Certified Financial Statements (OSFI 60)

Introduction

The purpose of this Instruction Guide is to assist administrators of federally regulated private pension plans (FRPPs) registered, or having filed an application for registration, under the Pension Benefits Standards Act, 1985 (PBSA) in completing the Certified Financial Statements (OSFI 60 or CFS) that is required to be filed with the Office of the Superintendent of Financial Institutions (OSFI).

The Instruction Guide does not supersede the requirements of the PBSA, the Pension Benefits Standards Regulations, 1985 (PBSR), the Directives of The Superintendent Pursuant To The Pension Benefits Standards Act, 1985 or any guidelines that OSFI has issued or may issue regarding the administration of FRPPs subject to the PBSA.

A glossary of some of the terms used in this Instruction Guide is provided in Appendix A.

Who must file

The administrator of a FRPP registered, or having filed an application for registration, under the PBSA, or its agent, must file the CFS.

Filing due date

The CFS must be filed within six months after the end of the plan year to which it relatesSubsection 12(4) of the PBSA. while there are assets remaining in the pension fund.

Filing requirements

The administrator of a FRPP must file the CFS using the Regulatory Reporting System (RRS)Returns are not considered received at OSFI until the filing process is complete and the returns have been accepted in RRS. If the plan is not registered to use RRS, it should do so immediately. Pension plan administrators must contact the Bank of Canada, as host of the RRS, to register for access to the Bank of Canada secure site and RRS. For assistance in registering, please contact RRS Support at the Bank of Canada by phone at 1-855-865-8636, or by email at rrs-sdr@bank-banque-canada.ca..

The information must be entered directly into the on-line web form in RRS. All values reported in the CFS must be expressed in dollars, not thousands of dollars. However, values may be rounded to the nearest thousand.

For further information on how to file using RRS, please consult the Manage Financial Returns User Guide for Insurance Companies and Private Pension Plans (PDF) and other RRS training material available on the OSFI website. RRS training material can also be found in RRS in the Documents folder under Training and Support.

Several fields in the returns cannot be edited by the filer; such fields are auto-calculated based on data previously entered in the return.

Plan administrators are expected to keep a copy of the CFS in their records. This copy should be signed by the plan administrator and be available for examination by the plan members or other partiesSubsection 28(1) of the PBSA..

Certified Financial Statements (OSFI 60)

The CFS contains information relating to the pension fund based on the accrual basis of accounting. It includes Section A: Defined Contribution (DC) Provision, Section B: Defined Benefit (DB) Provision, Section C: Notes to the Financial Statements, and Section D: General Interrogatories. The Statement of changes in net assets and the Statement of net assets included in Sections A and B are special purpose financial statements because they exclude information on pension obligations (i.e., liabilities). The information contained in the CFS incorporates only certain elements of Generally Accepted Accounting Principles (GAAP).

Reporting period

Line 001 - For Plan Year Ending
Enter the end date of the period covered by the CFS, which is usually the plan year-end. Proper format for this field is YYYY-MM-DD.

Line 002 - Number of Months Covered 
Enter the number of months (which may not exceed 12) covered by the CFS. A change in plan year endA plan year end may be changed by plan amendment or resolution, which must be filed with OSFI. will result in a CFS that covers a period of less than 12 months. Such financial statements should reflect the activity for the period covered and an explanatory note given in Section C: Notes to the Financial Statements.

Line 003 - Total net assets at beginning of plan year (all provisions)
This field will be auto-calculated once information is entered on line 001 in sections A and B.

Line 004 - Total net assets at plan year end (all provisions)
This field will be auto-calculated once information is entered on line 024 in section A and line 029 in section B.

Please note that in the previous versions of the CFS, the Statement of changes in net assets and the Statement of net assets included the information for both the DB and DC provisions for combination plans. In this version of the CFS, the information relating to the DC provisions must be entered in Section A and the information for the DB provisions must be entered in Section B.

Section A: Defined Contribution (DC) Provision

Statement of changes in net assets

Line 001 - Net DC assets at beginning of plan year
Enter in dollar amount the previous year’s net assets at plan year end.

Increase in assets

Increase due to investments

Line 002 - Investment income
Enter in dollar amount the investment income resulting from interest, dividends, rents and sums earned on investments other than by an increase in their value, whether or not the income has been realized. For example, the yield realized when treasury bonds are cashed in and income generated by securities loans should be reported on this line.

