Adjustments to the mortality table for pension plan valuations

This and other subjects are included in the current issue of the Morneau Shepell monthly publication, News & Views

TORONTO, Oct. 26, 2015 /CNW/ - In the October 2015 issue of its monthly newsletter, News & Views, Morneau Shepell provides a detailed look at adjustments made to mortality tables in relation to pension plan valuations in Canada. The newsletter also presents an update on new pension regulations in BC and New Brunswick.

• Adjustments to the mortality table for pension plan valuations Morneau Shepell looks at new adjustments to mortality tables released by the Canadian Institute of Actuaries (CIA) and what that means for assumptions used in pension plan actuarial valuations.
• Life expectancy: improvements slowing down? – For a number of years life expectancy has risen
• steadily, however, in this article, Morneau Shepell identifies recent indicators indicating that the rate of improvement could be slowing down.
• New mortality table in effect October 1, 2015 – Impact on DB pension plans – As previously discussed in the News and Views of July 2015, the new CIA mortality table, for use in pension plan commuted value and solvency liability calculations, came into effect on October 1, 2015. The table came into force in all jurisdictions as of October 1, 2015, with the exception of Ontario.
• Update: new BC pension rules in force September 30, 2015 – Morneau Shepell notes that BC pension plans, as well as pension plans that are registered in other provinces but that include members in BC, are required to submit compliance amendments no later than December 31, 2015. A BC pension plan is required to have a governance policy and funding policy (the latter only applicable to defined benefit plans) in place by January 1, 2016.
• New Brunswick: pension regulations for online filing and commuted values –New Brunswick has released Draft Regulations that will support the launch of an online portal allowing administrators and individuals to complete and submit forms electronically.
• Market Indices – Monthly summary of returns from various market indices such as the FTSE TMX Bond Indices and Canadian, U.S. and Foreign Equity Indices. Also includes returns from benchmark portfolios used by pension funds.
• Tracking the funded status of defined benefit pension plans – Impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities.
• Impact on pension expense under international accounting – Expense impact for a typical defined benefit pension plan.

About Morneau Shepell Inc.
Morneau Shepell is the only human resources consulting and technology company that takes an integrative approach to employee assistance, health, benefits and retirement needs. The Company is the leading provider of employee and family assistance programs, the largest administrator of retirement and benefits plans and the largest provider of integrated absence management solutions in Canada. Through health and productivity, administrative, and retirement solutions, Morneau Shepell helps clients reduce costs, increase employee productivity and improve their competitive position. Established in 1966, Morneau Shepell serves approximately 20,000 clients, ranging from small businesses to some of the largest corporations and associations in North America. With almost 4,000 employees in offices across North America, Morneau Shepell provides services to organizations across Canada, in the United States, and around the globe. Morneau Shepell is a publicly-traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com

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