{"id":19606,"date":"2020-09-18T15:00:13","date_gmt":"2020-09-18T19:00:13","guid":{"rendered":"https:\/\/www.benefitscanada.com\/news\/cia-partnering-with-ftse-russell-on-new-commuted-value-calculation-149973"},"modified":"2020-09-18T15:00:13","modified_gmt":"2020-09-18T19:00:13","slug":"cia-ftse-russell-partner-on-commuted-value-calculation","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2020\/09\/18\/cia-ftse-russell-partner-on-commuted-value-calculation\/","title":{"rendered":"CIA, FTSE Russell partner on commuted-value calculation"},"content":{"rendered":"
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Staff <\/span> | September 18, 2020 <\/p>\n

The Canadian Institute of Actuaries has selected FTSE Russell to represent the provincial and investment-grade corporate bond spread to be used for the CIA\u2019s new market-based commuted-value calculation.<\/p>\n

The calculation is used to determine how much to pay a member of a registered defined benefit pension who leaves the plan and elects to receive their pension entitlement as a lump-sum payment. Historically based on the yields of long-term Government of Canada bonds, it will now also reflect blended spreads of provincial and investment-grade corporate bond yields.<\/p>\n

\u201cWe gave it a great deal of thought and sought feedback from across the Canada actuarial and pension community when we decided to modernize our approach to commuted-value computation,\u201d said Michel St-Germain, president of the Canadian Institute of Actuaries, in a press release. \u201cAnd when we decided to go to a more market-based approach to the determination of commuted-value interest rates, FTSE Russell Canada was the natural choice. . . . We also appreciate that FTSE Russell Canada is making the relevant index values accessible on their website to all those who need this information.\u201d<\/p>\n

Read: Changes coming for pension plan commuted-value standards<\/a><\/strong><\/p>\n

The changes to the commuted-value standard, published by the CIA\u2019s actuarial standards board in January 2020<\/a>, will take effect on Dec. 1, 2020. FTSE Russell Canada has introduced a dedicated online portal for members and clients to access the index values used in determining commuted-value interest rates and learn more about commuted value and how it\u2019s calculated.<\/p>\n

\u201cWe are so excited to be selected by the CIA to provide the underlying market data to support the new market-based commuted value computation,\u201d said Marina Mets, head of Americas fixed income and multi-asset product management at FTSE Russell. \u201cWe are also happy to work with the CIA going forward to educate Canada actuaries, pension plan managers and the public on our indexes as this new association with the CIA will provide a much broader platform of engagement.\u201d<\/p>\n

Read: Industry consulting on commuted-value standard in pension payments<\/a><\/strong><\/p>\n

Read the full article at BenefitsCanada.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Staff  | September 18, 2020 The Canadian Institute of Actuaries has selected FTSE Russell to represent the provincial and investment-grade corporate bond spread to be used for the CIA\u2019s new market-based commuted-value calculation. The calculation is...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/19606"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=19606"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/19606\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=19606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=19606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=19606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}