How to calculate your Canadian Pension Plan’s value
Canadian police pension plans can often be more valuable than federal pensions, a new report says.
The authors of the study say the federal government should consider creating a Canadian Pension Investment Plan (CPIP), similar to the U.S. Pension Benefit Guaranty Corporation (PBGC).
The CPIPs value would be determined by looking at the total value of the Canadian pension plans and the amount paid out by each of the provinces and territories.
“What is a CPIP?
It is a pooled investment portfolio that includes both provincial and territorial pension plans.
They are different, but they share the same basic assumptions,” said Professor Richard Gagnon, an economist with the Centre for Canadian Policy Research.
The CPIP is not an official Canadian government pension plan.
Instead, it is a combination of the provincial and the territorial pension funds.
The provincial pension plans, which have more robust financial ratios, are more valued than the territorial ones, and the CPIP’s value depends on how much each province’s pension plans have contributed to the plan.
“It’s really a mixture of assets, including provincial and federal pensions,” said Gilles Malle, an economics professor at the University of Ottawa.
Malle said the CPIC is an excellent tool for people to compare pension plans because it looks at both the value of a pension plan and the overall value of Canadian pension assets.
“A CPIP would also be an excellent mechanism for people, if they were to lose their jobs, to have some form of pension security,” he said.
“If they were going to lose a job, for example, to be laid off, and then they’re able to collect the pension they had in the prior job, then it would be very valuable for them to have the CPI.”
The CPICs value is based on how well the provinces’ pension plans perform, which is a complicated calculation because many provincial pension funds do not provide pension plans in the same way.
Theoretically, the CPIIs value could be determined based on the average performance of a given pension fund.
The CPII is calculated using data from all provincial and territory pension plans for the year in which it was taken into account.
However, a CPII value of 0 is the minimum for a province’s performance.
Malel said that means that the CPIs value is often higher than a CPIC.
“The CPII values that we see for each province and territory, based on its performance over a number of years, are typically higher than the CPIA values, based off the CPIL,” he explained.
The average performance for each pension fund over time has historically been based on what is known as a return on assets.
“In other words, if a pension fund is a net negative, it has a low return on its assets, whereas if a fund is positive, it’s a net positive,” Malle said.
“So you have a negative return on asset and a positive return on investment.”
The value of all provinces and territorial pensions are usually compared to a benchmark index.
The benchmark index is the average of the pension plans’ returns over the previous 15 years.
The index is not perfect, however.
It only measures how well a plan performed over the past 15 years, so it doesn’t account for all the factors that affect performance, such as the health of a province or the health and financial health of the country.
The researchers then looked at how each province compares to its benchmark index, which was based on data from the Social Security Administration (SSA).
SSA’s Social Security Survey collects data from more than 600,000 individuals in Canada every year.
It provides information about retirement income and costs for seniors.
The study found that the average CPIP for each of Canada’s provinces and the territories was lower than the benchmark index value.
The average CPI for each provincial and territories was also lower than its benchmark.
The provinces that had the highest CPI values were Alberta, Ontario, British Columbia, and Saskatchewan.
The highest CPIs were in Quebec, Newfoundland, Nova Scotia, and New Brunswick.
For each of these provinces, the average was lower compared to the benchmark than it was in the other provinces.
“I think it’s really interesting because it’s kind of a mix of the highest and lowest CPIs,” said Malle.
“The province with the highest PIs, for instance, in Quebec was the province that was worst off in terms of health care.
There was a lot of cost in that province, and we can’t really measure that in terms for any pension plan.”
Malle also noted that the Canadian Pension Association (CPA), the federation representing provincial pension trustees, doesn’t use the benchmark indexes, but instead uses the results from a separate survey of 1,000 Canadians each year.
The results are not included in the CPA’s monthly financial reports, but Malle thinks that the CPE’s methodology is more appropriate.