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
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
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