A Special ACPM National Session
The Future Isn't What It Used To Be:
Plan Design and Longevity Risk
Hosted by the ACPM Regional Councils
ACPM is hosting a multi-topic national session in eight cities across Canada that will explore two major challenges for plan sponsors, administrators, trustees and service providers. This special ACPM National Session will feature:
Canadian demographic changes have been anticipated for a long time. With the recent changes to the CPP, the shift from accumulation to decumulation and the fact that people are living longer and requiring more in their retirement years, perhaps now is the time for plan sponsors to start thinking about changes to their plan design. If so, what are some of the considerations? This session will give an overview of what we may expect in the coming decade and examine case studies of what some plan sponsors are doing to prepare for the years ahead.
Longevity risk can be defined as the risk of living longer than expected. Enjoying a longer retirement sounds like a wonderful idea, but the financial cost that comes with a longer life often becomes a worry. Keep in mind that a 65-year old today is expected to live to between ages 88 and 90, and the next generation could live much longer than that.
For a defined benefit or target benefit plan, a population that lives longer than expected on average will result in losses for the plan, as will revisions to previous estimates (such as what happens when mortality tables are updated). That being said, DB plans have large advantages over individuals who must manage their longevity risk on their own. Those advantages include natural risk pooling, economies of scale, and longevity insurance products that can be used to hedge most or all of the longevity risk the plan faces.
As alluded to above, longevity risk is very relevant to individuals who participate in a defined contribution pension schemes as well as for those who have to save for their retirement on their own. While it is true that a retiree can use savings from a DC Plan or even an RRSP account to purchase a life annuity from an insurance company to hedge that risk entirely, less than 1 in 10 of retirees do so.
Our advocacy session will focus primarily on individual longevity risk where will dive a little more deeply to understand:
- the consequences to individual retirees (and society) of not managing longevity risk
- possible reasons for the reluctance of purchasing life annuities,
- alternative solutions using existing tax rules, and
- potentially more cost effective solutions if certain tax rules were slightly modified.
We look forward to a good dialogue and hope you will share your thoughts on what can be done to help DC participants and individual retirement savers make the most of their retirement without having to worry about running out of money.
DATES and LOCATIONS
Tuesday, Nov. 27th; Regina, SK; Delta Regina Hotel**
Wednesday, Nov. 28th; Edmonton, AB; Delta Hotels Edmonton Centre Suites* (Sold Out)
Wednesday, Nov. 28th; Toronto, ON; Sheraton Centre Toronto* (Sold Out)
Wednesday, Nov. 28th; Halifax, NS; Delta Hotel Barrington*
Thursday, Nov. 29th; Winnipeg, MB; Delta Hotel Winnipeg*
Thursday, Nov. 29th; Montreal, QC; Intercontinental Montréal* (Sold Out)
(Details including presenters and moderators are in progress)
* BREAKFAST SESSIONS
7:30-8:00am - Hot breakfast and Registration
8:00-10:30am - Presentations and Q&A
ACPM Members = $80.00; Non-Members = $130.00; Table of Six = $480.00;
Fee does not include applicable taxes
** LUNCH SESSION
11:30am-12:00pm - Hot lunch and Registration
12:00pm-2:30pm - Presentations and Q&A
ACPM Members = $100.00; Non-Members = $150.00; Table of Six = $600.00;
Fee does not include applicable taxes
To register for this special ACPM National Session,
please click HERE.
If you would like to be a National Session Sponsor, please click HERE for details.
Full refunds will be made for cancellations received via email or fax no later than 5:00pm(EDT) November 10 2018. Substitution is allowed at any time.