Aon Hewitt has announced the Canadian launch of a new tool designed to help DB plan sponsors more effectively understand longevity.
Recent mortality research in Canada has considerably extended the time at which virtually all closed-to-new- entrants DB pension plans are projected to end up with their “last man standing.” That has given a sudden boost to pension liabilities and normal costs, depending on which of several mortality tables is chosen (most notably, tables that differentiate between private and public sector workforces). It is readily apparent that more judgment is required in that choice than under the previous commonly used table. Never before have Canadian DB plan sponsors given so much attention to the life expectancy of their plan members.
The Office of the Superintendent of Financial Institutions (OSFI) has issued a policy advisory to administrators of federally regulated DB pension plans that are considering entering into a longevity insurance or longevity swap contract.
Why longevity risk isn't just about life expectancy.
OMERS is studying the draft report by the Canadian Institute of Actuaries indicating that Canadians are living longer.
The Office of the Superintendent of Financial Institutions has issued a draft policy advisory that provides information and guidance to administrators of federally regulated pension plans considering entering into a longevity insurance or longevity swap contract.
This summer, the Canadian Institute of Actuaries released new pension mortality tables. The tables revealed longer life expectancies than were previously provided by commonly used tables. Some of the industry reaction has focused on the longevity risk faced by DB pension plans.
Coverage of the 2013 Risk Management Conference.
New figures confirm that life expectancy in Canada has increased—a trend that, in the eyes of experts, poses a threat for the sponsors of both DB and DC plans and calls for new measures such as transferring risks to insurance companies and providing education for plan members.
Preview of the 2013 Risk Management Conference.