A defined benefit plan provides members with a defined pension income when they retire. The formula used to determine a member's benefit usually involves factors such as years of membership in the pension plan and the member's salary, and is not dependent on the investment returns of the plan fund.
Notes concerning the use of Policy Guidance
Policy advisories include descriptions of how the Office of the Superintendent of Financial Institutions (OSFI) has applied certain provisions of the Pension Benefits Standards Act, 1985 (PBSA), its Regulations and directives in force at the relevant time.
Policy advisories may be based on specific circumstances pertaining to a particular transaction or type of transaction and are not binding on OSFI's consideration of subsequent transactions that may raise other circumstances or considerations. Plan administrators should obtain appropriate legal and actuarial advice on how the legislation, directives and guidelines affect their pension plan.
Questions or comments regarding these policy advisories may be directed to the Private Pension Plans Division at OSFI.