Guide to Completing the Actuarial Information Summary

Document Properties

  • Type of Publication: Guide
  • Date: Rev. 06/2015

General

The purpose of this Guide is to assist administrators of pension plans subject to the Pension Benefits Standards Act, 1985 (PBSA) in completing the Actuarial Information Summary (AIS) that is required to be filed with the Office of the Superintendent of Financial Institutions (OSFI)Footnote 1.

The AIS contains information set out in the actuarial report (Report).

Who Must File

The administrator of a pension plan with a defined benefit provision subject to the PBSA, or its agent, must file the AIS.

Filing Requirements

The AIS should be submitted to OSFI with any Report required to be filed in accordance with section 12 of the PBSAFootnote 2. The administrator of a pension plan shall file this document using the Regulatory Reporting System (RRS)Footnote 3.

Where a special purpose actuarial report (for example, a report pertaining to an asset transfer or partial conversion) also serves as a funding valuation report for the part of the plan that is continuing, the AIS should be completed (as required) for that part of the plan. The AIS must also be completed for an actuarial report filed upon full termination of the plan.

Requirements Related to Electronic Filing

  • All values reported in the AIS must be expressed in dollars (not thousands of dollars). The same values as found in the Report should be entered.
  • All required information should be entered directly into the AIS. Attached lists or files are not acceptable. Additional comments included in the Report to clarify the information provided in the AIS do not need to be reproduced in the form.

Part I – Plan Information and Contributions

Section B – Registration number

Line 002

Enter the five-digit registration number of the pension plan issued by OSFI. An "Other" number should be entered if the plan is also registered with a provincial authority.

Section C – Designated plan status

Line 003

Indicate whether or not this plan is a designated plan under section 8515 of the Income Tax Regulations (ITR).

Section D – Valuation date of report

Line 004

Indicate the effective date as of which values are being computed (valuation date) in the Report that is being filed.

Section E – End date of period covered by report

Line 005

Enter the end date of the period covered by the Report, i.e. the valuation date on which the next actuarial report is required to be prepared.

Section F – Purpose of the report

Line 006

Indicate why the Report is being filed. If the Report is being filed to replace a previously filed actuarial report, select "Other."

Section G – Contributions

Lines 007 to 014a – Contributions

For the purposes of this section, normal cost, expense allowance, special payments and fixed contributions (prior to the application of any previous years’ additional paymentsFootnote 4 or surplus) should be reported on the basis of the plan's fiscal year. For plans that need to file an inter-valuation report (e.g. asset transfer), the amounts should be reported for the twelve month period that ends with the fiscal year after the date of the inter-valuation report. For instance, if the fiscal year of a plan ends on September 30 with a report valuation date of December 31, 2014, then period 1 should start on October 1, 2014, and end on September 30, 2015.

Lines 009 to 013 – Normal cost and special payments

Enter the dollar amounts, for the indicated periods, of employer and member normal cost, expense allowance and the minimum special payments determined in accordance with the PBSA and PBSR excluding additional voluntary contributions but including contributions required under the defined contribution/money purchase provisions of a plan, if any. Indicate, separately, the normal cost contributions required under the defined benefit and money purchase provisions, respectively.

For plans where the obligation of an employer and, if applicable, members to contribute to the plan is limited to a fixed amount set out in an agreement between the participating employers, collective agreement, statute, or regulations (e.g. multi-employer pension plans that prescribe a fixed employer and, if applicable, member contributions), do not enter the amounts determined pursuant to the agreement, collective agreement, statute, or regulations on lines 009 to 013. Instead, the normal cost, expense allowance, and minimum special payments (prior to application of any previous years’ additional payments or surplus) in accordance with the PBSA and PBSR, as applicable, should be entered.

Lines 014 and 014a – Fixed contributions

Enter the amounts of employer and, if applicable, member contributions determined pursuant to the collective agreement, statute, or regulations.

If the exact dollar amounts are not known at the valuation date, show the estimated amounts derived from the valuation results taking into account any assumed changes in membership or payroll, as applicable. The estimated amounts should also take account of any events such as asset transfers that are known to have occurred when the AIS is prepared, if those events would have a material impact on the required contributions to the plan. Any application of previous years’ additional payments or surplus should not be reflected.

