ACPM Calls on Retraite Québec to Review Instructions for Actuarial Valuations Dated in 2022
October 04, 2022
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In April of this year, Retraite Québec outlined instructions for interest rate assumptions that should be applied to all actuarial valuations after December 30, 2021, but according to the Association of Pension Management (ACPM), in today’s interest rate climate, that number is too low and needs to be changed.
In a letter to Retraite Québec, the association explained that, while in the past interest rates barely moved from one year to another, in the current economic environment, they’re increasing at a breakneck pace. This is making it difficult for pension plan sponsors and administrators to anticipate in-year changes.
The ACPM proposes that Retraite Québec review its instructions for actuarial valuations dated in 2022 — and provide a good indication of the maximum interest rate assumption that could apply at the end of the year. It also requests that the organization communicate its new instructions for actuarial valuations as soon as possible in early 2023 — and disclose additional information on the models “inherent in the return forecasts for the next few years in the next update of instructions.”
To see the full letter, click on more information.
