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CIA PRACTICE EDUCATION COURSE
Course of Reading – Retirement Benefits – June 2014
General
Reference Title
Description
Source
1.
PEC – Introductory Study Note
General Information concerning the PEC
http://www.cia-ica.ca/docs/default-source/pec2014/retisn2014e.pdf
2.
PEC – Learning Objectives
Applicable to Retirement Benefits
Practice Area
PEC Learning Objectives Specific to Retirement Benefits
Practice Area
http://www.cia-ica.ca/docs/default-source/pec2014/retlo2014e.pdf
3.
PEC – Retirement Benefits Case
Study
Case study to be used in the Retirement Benefits practicespecific sections of the PEC and examination
Will be sent by e-mail by the CIA when available.
June 2014
1
Canadian Pension Legislation
Reference Title
1.
Ontario Pension Benefits Act
(PBA) and Regulations Thereunder
Description
Source
Full text of Ontario Pension Benefits Act and Regulations
ACT:
http://www.elaws.gov.on.ca/html/statutes/english/elaws_statutes_90p08_e.h
tm
REGULATIONS:
http://www.elaws.gov.on.ca/html/regs/english/elaws_regs_900909_e.htm
2.
Quebec – Newsletter on
Supplemental Pension Plans,
Number 16 (December 2001)
Newsletter provides information on how to calculate the
additional pension benefit under Bill 102
http://www.rrq.gouv.qc.ca/SiteCollectionDocuments/www.rrq.
gouv.qc/Anglais/publications/rcr/lettre/newsletter16.pdf
3.
Morneau Shepell Handbook of
Canadian Pension and Benefit
Plans (15th Edition).
Chapter 3 – Government Pension Programs
Chapter 8 – Pension Standards Legislation
Chapter 9 – Case Law Affecting Pension Plans
Chapter 10 – Multi-Employer Pension Plans (to page 291
only)
To be secured by the candidate – published by Wolters Kluwer
Limited (formerly CCH Canadian Limited) www.cch.ca
90 Sheppard Avenue East, Suite 300, Toronto, ON M2N 6X1
Tel.: 416-224-2248 / 1-800-268-4522; FAX: 416-224-2243
4.
FSCO Pension Policy Number
W100-102 – Wind Up – Filing
Requirements and Procedures
Ontario policy regarding the filing requirements and
procedures for pension plan wind-ups
http://www.fsco.gov.on.ca/en/pensions/policies/active/Docume
nts/W100-102.pdf
5.
FSCO Pension Policy Number
T800-402 – Commuted Value
Transfers
Ontario policy regarding the transfer of commuted values
when the transfer ratio is less than 1, or the administrator
knows or ought to know the transfer ratio has dropped
http://www.fsco.gov.on.ca/en/pensions/policies/active/Docume
nts/T800-402.pdf
6.
Standard Life Summary of Pension
Legislation
Comparison of the legislative requirements under the
various pension legislation
The 2014 document will be sent by regular mail by the CIA
following registration as the updated summary becomes
available – Published by Standard Life. The January 1, 2013
summary is available at
https://www.standardlife.ca/pdf/ge10129.pdf
7.
Alberta Superintendent of Pensions
– Policy Bulletin #27
Guidelines for Filing Annual Actuarial Valuations Under
the Employment Pension Plans Act
http://www.finance.alberta.ca/publications/pensions/pdf/polbul
l27.pdf
8.
Quebec – Newsletter Express on
Supplemental Pension Plans
(February 7, 2007)
Newsletter on new measures for plan funding and
administration provides information about Bill 30
http://www.rrq.gouv.qc.ca/SiteCollectionDocuments/www.rrq.
gouv.qc/Anglais/publications/rcr/lettre_express/let072007a.pdf
June 2014
2
Canadian Pension Legislation (continued)
Reference Title
Description
Source
Update outlines the Alberta Superintendent of Pension’s
response to the revisions made by the CIA to the
Practice-Specific Standards for Pension Plans, which
became effective December 31, 2010
http://www.finance.alberta.ca/publications/pensions/pdf/upda1
101.pdf
10. Manitoba – Office of the
Superintendent – Pension
Commission – Update #10-01
(April 21, 2010)
The Pension Benefits Act and Pension Benefits
Regulation – Summary of Changes
http://www.gov.mb.ca/labour/pension/pdf/update10_01.pdf
11. OSFI – Key PBSA/PBSR
Amendments and In Force Dates
(November 2011)
The table includes the current status of key changes to the
PBSA and PBSR
http://www.osfi-bsif.gc.ca/Eng/Docs/key_pbsa_pbsr.pdf
12. British Columbia Superintendent of
Pensions – Bulletin 10-003 –
Letters of Credit to Fund Solvency
Deficiencies
Bulletin provides key regulatory requirements for the use
of letters of credit for solvency deficiency funding.