Part II – Membership and Actuarial Information

Section H – Membership information

Enter information pertaining only to those plan participants who are entitled to, or are accruing a benefit under, the defined benefit provisions of the plan. Complete "Average Annual Pension" for active members of flat benefit or career average earnings plans, but not of final average earnings plans.

As set out in the Report:

Line 015 – Active members

Line 016 – Retired members includes any beneficiaries receiving pension payments.

Line 017 – Other participants means all persons other than active members and retired members who are entitled to a benefit under the plan (e.g. deferred vested members).

If the plan covers several groups of participants (e.g. bargaining and non-bargaining), enter the statistics for all groups combined.

Section I – Actuarial basis for going concern valuation

A going concern valuation is a valuation of the assets and liabilities of a pension plan using methods and actuarial assumptions that are in accordance with accepted actuarial practice for the valuation of a continuing pension plan.

Line 020 – Asset valuation method

Select the method used to determine the actuarial value of assets for the purpose of the going concern valuation. Smoothed market refers to a method which applies an averaging technique to stabilize short-term fluctuations in the market value of assets. If none of the methods listed can be identified as the method used, select "Other".

Line 021 – Liability valuation method

Select the actuarial cost method used to determine the going concern liabilities and normal cost. The projected unit credit method is included in the “Accrued benefit (unit credit)” category. If none of the methods listed can be identified as the method used, select "Other" and specify the method.

Lines 025 and 026 – Valuation interest rate

Enter the interest rate assumption net of expenses (discount rate), before netting out any rate of indexation, used to calculate the going concern liabilities and normal cost.

If a level interest rate is used, enter the rate under "Ultimate rate" and "N/A" under "Initial rate" and "Select period".

Line 027 – Rate of indexation

If applicable, enter the assumed annual rate of increases to pension benefits. If no indexation is reflected in the calculation of going concern liabilities, enter 0% on this line.

If a level rate of indexation is assumed, enter the rate under "Ultimate rate" and "N/A" under "Initial rate" and "Select period".

Line 028– Rate of general wage and salary increase

If a separate promotional and merit scale based on age or service is used (to be indicated on Line 037), enter only the annual rate of increases in the general level of wages and salaries (which should be reasonably related to the increase in the average wage index). Otherwise, enter the total salary growth rate used.

If the plan's benefit formula is not related to earnings, enter "N/A."

Line 029 – YMPE escalation rate

Enter the assumed annual rate of increases in the year's maximum pensionable earnings (YMPE) under the Canada Pension Plan, if applicable.

Line 030 – Income Tax Regulations (ITR) maximum pension limit escalation

Enter the assumed annual rate of increases in the maximum pension limit as prescribed in the ITR, if applicable.

Line 031 – Rate of CPI increase

Enter the assumed annual rate of increases in the Consumer Price Index (CPI), if applicable.

Line 036 – Mortality table

Select the assumption for post-retirement mortality used for healthy lives. If the valuation uses any other table or a modified version of the tables listed, select "Other" and describe the table used.

Line 036a – Generational Mortality Table

If an assumption of generational mortality improvements is used, select "Yes" on line 036a.

Lines 036b – Adjustments made to the mortality table

If an adjustment to the mortality table is made, state the appropriate adjustment (size, industry or both).

Line 039 – Hours of work per member per plan year

Applicable only to multi-employer plans where the employer-required contributions are expressed in dollars per hour worked by plan participants.

Line 042 – Assumed retirement age

If variable retirement rates are not used, indicate the age at which retirement is assumed to commence.

Section J - Actuarial basis for solvency valuation

Lines 045, 046, and 047 – Valuation interest rate and duration

Enter the interest rate assumption, before netting out any rate of indexation, used to determine the solvency liabilities.

If a level interest rate is used, enter the rate under "Ultimate rate" and "N/A" under "Initial rate" and "Select period".

For non-indexed plans, enter the duration of liabilities that was used to determine the annuity proxy rate.

