Factsheet: Pension Commuted Values

When someone leaves a pension plan, they may be able to take a lump sum amount of money instead of receiving future pension payments from the plan. This is referred to as their pension “commuted value” – the current value of what they could have received in the future if they had chosen a monthly pension at retirement.

In a newly published CIA factsheet, we delve deeper into the subject to provide an overview of:

  • What pension commuted values are
  • Making estimates to determine a commuted value
  • Ensuring commuted values calculations are fair and consistent, as well as
  • Recent updates to calculations


You can learn more about commuted values in these resources:

Seeing Beyond Risk podcast: Changes to commuted values standards

Actuarial Standards Board of the Canadian Institute of Actuaries: Standards of Practice section 3000 – Pension Plans

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