Office of the Superintendent of Financial Institutions
(1) In these directives
Pension Benefits Standards Act, 1985;
Pension Benefits Standards Regulations, 1985;
means the amount, if any, by which the pension benefit credit exceeds the transfer value of the pension benefit credit;
means the lower of
the solvency ratio of the plan, and
the solvency ratio, projected to a calculation date no earlier than March 31, 2020, as determined by an actuary and taking into account:
changes in interest rates on a solvency basis;
the actual investment return of the pension fund;
contributions made; and
between the valuation date of the most recent actuarial report of the plan and the calculation date;
means the amount calculated by multiplying the pension benefit credit, determined in accordance with subsection 18(1) of the Regulations, by the transfer ratio;
(2) Except as where otherwise provided herein, the definitions contained in the Act and Regulations apply.
The actuarial reports referred to in subsection 12(2) of the Act shall be prepared,
where an application for registration under subsection 10(1) of the Act is filed, as at the effective date of the plan,
where an amendment which alters the cost of pension benefits or other benefits under the pension plan is made, as at the effective date of the amendment, and
as at every plan year end, except
in the case of a pension plan where the solvency ratio is 1.20 or greater, the actuarial report shall be prepared as at the end of the plan year that is not later than three years after the date of the most recent actuarial report, or
in the case of a pension plan that meets the definition of a designated pension plan under section 8515 of the
Income Tax Regulations, the actuarial report shall be prepared as at the end of the plan year that is not later than three years after the date of the most recent actuarial report.
(1) Subject to subsection (2), the auditor's report of the pension fund referred to in paragraph 15(1)(c) of the Regulations shall be prepared as at the end of the plan year.
(2) An auditor's report of the pension fund that has not been established by or under a Pension Fund Society is not required to be filed if the pension fund is held as follows:
all funds are held by one insurance company in any type of account, or
all funds are held in the pooled funds of one trust company, or
all funds are held by one trust company but not in its pooled funds and the fair market value of the total assets of the pension fund is less than $5,000,000.
Pursuant to subsection 12(4) of the Act, the documents referred to in section 12 of the Act shall be filed with the Superintendent,
except as provided in paragraphs (b) and (c), within six months after the end of the plan year,
in the case of a pension plan that has a plan year end between September 30, 2019, and March 31, 2020, within nine months after the end of the plan year, or
within such longer period as the Superintendent may on application allow.
Following the termination of a pension plan, the actuarial report referred to in subsection 24.1(4) of the Regulations shall be prepared annually as at the anniversary of the effective date of termination and shall be filed with the Superintendent within six months of the valuation date.
For the purposes of paragraph 19(2)(a) of the Act, the interest rate that is fixed is the average of the yields of the 5-year personal fixed term chartered bank deposit rate (CANSIM V80691336, or its successor data series, published weekly by the Bank of Canada) using the value of the last weekly series for that month, over a reasonably recent period, the averaging period not to exceed twelve months.
For the purposes of subsection 23(6) of the Act, the part of the group life insurance payment that can be considered to have been paid by employer premiums shall not be greater than the amount of the group life insurance benefit multiplied by the ratio of the employer-paid cost of the policy to the total cost of the policy for the class of employees, taking into account in both the numerator and denominator of the ratio any experience or other refunds to the employer, with such ratio averaged over a period not exceeding five years.
(1) Pursuant to section 26.1 of the Act, consent is given to the transfer of moneys that relate to defined benefit provisions out of the pension fund under section 26 of the Act, subject to the following terms and conditions:
Except as provided in paragraph (b), the amount of the initial transfer under section 26 of the Act cannot exceed the transfer value.
Where a plan has a transfer ratio that is less than 1.00, the full value of the pension benefit credit may be transferred where
an amount equal to the transfer deficiency has been remitted to the fund, or
the transfer deficiency for any individual transfer is less than 20% of the Year's Maximum Pensionable Earnings for that year, provided that the aggregate value of all pension benefit credits transferred under this subparagraph since the later of the effective date of these Directives and the valuation date of the most recent actuarial report does not exceed 5% of the assets of the plan at the valuation date of the most recent actuarial report.
Where the full value of the pension benefit credit is not transferred, the transfer deficiency shall be transferred on the earlier of:
five years from the date of determination of the pension benefit credit, and
the date on which, based on an actuarial report with a valuation date no earlier than March 31, 2020, the solvency ratio of the plan is determined to be at least 1.00,
and shall include interest calculated from the date of determination of the pension benefit credit to the date of transfer, at the rate of interest used in the determination of the pension benefit credit.
(2) Where a plan is registered under provincial pension legislation, and the plan is regulated by that province on behalf of the Superintendent under a bi-lateral agreement or the 2020 Agreement Respecting Multi-Jurisdictional Pensions Plans, moneys that relate to defined benefit provisions for members, former members and survivors whose benefits are subject to the Act, and are eligible for transfer from the plan pursuant to section 26 of the Act, are subject to any transfer restrictions applicable to benefits that are subject to the pension legislation of that province.
(1) For the purposes of this section, the "solvency ratio following the purchase of the annuity" is the transfer ratio adjusted to reflect the effect of the purchase of an immediate or deferred life annuity described in this section.
(2) Pursuant to section 26.1 of the Act, where a purchase of an immediate or deferred life annuity is to be made other than for the purposes of section 26 of the Act and does not settle all the liabilities of the plan, consent is given to that purchase by an administrator, subject to the following terms and conditions:
the solvency ratio following the purchase of the annuity is not less than 0.85; or
an amount has been paid to the pension fund to maintain the solvency ratio following the purchase of the annuity at the lesser of 0.85 and the transfer ratio.