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
Comment Due Date: March 31, 2020
Keywords: Americas, Canada, Insurance, Pensions, Pension Plans, Reporting, Defines Benefit, Defined Contribution, OSFI
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