Actuarial Awareness for Auditors—Guidance on selection of the accounting discount rate (under IFRS)—Update as at 30 September 2023

This document provides an update to the Actuarial Awareness for Auditors—Guidance on selection of the accounting discount rate (under IFRS) published as at December 31, 2022, and should be read in conjunction with that document.

Fiera Capital Information

Fiera Capital 2022 2023

Date

Reasonable range for typical pension plans1

Reasonable range for typical pension plans1

December 31

5.05% to 5.05%2

November 30

4.90% to 4.90%2

October 31

5.30% to 5.30%2

September 30

4.95% to 4.95%2

5.60% to 5.70%3

August 31

4.80% to 4.80%2

5.10% to 5.10%2

July 31

4.60% to 4.65%

5.00% to 5.00%2

June 30

5.00% to 5.05%

4.80% to 4.80%2

May 31

4.70% to 4.75%

4.80% to 4.90%

April 30

4.60% to 4.65%

4.60% to 4.70%

March 31

3.95% to 4.00%

4.75% to 4.95%

February 28

3.60% to 3.70%

4.90% to 4.90%2

January 31

3.40% to 3.50%

5.10% to 5.10%2

  1. The ranges provided above are applicable to typical pension plans and may not be appropriate in certain cases. Engagement teams are encouraged to seek assistance from the Internal Specialist—Actuarials and Pensions in the review of the discount rate in instances where the defined benefit obligations are material.

  2. The yield curves from August 31, 2022 to February 28, 2023 and June 30, 2023 to August 31, 2023 are flat from duration 14 years to 24 years, as such the low end of the range and the high end of the range results at the same rate.

  3. Typically, the low end of the range corresponds to the rate for the duration of 14 years and the high end of the range corresponds to the rate for the duration of 24 years. However, for September 30, 2023, the rate is 5.70% for the duration of 14 years and 5.60% for the duration of 24 years.

If you need further details regarding the content of this newsletter, please contact AEA.

This document is for internal use only.