Announcements - Current

For pension members

Preliminary Communication for Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates on or after Mar 31, 2020 (but no later than Dec 30, 2020)

To provide timely information to actuaries, this memorandum summarizes the Committee on Pension Plan Financial Reporting’s (PPFRC) discount rate and mortality recommendations for estimating the cost of purchasing annuities. Furthermore, it provides updates to the use of alternate settlement methods guidance related to the increased capacity of the group annuity purchase market.

Actuaries are advised that this constitutes preliminary guidance only, as it is subject to Actuarial Guidance Council (AGC) approval. History has shown that AGC members may propose alternatives, require additional analysis, submit additional data, and/or not necessarily approve PPFRC recommendations without adjustments.

Any work based on this preliminary guidance should be accompanied by appropriate caveats about its preliminary nature and potential for revision. Further, it would be inappropriate to use this preliminary guidance for the purpose of any formal reporting or regulatory filings, nor in any marketing capacity.

For questions, contact Jared Mickall, Chair, PPFRC.

Announcement Number2020-04(07154) April 22, 2020