- Type of Publication: Instruction Guide
- Date: March 2016
The Office of the Superintendent of Financial Institutions (OSFI) has issued this Instruction Guide to inform the pension industry of the filing and reporting requirements for a non-insured defined benefit pension plan that has terminated, in whole or in part, under the Pension Benefits Standards Act, 1985 (PBSA). These requirements also apply to plans with both a defined benefit and a defined contribution component. This Instruction Guide replaces the previous version, issued in 2009, and includes updates to reflect amendments made to the PBSA and the Pension Benefits Standards Regulations, 1985 (PBSR) since 2009. The last of these PBSR amendments have an effective date of July 1, 2016. Where the requirements in effect prior to and as of July 1, 2016 are different, this Instruction Guide provides an explanation of both.
The PBSA and the PBSR are the authoritative source for requirements applicable to plans that are terminating or that have terminated. If there is a discrepancy between the Instruction Guide and the legislation, the legislation prevails. OSFI may require documentation not mentioned in this Instruction Guide.
1. Reporting Requirements on Plan Termination
Section 29 of the PBSA concerns the termination and wind-up of pension plans. Pursuant to subsection 29(5) of the PBSA, a plan administrator or employer who intends to terminate or wind-up a pension plan must notify the Superintendent in writing at least 60 and not more than 180 days before the date of the termination or wind-up. This requirement may affect the proposed effective date of the plan termination or wind-up.
Subsection 29(4.1) of the PBSA specifies that only the Superintendent may declare part of a pension plan terminated.
Subsection 29(9) requires that the administrator of a plan that has been terminated, in whole or in part, file a termination report with the Superintendent. The termination report must set out the nature of the pension benefits and other benefits to be provided and a description of the methods of allocating and distributing those benefits and deciding any priorities. Subsection 29(10) of the PBSA provides that while the administrator may pay retiree and survivor pension benefits as they fall due, assets of the plan may not be applied toward the provision of any benefits until the Superintendent has approved the termination report.
OSFI has developed an Approval Request Form for Defined Benefit Pension Plan Terminations that must accompany the termination report.
2. Payments by the Employer Immediately on Plan Termination
When a decision has been made to terminate a plan, the administrator’s ongoing fiduciary duty to act prudently requires that they continue to take the necessary steps to ensure that the plan’s investment policy is appropriate and that the benefit entitlements calculated on termination are safeguarded until paid out.
Subsection 29(6) of the PBSA provides that on the termination of the whole of a pension plan, the employer must, without delay, pay into the pension fund
- the normal cost that has accrued to the date of termination;
- any special payments due on termination as well as those that would have become due between the date of termination and the end of the plan year in which the plan terminated;
- any payments that are required to be made under a distressed pension workout agreement that are due on termination and those that would have become due between the date of termination and the end of the plan year in which the plan terminated;
- any payments that are required to be made in relation to a letter of credit under subsection 9.14(2) of the PBSA;
- amounts deducted from members’ wages but not yet remitted to the pension fund; and
- any other amounts that are due to the pension fund from the employer.
2.1 Full Funding on Plan Termination
In addition to the immediate payments payable as described above, subsection 29(6.1) of the PBSA and section 24.1 of the PBSR provide that if the whole of a pension plan that is not a negotiated contribution plan is terminated, the employer must pay into the pension fund the amount that is required to ensure that any obligation of the plan with respect to pension benefits is satisfied. This requirement must be satisfied either by a lump sum payment or by equal amortization payments sufficient to liquidate the solvency deficit over a period of no more than five years from the date of termination. These amortization payments in lieu of a lump sum payment must be remitted in equal monthly installments no later than 30 days after the end of each month beginning with the month in which the termination report was submitted. The initial remitance is expected to include any arrears since the termination date.
If the solvency deficit is not paid in a lump sum when the termination report is filed with OSFI, in accordance with section 24.1 of the PBSR and section 5 of the Directives of the Superintendent, actuarial reports must be filed annually as at the termination date anniversary (which may be different than the plan year-end) until the deficit has been liquidated. These actuarial reports must set out the remaining payments required to liquidate the solvency deficit as at the valuation date. For additional details on these actuarial reports, please see section 9 of this Instruction Guide.
As negotiated contribution plans are not required to liquidate a solvency deficit on plan termination, annual actuarial reports are not required to be filed after the termination report is filed. The available assets of the plan are to be distributed in accordance with the termination report as approved by the Superintendent.