http://www.fic.gov.bc.ca/pdf/Pensions/bulletins/PENS-10003.pdf
13. British Columbia Superintendent of
Pensions – Bulletin 12-004 –
Restrictions to Commuted Value
Transfers
Bulletin provides the Superintendent’s position on
restricting commuted value transfers when they are below
the solvency ratio in the most recent actuarial valuation
for a defined benefit pension plan
http://www.fic.gov.bc.ca/pdf/Pensions/bulletins/PENS-12004.pdf
14. Quebec – Newsletter Express on
Agreement Respecting MultiJurisdictional Pension Plans
(October 5, 2011)
Newsletter provides a high-level overview of the
Agreement
http://www.rrq.gouv.qc.ca/SiteCollectionDocuments/www.rrq.
gouv.qc/Anglais/publications/rcr/lettre_express/rcr_express_20
1110A.pdf
15. FSCO – Questions and Answers on
Agreement Respecting Multijurisdictional Pension Plans
These frequently asked questions provide further
information on the Agreement and its impact on the
administration and regulation of a multi-jurisdictional
pension plan
http://www.fsco.gov.on.ca/en/pensions/administrators/Pages/M
JPPAQandA.aspx
16. FSCO – When and How to Change
the Province of Registration for a
Multi-jurisdictional Pension Plan
This policy provides information on when a multijurisdictional pension plan must change province of
registration and what process must be followed
http://www.fsco.gov.on.ca/en/pensions/policies/active/Docume
nts/MJ300-100.pdf
17. FSCO – Letters of Credit
Pages provide information about the use of letter of credit
for solvency deficiency funding
http://www.fsco.gov.on.ca/en/pensions/actuarial/Pages/lettersof-credit.aspx
9.
Alberta Superintendent of Pensions
– EPPA Update 11-01 – CIA
Revised Standards of Practice
June 2014
3
Canadian Pension Legislation (continued)
Reference Title
Description
Source
18. Alberta Superintendent of Pensions
– EPPA Update 12-02
Key Differences between the current Employment
Pension Plans Act and the new Employment Pension
Plans Act, 2012
http://www.finance.alberta.ca/publications/pensions/pdf/update
-1202.pdf
19. Alberta Superintendent of Pensions
– EPPA Update 13-01
Update outlines the Alberta Superintendent of Pension’s
position with respect to the alternative settlement
methods for hypothetical wind-up and solvency
valuations
http://www.finance.alberta.ca/publications/pensions/pdf/update
-1301.pdf
20. FSCO Actuarial Guidance Note
AGN-003 – Determination of
Interest Payments Where Solvency
Special Payments Are Covered by
Letters of Credit
Note describes FSCO’s expectations and clarifies how
interest payments are to be determined where solvency
special payments are covered by letters of credit
http://www.fsco.gov.on.ca/en/pensions/policies/active/Docume
nts/AGN-003.pdf
21. FSCO Guideline for Notice of Full
or Partial Wind up of a Pension
Plan
Policy identifies notice requirements and procedure to be
followed on the full or partial wind up of a pension plan
http://www.fsco.gov.on.ca/en/pensions/policies/active/Docume
nts/W100-304.pdf
June 2014
4
Canadian Income Tax Act
Reference Title
1.
Canadian Income Tax Act,
Sections:
Description
Source
Candidates’ primary references are the portions of the
Income Tax Act and Regulations that pertain to all types
of retirement benefits arrangements.
Candidates should concentrate on sections relevant to
retirement benefits.
Readings 2 and 3, below, provide a summary of these
portions of the Income Tax Act and Regulations, and will
assist candidates in creating a framework for
understanding the legislation.
(Note for clarity: The assigned specialised Income Tax
Act sections such as 146 refer to that specific section and
its parenthesized sub-sections only, and do not include
adjacent sections such as 146.01, 146.02, etc., unless
specified. The assigned Income Tax Regulations include
all items in the identified range.)
