The CIA does not object to changing the 125% standard. However, from a fiscal point of view, our thinking is that it has been at 110% forever, and that if you decide to increase it to 125%, that is a huge jump, considering that it has always been at 110%.
In our original document, we said that the rate of 25% should be twice the calculated security margin. So in a more risk-based pension plan with a 15% margin, the threshold should be 2 times 15. Which means that it would go up to 130%.
To address the first part of your question, it is true that this type of margin would not be the perfect solution. Even at 110%, if things turn bad and you lose 20%, and end up in a deficit position, at least you have a good cushion and you are protected.