1. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future

2. A Regulator Actuary’s View On Pension Funding Valuation

3. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Introduction Experience as a regulator actuary Do not represent views of Ontario government or FSCO George Ma, Chief Actuary, FSCO

4. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Topics of Discussion Issues related to funding valuation reports filed with FSCO Suggestions to improve regulatory and actuarial compliance Comments on current pension actuarial practice

5. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future 1,600 to 1,800 reports annually Risk-based review Compliance concerns found in 30% of the cases reviewed Filings With FSCO

6. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Regulatory Concerns Contributions

7. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Regulatory Concerns Contributions Filings

8. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Regulatory Concerns Contributions Filings Solvency

9. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Regulatory Concerns Contributions Filings Solvency Transfer ratio

10. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Actuarial Concerns Assumptions and methods

11. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Actuarial Concerns Assumptions and methods Expenses

12. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Actuarial Concerns Assumptions and methods Expenses Asset valuation

13. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Actuarial Concerns Assumptions and methods Expenses Asset valuation Compliance

14. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Actuarial Concerns Assumptions and methods Expenses Asset valuation Compliance Disclosure

15. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Tips for Valuation Filings Regulatory filings up to date?

16. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Tips for Valuation Filings Regulatory filings up to date? Consistency and compliance

17. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Tips for Valuation Filings Regulatory filings up to date? Consistency and compliance Appropriate assumptions and methods

18. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Tips for Valuation Filings Regulatory filings up to date? Consistency and compliance Appropriate assumptions and methods Adequate disclosure

19. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Tips for Valuation Filings Regulatory filings up to date? Consistency and compliance Appropriate assumptions and methods Adequate disclosure Funding up to date?

20. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Comments on Going Concern Funding “Best estimate” investment return assumption Full Funding on going-concern basis Asset smoothing and assumptions Flat benefit & CAE plans

21. CIA Annual Meeting Session 2302 LOOKING BACK…focused on the future Closing Remarks Current pension environment More focus on risks Update of actuarial standards Harmonization of funding rules