Line 003 - Net gains (or losses) on investments - Realized
Enter in dollar amount the realized gains (or losses) on investments following an investment transaction, including a derivative transaction. They are to be measured from the fair value at the most recent financial statement date. These amounts are also referred to as realized fair value.

Line 004 - Net gains (or losses) on investments - Unrealized
Enter in dollar amount the unrealized gains (or losses) on investments following a change in the fair value of investments, including derivatives, or an adjustment following a change in the way they were valued. Unrealized gains (or losses) are to be measured from the fair value at the most recent financial statement date. These amounts are also referred to as unrealized fair value.

Line 005 - Total increase due to investments
Auto-calculated using information entered on lines 002, 003, and 004.

Contributions

Line 006 - Member contributions
Enter in dollar amount the member contributions made or payable for the plan year, with the exception of additional voluntary contributions. Member contributions are determined in accordance with the plan documents. Contributions to be entered on this line include optional member contributions that give rise to an obligation on the employer to make additional contributions.

Contributions for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 007 - Additional voluntary contributions
Enter in dollar amount the additional voluntary contributions made by members for the plan year. Additional voluntary contributions are optional contributions that do not give rise to an obligation on the employer to make additional contributions when made.

Contributions for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 008 - Employer contributions
Enter in dollar amount the employer contributions made or payable for the plan year. Employer contributions are determined in accordance with the plan documents.

Contributions for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 009 - Total contributions
Auto-calculated using information entered on lines 006, 007, and 008.

Line 010 - Transfers to members accounts
Enter in dollar amount the transfers to member accounts from other pension funds or other sources such as Registered Retirement Savings Plans (RRSPs) or Life Income Funds (LIFs).

Transfers for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 011 - Other sources of increase
Enter in dollar amount the other sources of increase, including

• dividends, refunds or other advantages granted to the fund during the plan year by an insurer, enterprise or person doing business with the plan;
• interest received on contributions, transfers or other sources of increase in assets because of late payments;
• interest due on outstanding amounts at plan year end; and
• accounting adjustments made to correct bookkeeping errors.

Line 012 - Total increase in assets
This field will be auto-calculated once information is entered on lines 005, 009, 010, and 011.

Decrease in assets

Plan expenses

Line 013 - Expenses related to managing investments
Enter in dollar amount the expenses related to managing investments that were paid by the funds in member accounts. Examples are

• brokerage or transaction fees, if they were not added to the cost base of the investment or deducted from the proceeds of disposition;
• securities broker’s or financial manager’s fees; and
• other expenses related to managing investments.

If such expenses were deducted from investment income, they should not be included on this line.

Investment management fees paid by the employer are not to be reported unless they were reimbursed to the employer by deductions from the funds in member accounts.

Line 014 - Administration cost - Professional fees
Enter in dollar amount the fees that were paid by the funds in member accounts for professional services (e.g., accountants, actuaries and lawyers). Professional fees paid by the employer are not to be reported unless they were reimbursed to the employer by deductions from the funds in member accounts.

Line 015 - Administration cost - Other
Enter in dollar amount the plan administration costs, other than those reported on line 013 and line 014, that were paid by the funds in member accounts. Administrative costs paid by the employer are not to be reported unless they were reimbursed to the employer by deductions from the funds in member accounts.

Line 016 - Total plan expenses
This field will be auto-calculated once information is entered on lines 013, 014, and 015.

Benefits and transfers

Line 017 - Benefits paid directly by the plan
Enter in dollar amount the variable benefits, including the survivor benefits, paid by member accounts.

Line 018 - Transfers from member accounts to other registered pension plans
Enter in dollar amount the transfers to other registered pension plans from member accounts.

Line 019 - Transfers from member accounts to other transfers
Enter in dollar amount the transfers to other registered retirement vehicles, such as locked-in RRSPs or LIFs, amounts used to purchase an immediate or deferred annuity with an insurer as well as lump sum payments to former members, survivors, beneficiaries or estates.

Line 020 - Total benefits and transfers
This field will be auto-calculated once information is entered on lines 017, 018, and 019.

Line 021 - Other sources of decrease
Enter in dollar amount the other sources of decreases in assets which might include uncollectible accounts such as contributions, investment income, transfers owing, and accounting adjustments.

Line 022 - Total decrease in assets
This field will be auto-calculated once information is entered on lines 016, 020, and 021.

Line 023 - Change in net assets
This field will be auto-calculated once information is entered on lines 012 and 022.

Line 024 - Net DC assets at plan year end
This field will be auto-calculated once information is entered on lines 001 and 023.

