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On September 21, 2026, the Canadian Institute of Actuaries (CIA) published its final communication on the updated mortality assumptions used for calculating the commuted value of pension plan benefits for defined benefit plans, in accordance with Subsection 3530 of the Standards of Practice.
The final communication confirms the proposed changes presented in the initial communication, while granting additional time for the implementation of the new assumptions. As a result, the use of the combined CPM2024 Canadian Pensioner Mortality Table, as well as the MI-2024 mortality improvement scale, will take effect on April 1, 2027 (see our NB bulletin for more details).
Quebec is the only province where the legislation needs to be amended before the new assumptions can be used to calculate commuted values. Nevertheless, we expect Retraite Québec to adopt such amendments by April 1, 2027. Otherwise, administrators will need to continue using the CPM2014 table and CPM-B scale, and may need to include additional disclosures in valuation reports and benefit statements due to the differences with the newly promulgated assumptions.
In other jurisdictions, the new assumptions will be adopted automatically. Commuted values must therefore be calculated using the new mortality assumptions as of April 1, 2027.
As a reminder, the adoption of this new basis could result in higher commuted values, and consequently, amounts payable of around 2% to 4% for non-indexed pensions and 3% to 6% for indexed pensions, depending on plan member age.
In addition to commuted value calculations, the mortality assumptions to be used for funding and accounting valuations should also be reviewed in the coming months, if not already done.
For more details, we encourage you to read our NB bulletin on the 2024 Canadian Pensioner Mortality Research Project (CPM2024).
Would you like more information?
Contact your Normandin Beaudry consultant or write to us.