2.2 Letters of Credit
Sections 9.11 to 9.15 of the PBSA and 9.1 of the PBSR contain provisions respecting the use of letters of credit by a pension plan and the resulting obligations of the employer, and of the issuer and the trustee of those letters of credit. Subsection 9.11(4) of the PBSA specifies that the option of providing a letter of credit instead of making a required payment into the pension fund does not apply when the whole of a pension plan has been terminated.
If a pension plan that has letters of credit in place terminates, this constitutes a “default” as defined under the PBSR. Specifically subsection 9.1(1) of the PBSR provides in part that a default in respect of a letter of credit means the occurrence of one of the following:
- The Superintendent is notified in writing that the administrator intends to terminate or wind-up the whole of the pension plan under subsection 29(5) of the PBSA.
- There is an amendment to the plan, resolution by the employer or coming into force of any other measure that effects the termination of the whole of the plan.
- The Superintendent makes a declaration under subsection 29(2) or 29(2.1) of the PBSA that terminates the whole of the plan.
- The employer becomes bankrupt or an application or petition by or against the employer is filed under the Winding-up and Restructuring Act.
Upon receiving notice of a default, the trustee holding the letter of credit must make a demand to the issuer for payment into the pension fund of an amount equal to the face value of all letters of credit held for the benefit of the plan, unless the funds were remitted by the employer.
3. Information to Members and Former Members
3.1 Initial Notification of Plan Termination - Effective July 1, 2016
Paragraph 28(2.1)(a) of the PBSA provides that, if the whole of a plan is terminated, the plan administrator must, within 30 days, notify members and former members (includes retirees) and their spouses or common-law partners in writing that the plan has terminated. In accordance with section 23.4 of the PBSR, this written statement must be given in Form 2.1 of Schedule IV of the PBSR. This form includes basic member and beneficiary information and a statement that they may examine documents that have been filed with the Superintendent, as well as what benefits may and may not be distributed prior to the Superintendent’s approval of the termination report.
3.2 Detailed Termination Statements - Effective July 1, 2016
Paragraph 28(2.1)(b) of the PBSA requires that, within 120 days after the whole of a plan is terminated, the plan administrator provide a written statement to members, former members (includes retirees) and their spouses or common-law partners informing them of their pension benefits and other benefits payable under the plan. In accordance with section 23.4 of the PBSR, this written statement must be given in Form 2.2 of Schedule IV of the PBSR.
This form includes information similar to the information that must be provided to a member ceasing membership, including the portability options available to them.
If these statements are issued prior to the approval of the termination report and if, in the course of the termination report approval process, OSFI requires a change to a benefit entitlement, OSFI expects the plan administrator to send a revised termination statement.
Until July 1, 2016
As described above, Forms 2.1 and 2.2 of Schedule IV of the PBSR come into force on July 1, 2016. Until that time, plan administrators should use Form 2 of Schedule IV of the PBSR to meet the requirement to provide members and their spouses or common-law partners with a termination statement within 30 days of plan termination.
The termination statement should also
- describe any adjustments to benefits and the reasons for these adjustments; and
- explain that the termination report setting out the members’ benefits is subject to the approval of the Superintendent and that benefits cannot be distributed until this termination report has been approved.
If the plan administrator is unable to provide these termination statements within 30 days after the plan termination date, the plan administrator must notify OSFI of the reason for the delay and the expected date that the member statements will be provided.
Plan administrators should also advise members and any others who have an entitlement under the plan (such as retirees or deferred vested members) of the plan termination.
If, in the course of the termination report approval process, there are any changes to a benefit entitlement, OSFI expects the plan administrator to send a revised termination statement.
3.3 Member Portability Options
On plan termination, members not yet eligible to retire are entitled (after approval of the termination report) to the portability options described in section 26 of the PBSA.
Members eligible to retire may also be entitled to the portability options, depending on the terms of the plan. Plan administrators may choose to offer the portability options to former members with deferred benefits in the plan. Retired members are not entitled to portability options.
