OSFI Consults on Instruction Guide for Termination of Pension Plan
OSFI is consulting on draft revisions to the instruction guide for termination of a defined benefit pension plan. The instruction guide, which was last issued in 2016, sets out the filing and reporting requirements for a defined benefit pension plan that has terminated, in whole or in part, under the Pension Benefits Standards Act, 1985. These requirements apply to plans with both a defined benefit and a defined contribution component. Comments should be provided no later than March 31, 2020. OSFI also published Approval Request Form for termination of a defined benefit pension plan.
Revisions reflect amendments to the Assessment of Pension Plans Regulations that came into effect on April 01, 2019 and remove references to pre-2016 Pension Benefits Standards Act requirements regarding information for members and former members. Revisions also include further details on the OSFI expectations regarding the following:
- Plans that include benefits subject to provincial pension legislation
- The timing expectations for solvency deficit amortization payments and how any over-payment of an employer's contribution toward a solvency deficit is treated under the Pension Benefits Standards Act on plan termination
- Underfunded negotiated contribution plans or plans with insolvent employers
- Pension benefit and pension benefit credit calculation dates for former members
- Refunds of surplus to members and former members or the employer
- Members and former members that cannot be located
Related Links
Comment Due Date: March 31, 2020
Keywords: Americas, Canada, Insurance, Pensions, Pension Plans, Reporting, Defines Benefit, Defined Contribution, OSFI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
PBC Publishes Q&As on Second-Generation Credit Reporting SystemRelated Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
EBA Updates Lists of Entities for Use in Capital Calculations under SA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