Statement of net assets

Assets

If the pension plan holds units of a master trust, assets belonging to the reporting plan should be determined using the proportionate consolidation method, and only this portion should be reported in the CFS. The value of the units should be distributed among the investment categories and sub-categories, and entered accordingly on lines 025 to 040.

Line 025 - Cash on hand
Enter in dollar amount the cash on hand which includes

• demand deposits in a bank or trust company’s savings or operating accounts;
• cash held by investment managers on behalf of member accounts;
• coins and bank notes; and
• cheques, bank drafts and postal money orders.

Generally, cash on hand includes all securities that can be cashed within 30 days following the end of the plan year, except negotiable securities such as shares, corporate bonds and treasury bonds.

Investments at fair value

Values should be determined at fair value at plan year end.

Debt securities (Canadian and non-Canadian)

Line 026 - Debt securities - Canadian
Enter in dollar amount the total value of Canadian debt securities.

Line 027 - Debt securities - non-Canadian
Enter in dollar amount the total value of non-Canadian debt securities.

Line 028 - Total debt securities (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 026 and 027.

Equity (Canadian and non-Canadian)

Line 029 - Equity - Canadian
Enter in dollar amount the total value of Canadian equity.

Line 030 - Equity - non-Canadian
Enter in dollar amount the total value of non-Canadian equity.

Line 031 - Total equity (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 029 and 030.

Alternative asset (Canadian and non-Canadian)

Line 032 - Alternative asset - Canadian
Enter in dollar amount the total value of Canadian alternative assets.

Line 033 - Alternative asset - non-Canadian
Enter in dollar amount the total value of non-Canadian alternative assets.

Line 034 - Total alternative asset (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 032 and 033.

Diversified and other investments (Canadian and non-Canadian)

If the breakdown of assets in diversified funds (investment funds, segregated funds or hedge funds) is not available by asset class, include the dollar amount of these assets on lines 035 to 038, where applicable.

Line 035 - Investment Funds
Enter in dollar amount the value of units held in investment funds, determined at fair value using market prices at plan year end.

Line 036 - Segregated Funds
Enter in dollar amount the value of investments in segregated funds of a corporation, determined at fair value by the corporation at plan year end.

Line 037 - Hedge Funds
Enter in dollar amount the value of units held in hedge funds, determined at fair value at plan year end.

Line 038 - Other Investments not listed above
Enter in dollar amount the value of other investments that do not fall into the categories on lines 025 to 037, determined at fair value at plan year end. These may include investments in derivative instruments, including unrealized gains, margin requirements and the unamortized balances of premiums paid.

Line 039 - Total diversified and other Investments (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 035, 036, 037, and 038.

Line 040 - Total investments at fair value (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 028, 031, 034, and 039.

Accounts receivable

Lines 041 - Member and additional voluntary contributions
Enter in dollar amount the member contributions payable for the plan year but not yet received at plan year end.

Line 042 - Employer contributions
Enter in dollar amount the employer contributions payable for the plan year but not yet received at plan year end.

Line 043 - Investment income receivable
Enter in dollar amount the investment income and earnings payable for the plan year but not yet received at plan year end. Investment income receivable includes interest, dividends and rents as well as amounts earned on investments but not yet realized.

Investment income and earnings receivable should be entered on this line and not included in the fair value of the investments reported on lines 026 to 040. For example, income accrued or receivable on assets invested in the general fund of an insurer should be entered on line 043 and not on lines 026 or 027. The same is true for income accrued or receivable on assets invested in an investment fund or a master trust reported on line 035.

Line 044 - Other amounts receivable
Enter in dollar amount the other amounts payable for the plan year but not yet received at plan year end. These other amounts include transfers not yet received, interest accrued on unpaid contributions, dividends, refunds or other advantages, amounts receivable from an indemnification agency such as Assuris or the Canada Deposit Insurance Corporation (CDIC). If the amount receivable is from a transfer of assets that OSFI has not yet authorized, this should also be disclosed in the Notes to the Financial Statements.

Line 045 - Total accounts receivable
This field will be auto-calculated once information is entered on lines 041, 042, 043, and 044.

Line 046 - Total assets
This field will be auto-calculated once information is entered on lines 025, 040, and 045.

Liabilities

Liabilities are obligations of the plan, i.e. amounts that the plan owes at plan year end. Pension obligations (accrued contributions and investment income) should not be reported as liabilities for the purpose of the CFS.

