OSFI is consulting on the revised Instruction Guide for authorization of amendments reducing benefits in defined benefit pension plans. The guide is intended for employers and administrators of defined benefit pension plans registered under the Pension Benefits Standards Act, 1985. Comments on proposed revisions will be received until September 30, 2019.
The Instruction Guide, which was last issued in 2012, sets out factors along with the specific requirements that OSFI generally considers when reviewing an application for an amendment with respect to paragraph 10.1(2)(a) of the Pension Benefits Standards Act, 1985. The factors and requirements set out in this guide are intended to protect the rights and interests of members, former members and other persons entitled to pension benefits and to ensure that the minimum funding requirements for an ongoing pension plan will be met.
There are non-significant policy changes and revisions to the Instruction Guide. An accompanying form provides further details regarding the OSFI expectations regarding applications for the authorization of a reducing amendment. The revisions include more details regarding the required information to be filed when the application affects benefits that are subject to provincial pension legislation or involves a negotiated contribution plan. Additional details were also added to the Instruction Guide to assist administrators or their consultants in determining if an amendment would reduce an accrued benefit.
Comment Due Date: September 30, 2019
Keywords: Americas, Canada, Insurance, Pensions, Defined Benefit, Pension Plans, Instruction Guide, Pensions Benefit Standards Act, OSFI
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.