FAQ - CIA Mortality Table effective Oct 1, 2015

Q1. The Canadian Institute of Actuaries (CIA) has published a new basis for calculating commuted values which is to be used on and after October 1, 2015.  Are plan administrators required to use this new basis when it comes into effect?
 
A1. Subsection 19(1) of Regulation 909 (the Regulation) sets out the minimum standard for calculating commuted values for the purposes of subsection 42(1) of the Pension Benefits Act and refers to the CIA standard in effect on June 3, 2010.  The plan administrator may use the new basis and, if they do so, they are in compliance with the requirements of the Regulation as long as: (i)  the commuted value is equal to, or higher than, the value that would be determined using the minimum standard; (ii) as required by subsection 19(5.1) of the Regulation, the plan administrator files a statement notifying FSCO that the new table is being used and as a result, the commuted values were calculated on a higher basis than the basis prescribed under subsection 19(1); and (iii) the plan terms permit or require the use of the new mortality basis.  - 10/2015
 
 

Q2. The Canadian Institute of Actuaries (CIA) has published a new basis for calculating commuted values which is to be used on and after October 1, 2015.  Are plan administrators of pension plans registered with another jurisdiction that have Ontario members required to use this new basis?

 

A2. If a pension plan is registered with another jurisdiction that has Ontario members, the process to be followed by the plan administrator is similar to that of a plan that is registered with Ontario.  That is, the plan administrator may use the new basis as long as:

 

  • the commuted value is equal to, or higher than, the value that would be determined using the minimum standard in subsection 19(1) of Regulation 909 (Regulation);
  • the plan administrator files a statement satisfying subsection 19(5.1) of the Regulation with the pension regulator in the pension plan's jurisdiction of registration, stating that the new table is being used and as a result, the commuted values were calculated on a higher basis than the basis prescribed under subsection 19(1); and
  • the plan terms permit or require the use of the new mortality basis.  -12/2015
 
 
 
 
 
 
 
 
 
 

 
Follow FSCO on social media  

Outage  Scheduled Online Service Disruption Notice
Please consult our outage schedule for more details.