- Type of Publication: Letter
- Date: June 9, 2014
- To: Administrators of defined benefit private pension plans registered under the Pension Benefits Standards Act, 1985
The Office of the Superintendent of Financial Institutions (OSFI) has issued this Policy Advisory to provide information and guidance to administrators of federally regulated defined benefit pension plans who are considering entering into a longevity insurance or longevity swap contract as a means of hedging longevity risk. In this policy advisory, the term “longevity risk hedging contract” includes contracts structured either as longevity insurance or longevity swaps.
This Policy Advisory replaces the draft version issued for comment in August 2013. OSFI’s expectations for plan administrators who are considering entering into a longevity insurance or longevity swap contract are consistent with what was indicated in the draft version of the advisory; however, some changes have been made to provide additional clarity in some areas.
Questions concerning the Policy Advisory should be addressed to Chris Eccles, Legislative and Policy Initiatives Officer, Private Pension Plans Division, at (613) 990-7109 or Christopher.Eccles@osfi-bsif.gc.ca.
- Tamara DeMos
- Managing Director
- Private Pension Plans Division