June 01, 2014
This spring we’ve seen a raft of pension developments, including a government announcement on “target benefits”, a new report on “fair value” accounting from the C.D. Howe Institute, significant press coverage on public service pensions, and most notably, the spring 2014 report from Canada’s Auditor General. Unfortunately, most analysis done up until now have been based on short term accounting principles rather than on more long term actuarial considerations. As you will see below, if the Public Service Pension plan is doing well in difficult economic times, it will do even better when the economy improves.