Highlights From the Apples & Oranges MEPP Benchmarking Study Revealed (Online Seminar)
- Would you like to know how your pension plan’s benefit and contribution rates compare to other plans?
- Is your plan getting the biggest bang for the buck? Are your plan’s benefits top quartile, bottom quartile, or something in between?
- How efficient your pension plan’s risk profile is relative to others?
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Summary of PBI’s Seminar Revealing MEPP Benchmarks Published in Benefits and Pensions Monitor
Article written by Nisha Singh and Nellie Hua, consultants at PBI Actuarial Consultants Ltd., published in the Benefits and Pensions Monitor Online.
The average employer/employee contribution to a multi-employer pension plan is $4.26 per hour, says H. Clare Pitcher, of PBI Actuarial Consultants. Speaking at its ‘Apples & Oranges: MEPP/TBP Benchmarking Study,’ he said the range for contributions is $1.09 to $7.60 per hour. Cindy Rynne, of PBI, said the survey, its first, is designed to reveal some benchmarks for MEPPs across the country.
Please click on the link above to view the article.
Addressing Underfunded Pension Plans with Contingency Reserves
How well-funded is your pension plan? A pension plan’s funded status is an indication of its financial health. Most plans’ funded positions were adversely affected by the economic crisis of 2008 but have improved since then. This article will help you better understand pension funding deficits, what caused them, and how to avoid them moving forward.
Please click on the following link to download the PDF of the article: Addressing Underfunded Pension Plans with Contingency Reservices
PBI Publishes a Pension Plan Sponsor’s Guide to the New Canadian Mortality Tables
A recent Canadian mortality study concludes we are living longer; good news for us, bad news for pension plan sponsors!
Mortality is a key assumption in calculating actuarial liabilities for pension plans and impacts the level of funding required. Historically, industry standard mortality tables were based largely on pension plan experience data from the United States. However, after the completion of a study by the Canadian Institute of Actuaries (CIA) which concluded that Canadians are living longer than previously expected, the CIA published new Canadian Pensioners’ Mortality (CPM) tables and mortality improvement scales. The impact of adopting these new tables will vary among plans, but most can expect an increase in plan liabilities and funding costs.
PBI has published A Pension Plan Sponsor’s Guide to the New Canadian Mortality Tables that examines what impact the new Canadian mortality tables will have on the multi-employer pension plan segment of our client base. The potentially significant increase in cost that would come with the use of the new CPM tables led PBI to take a careful look at each plan’s experience, rather than simply adopting the tables. The Guide reveals how some pension plans are handling the new tables and the potential cost implications, and also provides guidance to selecting appropriate plan-specific mortality assumptions.
For more information, we encourage you to contact your consulting actuary or to email [email protected] to be connected with a PBI consultant and receive a copy of A Pension Plan Sponsor’s Guide to the New Canadian Mortality Tables.
Provincial Budgets 2014: Ontario
On May 1, 2014, Minister of Finance Charles Sousa presented the 2014 Ontario budget. There are a number of proposals, in particular regarding pensions, for which we have provided the highlights of interest in this memo. With a minority government, and no support from either the PC or NDP, the Liberals will likely need to hold elections in June prior to presenting the Budget again.
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