Ontario Teachers' Pension Plan conducts two different actuarial valuations. One is for funding purposes, as discussed in the Role of a funding valuation section. The second is for financial statement purposes and is referred to as a financial statement valuation.
Unlike a funding valuation, which assesses the financial health of the plan and its ability to pay future pension benefits, a financial statement valuation provides a current, snap-shot view of the financial position of the Plan at a single point in time. The financial statement valuation also uses a prescribed accounting standard that does not allow for smoothing of market returns; the fair market value of assets must be used.
As a result, the asset and liability amounts noted in a financial statement valuation will differ from those in a funding valuation.