Retiree and survivor audits (May 2022)

As communicated in InfoPensions 10, OSFI’s view is that conducting a retiree and survivor audit is a good governance practice to keep records up to date and to confirm that pension benefit payments being paid from the pension fund continue to be paid to the correct person. For example, the use of direct deposit to pay pension benefit payments may result in some delays in plan administrators being notified of a retiree’s or survivor’s death as it may take some time for the next of kin to contact them. This is one of the reasons why OSFI encourages plan administrators to conduct these audits regularly.

Plan administrators can consult our previous article in InfoPensions 10 that outlines alternative measures when attempts to contact the retiree or survivor by phone, mail or e-mail have failed. The article also outlines the requirement of the Pension Benefits Standards Act, 1985 to continue paying a pension until death and the expectation that a plan administrator establishes a sufficient and reasonable basis on which to conclude that a retiree or survivor is deceased.