Line 047 - Mortgage borrowings
Enter in dollar amount the mortgage borrowings with respect to the plan year but not yet paid at plan year end.

Line 048 - Pension benefits, refunds and transfers payable
Enter in dollar amount the pension benefits payable, refunds and transfers with respect to the plan year but not yet paid at plan year end.

Line 049 - Expenses payable
Enter in dollar amount the plan administrative and management costs with respect to the plan year but not yet paid at plan year end.

Line 050 - Other amounts payable
Enter in dollar amount the other amounts payable with respect to the plan year but not yet paid at plan year end. These other amounts include payments owing at plan year end for non‑mortgage borrowings, overdrawn accounts or credit margins used to acquire securities, investments and amounts relating to derivative instruments, including unrealized losses, deferred unrealized gains relating to reserves for credit and market risks, deferred gains on hedging instruments and the unamortized balances of premiums received.

Line 051 - Total liabilities
This field will be auto-calculated once information is entered on lines 047, 048, 049, and 050.

Line 052 - Net DC assets at plan year end
This field will be auto-calculated once information is entered on lines 046 and 051. The amount on this line should be the same as the Net DC assets at plan year end reported on line 024.

Section B: Defined Benefit (DB) Provision

Statement of changes in net assets

Line 001 - Net DB assets at beginning of plan year
Enter in dollar amount the previous year’s net DB assets at plan year end.

Increase in assets

Increase due to investments

Line 002 - Investment income
Enter in dollar amount the investment income resulting from interest, dividends, rents and sums earned on investments other than by an increase in their value, whether or not the income has been realized. For example, the yield realized when treasury bonds are cashed in and income generated by securities loans should be reported on this line.

Line 003 - Net gains (or losses) on investments - Realized
Enter in dollar amount the realized gains (or losses) on investments following an investment transaction, including a derivative transaction. They are to be measured from the fair value at the most recent financial statement date. These amounts are also referred to as realized fair value.

Line 004 - Net gains (or losses) on investments - Unrealized
Enter in dollar amount the unrealized gains (or losses) on investments following a change in the fair value of investments, including derivatives, or an adjustment following a change in the way they were valued. Unrealized gains (or losses) are to be measured from the fair value at the most recent financial statement date. These amounts are also referred to as unrealized fair value.

Line 005 - Total increase due to investments
This field will be auto-calculated once information is entered on lines 002, 003, and 004.

Contributions

Line 006 - Member contributions
Enter in dollar amount the member contributions made or payable for the plan year, with the exception of additional voluntary contributions. Member contributions are determined in accordance with the plan documents. Contributions to be entered on this line include optional member contributions that give rise to an obligation on the employer to make additional contributions.

Contributions for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 007 - Additional voluntary contributions
Enter in dollar amount the additional voluntary contributions made by members for the plan year. Additional voluntary contributions are optional contributions that do not give rise to an obligation on the employer to make additional contributions when made. For the purpose of this line, additional voluntary contributions include optional ancillary contributions made under a flexible pension plan.

Contributions for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 008 - Employer contributions - Current service cost
Enter in dollar amount the current service cost contributions made or payable by the employer for the plan year. Employer contributions are determined in accordance with the most recent actuarial report filed with OSFI and the contributions reported must be net of any amount taken from surplus. Contributions that are receivable at the plan year end should be included in the amount reported.

Line 009 - Employer contributions - Special payments for going concern unfunded liability
Enter in dollar amount the special payments required to liquidate a going concern unfunded liability made or payable by the employer for the plan year. Employer contributions are determined in accordance with the most recent actuarial report filed with OSFI. Contributions that are receivable at the plan year end should be included in the amount reported.

Line 010 - Employer contributions -Special payments for solvency deficiency
Enter in dollar amount the special payments required to liquidate a solvency deficiency made or payable by the employer for the plan year. Employer contributions are determined in accordance with the most recent actuarial report filed with OSFI and the contributions reported must be net of any amount taken from surplus. Contributions that are receivable at the plan year end should be included in the amount reported.

Where an employer obtains a letter of credit (LoC) for the benefit of the plan to meet funding obligations, the amount of the LoC is not to be included in employer contributions on lines 009 or 010 but should be disclosed in Section C.

Line 011 - Payments for transfer deficiencies
Enter the total amount remitted to the pension fund to permit the payout of the full amount of the pension benefit credits for the period covered by the CFS.

Line 012 - Advance contributions
Enter the total amount remitted for advance contributionsRefer to subsection 9(6) of the PBSR. for the period covered by the CFS.

