When someone leaves a pension plan, they may be able to take a lump sum amount of money instead of receiving future pension payments from the plan. This is referred to as their pension “commuted value” – the current value of what they could have received in the future if they had chosen a monthly pension at retirement.
In a newly published CIA factsheet, we delve deeper into the subject to provide an overview of:
- What pension commuted values are
- Making estimates to determine a commuted value
- Ensuring commuted values calculations are fair and consistent, as well as
- Recent updates to calculations
Resources
You can learn more about commuted values in these resources:
Seeing Beyond Risk podcast: Changes to commuted values standards
Actuarial Standards Board of the Canadian Institute of Actuaries: Standards of Practice section 3000 – Pension Plans
