Independent review supports 32nd Actuarial Report on the Canada Pension Plan

Today, the Office of the Chief Actuary (OCA) released the findings of an independent panel’s review of the 32nd Actuarial Report on the Canada Pension Plan (CPP).

Since 1999, the OCA requests external peer reviews to ensure continual improvements in actuarial reporting on the CPP.

The review, which was performed by a panel of three independent actuaries, found that the OCA’s work on the 32nd Actuarial Report on the CPP complied with statutory requirements as well as all relevant professional standards of practice, and that the methods and assumptions were reasonable. They found that the Chief Actuary and the OCA staff acted with competence, commitment, and professionalism in the preparation and follow-up of the 32nd Actuarial Report on the CPP.

The panel made six recommendations aimed at continuing to enhance the CPP actuarial reports. The recommendations focus on:

• strengthening earnings and migration data, including improved identification of non‑permanent residents;
• further analysis of workforce participation at older ages;
• expanded analysis of earnings distribution trends, particularly as the additional CPP matures;
• enhanced disclosure of sensitivities and scenarios that could place pressure on statutory contribution rates; and
• continued development and reporting of plausible climate‑change‑related scenarios and their potential financial impacts on the CPP.

The panel also noted several additional observations and suggestions intended to support ongoing monitoring of demographic, economic, investment, and socio-economic risks that could affect the long-term sustainability of the CPP. These recommendations and suggestions aim to strengthen the analytical depth, transparency, and relevance of the reports, supporting a more informed assessment of the CPP’s financial outlook.

Quote

The independent panel’s findings affirm the quality, rigor, and professionalism of the Office of the Chief Actuary’s work on the 32nd Actuarial Report on the Canada Pension Plan. In an environment marked by heightened risk and uncertainty, this review reinforces the importance of robust analysis and forward‑looking assumptions to support a clear and informed understanding of the CPP’s financial state.