2022-23 SGI CANADA Annual Report
The major assumptions used in the projection, are as follows:
Economic assumptions:
Discount rate - beginning of the year
Discount rate - end of the year
Inflation rate
Expected salary increase
Remaining service life of active members, in years (EARSL)
Last actuarial valuation
2023
2022
3.9%
2.9%
4.8%
3.9%
2.0%
2.0%
n/a
n/a
n/a
n/a
Dec. 31/19
Dec. 31/19
Changes in the assumptions would impact the accrued benefit obligation as follows:
Discount rate
Post-retirement indexing
(thousands of $)
1% Increase
1% Decrease
2023
2022
2023
2022
$
(1,453) $
278
(2,031) $
1,681
$
2,393
393
n/a
n/a
The weighted average duration of the accrued benefit obligation is 7.7 years (2022 - 9.0 years). An increase in
the average life expectancy of a pensioner by one year is estimated to increase the accrued benefit obligation by
approximately $0.9 million (2022 - $1.3 million).
The asset allocation of the defined benefit pension plan assets is as follows.
Asset Category
Short-term investments
Bonds and debentures
Canadian equities
U.S. equities
Non-North American equities
1 Effective November 1, 2020
Percent of Plan Assets at
Benchmark
2023
2022
5.0%
4.7%
4.6%
75.0%
75.2%
74.6%
8.0%
8.0%
8.7%
6.0%
6.0%
6.2%
6.0%
6.1%
5.9%
2 Investment in investment funds are deemed to be fully invested in that fund's asset class even though the investment fund may have cash reserves
The total fund asset mix benchmark weights are to be maintained within the following ranges at all times; a range
of +/- 2% for Canadian equities, U.S. equities, non-North American equities and short-term investments, and a range
of +/- 5% for bonds and debentures.
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