The portability options described in section 26 are to
- transfer the pension benefit credit to a non-locked-in retirement vehicle or provide a lump sum cash payment if the benefit is not locked-in;
- transfer the pension benefit credit to another pension plan (including a pooled registered pension plan and a plan under provincial jurisdiction);
- transfer the pension benefit credit to a locked-in registered retirement savings plan, a life income fund, or a restricted life income fund of the type prescribed in the PBSR; and
- use the pension benefit credit to purchase an immediate or deferred life annuity.
After receiving their termination statement, members must be given at least 60 days from the date they receive their statement to notify the administrator of their choice.
3.3.1 Consent of the Spouse or Common-Law Partner for Certain Portability Options
Effective July 1, 2016
Subsection 26(2.1) of the PBSA requires that if
- the member is eligible to retire from a pension plan; and
- they wish to transfer their pension benefit credit to a locked-in registered retirement savings plan, a life income fund, or a restricted life income fund of the type prescribed in the PBSR
then the transfer may only be made if the member’s spouse or common-law partner notifies the administrator of their consent to the transfer.
In accordance with subsection 18(3.1) of the PBSR (in force from July 1, 2016), this notification must be provided to the plan administrator in Form 3.1 of Schedule II of the PBSR.
Until July 1, 2016
As described above, Form 3.1 of Schedule II of the PBSR comes into force on July 1, 2016. Until that time, if a pension plan permits the transfer, then a member who is eligible to retire may transfer their pension benefit credit out of the pension plan without the consent of their spouse or common-law partner.
3.4 Adjustments to Member Pension Benefit Credits
In accordance with paragraph 18(4)(a) of the PBSR, the member’s pension benefit credit is to be calculated as of the plan termination date. As transfers cannot be made until after the termination report is approved, the pension benefit credit is expected to be paid with interest.
OSFI expects that interest will be credited on a member’s pension benefit credit from the termination date until at least the beginning of the month in which the pension benefit credit is paid out, at the rate of interest used in the determination of the pension benefit credit.
In circumstances where the administrator permits transfers when notification is received from the member or survivor after the expiration of the notification period given on the statement, the plan administrator can re-calculate or apply interest to the member’s or survivor’s pension benefit credit. If re-calculation is a possibility, the termination statements should note this.
Otherwise, when a member or survivor notifies the administrator of their desire to transfer their pension benefit credit within the specified period, a re-calculation will generally only be permitted if the re-calculated amount is greater than the pension benefit credit calculated at the termination date plus interest as described above.
4. The Termination Report
4.1 Vesting of Benefits
In accordance with section 17 of the PBSA, all pension benefits are vested upon cessation of membership in a plan. The benefits of each member depend on the provisions of the plan documents. The plan administrator must administer the pension benefits in accordance with the provisions of the plan, the PBSA and the PBSR.
Any pension benefits payable before pensionable age, such as subsidized early retirement benefits or bridge and indexation benefits payable before pensionable age, are vested if the member would have been entitled to them under the terms of the plan immediately before the plan terminated. All members are assumed to grow into any minimum age requirement for any pension benefit payable at pensionable age. Please see the Policy Advisory on Vested Benefits Payable to Terminating Employees for more details.
4.2 Content of the Termination Report
The termination report must be prepared in accordance with sections 24 and 24.1 of the PBSR and with the Standards of Practice of the Canadian Institute of Actuaries (CIA). Section 3300 of these Standards is of particular relevance, as are OSFI expectations included in the Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans, adapted as the case may be, to the preparation of a termination report.
OSFI expects the termination report to include the following:
- The effective date of the termination, which must be at least 60 and not more than 180 days after the Superintendent has been notified under subsection 29(5) of the PBSA.
- Confirmation that contributions due or accrued as at the termination date have been paid to the plan and that any payments due to the plan to liquidate the solvency deficit as of the cut-off date of the termination report have been paid to the plan.
- The total market value of plan assets as of the termination date. Letters of credit cannot be included in the calculation of plan assets – see section 2.2 of this Instruction Guide.
- The total value of plan liabilities as of the termination date, and a description of the assumptions and methods used to determine them. Liabilities should be shown for major classes, such as active members, former members with deferred vested pensions, retirees and disabled members.
If the plan paid some former members less than their full pension benefit credit when they had previously exercised their portability rights, liabilities should include the amount of any transfer deficiencies remaining.
- A statement that the amount of pension resulting from any adjustment for early retirement at settlement according to plan provisions is no less than the actuarial equivalent of the member’s pension entitlement at pensionable age as determined on plan termination.
