The purpose of this Guide is to assist administrators of Pooled Registered Pension Plans (PRPPs) subject to the Pooled Registered Pension Plans Act (PRPP Act) and the Income Tax Act (ITA) in completing the joint Pooled Registered Pension Plan Annual Information Return (PRPP AIR) that is required to be filed with the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Revenue Agency (CRA).
The Guide does not supersede the PRPP Act or the Pooled Registered Pension Plans Regulations (the PRPP Regulations), the ITA or the Income Tax Regulations.
2. Who Must File
The administrator of a PRPP, or its agent, subject to the PRPP Act and the ITA must file the PRPP AIR.
3. Filing Requirements
The administrator of a PRPP shall file a PRPP AIR with the Superintendent annually within four months after the end of the year to which the document relates as directed by the Superintendent. For terminated PRPPs, an administrator is required to file a PRPP AIR while there are any assets remaining in the pension fund. For OSFI, the administrator of a PRPP shall file its PRPP AIR through the Bank of Canada’s Regulatory Reporting System (RRS).
4. Requirements Related to Electronic Filing
- Plan administrators of PRPPs are required to file their PRPP AIRs through RRS. For details on how to file using RRS, consult the Documents folder in RRS under Training and Support and the Manage Financial Returns User Guide and other training material available on OSFI’s website.
- All values reported in the PRPP AIR must be expressed in dollars (not thousands of dollars).
- The PRPP AIR must be uploaded as a PDF document with any additional required pages included in the file.
5. Annual Information Return (AIR)
Section 1 – Plan Information
Provide both CRA and OSFI registration numbers.
Name of Authorized Officer
This field indicates the name of the contact person with the authority to file on behalf of the PRPP.
Number of months in this reporting period
This number indicates the number of months the report represents. Partial months, such as when a PRPP is not registered on the first or last day of a month, should be considered a whole month.
Section 2 – Financial Data for the Plan Year
- Market value of assets at prior plan year-end: This amount should match the amount indicated in the ‘Market value of assets at current plan year-end’ on the prior year’s PRPP AIR.
- Employer contributions: Total dollar amount of the contributions made by all participating employers during the plan year. This includes employer contributions receivable at year end.
- Member Contributions: Total dollar amount of contributions made by all members during the plan year. This includes employee contributions receivable at year end.
- Amount transferred to the plan from an RPP, SPP, DPSP, RRSP, RRIF or other pension plan: Where a PRPP allows for members to transfer funds into the PRPP, the total amounts transferred in for a plan year should be entered here. Definitions:
- RPP: Registered Pension Plan
- SPP: Simplified Pension Plan
- DPSP: Deferred Profit Sharing Plan
- RRSP: Registered Retirement Savings Plan
- RRIF: Registered Retirement Income Fund
- Other Pension Plan: For example, another PRPP
- Total increase due to investments: This amount should equal the sum of the values reported in the investment income, Net gains (losses) on investments – realized, and Net gains (losses) on investments – unrealized lines.
- Investment income: Investment income is defined as interest, dividends, rents and sums earned on investments other than by an increase in their value, whether or not the income has been realized. For example, the yield realized when treasury bonds are cashed in and income generated by securities loans should be reported on this line.
- Net gains (losses) on investments – realized: Realized gains or (losses) on investments, which are to be shown on this line, are amounts gained (or lost) following an investment transaction. They are to be measured from the fair value at the most recent PRPP financial statement date. These amounts are also referred to as realized fair value.
- Net gains (losses) on investments – unrealized: Unrealized gains (or losses) on investments, which are to be reported on this line, are amounts gained (or lost) following a change in the fair value of investments or an adjustment following a change in the way they were valued. Unrealized gains (or losses) are to be measured from the fair value at the most recent PRPP financial statement date. These amounts are also called unrealized fair value.
- Amount used to purchase annuities: This amount represents the total dollar value of money transferred out of the plan in order to purchase annuities for members who have elected to purchase an annuity as per Section 54 of the PRPP Act.
- Amount transferred from the plan to another PRPP, pension plan or retirement savings plan: Section 54 of the PRPP Act provides options for the transfer of funds from the PRPP. Definitions:
- LRSP: Locked-in Retirement Savings Plan
- RLISP: Restricted Locked–in Savings Plan
- RLIF: Restricted Life Income Fund
- LIF: Life Income Fund
- Other RPP: Registered Pension Plan
- Other Pension Plan: For example, another PRPP
- Amount of variable payments: Section 48 of the PRPP Act provides that a PRPP may offer a variable payment option to members where certain conditions, as set out by the PRPP Regulations, are met. List the total value of variable payments made from the plan during the plan year in this section.
- Other distributions paid from the plan: This includes other payments out of the plan not covered by the other categories, such as small balance unlocking, non-residency or disability.
- Total fees/expenses paid from plan (not included in Management Expense Ratio): This includes any any fees, levies or other charges that are triggered by the actions of a member.
- Market value of assets at current plan year-end (Amount should be equal to the sum of lines (i) through (v) less the sum of lines (vi) through (x) and should equal the amount reported in the auditor’s report): This amount should be used in Section 2, line (i) of the following year’s PRPP AIR.