Line 048 – Rate of indexation

If applicable, enter the assumed annual rate of increases to pension benefits. If no indexation is reflected in the calculation of solvency liabilities, enter 0% under "Ultimate rate" and "N/A" under "Initial rate" and "Select period" on lines 048a and 048b.

If a level rate of indexation is assumed, enter the rate under "Ultimate rate" and "N/A" under "Initial rate" and "Select period".

Line 049 – Mortality table

Select the applicable mortality table used. If more than one table or a different table is used, describe, under "Other", the table(s) used.

Section K – Balance sheet information

Enter the going concern valuation results and the solvency valuation results as at the valuation date, pertaining only to the defined benefit provisions of the plan.

Line 050 – Market value of assets is the market value of investments held by a plan at the valuation date, with adjustments for any receivables and payables, excluding additional voluntary contributions and money purchase assets.

Line 070 – Net funded position

Net funded position means the excess of going concern assets over going concern liabilities. Indicate a surplus as a positive amount and a deficit as a negative amount.

Lines 071, 072 and 101 – Additional voluntary contributions and money purchase assets

Enter the accumulated balance of any additional voluntary contributions and money purchase assets.

Line 080 – Solvency assets is the market value of investments held by a plan at the valuation date, with adjustments for any receivables and payables net of the expense provision, excluding additional voluntary contributions and money purchase assets.

Flexible Pension Plan

  • Line 053 – Going concern valuation – Optional ancillary contributions

    Enter the amount of optional ancillary contributions plus earnings included in the going concern assets.

  • Line 063 – Going concern valuation – Optional ancillary benefits

    Enter the going concern liabilities of optional ancillary benefits that are to be provided as a consequence of the members having made optional ancillary contributions under the defined benefit provision of a flexible pension plan.

  • Line 082 – Solvency valuation - Optional ancillary contributions

    Enter the amount of optional ancillary contributions plus earnings included in the solvency assets.

  • Line 093 – Solvency valuation - Optional ancillary benefits

    Enter the solvency liabilities of optional ancillary benefits that are to be provided as a consequence of the members having made optional ancillary contributions under the defined benefit provision of a flexible pension plan.

Lines 064 & 094 – Other reserve

Enter the amount of any reserve other than the liabilities for plan members (e.g. reserve for data errors or changes in annuity purchase rates after the valuation date) that is held for purposes of the going concern or solvency valuation, as applicable.

Line 100 – Net solvency position

Net solvency position means the excess of solvency assets over solvency liabilities. Indicate a surplus as a positive amount and a deficit as a negative amount.

Lines 102 and 103 – Benefit increases coming into effect after the valuation date

Select "N/A" if there are no such described benefits increases.

Section L – Actuarial gains and losses

If this is not an initial valuation of the plan, the Report should contain a reconciliation of the going concern valuation results to those results in the last filed actuarial report by identifying the sources of actuarial gains and losses. Amounts relating to loss items should be enclosed in brackets. Any source item that has a material impact on the valuation results should be identified. If a particular source item is not applicable or, in the opinion of the actuary, does not have a material impact on the valuation results, enter "N/A."

Line 114 – Contribution holiday

Enter the amount of surplus and/or previous years’ additional payments used for a contribution holiday.

Line 119 – Investment experience

Enter the amount by which the actual returns of the plan fund, measured on a going concern basis, for the period from the valuation date of the last filed actuarial report to the valuation date of the Report exceeded or fell short of the expected returns based on the valuation interest rates used in the last filed actuarial report.

Line 124 – Optional ancillary contributions

Enter the amount of optional ancillary contributions forfeited on retirement, death, termination of membership or windup of the plan during the period from the valuation date of the last filed actuarial report to the valuation date of the Report, because their value exceeded the liabilities of optional ancillary benefits provided under a defined benefit provision of a flexible pension plan.

Lines 125 to 127 – Other sources

Identify any gains or losses, other than those already specified on lines 112 to 124 that have a material impact on the valuation results. This would include any gain or loss from one or more of such items as indexation experience or disability experience, as identified in the report.

Section M – Subsequent events

Valuation results may need to be adjusted if certain events occur or are scheduled to occur after the valuation date but before the Report is filed. Such events are commonly known as subsequent eventsFootnote 5.