Candidates should make sure that they secure the latest edition
from Wolters Kluwer Limited (formerly CCH Canadian
Limited) www.cch.ca
90 Sheppard Avenue East, Suite 300, Toronto, ON M2N 6X1
Tel.: 416-224-2248 / 1-800-268-4522; FAX: 416-224-2243
•
General background: 2, 3
•
Retirement savings:
– Employee’s point of view: 5,
6(1), 8(1), 56(1), 60
– Employer’s point of view: 9,
12(1), 18(1), 20(1)
– Note relevant definitions in 248(1)
– Specialised sections: 144, 146,
147, 147.1, 147.2, 147.3, 147.4,
180.2, 204.1, 204.2, 207.5,
207.6, 207.7
•
Regulations to the Canadian
Income Tax Act, Sections 83008311, 8400-8410, 8500-8520
2.
Morneau Shepell Handbook of
Canadian Pension and Benefit
Plans (15th Edition).
Chapters 7, 11 and 12
To be secured by the candidate from Wolters Kluwer Limited
(formerly CCH Canadian Limited) www.cch.ca
3.
Canadian Pensions and Retirement
Income Planning, 4th Ed.
Chapters 2-12, 14-22
[Candidates wishing to understand the covered material
in a broader context may find the content of Chapters 1 &
23 of assistance. However, candidates will not be directly
tested on material found in Chapters 1 & 23.]
To be secured by the candidate from Wolters Kluwer Limited
(formerly CCH Canadian Limited) www.cch.ca
4.
Securing Supplemental Retirement
Arrangements
SOA Study Note 361-74-97
Will be sent by e-mail by the CIA upon registration.
5.
Canada Revenue Agency
Registered Plans Directorate
Newsletter Number 96-3
Flexible Pension Plans
http://www.cra-arc.gc.ca/tx/rgstrd/nwslttrs/96-3-eng.html
6.
Canada Revenue Agency
Frequently Asked Questions #26
Phased Retirement
http://www.cra-arc.gc.ca/tx/rgstrd/rpp-rpa/fq-eng.html#q26
June 2014
5
Canadian Income Tax Act (continued)
Reference Title
Description
Source
7.
Employee Contribution Limit Waiver
http://www.cra-arc.gc.ca/tx/rgstrd/rpp-rpa/fq-eng.html#q29
8. Canada Revenue Agency
Questions and Answers - Proposed
8517(3) Amendment
Comfort Letter: Underfunded Pension Plan Transfer
Limit
http://www.cra-arc.gc.ca/tx/rgstrd/cmfrtlttr-eng.html
9.
Minimum Amount payable
http://www.cra-arc.gc.ca/tx/rgstrd/rpp-rpa/ipp-rri-eng.html
About Pooled Registered Pension Plans (PRPPs)
http://www.cra-arc.gc.ca/tx/rgstrd/prpp-rpac/bt-eng.html
Pooled Registered Pension Plans (PRPPs) Questions and
answers for administrators
http://www.cra-arc.gc.ca/tx/prpp-rpac/prppqa-ad-eng.html
Pooled Registered Pension Plans (PRPPs) Frequently
asked questions
http://www.cra-arc.gc.ca/tx/rgstrd/prpp-rpac/fq-eng.html
Pooled Registered Pension Plans (PRPPs) Administrative
Procedures
http://www.cra-arc.gc.ca/tx/rgstrd/prpp-rpac/dmn-eng.html
11. Canada Revenue Agency Actuarial
Bulletin No. 1
Actuarial Increase on Delayed Retirement
http://www.cra-arc.gc.ca/tx/rgstrd/blltn/ctrlblltn01-eng.html
12. Canada Revenue Agency Actuarial
Bulletin No. 2
Funding Issues For Designated Plans
http://www.cra-arc.gc.ca/tx/rgstrd/blltn/ctrlblltn02-eng.html
Canada Revenue Agency
Frequently Asked Question #29
Canada Revenue Agency
About Individual Pension Plans
10. Canada Revenue Agency
Pooled Registered Pension Plans
(PRPPs)
June 2014
6
Canadian Accounting Rules
Reference Title
Description
Source
1.
CIA/CICA Joint Policy Statement
Rules for actuaries and auditors in the use of each other’s
work
CIA Standards of Practice 1630, Revised February 3, 2010
http://www.cia-ica.ca/docs/defaultsource/2010/210008e_clean.pdf
2.
CIA/CICA Guide: Audits of
Financial Statements That Contain
Amounts That Have Been
Determined Using Actuarial
Calculations
This non-authoritative guide provides information that
may help auditors to understand the requirements of the
Canadian Auditing Standards (CAS) when conducting
audits of financial statements that contain amounts
determined using actuarial calculations. This is for
background information only and candidates will not be
directly tested on this material.
http://www.cia-ica.ca/docs/default-source/2011/211008e.pdf
3.
