PENSION INVESTMENT ASSOCIATION OF CANADA

Since 1977 the Pension Investment Association of Canada (PIAC) has been the forum for Canada’s pension plans to share information and knowledge. PIAC is composed of over 130 of the largest pension plans in the country. Senior professionals employed by PIAC’s member funds are responsible for the oversight and management of over $2 trillion in assets on behalf of millions of Canadians. Our membership includes pension funds of all sizes and types across Canada in both the private and public sectors.


OUR GOALS

INVESTMENT BEST PRACTICES

KNOWLEDGE SHARING

ADVOCACY

GOOD GOVERNANCE


LATEST NEWS



On November 27, 2020, PIAC responded to a consultation by the Canadian Institute of Actuaries’ (CIA) Actuarial Standards Board (ASB) on its Quinquennial Review of Part 3000. PIAC focused on three areas:

- Benefits Security
PIAC stated that the meaning of benefits security, and any mandated disclosures and related calculations are a public policy issue for law makers and regulators and not the responsibility of the ASB. “Going concern plus” funding is an appropriate and adequate measure to ensure the long-term funding of DB plans.

- Meaningful Stress Testing
Stress testing standards should be principles-based and involve a risk review by the actuary and plan sponsor(s) / administrator. PIAC offered to assist the CIA in developing educational materials to help actuaries understand leverage, its inherent risks, and its impact on the expected return on assets and in turn on the discount rate; as well as the valuation methods for many of the privately traded alternative asset classes and their impact on smoothing of the value of these assets.

- Pension Plans
In hypothetical wind-up valuations, PIAC raised the concern that disclosure of a worst-case scenario on wind-up (such as a bankruptcy) will likely lead to disclosure and communication challenges for plan sponsors with their employees and plan members. Moreover, there is the potential for unintended consequences whereby the disclosure of the scenario motivates regulators to use it as a minimum actuarial standard to calculate transfer value ratios, which would ultimately lead to higher costs for plan sponsors.




On November 27, 2020, PIAC responded to a consultation by the Canadian Institute of Actuaries’ (CIA) Actuarial Standards Board (ASB) on its Quinquennial Review of Part 3000. PIAC focused on three areas:

- Benefits Security
PIAC stated that the meaning of benefits security, and any mandated disclosures and related calculations are a public policy issue for law makers and regulators and not the responsibility of the ASB. “Going concern plus” funding is an appropriate and adequate measure to ensure the long-term funding of DB plans.

- Meaningful Stress Testing
Stress testing standards should be principles-based and involve a risk review by the actuary and plan sponsor(s) / administrator. PIAC offered to assist the CIA in developing educational materials to help actuaries understand leverage, its inherent risks, and its impact on the expected return on assets and in turn on the discount rate; as well as the valuation methods for many of the privately traded alternative asset classes and their impact on smoothing of the value of these assets.

- Pension Plans
In hypothetical wind-up valuations, PIAC raised the concern that disclosure of a worst-case scenario on wind-up (such as a bankruptcy) will likely lead to disclosure and communication challenges for plan sponsors with their employees and plan members. Moreover, there is the potential for unintended consequences whereby the disclosure of the scenario motivates regulators to use it as a minimum actuarial standard to calculate transfer value ratios, which would ultimately lead to higher costs for plan sponsors.

SEE MORE