The Pension Killer

Pension Funds: Proposed solution to the solvency issue

1. The ITA 10% limit should be repealed and replaced by a requirement that any emerging surplus or deficit revealed by a triennial statutory actuarial report be amortized over a fixed period of 15 years.
   
   
2. Moreover, whenever the funding ratio (i.e. assets divided by actuarial liabilities) of a given DB RPP would be less than 100%, the underlying pension debt (i.e. liabilities minus assets) shall be backed up on a first priority basis by the pension plan sponsor’s assets until the funding ratio returns to 100%
   
   
3. Furthermore, contribution holidays would not be permitted under any circumstance.

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