PfAD – Benefits Canada.com

Head to head: Should Canadian governments eliminate pension solvency funding rules?

Jennifer Paterson — Fri, 19 Nov 2021 13:59:37 +0000

With defined benefit pension solvency reforms gradually coming in across the country, two experts debate whether there’s a better way to ensure DB plan sustainability and security. Todd Saulnier, vice-president, the Association of Canadian Pension Management’s board of directors The answer is mostly yes. A floor of 85 per cent of solvency liability might be […]

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Back to basics on the provision for adverse deviation

mschmit — Fri, 20 Nov 2020 04:56:40 +0000

Defined benefit plan sponsors can’t predict the future — but with a provision for adverse deviation, they can at least plan for it. “Given the work that actuaries do, where it’s all about quantifying risks and all these unknowns, it’s always best to be conservative,” says Andrew Gillies, partner and consultant at Robertson, Eadie & […]

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A look at pension funding cushions from coast to coast

mschmit — Wed, 07 Oct 2020 06:27:30 +0000

Long before the global pandemic, jurisdictions across Canada were embarking on pension solvency reform, with some moving from strict 100 per cent solvency funding requirements to going-concern plus models, which incorporate a funding cushion. Low interest rates, which make solvency funding very expensive, have been a key driver pushing the going-concern plus model, says Dean […]

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PIAC calling for tighter link to asset allocation for PfAD in proposed B.C. pension solvency funding framework

mschmit — Fri, 20 Sep 2019 05:19:56 +0000

While the Pension Investment Association of Canada is generally supportive of British Columbia’s proposed solvency funding framework, when it comes to requirements around funding the provision for adverse deviations, the organization is suggesting B.C. takes a page from Ontario and Quebec. With many governments across Canada looking to make defined benefit plans more sustainable, the […]

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Ontario’s new DB funding rules should base PfAD on plan’s asset mix: ACPM

mschmit — Mon, 04 Mar 2019 11:34:00 +0000

In Ontario’s new defined benefit plan funding rules, the provisions for adverse deviation should be based on the plan’s asset mix, and a riskier asset mix should naturally require a higher PfAD, according to the Association of Canadian Pension Management’s submission to the provincial Ministry of Finance. “Using that logic and an understanding that fixed-income […]

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