Office of the Superintendent of Financial Institutions
Office of the Chief Actuary
Main Findings
Financial Position
($ millions) | Account | Fund |
|---|
| Recorded Balance/Actuarial Value of Assets | 91,537 | 125,409 |
|---|
| Liabilities | 98,837 | 110,909 |
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| Surplus (Shortfall) | (7,300) | 14,500 |
|---|
| Funding Ratio | 92.6% | 113.1% |
|---|
Member Contribution Rates
Calendar Year 2022 | Group 1 | Group 2 |
|---|
| Below YMPE | 9.36% | 7.95% |
|---|
| Above YMPE | 12.48% | 11.82% |
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Message from the Chief Actuary
- The current service cost is shared equally between the employees and the employer. The current service cost is expected to decrease due to the increasing weight of Group 2 members.
- Contributions are expected to exceed Fund expenditures until 2031.
- We reflected the impacts of the COVID-19 pandemic on the economic assumptions used in this report. The pandemic is a very fluid situation that will continue to evolve for some time. The final impacts will be reflected in future reports
Key Assumptions
| Discount Rate | Current | Previous |
|---|
| Ultimate real rate on the Account | 2.1% | 2.7% |
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| Equivalent flat real rate on the Fund | 3.6% | 3.7% |
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| Life expectancy at age 65 (in years) | 2020 | 2036 |
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| Male | 22.9 | 23.9 |
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| Female | 24.6 | 25.5 |
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Current Service Cost
(% of pensionable payroll, by calendar year)
Graphic description - Current Service Cost
| Calendar Year | Group 1 | Group 2 | Total |
|---|
| 2022 | 21.11% | 17.46% | 19.58% |
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| 2023 | 21.12% | 17.50% | 19.47% |
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| 2024 | 21.12% | 17.56% | 19.38% |
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Summary of Membership Data
| Number | Average Age |
|---|
| Contributors | 331,406 | 44.4 |
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| Pensioners | 258,537 | 68.4 |
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| Surviving Spouses | 47,677 | 79.6 |
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| Surviving Children | 1,159 | 13.3 |
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| Total Membership | 638,779 | |
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Account and Fund Projection
Graphic description - Account and Fund Projection
| As of 31 March | Account Liabilities | Fund Liabilities | Fund Assets |
|---|
| 2020 | 99 | 111 | 125 |
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| 2023 | 82 | 133 | 151 |
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| 2026 | 74 | 160 | 180 |
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| 2029 | 65 | 191 | 212 |
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| 2032 | 55 | 225 | 248 |
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| 2035 | 45 | 264 | 289 |
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| 2038 | 36 | 305 | 334 |
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Evolution of Cash Flows over Time
Graphic description - Evolution of Cash Flows over Time
Bar graph showing the evolution of cash flows under the Pension Fund over time. Y-axis represents the expected contributions, payments and resulting net cash flows in millions. X-axis represents the plan year, starting in 2021 and ending in 2039.
In plan year 2021, contributions to the Pension Fund are $5,018 million, whereas payments are $3,493 million, resulting in net cash flows of $1,525 million. Both contributions and payments are increasing over time, however payments are increasing at a higher rate than the contributions. Payments will be higher than contributions starting plan year 2031.
In 2031, the chart shows payments of $7,279 million exceeding contributions of $7,145 million and resulting in net cash flows of negative $134 million. From 2031, the Pension Fund experiences negative net cash flows. In plan year 2039, contributions to the Pension Fund reach $9,292 million, whereas payouts reach $13,252 million resulting in net cash flows of negative $3,960 million.