Pension Plan CANSIM Rates

Commuted Value Interest Rate Assumptions at February 1, 2022
This page is being provided to ensure that all actuaries across Canada have access to a consistent model for the calculation of the interest rates and underlying inflation calculations which need to be calculated to determine pension commuted values.

Marriage Breakdown Assumptions for Capitalized Value of Pension Benefits
I am providing the calculation of the interest rate assumptions which would be used to calculate the capitalized value of pension plan benefits, according to CSOP 4500 effective as of January 2023. However, I will retain the rates, ending December 2022, in the previous standards for historical purposes.

Annuity Proxy Interest Rate for Solvency Calculations
I am providing my calculation of the annuity proxy interest rate for solvency calculations in actuarial reports, based on the Annuity Proxy Guidance provided by the CIA. However, I am only providing the monthly CANSIM rates rather than the weekly or daily rates mentioned in the Guidance.

Interest on Employee Required Contributions
I am providing the 12 month average rates which are used to calculate interest on employee required contributions.

The spreadsheet also includes various historical rates for commuted values and marriage breakdown assumptions.

I have made every attempt to ensure that the rates provided in this spreadsheet are correct and they have been reviewed by another actuary prior to posting to this web site. HOWEVER, anyone who uses these rates must do so at their own risk. I would certainly welcome feedback from anyone who disagrees with any rate calculated in this spreadsheet. Peer review and feedback are an essential part of ongoing quality control in any process.

To save this spreadsheet to your own computer, right click on the name of the file, select 'Save Target As', chose a location and download the file.

Pension Plan Interest Rates, Excel Spreadsheet