Lines 013a and b - Other payments (explain below)
Enter the total amount of any other payments remitted to the pension fund that have not been previously reported on lines 008 to 012 for the period covered by the CFS. An explanation of amounts entered on line 013a should be provided on line 013b.

Line 014 - Total contributions
Auto-calculated using information entered on lines 006, 007, 008, 009, 010, 011, 012, and 013a.

Line 015 - Transfers to the pension fund
Enter in dollar amount the transfers to the pension fund from other pension funds or other sources such as Registered Retirement Savings Plans (RRSPs) or Life Income Funds (LIFs).

Transfers for the plan year that are receivable at the plan year end should be included in the amount reported on this line.

Line 016 - Other sources of increase
Enter in dollar amount the other sources of increase, including

• dividends, refunds or other advantages granted to the fund during the plan year by an insurer, enterprise or person doing business with the plan;
• interest received on contributions, transfers or other sources of increase in assets because of late payments;
• interest due on outstanding amounts at plan year end; and
• accounting adjustments made to correct bookkeeping errors.

Line 017 - Total increase in assets
This field will be auto-calculated once information is entered on lines 005, 014, 015, and 016.

Decrease in assets

Plan expenses

Line 018 - Expenses related to managing investments
Enter in dollar amount the expenses related to managing investments that were paid by the fund. Examples are

• brokerage or transaction fees, if they were not added to the cost base of the investment or deducted from the proceeds of disposition;
• securities broker’s or financial manager’s fees; and
• other expenses related to managing investments.

If such expenses were deducted from investment income, they should not be included on this line.

Investment management fees paid by the employer are not to be reported unless they were reimbursed to the employer by the pension fund.

Line 019 - Administration costs - Professional fees
Enter in dollar amount the fees that were paid by the fund for professional services (e.g. accountants, actuaries and lawyers). Professional fees paid by the employer are not to be reported unless they were reimbursed to the employer by the pension fund.

Line 020 - Administration cost - Other 
Enter in dollar amount the plan administration costs, other than those reported on line 018 and line 019, that were paid by the fund. Administrative costs paid by the employer are not to be reported unless they were reimbursed to the employer by the pension fund.

Line 021 - Total plan expenses
This field will be auto-calculated once information is entered on lines 018, 019, and 020.

Benefits and transfers

Line 022 – Benefits paid directly by the plan
Enter in dollar amount the periodic pension benefits, including disability pensions and survivor benefits paid by the pension fund.

Line 023 – Transfers from the pension fund to other registered pension plans
Enter in dollar amount the transfers to other registered pension plans from the pension fund.

Line 024 - Transfers from the pension fund to other transfers
Enter in dollar amount the transfers to other registered retirement vehicles, such as locked-in RRSPs or LIFs, amounts used to purchase an immediate or deferred annuity with an insurer as well as lump sum payments to former members, survivors, beneficiaries or estates.

Line 025 - Total benefits and transfers
This field will be auto-calculated once information is entered on lines 022, 023, and 024.

Line 026 - Other sources of decrease
Enter in dollar amount the other sources of decreases in assets which might include uncollectible accounts such as contributions, investment income, transfers owing, and accounting adjustments.

Line 027 - Total decrease in assets
This field will be auto-calculated once information is entered on lines 021, 025, and 026.

Line 028 - Change in net assets
This field will be auto-calculated once information is entered on lines 017 and 027.

Line 029 - Net DB assets at plan year end
This field will be auto-calculated once information is entered on lines 001 and 028.

Statement of net assets

Assets

If the pension plan holds units of a master trust, assets belonging to the reporting plan should be determined using the proportionate consolidation method, and only this portion should be reported in the CFS. The value of the units should be distributed among the investment categories and sub-categories, and entered accordingly on lines 030 to 048.

Line 030 - Cash on hand
Enter in dollar amount the cash on hand which includes

• demand deposits in a bank or trust company’s savings or operating accounts;
• cash held by investment managers on behalf of the pension fund;
• coins and bank notes; and
• cheques, bank drafts and postal money orders.

Generally, cash on hand includes all securities that can be cashed within 30 days following the end of the plan year, except negotiable securities such as shares, corporate bonds and treasury bonds.

Investments at fair value

Values should be determined at fair value at plan year end.

Debt securities (Canadian and non-Canadian)

Line 031 - Short term notes, securities and other term deposits
Enter in dollar amount the value of short term notes, securities and other term deposits.