- A description and quantification of the gains and losses between the valuation date of the latest actuarial report and the effective date of the termination report.
- If the whole of a negotiated contribution pension plan is terminated in a deficit position, a complete description of how the benefits will be allocated to major classes of members and retirees and the application of any priority provisions in accordance with the plan provisions.
- If the whole of a pension plan that is not a negotiated contribution plan is terminated and has a solvency deficit at the termination date, a description of how the employer will fund the deficit. This must be either by way of a lump sum payment equal to the solvency deficit at the date of plan termination or a schedule of amortization payments payable in monthly instalments to liquidate the solvency deficit over a period of no more than five years from the date of termination.
- If the whole of the plan is terminated and any surplus assets will be distributed to members, a complete description of how the surplus will be allocated.
- The distribution of the benefits to be provided (e.g., annuities purchased for retirees, confirmation of portability for locked-in members, treatment of former members with deferred benefits in the plan) and the expected timeframe for distributing the benefits.
If funding the solvency deficit by way of amortization payments, the termination report should specify the proposed treatment for
- individuals who have elected to transfer their benefits. If these individuals are paid a portion of their pension benefit credit based on the solvency ratio of the plan at termination, the remaining liability to be valued in subsequent actuarial reports would be the transfer deficiency plus interest;
- deferred vested members who are to receive a deferred annuity; and
- retirees (or survivors) being paid from the fund.
- The rate of interest to be paid on the benefits from the date of termination to the date they are paid to members. Please see section 3.4 of this Instruction Guide.
- A provision for termination expenses to be paid up to plan wind-up when establishing the plan’s financial position.
- If certain benefits are subject to consent, an explanation of how these benefits will be addressed.
- If the benefits of any members or former members are not subject to the PBSA but rather are subject to the pension legislation of a designated province, the report should
- specify the pension legislation that applies to those members’ or former members’ benefits;
- confirm that benefits for these members comply with the provisions of that legislation; and
- include any additional information related to plan termination which is required by that provincial legislation.
- Member information that will enable OSFI to verify that the termination arrangements comply with the PBSA and PBSR. If there are less than 100 members affected by the plan termination, individual information should be provided for each affected member. Otherwise, a representative sample will be sufficient. The individual information will normally include the following:
- identification number of member
- age or date of birth
- marital status, and date of birth and sex of spouse, if relevant
- credited service under the plan
- accrued pension
- employee required contributions, with interest
- pension benefit credit (lump sum transfer) or estimated cost of annuity (pension)
- excess employee contributions under section 21 of the PBSA, if any
- additional voluntary contributions, with interest
- total liability
- any application of priority provisions
- any application of surplus assets
The termination report should also provide information about former members (this includes retirees and deferred vested members) and other beneficiaries who have an entitlement under the plan. If there are less than 100 former members or other beneficiaries affected by the plan termination, individual information should be provided. Otherwise, a representative sample will be sufficient. The individual information will normally include the information listed above as well as the following:
- date of termination from the plan
- outstanding transfer deficiency, if applicable
OSFI may request additional information necessary to verify the accuracy of calculations for individuals.
4.3 Projection of Salaries
If a plan is terminating and plan members will remain employed with the employer, projection of salaries may be required to calculate the accrued liabilities of these active members. The calculation must be consistent with the terms of the plan. Consequently, in the absence of a provision that explicitly provides otherwise, if the plan defines final or best average earnings as an average at termination of employment, the calculation of pension benefits must be based on salaries projected to termination of employment.
If final or best average earnings is defined as an average at termination of membership in the plan, salary projection is not generally necessary.
Plan administrators should pay particular attention to the possibility of a projection of salary requirement in respect of any merger or acquisition involving the employer.
4.4 Conflict with Income Tax Act Requirements
The Income Tax Act limits the amount that may be transferred between registered plans without incurring taxation. However, this restriction does not result in a change to the member’s entitlement under the terms of the plan or the PBSA. The member is entitled to the full amount of the pension benefit, which may result in taxable income for that member. Section 28.3 of the PBSR provides that the locking-in requirements of the PBSA do not apply to those amounts that exceed the maximum transfer.
4.5 Purchase of Annuities
If the whole of a plan is terminated, the termination report should include an appropriate assumption about the proportion of members who will choose a lump-sum transfer or pension. This proportion may be different for those eligible for immediate retirement and those who are not. To the extent that members have elected their option, it is appropriate to reflect these elections.
