1. LOOKING BACK…focused on the future
CIA Annual Meeting
LOOKING BACK…focused on the future

2. Pension Review Project Marcus Robertson, FSA, FCIA
June 28, 2005

3. Purpose and description Process Overall Findings
Suggested Improvements
Recommendations
June 28, 2005

4. Purpose Description Enhance CIA support and advice for actuaries
Provide input to practice committees
Promote highest quality
Description
Review 100 actuarial reports filed with regulators
June 28, 2005

5. Process Quasi-random selection of 100 reports Team of 10 reviewers
81 Ontario and 19 BC
Team of 10 reviewers
Experienced pension practitioners
Recently retired or changed practice
Reviews allocated randomly, filtered to avoid conflicts
June 28, 2005

6. Process (cont’d) Reports obtained directly from authors
Two reviewers per report
Comprehensive checklist for consistency
Strict confidentiality protocol
Rule 13 exemption applies
Deliverables
Report to Board
Advice to authors
Destruction of documents
June 28, 2005

7. Overall Findings 100 reports received and reviewed
No material non-compliance in most reports
Contents generally complete and satisfactory
In the context of existing standards and regulatory requirements
Two reports in question
Authors are being contacted and will be asked to take corrective actions, if necessary
June 28, 2005

8. Suggested Improvements – Data and Disclosures
Intended users
Subsequent events
Plan provisions
Composition of assets
Number of signatories
June 28, 2005

9. Suggested Improvements – Going Concern
Asset valuation methods
Economic assumptions
Demographic assumptions
Plan expenses
MfADs
Discussion and use of gains and losses
June 28, 2005

10. Suggested Improvements – Solvency
Asset valuation methods
Description of solvency methodology
Wind-up expenses
Wind-up deficiency
June 28, 2005

11. Recommendations Educational Notes Standards Regulations Future reviews
June 28, 2005

12. Educational Notes Asset valuation methods Economic assumptions
Appropriate MfADs
Expense assumptions
Going concern and wind-up
Checklist
Desirable practice for gain and loss
Disclosure re data, assets and plan terms
Negotiated contribution defined benefit plans
June 28, 2005

13. Standards Justification of economic and demographic assumptions
Quantification and disclosure of MfADs
Explicit statements re subsequent events
Quantification and disclosure of wind-up position
June 28, 2005

14. Regulations
Recommendation is for discussions between the CIA and regulators regarding:
Changes in methods between valuations
Selection of valuation dates
June 28, 2005

15. Future Reviews Current review identified potential changes
Recommendation is to:
Make changes
Let the changes work through the system (at least two years)
Decide then whether or not to repeat the process
June 28, 2005

16. Thanks go to:
Regulators, for providing internal checklists and identifying plans
Reviewers, for their efforts in reviewing valuation reports
Secretariat, for their significant coordination efforts
June 28, 2005

17. Questions?
June 28, 2005