cia annual meeting session 2302 looking back…focused on the future

CIA Annual MeetingCIA Annual MeetingSession 2302Session 2302

LOOKING BACK…focused on the futureLOOKING BACK…focused on the future

A Regulator Actuary’s View OnA Regulator Actuary’s View On

Pension Funding Valuation



Introduction

• Experience as a regulator actuary• Do not represent views of Ontario

government or FSCO• George Ma, Chief Actuary, FSCO



Topics of Discussion

• Issues related to funding valuation reports filed with FSCO

• Suggestions to improve regulatory and actuarial compliance

• Comments on current pension actuarial practice



• 1,600 to 1,800 reports annually• Risk-based review• Compliance concerns found in 30% of the

cases reviewed

Filings With FSCO



Regulatory Concerns

• Contributions



Regulatory Concerns

• Contributions• Filings



Regulatory Concerns

• Contributions• Filings• Solvency



Regulatory Concerns

• Contributions• Filings• Solvency• Transfer ratio



Actuarial Concerns

• Assumptions and methods



Actuarial Concerns

• Assumptions and methods• Expenses



Actuarial Concerns

• Assumptions and methods• Expenses• Asset valuation



Actuarial Concerns

• Assumptions and methods• Expenses• Asset valuation• Compliance



Actuarial Concerns

• Assumptions and methods• Expenses• Asset valuation• Compliance• Disclosure



Tips for Valuation Filings

• Regulatory filings up to date?




• Regulatory filings up to date?• Consistency and compliance




• Regulatory filings up to date?• Consistency and compliance• Appropriate assumptions and methods




• Regulatory filings up to date?• Consistency and compliance• Appropriate assumptions and methods• Adequate disclosure




• Regulatory filings up to date?• Consistency and compliance• Appropriate assumptions and methods• Adequate disclosure• Funding up to date?



Comments on Going Concern Funding

• “Best estimate” investment return assumption

• Full Funding on going-concern basis• Asset smoothing and assumptions• Flat benefit & CAE plans



Closing Remarks

• Current pension environment• More focus on risks• Update of actuarial standards• Harmonization of funding rules

cia annual meeting session 2302 looking back…focused on the future

Documents