Any deferred annuities purchased must reflect
- the option for early retirement;
- the possibility that the annuity will be in a joint and survivor form if the former member has a spouse at the time of pension commencement (even if the member did not have a spouse or common-law partner at cessation of membership); and
- the availability of credit splitting on divorce, separation or annulment.
The termination report should describe the process for purchasing annuities, specifically addressing any risk of increasing annuity purchase rates. No annuities may be purchased before the termination report has been approved by the Superintendent.
4.6 Liquidity of Assets
All assets should be reported at market value and reconciled with the amount stated in the plan’s most recent financial statements. The market value of some assets may not be readily known until the assets are sold, but should be estimated.
The termination report should indicate any impediments to the rapid liquidation of the fund, such as illiquid assets, and how they will be managed. For example, a contract with a real estate investment fund may specify liquidation over several years, or a contract with a maturity date may include penalties for early termination.
5. Locating Former Members or Beneficiaries
When a plan is terminated, the plan administrator is expected to make best efforts to locate everyone who has benefits payable from the fund through, for instance,
- notices in local and national newspapers, union central publications, newsletters or postings in local union halls;
- private search agencies and databanks; and
- government department databases such as provincial motor vehicle registries.
A plan’s termination report should describe to OSFI the efforts that have been made to locate all beneficiaries of the plan and how the administrator intends to treat the plan’s liabilities in respect of beneficiaries who have not been located. If a plan administrator has made best efforts but is unable to locate everyone who has benefits payable from the plan, the administrator may consider the following options:
- purchase deferred annuities for the former members or beneficiaries
- pay the funds into Court in accordance with, for example, provincial trust legislation, if applicable
- apply to the Court for its opinion, advice or direction
Additional options may be available for any former members or beneficiaries of the plan who fall under provincial jurisdiction.
Although section 10.3 of the PBSA allows the Minister of Finance to designate an entity for the purposes of receiving and holding a pension benefit credit of any person who cannot be located; such an entity has not been designated. Therefore, this option is not currently available.
6. Filing of Required Documents on Plan Termination
When a plan has terminated, the following documents are expected to be filed with OSFI within 90 days after the termination date:
- the termination report, including the Actuarial Information Summary Form
- the Approval Request Form for Defined Benefit Pension Plan Terminations
- an executed plan amendment, board resolution or letter signed by the employer or plan administrator indicating that the plan has terminated and whether there is any continuing pension plan for the plan members. If so, the registration number of the continuing plan and the jurisdiction under which the continuing plan is registered must be provided.
- sample termination statements (notice of plan termination and detailed termination statement)
All documents should be submitted directly to OSFI and not through the Regulatory Reporting System (RRS).
7. Notification of Approval and Distribution of Benefits
After reviewing the termination report and all relevant information, OSFI will notify the pension plan administrator of whether or not the Superintendent has approved the termination report. Upon receiving the Superintendent’s approval, OSFI expects the administrator to distribute the benefits in accordance with the approved termination report without undue delay. If the plan administrator is unable to distribute the benefits within a reasonable period of time, the administrator is expected to advise OSFI of the reason for the delay and the expected distribution date. OSFI may require that members be notified of the delay and the reason(s) for it.
8. Required Annual Filings Following Plan Termination
In accordance with section 12 of the PBSA and section 2 of the Assessment of Pension Plans Regulations, plan administrators must continue to file Annual Information Returns (OSFI 49), Certified Financial Statements (OSFI 60) and Auditor’s Reports (if required), and to pay plan assessments annually as long as assets remain in the pension fund. These documents are to be completed as at the plan year-end.
The plan administrator will also be expected to file a final statement prepared as at the date when all assets have been distributed showing a reconciliation from the last actuarial report along with a year-to-date financial statement from the fund custodian.
9. Amortization of Deficit on Plan Termination
9.1 Required Annual Filings
If a plan (other than a negotiated contribution pension plan) terminates with a solvency deficit, the employer must either pay the amount equal to the solvency deficit in a lump sum when the termination report is submitted or by equal amortization payments sufficient to liquidate the solvency deficit over a period of no more than five years from the date of termination. These amortization payments must be remitted in equal monthly installments (determined as at the date of termination) beginning with the month in which the termination report was submitted (Please see point 8 of section 4.2 of this Instruction Guide).