The debt securities entered on this line must mature in less than six months following their issuance. Other term deposits that mature later than six months following their issuance should also be included on this line. These debt securities include certificates of deposit, savings certificates, and guaranteed investment certificates issued by a financial institution.

Line 032 – Bonds and other debt securities guaranteed by a government
Enter in dollar amount the value of government bonds and other debt securities (e.g. debentures) guaranteed by a government. The debt securities entered on this line must mature later than six months following their issuance.

For the purpose of this line, government means the Government of Canada, a province, a municipality or a school board.

Line 033 - Corporate bonds and other corporate debt securities
Enter in dollar amount the value of bonds and other debt securities (e.g. debentures) issued by a corporation and not guaranteed by a government (and therefore not included on line 032). The debt securities entered on this line must mature later than six months following their issuance.

If market prices at plan year end are not available (e.g. suspended trading or debt securities are not publicly traded), the value may be obtained using methods such as independent asset appraisals, comparison to published prices of comparable securities, use of recent trading prices, discounted cash flows based on current market yields, and estimation based on the underlying financial statements of the issuer.

Line 034 - Investment funds – bonds, cash equivalent, and mortgage
Enter in dollar amount the value of units held in a bond, cash equivalent or mortgage mutual or pooled funds (investment funds). Cash equivalent investment funds include T-Bill funds and money market funds.

Line 035 - Mortgage loans
Enter in dollar amount the value of mortgage loans secured by real estate or chattels. Where fair value using market yields at plan year end is not available, the value may be obtained using a variety of methods such as independent asset appraisals, discounted cash flows based on current market yields, and estimation based on the underlying financial statements of the issuer.

Line 036 - Insured annuity contracts
Enter in dollar amount the value of the contracts that are guaranteed by life insurance products.

Line 037 - Amounts deposited in the general fund of an insurer
Enter in dollar amount the value of investments in the general funds of an insurance company (often referred to as deposit administration accounts), determined at fair value by the insurer at plan year end.

Interest accrued on these assets should be entered on line 054.

Line 038 - Total debt securities (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 031 to 037.

Equity (Canadian and non-Canadian)

Line 039 - Common shares, preferred shares and other equity securities
Enter in dollar amount the value of shares. The dollar amount value should also include the value of shares in investment, real estate or resource corporations, as defined in Schedule III of the PBSR. These shares include common and preferred shares of corporations publicly traded on Canadian and non-Canadian markets. It would also include publicly traded real estate investment trusts (REIT).

If market prices at plan year end are not available (e.g. suspended trading), the value may be obtained using methods such as independent asset appraisals, comparison to published prices of comparable securities, use of recent trade prices, discounted cash flows based on current market yields, and estimation based on the underlying financial statements of the issuer.

Line 040 - Investment funds – equities
Enter in dollar amount the value of units held in investment funds. Where a pension fund invests in an investment fund made up of shares of Canadian corporations and non-Canadian corporations, the fair value of both must be reported.

Line 041 - Total equity (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 039 and 040

Alternative assets and other investments (Canadian and non-Canadian)

Line 042 - Real estate
Enter in dollar amount the value of investments in real estate. 

The value is generally obtained from an independent licensed appraiser or assessor in accordance with generally accepted appraisal practices and procedures at least once every three years, and is supplemented by an annual review of improvements to buildings and equipment.

Line 043 – Infrastructure
Enter in dollar amount the fair value of investments in infrastructure, determined at fair value at plan year end.

Line 044 - Private equity
Enter in dollar amount the value of investments in non-public companies. Generally, private equity investments are made through direct investment, limited partnerships, or through a private equity fund-of-funds.

Line 045 - Private debt
Enter in dollar amount the value of private loans (not sourced from a bank or a public market, Private debt other than mortgage loans. Private debt is equivalent to private credit.

Line 046 - Hedge funds
Enter in dollar amount the value of units held in hedge funds.

Line 047 - Derivatives
Enter in dollar amount the fair value of all derivative instruments in which the pension fund has directly invested at plan year end. This value can be reported as a negative if the aggregate net valuation for derivatives is negative.

Line 048 – Other investments not listed above
Enter in dollar amount the value of other investments that do not fall into the categories on lines 030 to 047.

Line 049 – Explanation of other investments
Enter a description of the other investments entered on line 048.

Line 050 - Total alternative asset and other investments (Canadian and non-Canadian)
This field will be auto-calculated once information is entered on lines 042 to 048.

