cover image: The federal public service superannuation plan

Premium

20.500.12592/mpw0w5

The federal public service superannuation plan

7 Dec 2012

Comparing public and private sector pension plans A lower level of participation in workplace pension plans in the private sector and the much greater likelihood of a private sector worker participating in a DC plan have captured the head- lines in public debate over the differences in pension plans in the private and public sectors. [...] This means that the survivor benefit is “paid for” by a reduction in the amount of a retirement benefit that has a value equal to that of the survivor benefit (i.e., a retirement benefit is calculated according to the benefit formula in the plan and is then reduced so that the combined retirement and survivor benefits have the same value as the original retirement benefit). [...] The spike in pension wealth is slightly stronger in the PSSP than in the OTPP, partly because of the maximum number of years of service in the PSSP.14 Mobility Another area of difference is the treatment of mobile workers. [...] Because solvency deficits have to be amortized over periods of no more than five years, the emergence of solvency deficits has driven up the required contributions of employers, as is indicated in table 4. The financial status of the PSSP The fact that the going-concern valuations used in assessing the financial requirements of the PSSP are less volatile than private sector solvency valuations and [...] The negative balance of the Fund is attributable in part to the fact that the smoothing of asset values used in the going-concern valuation means that investment losses that arose during 2008 and 2009 still have a negative impact on the actuarial value of the Fund’s assets.
government education economics economy business civil service employment labour retirement valuation balance sheet discounting pension government budget discount rate employee deficits actuarial science wage and benefit discounted cash flow defined contribution plan defined benefit pension plan discount superannuation bond (finance) valuations deferred compensation

Authors

Baldwin, Robert

ISBN
9780886452940 9780886452933
Pages
44
Published in
Canada

Related Topics

All