Back from The Brink
ACPM’s Advocacy and Government Relations Committee (now the National Policy Committee) commissioned this report and a task force established by the AGRC - the Pension Plan Funding Issues Task Force - prepared the report. Task Force members were drawn from the legal and actuarial professions, as well as from both public and private pension plans.
The Task Force:
- examined the statistics around DB pension plan funding and coverage;
- identified causes of declining coverage and funding levels;
- looked at barriers to improving the health of DB pension plans;
- considered developments in other jurisdictions (in Canada and elsewhere);
- discussed and debated possible solutions; and
- developed recommendations for improvements.
In addition, the Task Force prepared a response to the Canadian Institute of Actuaries (CIA) Preliminary Report on Public Policy Principles in Pension Plan Funding, released in January 2004.
The Task Force also developed a proposal for the use of letters of credit to meet solvency deficiency contribution requirements for registered pension plans. The Task Force has also met with Canadian Labour Congress (CLC) representatives to discuss funding issues, a dialogue which ACPM hopes will continue.