The state of defined benefit pension plans in Canada : Point sur la situation des régimes de retraite à prestations déterminées au Canada

The actuarial valuation involves comparing the value of plan assets with the value of the benefits (also called plan liabilities) that the plan is expected to pay in the future. [...] The ratio of the value of plan assets to the value of plan liabilities is often referred to as the funding ratio or funding level. [...] Assumptions under the going-concern basis are normally left to the discretion of the Actuary based on the specifics of the pension plan to be valued. [...] Ontario), in order to reduce the volatility of the funding level and ultimately the contributions to the plan, it is permitted to average the interest rates used to value the plan liabilities and the plan assets over a period not exceeding five years. [...] The projection of the plan assets was done on a market value basis based on the target asset mix of the plan and on the return of the corresponding index over the period.