Pension Plan for the Members of Parliament as at 31 March 2022 – Highlights

Message from the Chief Actuary

We have prepared the report on the actuarial valuation as at 31 March 2022 to:

• Determine the state of the Members of Parliament Retiring Allowances (MPRA) account and the Members of Parliament Retirement Compensation Arrangements (MPRCA) account;
• Set the parliamentarians’ contribution rates for calendar years 2024, 2025 and 2026; and
• Assist the President of the Treasury Board in making informed decisions regarding the financing of the government’s pension benefit obligation.

The previous statutory actuarial report was prepared as at 31 March 2019 and the next periodic review is scheduled for no later than 31 March 2025. As of 1 January 2025, and to reflect the improved benefits provided under the Canada Pension Plan, the Chief Actuary changed the coordination factor used to determine the member’s contributions and allowances from 0.4% to 0.684%.

Main findings

Main findings - text description

Cost (in % of pensionable payroll)

Calendar year	Total current service cost	Parliamentarians' contribution ratesTable 1 footnote 1
2024	44.30	22.15
2025	43.60	21.80
2026	43.60	21.80
Table 1 footnotes  Table 1 footnote 1 Upon reaching the maximum pension accrual, members contribute 1% of their pensionable earnings. Members' contributions account for 50% of the total current service cost.  Return to table 1 footnote 1

Key assumptions

Key assumptions - text description

Ultimate best-estimate economic assumptions

Assumption	Current valuation	Previous valuation
Level of inflation	2.0%	2.0%
Real increases in remuneration	0.5%	0.6%
Real increases in YMPE and ELTable 1 footnote 2	0.9%	1.0%
Valuation rate	4.0%	4.5%
Table 1 footnotes  Table 2 footnote 2   Earnings Limit (EL) as defined under the Members of Parliament Retiring Allowances Act, based on the applicable coordination factor.  Return to table 2 footnote 2

Demographic assumptions

Assumption	Current valuation	Previous valuation
Cohort life expectancy at age 65
Male	23.9	23.7
Female	25.3	25.2
Average retirement age	63.9	65.0

Summary of membership data

Summary of membership data - text description

Group	Number	Average age
Parliamentarians	428	55.2
Pensioners in pay	593	75.1
Deferred pensioners	44	49.1
Surviving spouses	183	81.1
Surviving children	4	N.A.

Group	Percentage
Parliamentarians	34%
Pensioners in pay	47%
Deferred pensioners	4%
Survivors	15%