Document Properties
-
Type of Publication: Letter
-
Date: May 5, 2021
-
To : Administrators of pension plans with defined benefit provisions registered or filed for registration under the
Pension Benefits Standards Act, 1985 and their consultants
The Office of the Superintendent of Financial Institutions (OSFI) is issuing the final version of the Instruction Guide for the Termination of a Defined Benefit Pension Plan (the Instruction Guide). The Instruction Guide sets out the filing and reporting requirements for a defined benefit pension plan that has terminated, in whole or in part, under the
Pension Benefits Standards Act, 1985. These requirements also apply to plans with both a defined benefit and a defined contribution component.
OSFI issued a revised draft Instruction Guide for consultation on January 20, 2020. The consultation was suspended on March 13, 2020 because of COVID-19 but resumed on November 2, 2020 for a four-week period. OSFI did not receive any questions or comments in either consultation period.
The following changes were made to the Instruction Guide since the draft version was first issued:
- Section 5.3 – Member Portability Options
- Added wording regarding acceptable payment options when a member does not respond to options offered in their plan termination package.
- Section 6.2 – Content of the Termination Report
- An added paragraph to reflect the requirement from the
2020 Agreement Respecting Multijurisdictional Pension Plans for an asset allocation between jurisdictions if a multi-jurisdictional pension plan terminates with insufficient assets to pay all benefits.
- Section 7 – Locating Members, Former Members or Other Persons
- Added wording regarding acceptable payment options when a member cannot be located.
Questions and comments concerning these changes or any of OSFI’s other requirements or expectations set out in the Instruction Guide may be sent to
pensions@osfi-bsif.gc.ca.
Yours truly,
Tamara DeMos
Managing Director
Private Pension Plans Division