Revised CIA standards for pension plan commuted values to come into effect on December 1

As announced in our last January bulletin, the Canadian Institute of Actuaries has issued revisions to Section 3500 of its Standards of Practice for determining commuted values for pension plans.

The Actuarial Standards Board (ASB) has recently confirmed that amendments to Section 3500 will be effective on December 1, 2020. Last April, the ASB has postponed the effective date, which was originally slated for August 1, 2020.

For target benefit plans, the ASB has confirmed the early adoption of the revisions to Section 3500, which includes the new Subsection 3570 on target pension arrangements. However, the amended Section 3500 must then be adopted in its entirety at the same time for the same plan.

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