Office of the Superintendent of Financial Institutions
The 25th CPP Actuarial Report as at 31 December 2009 confirmed that the CPP is financially sustainable over the long term
Demographic and Other Assumptions
Real rate of return assumption is derived using building block approach:
Forecasts for the Govt. Canada LT bonds with duration over 10 years are obtained by adjusting projections for 10-years Govt. Canada LT bonds by 0.4% for December 2009 average private sector forecasts published at : http://www.fin.gc.ca/pub/psf-psp/index-eng.asp
Forecasts for the Govt. Canada LT bonds with duration over 10 years are obtained by adjusting projections for 10-years Govt. Canada LT bonds : by 0.3% for PEAP, and by 0.4% for average private sector forecasts presented in Federal Budget 2013.
Due to current low interest rates environment, the OCA assumes real rate of return of 3.6% for the next few years.