Scott Perkin

1
Funding of Defined Benefit Pension Plans

• Scott Perkin
• President
• Association of Canadian
• Pension Management (ACPM)

2

• The ACPMs mission is to promote the growth and
  health of Canadas retirement income system by
  championing the following principles
• clarity in pension legislation, regulation and
  arrangements
• good governance and administration
• balanced consideration of stakeholder interests

3

• ACPM Funding Issues Task Force Report
• Purpose of the Report
• DB Pension Plan coverage in Canada is threatened
• Significant change is needed to ensure that DB
  plans continue to play an important role in
  Canadas retirement income system
• Accelerate a broader public dialogue around DB
  pension plan funding

4

• Key Objectives in Defined Benefit Pension Plan
  Funding
• Fairness
• Transparency
• Appropriate tools/flexibility
• Benefit Security

5

• Issues Addressed in the Report
• Asymmetry
• Measure of Plan Funding
• Clarification of Roles
• Funded Status and Benefit Security

6

• Asymmetry
• Plan Sponsor defined
• Asymmetry defined
• Historical evolution
• Impact on funding strategies

7

• Measure of Plan Funding
• Solvency or Going Concern?
• Funding Rules
• Funding Policy
• Disclosure
• Same Rules for All Plans?
• Other Issues

8

• Clarification of Roles
• The Legislator
• The Plan Administrator
• The Plan Sponsor
• The Plan Actuary

9

• Funded Status and Benefit Security
• Pension Guarantee Funds
• Priority for Recent Pension Improvements on Plan
  Wind up
• Financial Status of Plan Sponsor
• Seniority of Pension Debt
• Obligations on Wind up

10

• ACPM Funding Issues Task Force Report
• Recommendations
• Asymmetry
• Measure of Plan Funding
• Clarification of Roles
• Funded Status and Benefit Security

11

• CALL TO ACTION
• It is not too late to reverse the trend to lower
  DB plan coverage