CPA Canada Handbook
Accounting for Employee Future Benefits
•
Preface to CPA Canada Handbook
– Accounting
•
Part I International Financial
Reporting Standards:
Obtain from:
Chartered Professional Accountants of Canada (CPA Canada)
277 Wellington Street W.
Toronto, ON M5V 3H2
1-800-268-3793
http://www.cica.ca/index.aspx
Accounting for Employee Benefits under International
Financial Reporting Standards, applicable to Canadian
public companies and other entities effective in 2011
Available online at http://www.ifrs.org/Pages/default.aspx
You must first register for a free user account at
http://eifrs.ifrs.org/IB/Register to obtain access.
You will need to access both:
IAS 19 at http://eifrs.ifrs.org/eifrs/bnstandards/en/2013/ias19.pdf
IFRIC 14 at
http://eifrs.ifrs.org/eifrs/bnstandards/en/2013/ifric14.pdf
−
Introduction to Part I
•
Part II Accounting Standards for
Private Enterprises
•
Part III Accounting Standards for
Not-for-Profit Organizations
4.
IAS 19 & IFRIC 14
June 2014
7
Canadian Accounting Rules (continued)
Reference Title
Description
Source
REFERENCES:
The following documents (5 through 10) are included as references to assist candidates in understanding the requirements of IAS 19, Section 3462 of Part II Accounting
Standards for Private Enterprises and Section 3463 of Part III Accounting Standards for Not-for-Profit Organizations, and their differences. It should be noted that while
candidates will not be directly tested on the reference materials, candidates are tested on the content of items 3 & 4 above, which cover topics that are discussed in the
references.
5.
Technical Summary of IAS 19
A high level overview of IAS 19 prepared by IASC staff
http://www.ifrs.org/IFRSs/IFRS-technicalsummaries/Documents/English%20Web%20Summaries%202013/I
AS%2019.pdf
6.
Basis for Conclusions – Employee
Future Benefits – Section 3462
http://www.frascanada.ca/standards-for-privateenterprises/resources/basis-for-conclusions/item76708.pdf
7.
June 2013 Exposure Draft
“Reporting Employee future
Benefits by Not-for-Profit
Organizations”
This document sets out how the AcSB reached its
conclusions. As well, it sets out significant matters
arising from comments received in response to its
Exposure Draft and indicates how the Board dealt with
the issues raised.
Exposure draft on Section 3463 and basis for conclusions
8.
CIA Educational Note Accounting Discount Rate
Assumption for Pension and Postemployment Benefit Plans
Guidance regarding setting a discount rate assumption for
accounting purposes
http://www.cia-ica.ca/docs/default-source/2011/211088e.pdf
9.
CIA Educational Note Supplement
- Accounting Discount Rate
Assumption – Calculating Spread
Above Provincial Yields
Expansion on the CIA Educational Note - Accounting
Discount Rate Assumption for Pension and Postemployment Benefit Plans regarding the rationale in
calculating the spread above provincial yields
http://www.cia-ica.ca/docs/default-source/2013/213063e.pdf
IFRS AT A GLANCE
IFRIC 14 IAS 19: The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction prepared by BDO Dunwoody
http://www.bdointernational.com/Services/Audit/IFRS/IFRS%20at
%20a%20Glance/Documents/IFRIC%2014.pdf
10. IFRS AT A GLANCE
June 2014
8
http://www.frascanada.ca/standards-for-not-for-profitorganizations/documents-for-comment/item74882.pdf
CIA Standards of Practice
Reference Title
Description
Source
1.
Standards of Practice – PracticeSpecific Standards for Pension
Plans
Latest revision (applicable to paragraph 3530.01) October
8, 2013 and effective February 1, 2014.
http://www.cia-ica.ca/docs/default-source/standards/sp020114e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213089e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213091e.pdf
2.
Guidance on the Calculation of
Incremental Cost on a Hypothetical
Wind-Up or Solvency Basis
Educational Note approved for distribution on
December 20, 2010. Intended to assist actuaries in the
calculation of a pension plan’s incremental cost on a
hypothetical wind-up or solvency basis.
http://www.cia-ica.ca/docs/default-source/2010/210095e.pdf
3.