Section N – Statement of opinion

The Report should include a statement of opinionFootnote 6.

Section Q – Additional solvency valuation information

Lines 150a to 150c – Adjusted solvency ratios

The Adjusted Solvency Ratio at a given date equals the Solvency Ratio on that date, adjusted in accordance with sections 9(8) and 9(9) of the PBSR.

If no actuarial report was filed as at the prior valuation date or prior second valuation date, the solvency ratio at the valuation date, without the adjustments made under subsection (8) or (9) may, in accordance with section 9(11) of the PBSR, be substituted for the adjusted solvency ratio at either or both of those dates (line 150b and/or line 150c) to determine the average solvency ratio stated on line 151.

Line 151 – Average Solvency Ratio

The average solvency ratio for a valuation date is the arithmetic average of the adjusted solvency ratios at the valuation date, one year prior, and two years prior.

Line 152a – Solvency Liabilities

The solvency liabilities should equal the sum of the amounts reported in lines 090 to 094.

Line 152b – Adjusted Solvency Asset Amount

The adjusted solvency asset amount is the product of the average solvency ratio (line 151) and solvency liabilities (line 152a).

Line 152c – Solvency Deficiency

The solvency deficiency is the excess, if any, of the solvency liabilities (line 152a) over the adjusted solvency asset amount (line 152b).

Line 153 – Value of the Letters of Credit included in solvency assets on the valuation date

Other than those being used to fund the plan under Part 3 of the Solvency Funding Relief Regulations or of the Solvency Funding Relief Regulations, 2009, the face value of all letters of credit in effect on the valuation date should be included. This value should not exceed 15% of the market value of assets relating to the defined benefit provisions of a plan as at the valuation date.

Line 160 – Solvency ratio

Enter the solvency ratioFootnote 7 at the valuation date.

Lines 162 to 164 – Liabilities for active members

The sum of lines 162 to 164 must equal the amount on line 090.

Line 166 – Amendment impacts value of prior benefits

Select "Yes" if the liabilities determined in the Report account for one or several plan amendments that affect the value of benefits having accrued prior to the Report's valuation date, and which were not included in the prior actuarial report.

Line 167 –Amendment impacts benefits after valuation date

Select "Yes" if the Report accounts for one or several plan amendments that affect only the cost of benefits that will accrue after the Report's valuation date, and which were not included in the prior actuarial report.

For further information, please visit the OSFI website or contact us at:

Office of the Superintendent of Financial Institutions
255 Albert Street
Ottawa, Ontario
K1A 0H2
Telephone: (613) 990-6651
Fax : (613) 991-6118
E-mail: ReturnsAdmin@osfi-bsif.gc.ca

Footnotes

Footnote 1

The Guide does not supersede the requirements of the PBSA, the Pension Benefits Standards Regulations, 1985(PBSR), Directives Of The Superintendent Pursuant To The Pension Benefits Standards Act, 1985 (Directives), or any Guidelines that OSFI has issued or may issue regarding the administration of pension plans subject to the PBSA.

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Footnote 2

The administrator of a pension plan shall file a Report annually, or at such other intervals or times as the Superintendent may direct within six months after the end of the plan year to which it relates.

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Footnote 3

All pension plan regulatory returns must be filed using the Regulatory Reporting System (RRS). If your plan is not registered to file returns using RRS, we ask that you do so immediately.  Pension plan administrators must contact the Bank of Canada, as host of the RRS system, to register for access to the Bank of Canada secure site and the RRS system.  For assistance in registering, please contact RRS Support at the Bank of Canada by phone at 1-855-865-8636, or by e-mail at rrs-sdr@bank-banque-canada.ca.

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Footnote 4

Subsection 9(6) of the PBSR.

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Footnote 5

Please refer to Canadian Institute of Actuaries (CIA) Standards of Practice – General Standards - Section 1520 and CIA Standards of Practice – Practice Specific Standards for Pension Plans - Sections 3200, 3300, and 3400.

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Footnote 6

Please refer to CIA Standards of Practice – Practice Specific Standards for Pension Plans - Sections 3200 and 3300.

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Footnote 7

Subsection 2(1) of the PBSR.

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