Line 051 - Total investments at fair value
This field will be auto-calculated once information is entered on lines 038, 041, and 050.

Accounts receivable

Lines 052 – Member and additional voluntary contributions
Enter in dollar amount the member contributions payable for the plan year but not yet received at plan year end.

Line 053 - Employer contributions
Enter in dollar amount the employer contributions payable for the plan year but not yet received at plan year end.

Line 054 - Investment income receivable
Enter in dollar amount the investment income and earnings payable for the plan year but not yet received at plan year end. Investment income receivable includes interest, dividends and rents as well as amounts earned on investments but not yet realized.

Investment income and earnings receivable should be entered on this line and not included in the fair value of the investments reported on lines 031 to 048. For example, income accrued or receivable on assets invested in the general fund of an insurer should be entered on line 054 and not on line 037. The same is true for income accrued or receivable on assets invested in an investment fund or a master trust reported on line 034 and 040.

Line 055 – Other amounts receivable
Enter in dollar amount the other amounts payable for the plan year but not yet received at plan year end. These other amounts include transfers not yet received, interest accrued on unpaid contributions, dividends, refunds or other advantages, amounts receivable from an indemnification agency such as Assuris or the Canada Deposit Insurance Corporation (CDIC). If the amount receivable is from a transfer of assets that OSFI has not yet authorized, this should also be disclosed in Section C.

Line 056 - Total accounts receivable
This field will be auto-calculated once information is entered on lines 052, 053, 054, and 055.

Line 057 - Total assets
This field will be auto-calculated once information is entered on lines 030, 051, and 056.

Liabilities

Liabilities are obligations of the plan, i.e. amounts that the plan owes at plan year end. Actuarial liabilities resulting from obligations regarding accrued pension benefits of the plan should not be reported as liabilities for the purpose of the CFS.

Line 058 - Mortgage borrowings
Enter in dollar amount the mortgage borrowings with respect to the plan year but not yet paid at plan year end.

Line 059 – Pension benefits, refunds and transfers payable
Enter in dollar amount the pension benefits payable, refunds and transfers with respect to the plan year but not yet paid at plan year end.

Line 060 - Expenses payable
Enter in dollar amount the plan administrative and management costs with respect to the plan year but not yet paid at plan year end.

Line 061 - Other amounts payable
Enter in dollar amount the other amounts payable with respect to the plan year but not yet paid at plan year end. These other amounts include payments owing at plan year end for non‑mortgage borrowings, overdrawn accounts or credit margins used to acquire securities, and the unamortized balances of premiums received.

Line 062 - Total liabilities
This field will be auto-calculated once information is entered on lines 058, 059, 060, and 061.

Line 063 - Net DB assets at plan year end
This field will be auto-calculated once information is entered on lines 057 and 062. The amount entered on this line should be the same as the Net DB assets at plan year end reported on line 029.

Section C: Notes to the Financial Statements

Use this section to disclose additional information on the pension fund in accordance with GAAP.

Section D: General Interrogatories

An Auditor is not expected to give an opinion on items included in the interrogatories.

Part I is to be completed by all plans

1. Statement of investment policies and procedures

   Select “Yes” or “No” to indicate whether the statement of investment policies and procedures has been reviewed or amended during the plan year.

   If all assets of the pension fund are held in the unallocated general funds of a life insurance company authorized to carry on business in Canada or in segregated funds that meet the requirements of subsection 9(3) of Schedule III of the PBSR, answer “N/A” (not applicable) to B, C, D, E and F below.

2. 10% rule

   Select “Yes”, “No”, or “N/A” to indicate whether the plan complies with the 10% rule described in subsection 9(1) of Schedule III of the PBSR.

3. Securities lending

   Select “Yes”, “No”, or “N/A” to indicate whether the plan meets expectations included in OSFI’s Guideline on Securities Lending by Pension Plans .

4. Derivatives – best practices

   Select “Yes”, “No”, or “N/A” to indicate whether the plan meets expectations included in OSFI’s Guideline on Derivatives Sound Practices for Federally Regulated Private Pension Plans .

5. 30% rule

   Select “Yes”, “No”, or “N/A” to indicate whether the plan complies with the 30% rule respecting real estate corporations, resource corporations and investment corporations described in section 11 of Schedule III of the PBSR.

6. Related party

   Select “Yes”, “No”, or “N/A” to indicate whether the plan complies with the related party transaction rules described in section 16 and 17 of Schedule III of the PBSR.