Guidance on the Determination of
Best Estimate Discount Rates for
Going Concern Funding Valuations
Educational Note approved for distribution on
December 20, 2010. Intended to assist actuaries in the
selection of an appropriate best estimate discount rate for
a going concern funding valuation of a pension plan.
http://www.cia-ica.ca/docs/default-source/2010/210094e.pdf
4.
Guidance for 2013 on Assumptions
for Wind-Up, Hypothetical WindUp and Solvency Valuations with
Effective Dates Between December
31, 2012 and December 30, 2013.
Educational Notes effective for valuations performed
between December 31, 2012 and December 30, 2013.
These educational notes provide guidance to paragraph
3330.16 of the Standards of Practice, including updates to
the guidance and to the Educational Note published in
June and November 2013.
http://www.cia-ica.ca/docs/default-source/2013/213043e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213048e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213081e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213099e.pdf
5.
Guidance for Events Occurring
After the Calculation Date of an
Actuarial Opinion for a Pension
Plan
Educational Note approved for distribution on December
6, 2006. Intended to assist pension actuaries in valuing
and reporting on events that occur after the calculation
date, when the actuary has determined that the event
makes the entity different.
http://www.cia-ica.ca/docs/default-source/2007/207007e.pdf
6.
Guidance for Expenses in Funding
Valuations for Pension Plans
Educational Note approved for distribution on January
17, 2007. Intended to assist actuaries in making
appropriate expense assumptions for going concern
valuations and for wind-up, hypothetical wind-up, and
solvency valuations.
http://www.cia-ica.ca/docs/default-source/2007/207010e.pdf
June 2014
9
CIA Standards of Practice (continued)
Reference Title
Description
Source
Educational Note approved for distribution on March 7,
2008. Intended to assist actuaries in the selection of
appropriate mortality assumptions for pension plan
valuations. The October 2013 Supplement provides an
update to the 2008 guidance following the draft report on
Canadian Pensioners Mortality.
Educational Note intended to assist actuaries in the
selection of an appropriate asset valuation method in
conjunction with the reporting of a pension plan’s
financial position, the determination of a pension plan’s
funding requirements, and providing advice on the
determination of a pension plan’s net benefit cost for
financial statement reporting purposes.
http://www.cia-ica.ca/docs/default-source/2008/208014e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213093e.pdf
Dated May 2013 and effective June 30, 2013.
http://www.cia-ica.ca/docs/defaultsource/standards/spb063013le.pdf
10. Guidance on Health Care Trend
Rate
Educational Note intended to assist actuaries in
determining assumptions for health care trend rates when
providing advice on the financial condition of a postretirement benefit plan.
http://www.cia-ica.ca/docs/default-source/2012/212031e.pdf
11. Guidance on Transfer Values –
Ontario Reporting Requirements
Educational Note provides guidance on actuarial
reporting pursuant to certain requirements of regulations
to the Pension Benefits Act of Ontario with respect to
transfer values.
http://www.cia-ica.ca/docs/default-source/2009/209110e.pdf
12. Guidance on Financial Risks
Inherent in Multi-Employer
Pension Plans and Target Benefit
Pension Plans
Educational Note intended to address the financial risks
inherent in multi-employer pension plans and target
benefit pension plans and to provide actuaries with
guidance in addressing these risks.
http://www.cia-ica.ca/docs/default-source/2011/211039e.pdf
13. Guidance on Accounting Discount
Rate Assumption for Pension and
Post-employment Benefit Plans
Educational Note assisting pension actuaries who are
engaged to provide guidance on the selection of discount
rates for Canadian pension plans under Canadian, U.S., or
international accounting standards. The August 2013
Supplement expands on the rationale underlying the 2011
guidance.
http://www.cia-ica.ca/docs/default-source/2011/211088e.pdf
http://www.cia-ica.ca/docs/default-source/2013/213063e.pdf
7.
Guidance for Selection of
Mortality Assumptions for Pension
Plan Actuarial Valuations
8.
Guidance on Asset Valuation
Methods
9.
Standard of Practice – PostEmployment Benefit Plans
June 2014
10
http://www.cia-ica.ca/docs/default-source/2007/207102e.pdf
CIA Standards of Practice (continued)
Reference Title
14. Guidance on Alternative
Settlement Methods for
Hypothetical Wind-Up and
Solvency Valuations
June 2014
Description
Source
Educational Note provides guidance for actuaries using
an alternative settlement method, and sets out several
possible alternative settlement methods.
11
http://www.cia-ica.ca/docs/default-source/2013/213082e.pdf0

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