CANADA - The Canada Pension Plan (CPP) is expected to take in more contributions than it pays out in benefits until 2021, according to the chief actuary of the Office of the Superintendent of Financial Institutions.
The change in cash flows will cause the CPP to change its asset mix from its current projections of 65% variable-income securities and 35% fixed-income securities to 55% variable-income securities and 45% fixed-income securities after 2021, Jean-Claude Ménard told the Conference Board of Canada Pensions Summit.
“We expect a transition period that will see a decrease in Canadian equities and an increase in marketable bonds because the annual net cash flows are expected to become negative,” Ménard said.
The chief actuary also reported an assumed real rate of return on CPP assets to be 4.7% from 2004 to 2010, which will fall to 4.1% after 2010. The current rate of return is attributed to the existing CPP Fund, which “consists of 20-year loans to the provinces,” Ménard said.
An independent review of the actuary’s three-year report on the CPP is expected to be released by the end of April, Ménard said. The actuary’s report has been evaluated by an independent panel of Canadian actuaries and the UK’s Actuary Department, he added.
“In my view, the independent peer review process ensures that the highest standards and international best practices are applied to our actuarial work,” Ménard noted.
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.