OSFI Issues Amendments to Assessment of Pension Plans Regulations
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.
Related Links
Effective Date: April 01, 2019
Keywords: Americas, Canada, Insurance, Pension Plans, Assessment of Pension Plans, OSFI
Related Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
