Proposed amendments to the Assessment of Pension Plans Regulations

Date: August 2, 2018

To all plan administrators,

OSFI has recently reviewed the Assessment of Pension Plans Regulations (the Regulations) made under the OSFI Act and is proposing amendments that would streamline the assessment process and eliminate assessments for certain terminated pension plans. The proposed amendments are described below. Please provide any comments or questions to by September 21, 2018.

OSFI TO CALCULATE AND INVOICE ASSESSMENTS DUE: Currently, plan administrators must calculate their annual assessment and submit it to OSFI with the Pension Plan Remittance Form within six months after the end of each plan year for plans subject to the PBSA and three months after the calendar year for pooled registered pension plans. A proposed amendment would allow OSFI to calculate the assessment due after a pension plan or pooled registered pension plan has filed for registration or after the filing due date of the Annual Information Return (AIR). OSFI would calculate the assessment due and invoice the plan based on the membership data reported in the last filed AIR.

ELIMINATE ASSESSMENTS 5 YEARS AFTER PLAN TERMINATION AND FOR CERTAIN TERMINATED UNDERFUNDED PLANS: Currently, all pension plans, including terminated plans, are subject to annual assessments until plan wind-up (i.e. all assets are distributed). A proposed amendment would eliminate annual assessments in the sixth year following a plan termination. The proposed amendment would also eliminate annual assessments on plan termination where the plan is underfunded and either the plan is a negotiated contribution plan or the employer is bankrupt.

MINOR AMENDMENT TO THE DEFINITION OF BENEFICIARY: Currently, the definition of beneficiary in the Regulations inadvertently includes, for plans that have terminated, those who have transferred their pension benefit credit out of the plan as part of the wind-up process. A proposed amendment would correct this.