What do pension actuaries do

Can the contribution amount be reduced after I set up my plan? You can always amend your plan formula down or if your investment performance is greater than the assumed interest rate, your contributions will decrease or if your compensation decreases, your required contribution may also decrease.

What is the maximum amount I can contribute? Back to top The maximum that you can contribute each year is determined by the amount required to fund your maximum allowable annual benefit on your retirement date. This figure is determined by an actuary and is not limited to a maximum dollar amount.

I have employees other than myself. Back to top All eligible employees must be included by law. Back to top Generally, yes. If you own other businesses and you are considered part of a controlled group or affiliated service group, then all businesses must be covered under such plan.

Elective deferral contributions do not count against the deductible limit described above. As long as the k plan is a deferrals only plan, you can make contributions to both plans.

Back to top You will be required to put less or more money into the plan to achieve your goal if the investments grow faster than expected. However, you can always amend the plan formula. When can I retire? Back to top A plan is expected to be maintained at least five to seven years and the earliest retirement date is age 62 without incurring penalty. Can I stop the plan before my plan's retirement date? Your plan can be terminated at any time and the assets of your benefit can be rolled over to an IRA.

However, you must inform ACG of your decision to terminate as it is required by law to file for the termination. Do I have to actually retire on the plan's specified retirement date?

The plan's retirement date is used to determine the contribution amount each year. Register here. Forgot your password? Click here. Forgot your username? Quick Links. Hire an Actuary Public Member Directory. Actuarial Employers. Pension Plans A number of employers in Canada offer defined benefit pension plans to their employees. This means getting your head around some really complex investment products such as swaps, options or other non-mainstream asset types.

As well as having to be able to understand how these assets work, we have to come up with an efficient way of modelling how they are likely to perform over many years into the future. This can be really challenging, especially if you are looking into an asset type that you have never seen before.

At the end of the day a model is only an approximation and should never be relied on solely when giving advice.

Communicating this uncertainty to clients can also be a real challenge. My most fulfilling project to date was advising one of the biggest pension schemes in the country on their investment strategy. The pension scheme was huge — several billions of pounds, and it had thousands of members. Knowing that the work we were doing would have an impact on the future financial well-being of so many people was really exciting. Also, the size of the client meant that the project had many different aspects to consider, and as such it was a massive learning experience for me.

It is important to be numerate to be a successful actuary, as a lot of what we do involves some fairly complex maths. However, as my job also requires me to communicate what we do to those who may be less technically minded, softer skills, such as presenting and writing clear reports, are increasingly valued in our profession.

I have recently qualified as an actuary, which required four years worth of exams and a lot of hard work. Towers Watson gave me a lot of support, including days off to study.