Section 3 – Plan Membership (by location at the end of the plan year)
This section is used to provide information on membership by sex, location and jurisdiction. Members are to be reported by province of employment. Males and females are reported separately for Statistics Canada purposes. Some PRPPs registered under the PRPP Act include members whose work is not in included employment. Federal members are members that are employed in included employment, which is defined under section 2(1) of the PRPP Act.
Any employee of a participating employer that is part of a class of employee for which the PRPP is offered is considered a member unless they have opted out of the PRPP under section 41(5) or who object to becoming members of the plan because of their religious beliefs.
Total number of PRPP members by location. The number of plan members, both male and female, working in each individual province is to be entered by province under the “Total” column. This includes both federal and provincial members.
Number in Included Employment Column
Total number of Federal members by location. The number of plan members, both male and female, employed in included employment is to be entered by province under the “Included Employment” column.
Section 4 – Investment Options – Financial Data
For each investment option, provide the information requested. For additional investment options, please include a summary sheet. Summary sheets may be attached separately to the end of the document, if space is needed. Information should be provided separately for each default target date / balanced fund.
Default Contribution Rate: Provide the default contribution rate set by the plan for a member that does not set their contribution rate.
Cost: Cost refers to the fees, levies or other charges that reduce a member’s return on investment other than those triggered by the member’s actions for this investment option, and should be reported as a percentage. This amount should reflect all costs and reflect the low cost requirement in section 26 of the PRPP Act and section 20 of the PRPP Regulations.
Annual rate of return (net of expenses): This amount, expressed as a percentage, is the rate of return after all expenses have been deducted.
Investments Held (top 10): This list should include the top ten investments held in the investment option expressed by percentage.
Asset Allocation: Represented in % form, the sum of all asset classes should total 100%.
Section 5 – Other Plan Information
This section includes attestations of compliance and other information.
Designated pooled pension plan
If the plan meets one of the following conditions stated in 147.5(1) of the ITA, it would be considered a designated pooled pension plan. The conditions are:
- the plan has fewer than 10 participating employers;
- the fair market value of the property held by members employed by one participating employer exceeds 50% of the fair market value of the plan;
- more than 50% of the members of the plan are employed by one participating employer; or
- participation of one or more employers occurs primarily to avoid the application of the previous conditions.
Does the plan comply with the 10% rule, the 30% rule, and related party transaction rules described in sections 9, 10, and 12 of the PRPP Regulations respectively?
- The administrator of a PRPP must not, directly or indirectly,
- invest more than 10% of the total market value of the funds in a members account in, or
- lend more than 10% of the total market value of the funds in a member’s account to any one person, associated person or affiliated corporations, subject to the exceptions in subsection 9(2) and 9(3) of the PRPP Regulations.
- The administrator of a PRPP must not, directly or indirectly, invest the assets of the PRPP in the securities of a corporation to which are attached more than 30% of the votes that may be cast to elect the directors of the corporation.
- Subject to the exceptions and non-applications noted in sections 13 and 14 of the PRPP Regulations,
- the administrator of a PRPP must not, directly or indirectly lend funds in a member’s account to a related party, or invest those funds in the securities of a related party, or enter into a transaction with a related party on behalf of the PRPP.
- during the period of 12 months after the day on which a person ceases to be a related party of a PRPP, the administrator of the PRPP must not, directly or indirectly, lend funds in a member’s account to that person, or invest those funds in the securities of that person, or enter into a transaction with that person on behalf of the PRPP.
Compliance with low cost requirement
The low cost requirement is described in section 26 of the PRPP Act and section 20 of the PRPP Regulations.
Compliance with the prohibition on offering inducements
With the exception of those listed in section 19 of the PRPP Regulations, PRPP administrators cannot give, offer or agree to give or offer to an employer an inducement to enter into a contract in respect of a PRPP. This prohibition is described in section 24 of the PRPP Act.
Number of members that contributed to the plan during the year
This number may be different than the number reported in Section 3 given that Section 3 only reflects the membership at the end of the plan year. Do not include members that have set their contribution rate to 0 (zero) for the entire year.
How many members contributed to the plan during the year, but are not employed with an employer participating in the plan?
This section captures members that have entered into a contract with the administrator as an individual. These members would be considered to fall under provincial jurisdiction.
Have you attached a copy of the auditor’s report?
OSFI expects the auditor’s report required in Subsection 27(j) of the PRPP Regulations to be filed on the financial statements of the PRPP, which must be prepared in accordance with Canadian generally accepted accounting principles.
List of employers who are participating in the plan at year-end:
The business name, number and their contributory status is required to be filled out in this section. Please attach a separate list if required.
Section 6 – Certification
An authorized officer must certify this document prior to filing. This officer need not be the same one referred to in Section 1; however, they must have the authority to file on behalf of the PRPP administrator.
For further information, please visit the OSFI website or contact us at:
Office of the Superintendent of Financial Institutions
255 Albert Street