If the solvency deficit is liquidated with the filing of the termination report, no further actuarial reports will be required and required annual filings will be in accordance with section 8 above.
If liquidating the solvency deficit by amortization payments, the administrator must, in addition to filing the termination report as at the date of termination, file the following with OSFI annually:
- In accordance with section 24.1 of the PBSR and section 5 of the Directives of the Superintendent, an actuarial report accompanied by an Actuarial Information Summary as at the termination date anniversary (which may be different than the plan year-end). The last actuarial report filed should show the final year’s schedule of payments and how benefits are being distributed. Please see sections 9.2 and 9.3 of this Instruction Guide for more details on this actuarial report.
- In accordance with section 12 of the PBSA, an Annual Information Return (OSFI 49), Certified Financial Statement (OSFI 60) and an Auditor’s Report (if required). These documents are to be completed as at the plan year-end until all plan assets have been distributed.
- In accordance with section 2 of the Assessment of Pension Plans Regulations, a Pension Assessment Remittance Form and payment within 6 months after the end of each plan year until all plan assets have been distributed.
When all plan assets have been distributed, the plan administrator will be expected to file a final statement prepared as at the date when all assets have been distributed showing a reconciliation from the last actuarial report along with a year-to-date financial statement from the fund custodian.
9.2 Preparation of Actuarial Reports during Amortization Schedule and Wind-Up
As per section 5 of the Directives of the Superintendent, following the termination of a pension plan, the actuarial report referred to in subsection 24.1(4) of the PBSR shall be prepared annually as at the anniversary of the effective date of termination and shall be filed with the Superintendent within six months after the valuation date. The actuarial report must set out, among other things, the remaining solvency assets, solvency liabilities, solvency deficit and remaining payments required to liquidate the solvency deficit as at the valuation date.
Unlike for ongoing plans, the annual consolidation of payment schedules and the average solvency ratio method of determining solvency payments does not apply where a deficit at termination is being amortized following plan termination.
As with other required contributions to a pension plan, payments required under a schedule to amortize a plan’s solvency deficit are subject to the deemed trust provisions under subsection 8(1) of the PBSA. As such, any contributions that are due but have not been remitted to the pension fund by the employer are subject to a deemed trust and thus have an enhanced status in bankruptcy and insolvency proceedings. If the employer were to become bankrupt at any point during the payment schedule, any payments that were not yet due according to that schedule would not be subject to the deemed trust provisions of the PBSA. The amount of any remaining shortfall would then be considered an unsecured debt of the employer.
9.3 Content of the Actuarial Report(s) Filed During the Amortization Schedule
OSFI expects that an actuarial report filed during the amortization schedule will generally follow the Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans. The following information should also be included:
- Confirmation that special payments due have been paid to the plan
- Current investment strategy and asset mix
- Total value of plan liabilities as of the valuation date. Liabilities should be shown for major classes, such as members active at plan termination, deferred vested members, retirees and disabled members. For those who have chosen to transfer their pension benefit credit, the liability would be the pension benefit credit calculated as of the plan termination date (or the transfer deficiency if a portion of the pension benefit credit has been paid out) plus interest. See section 3.4 of this Instruction Guide for further information on adjustments to member pension benefit credits.
- Description and quantification of the gains and losses either between the effective date of the termination report and the next actuarial report or between each actuarial report filed during the amortization schedule
- Remaining special payments required to liquidate the solvency deficiency as of the valuation date
- Amount of any transfer deficiencies remaining if the plan has paid some members less than their full pension benefit credit. This would include any partial payments made after the approval of the termination report to members choosing a transfer option.
- Status of the benefit settlement process for the plan as at the valuation date
- Rate of interest to be paid on the benefits from the valuation date to the date they are paid to members
10. Distribution of Surplus Following Plan Termination
In accordance with subsection 29(7) of the PBSA, no assets of the plan shall revert to the benefit of the employer without the Superintendent’s consent. Any distribution of surplus assets to members or former members following a plan termination must be addressed in the termination report. OSFI will expect the surplus assets to be distributed in accordance with the termination report without undue delay.
Employers seeking a refund of surplus must follow the procedures set out in the PBSA and PBSR as described in the Instruction Guide on Refund of Surplus under the Pension Benefits Standards Act, 1985.