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What To Do Now That The New Pension Rules Are In Place (As Of Dec 1, 2020)

OK, we’re past December 1st, 2020 so the new rules from the Canadian Institute of Actuaries (CIA) are in place. That is the auspicious regulator that dictates policy and tracks solvency of Canadian private pension plans.

What does that mean?

Well, if you are a member of a defined benefit (DB) pension plan, then you are expecting a pension income when you retire. Right?

So, someone has to perform the “big brother” act of making sure that your company is putting sufficient money into your pension plan to make sure that there will be enough money there for your on retirement. That’s the CIA mandate.

What if your company goes broke, leaves the country or underfunds your pension?

Well, that’s a subject for another day.

Today, let’s state that the CIA watches over your pension for your own good.

The story today is that the CIA changed the commuted value calculation on Dec 1st. Done! That’s behind us now.

Why do you care?

For two reasons:

First, the good news is that in your co workers take their commuted value out of your plan, they are taking less on average. So, more money is left in the plan.

That’s good for you.

Second reason that you care about the CIA regulation is that if it’s you taking your commuted value, that value is likely less than it was 2 months ago. The good news: not by too much.

Anyway, this ship has sailed.

Be sure to get a pension estimate including your commuted value estimate. Send us the docs and we’ll help you with a free analysis. We’re here to help!

Call 1-888-554-6661 to get started.

 


Bruce Youngblud is a Certified Financial Planner in southern Ontario with over 20 years of experience.
Bruce and his team specialize in helping individuals prepare for retirement and advises clients on pensions, government pensions, tax planning and estate planning.
Finance is a complicated animal! Let Pension Solutions Canada help to “simplify the complicated”. We’ve advised retirees from Ontario Teachers, Stelco, UPS, ArcelorMittal Dofasco, GM and many others.
Call 1-888-554-6661 to get started.

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