ACPM releases "ACPM Target Benefit Plan Supplemental Report"

A framework for private sector Target Benefit Plan (TBP) conversions

TORONTO, Sept. 8, 2014 /CNW/ - In March 2012, ACPM released the ACPM Target Benefit Plan Paper* which recommended TBPs as a viable alternative to traditional Defined Benefit (DB) and Defined Contribution (DC) pension plans and as an opportunity to increase pension coverage for Canadians. ACPM is now releasing the ACPM Target Benefit Plan Supplemental Report*, a paper that provides recommendations for a framework to facilitate the conversion from traditional private sector  DB plans to TBPs, as ACPM views balanced and manageable conversion rules to be a key facet underlying the successful growth of TBPs in Canada.

Topics addressed in the ACPM Supplemental Report include:

  • The development of standards of practice for stochastic modeling in TBP actuarial valuations
  • Rules for past service conversions with affected beneficiary consent
  • Partial conversions where only certain benefits provided under a DB plan are converted to TBP
  • Requirements for the full funding of DB plan deficits on date of conversion in certain cases
  • Recommendation that the conversion of DC plans to TBPs be permitted

In addition, the ACPM Supplemental Report reviews recent TBP developments including new provincial legislation and the New Brunswick shared risk model.

While ACPM believes that target benefit plans provide an additional retirement income option, they represent only one component of an overall Canadian retirement income solution. The ACPM Five Point Plan* outlines steps to providing universal access to retirement income coverage in Canada and would ensure Canadians have the saving options that work best for them and their families.

"ACPM is optimistic that target benefit plans can contribute to an improved retirement income system aligned with the goals of our ACPM Five Point Plan. We also acknowledge that expanding pension coverage for Canadians is a continual process and there is still much work ahead of us", noted Andrew Harrison, Chair of the ACPM Board of Directors.

In addition to today's release, ACPM has recently released, DB Pension Plan Funding: Sustainability Requires a New Model*, which offers guidance for Defined Benefit plans in the private sector, and ACPM Principles for Mandatory Public Pension Plans*.

The Association of Canadian Pension Management (ACPM) is a national, non-profit organization that represents the retirement income industry. ACPM membership represents over 400 companies and retirement income plans that cover more than 3 million plan members, with assets under management in excess of $330 billion.

(*) Available at the ACPM website -

SOURCE: Association of Canadian Pension Management

For further information: Ric Marrero, Director of Marketing, Communications and Membership,, 416-964-1260x223


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