New Brunswick’s shared-risk model for pension plans has received the highest grade from the American Academy of Actuaries.
The U.S.-based organization gave the model an A-minus.
Four other systems were graded and were ranked as follows: retirement legislation proposed last year called the USA Retirement Funds Act (A-), the South Dakota Retirement System (B+), the current-system traditional DB plan (C+) and the current-system safe harbour DB plan (C+).
“The overall grades provide a general assessment of whether a system is well designed to achieve its retirement income purpose,” says Academy senior pension fellow Donald Fuerst.
The assessment is based on factors such as whether the system is sustainable, supports good governance and decision-making, and avoids imposing undue burdens on stakeholders.