Revised Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans – Draft

Document properties

  • Type of publication: Letter
  • Date: December 20, 2019
  • To: Actuaries and other stakeholders of pension plans with defined benefit provisions registered or having filed an application for registration under the Pension Benefits Standards Act, 1985

OSFI is issuing proposed revisions to the Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans (the Guide). The Guide, which was last revised in October 2017, sets out the reporting requirements of actuarial reports filed with OSFI for defined benefit pension plans, including those with a defined contribution component.

The revisions to the Guide provide further details regarding OSFI's expectations for actuarial reports. The revisions reflect

  • additional requirements with respect to plans having a flexible benefits feature, the discount rate assumption (including a modification to the maximum going concern discount rate), and assessments of the risks;
  • further clarifications of OSFI's position on mortality assumptions;
  • updated requirements for plans using a replicating portfolio approach;
  • further disclosure requirements with respect to membership data, stochastic modeling for indexation, and funding requirements for transfer deficiencies;
  • greater clarity on other expectations and the addition of some references to legislation and guidance material; and
  • changes to accepted actuarial practice and other issues, if any, that have emerged since October 2017.

The revised Guide is being issued in draft form so that pension plan stakeholders have the opportunity to provide input on these changes.

Questions and comments concerning these changes or any of OSFI's other requirements or expectations set out in the Guide may be sent to Marc Sauvé, Senior Manager, Actuarial in the Private Pension Plans Division, by email at Comments should be provided no later than March 20, 2020.

A non-attributed summary of comments received along with OSFI's responses will be posted on OSFI's website when the final version of the Guide is released.

Yours truly,

Tamara DeMos
Managing Director
Private Pension Plans Division