OSFI notified all plan administrators that the regulations amending the assessment of pension plan regulations were published in Part II of the Canada Gazette on March 06, 2019 and will come into force on April 01, 2019. The amendments will streamline the assessment process and eliminate assessments for certain terminated pension plans.
OSFI had, in July 2018, consulted all plan administrators about the proposed amendments to the Assessment of Pension Plans Regulations made under the OSFI Act. OSFI did not receive any concerns or objections and moved forward with the proposed amendments. The regulations include the following key amendments:
- OSFI-issued invoice instead of self-assessment form. The amendments enable the Superintendent to determine a pension plan’s assessment after the plan has filed its Application for Registration or its Annual Information Return (AIR). OSFI will determine the assessment due and send an invoice to all plans that file an Application for Registration on or after April 01, 2019; or with AIRs due to be filed on and after April 01, 2019. Plan administrators will no longer be required to complete a Pension Plan Assessment Remittance Form. However, if an assessment was sent in advance of the due date for the AIR using this form, the assessment will still be accepted and an invoice will not be issued.
- Elimination of assessments for certain terminated pension plans. The amendments specify that there is no assessment to be paid if the plan has been terminated for five or more pension plan years and if the pension plan is underfunded on the termination date, provided that either the pension plan is a negotiated contribution plan or the employer for the plan is bankrupt or insolvent, or undergoing proceedings under the Companies’ Creditors Arrangements Act.
- Clarification to the definition of beneficiary. The amendments clarify that members, survivors, or any other persons who chose to transfer their pension benefit credit out of the plan before or after plan termination are not included as beneficiaries (which means that they are not considered for purposes of the assessment calculation). The amendments also clarify that any person for whom the administrator has purchased an annuity as part of the wind-up of a terminated plan is not considered a beneficiary for purposes of the assessment calculation.
Effective Date: April 01, 2019
Keywords: Americas, Canada, Insurance, Pension Plans, Assessment of Pension Plans, OSFI
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.