The Rational Reminder Podcast | Assia Billig: Is Canada Pension Plan (CPP) Sustainable? | Rational Reminder 318 @rationalreminder | Uploaded August 2024 | Updated October 2024, 52 minutes ago.
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
If you’re in the Canada Pension Plan (CPP), then you won’t want to miss today’s conversation with Canada's Chief Actuary, Assia Billig. Assia’s knowledge of the CPP is extensive, having joined the Office of the Chief Actuary (OCA) in 2008, where she was involved in the preparation of statutory actuarial reports on the Canada Pension Plan and Old Age Security Program. She has served as Chief Actuary of the Government of Canada since 2019, and, before joining the OCA, she worked in private pension consulting. She is also a Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Assia joins us today for a deep dive into the most common questions about the Canada Pension Plan, from the inner workings of its financial components to the quality of governance that drives it. Discover the world-leading topics she and her team investigate, the immense power and research behind their analysis, and why the CPP is set to be sustainable for the next 75 years. We also discuss the concerns some people have about the CPP’s longevity, before examining how the actuarial report on the sustainability of the CPP, conducted every three years, reliably addresses this. If today’s conversation with Canada’s chief actuary does not instill confidence and pride in Canada’s investment in our collective retirement, then we don’t know what will! Tune in, to hear all of Assia’s keen insights and discover why she is unequivocally the best person to talk about the sustainability of the CPP.
Timestamps:
0:00:00 Intro
0:06:06 Assia defines the main function of the Office of the Chief Actuary
0:08:31 Assia defines the main purpose of the Actuarial Report on the Canada Pension Plan
0:13:33 How common it is for the report to result in changes to benefits or contribution rates
0:16:54 How much of the base CPP benefit payments are funded by contributions vs. investment income
0:23:32 How funding for additional CPP differs from base CPP
0:26:29 How plan sustainability is measured
0:33:05 How Assia estimates expected returns for the assets managed by CPP Investments
0:36:42 How sensitive the sustainability of the plan is to realised returns being lower than the expected returns
0:44:02 How a change in the income distribution affects the sustainability of the plan
0:49:56 How major world events like the pandemic affect the way that you approach the projections
0:53:46 What Assia would say to people who are sceptical of CPP’s future sustainability
0:54:51 Assia defines success in her life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Assia Billig — osfi-bsif.gc.ca/en/oca
Assia Billig on LinkedIn — linkedin.com/in/assia-billig-9b861587/?originalSubdomain=ca
Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
If you’re in the Canada Pension Plan (CPP), then you won’t want to miss today’s conversation with Canada's Chief Actuary, Assia Billig. Assia’s knowledge of the CPP is extensive, having joined the Office of the Chief Actuary (OCA) in 2008, where she was involved in the preparation of statutory actuarial reports on the Canada Pension Plan and Old Age Security Program. She has served as Chief Actuary of the Government of Canada since 2019, and, before joining the OCA, she worked in private pension consulting. She is also a Fellow of the Society of Actuaries and the Canadian Institute of Actuaries. Assia joins us today for a deep dive into the most common questions about the Canada Pension Plan, from the inner workings of its financial components to the quality of governance that drives it. Discover the world-leading topics she and her team investigate, the immense power and research behind their analysis, and why the CPP is set to be sustainable for the next 75 years. We also discuss the concerns some people have about the CPP’s longevity, before examining how the actuarial report on the sustainability of the CPP, conducted every three years, reliably addresses this. If today’s conversation with Canada’s chief actuary does not instill confidence and pride in Canada’s investment in our collective retirement, then we don’t know what will! Tune in, to hear all of Assia’s keen insights and discover why she is unequivocally the best person to talk about the sustainability of the CPP.
Timestamps:
0:00:00 Intro
0:06:06 Assia defines the main function of the Office of the Chief Actuary
0:08:31 Assia defines the main purpose of the Actuarial Report on the Canada Pension Plan
0:13:33 How common it is for the report to result in changes to benefits or contribution rates
0:16:54 How much of the base CPP benefit payments are funded by contributions vs. investment income
0:23:32 How funding for additional CPP differs from base CPP
0:26:29 How plan sustainability is measured
0:33:05 How Assia estimates expected returns for the assets managed by CPP Investments
0:36:42 How sensitive the sustainability of the plan is to realised returns being lower than the expected returns
0:44:02 How a change in the income distribution affects the sustainability of the plan
0:49:56 How major world events like the pandemic affect the way that you approach the projections
0:53:46 What Assia would say to people who are sceptical of CPP’s future sustainability
0:54:51 Assia defines success in her life
Links From Today’s Episode:
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Rational Reminder on Instagram — instagram.com/rationalreminder
Rational Reminder on X — https://x.com/RationalRemind
Rational Reminder on TikTok — tiktok.com/@rationalreminder
Rational Reminder on YouTube — youtube.com/channel
Rational Reminder Email — info@rationalreminder.ca
Benjamin Felix — pwlcapital.com/author/benjamin-felix
Benjamin on X — https://x.com/benjaminwfelix
Benjamin on LinkedIn — linkedin.com/in/benjaminwfelix
Cameron Passmore — pwlcapital.com/profile/cameron-passmore
Cameron on X — https://x.com/CameronPassmore
Cameron on LinkedIn — linkedin.com/in/cameronpassmore
Mark McGrath on LinkedIn — linkedin.com/in/markmcgrathcfp
Mark McGrath on X — https://x.com/MarkMcGrathCFP
Assia Billig — osfi-bsif.gc.ca/en/oca
Assia Billig on LinkedIn — linkedin.com/in/assia-billig-9b861587/?originalSubdomain=ca
