The Canadian Institute of Actuaries is updating its process for releasing guidance regarding assumptions for hypothetical pension windup and solvency valuations.

For quarterly guidance relating to periods from March 31 to Dec. 30, June 30 to Dec. 30 and Sept. 30 to Dec. 30, an explanatory report providing supporting material will be issued after the quarterly educational note supplement, according to an education supplement from the CIA, which noted the explanatory report will replace the document issued as an educational note supplement in previous quarters.

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In addition, the CIA said a quarterly educational note supplement will replace the preliminary communications and updated preliminary communications issued in previous quarters, while an educational note providing supporting material for annual guidance will also be issued.

And in light of a recent large transaction in the Canadian group annuity market, the CIA’s committee on pension plan financial reporting said liability thresholds should be revised where a plan may have difficulty in effecting a single annuity purchase to settle its liabilities.

For valuations from June 30, 2021 onward, it recommends thresholds of $1 billion for non-indexed annuities and $300 million for indexed annuities; between Dec. 31, 2018 and June 29, 2021, $750 million (non-indexed) and $250 million (indexed); and between Sept. 2013 and Dec. 30, 2018, $500 million (non-indexed) and $200 million (indexed).

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