# Can Canadian Pension Companies be trusted?



## Doug6388 (Oct 27, 2012)

Can Pension companies who operate for a profit by trustworthy?

Just curious.


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## GoldStone (Mar 6, 2011)

The calculator that you linked requires you to make certain actuarial assumptions: mortality table, age set back, interest rate. Have you tested how sensitive the result is to various assumptions?

Also, there is no such thing as "standard formula" to calculate the lump sum payment of a pension. See this FAQ:

http://www.actuaries.ca/ask/faq_p_e.cfm#1

The simplified formula in the calculator might be different from the calculation used by the company.

I don't think their trustworthiness is in question. You need to find out what formula and actuarial assumptions they used.


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## Daniel A. (Mar 20, 2011)

The way I see it the fact they went looking for you speaks highly for them.

Pension administration is highly regulated, your calculation is likely wrong, how do you know they are young. 
Unless you can show an obvious error 4200.00 is it.

Welcome to this forum I'm surprised with all the time you have that you had not found the site before. :encouragement:


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## Saniokca (Sep 5, 2009)

Doug6388 said:


> I find myself searching the internet for confirmation that Canadian Companies who administer pensions are honest. I was recently contacted by the National Search Unit of the Canadian Government in Ottawa (Services Canada) who had a request to track me down for a very small pension I have due to work when I was a teenager. The pension admin company is a major in Canada and after a few back and forth emails and phone calls, offered me a $22 per month annuity or a lump sum payment of $4200.
> 
> Being retired and having way too much time on my hands, I went to a helpful site at
> 
> ...



So they track you down, try to give you money that you didn't even know about, let you take it in any way you'd like... And then you try to extort them by trying to waste "their" money.

Hmm...

It won't work because they aren't offering you a settlement (unless they messed the calculation). They couldn't care less about how much to give you - they administer the money, not own it.

P.S.The lump sum calculations are mostly prescribed by regulations.


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