups/positions named below: 

Board

  • Elections Committee: Jim Christie and Stephen Bonnar, effective November 11, 2013; and
  • Member Services Council: Marc Tardif (Chair), effective immediately. Note: the term of Marc-André Melançon has ended and he leaves with thanks.

The Governance Task Force has been disbanded, with thanks, effective immediately.

Eligibility and Education Council

Ralph Ovsec and Keith Sharp resigned from the Committee on Continuing Education and Academic Relations Committee respectively, and leave with thanks.

Member Services Council

  • Committee on Volunteer Initiatives: Jean-François Lalonde, effective September 4, 2013.
  • Individual Living Benefits Experience Subcommittee of the Research Committee: Todd Friesen, effective October 28, 2013; and
  • Research Committee: Emilie Bouchard, effective November 13, 2013.

The Task Force on Pension Funding and Transfer Values has been created with the following mandate:

  • Review the issues related to funding of single employer DB plans and transfer values
  • Whether there should be a requirement to fund on the basis of solvency
  • How should the discount rate be setup in a going-concern basis? Should such rate be prescribed? What should it be?
  • If solvency is required, how should fully indexed plans be valued? Should it continue to be based on presumed annuity purchase?
  • Should the funding basis be the same whether the sponsor is in the public or private sector?
  • Should funding method based on probability of achieving a future funding target be allowed, as TBP may be funded on this basis?
  • Should current transfer value basis be changed to a basis reflecting how the benefits are funded?
  • Prepare a position paper with pros and cons and if possible, a public position of the CIA. The issue of transfer value should be addressed both from an actuarial standards point of view (i.e. equivalent value between the deferred pension and the lump sum) and a public policy point of view (i.e. lower benefit to those who terminated employment).

The Task Force on Target Benefit Plans has been created with the following mandate:

  • Comment on the regulations of TBP including:
  • Margin in actuarial assumptions
  • Solvency exemption
  • The trigger to reduce benefits or increase benefits
  • Whether the trigger should be based on solvency, projected funding position, or probability of meeting future funding target
  • The conversion of accrued service
  • The governance structure (including retirees’ representation)
  • The use of stochastic models to fund the benefits. Should the CIA propose standards for these models?
  • The need for flexibility to let sponsors reflect the different needs vs. the objective of the regulator to minimize the probability of reducing the benefits
  • The options available at retirement including whether cash out should be allowed
  • How transfer values should be calculated.
  • Comment on whether the CIA should promote this option and how.
 

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