Part II is to be completed by plans with DB provisions only

7. Non-Canadian investments ($)
   1. Select “Yes”, “No”, or “N/A” to indicate whether any of the assets of the pension fund were invested in non-Canadian investments.
   2. If (a) is “Yes”, please allocate fair market value of non-Canadian plan assets in the table accordingly: ($)

      • Line 001 – Debt securities
        Enter in dollar amount the non-Canadian debt securities allocated by region – US (column 001), Europe (column 002), Asia (column 003), Latin America (column 004), and Other non-Canadian (column 005) debt securities. Column 006 is auto-calculated using information entered in columns 001, to 005.

      • Line 002 - Equity securities
        Enter in dollar amount the non-Canadian equity securities allocated by region – US (column 001), Europe (column 002), Asia (column 003), Latin America (column 004), and Other non-Canadian (column 005) equity securities. Column 006 is auto-calculated using information entered in columns 001 to 005.

      • Line 003 - Other investments
        Enter in dollar amount the non-Canadian investments not entered on lines 001 and 002 above by region – US (column 001), Europe (column 002), Asia (column 003), Latin America (column 004), and Other non-Canadian (column 005) investments. Column 006 is auto-calculated using information entered in columns 001 to 005.

      • Line 004 - Total
        Auto-calculated using information entered on lines 001, 002, and 003 for columns 001 to 006.

8. Debt securities: type of investments ($)

   Line 005 - Debt securities with a maturity of 1 year or less
   Enter in dollar amount the debt securities with a maturity of 1 year or less allocated by type of debt securities – Federal (column 007), Provincial (column 008), Municipal (column 009), Corporate (column 010), and Others (column 011). Column 012 will be auto-calculated once information is entered in columns 007 to 011.

   Line 006 - Debt securities with a maturity of over 1 year
   Enter in dollar amount the debt securities with a maturity of more than 1 year allocated by type of debt securities – Federal (column 007), Provincial (column 008), Municipal (column 009), Corporate (column 010), and Others (column 011). Column 012 will be auto-calculated once information is entered in columns 007 to 011.

   Line 007 - Total
   This field will be auto-calculated once information is entered on lines 005 and 006 for columns 007 to 011.

9. Debt securities: credit ratings (%)
   The credit rating is a financial indicator to potential investors of debt securities such as bonds. The credit ratings used in the table below are based on the Standard & Poor's Global Ratings scale.

   Line 008 - Debt securities with a credit rating of AAA/AA
   Enter the percentage (2 decimal places) of the debt securities with a credit rating of AAA/AA.

   Line 009 - Debt securities with a credit rating of A
   Enter the percentage (2 decimal places) of the debt securities with a credit rating of A.

   Line 010 - Debt securities with a credit rating of BBB
   Enter the percentage (2 decimal places) of the debt securities with a credit rating of BBB.

   Line 011 - Debt securities with a credit rating of less than BBB
   Enter the percentage (2 decimal places) of the debt securities with a credit rating of less than BBB.

   Line 012 - Total
   This field will be auto-calculated once information is entered on lines 008, 009, 010, and 011.

10. Immunization strategy

    1. Select “Yes”, “No”, or “N/A” to indicate whether the investment policy contains a formal immunization strategy (e.g., cash flow matching, duration matching, derivative overlay, contingent immunization, buy-in annuities, longevity swap).

    2. If (a) is “Yes”, select “Yes”, “No”, or “N/A” to indicate whether each immunization strategy (e.g., cash flow matching, duration matching, derivative overlay, contingent immunization, buy-in annuities, longevity swap and other) is used.

       If “Yes” is selected for “Other”, please provide a description of the investment strategy.

11. Investment Funds

    1. Select “Yes”, “No”, or “N/A” to indicate whether any of the assets of the pension fund were invested in investment funds?
    2. If (a) is “Yes”, please list the name of the top 5 holdings and the fair market value in the table.

12. Commitments
    Enter in dollar amount the aggregate amount of unfunded commitments towards private investments which are not reflected in the net assets. Enter 0, if none.

Appendix A - Glossary of terms

Accrual basis of accounting

Requires that payments with respect to a plan year not yet received or made at plan year end be included in net assets, without consideration for the date on which payments will be received or made.

Alternative assets

A financial asset that does not fall into one of the conventional investment categories. Conventional categories include cash, debt securities, and equities. Alternative asset classes include real estate, infrastructure, private capital (debt or equity), natural resources (commodities, agricultural land and timberland) and hedge funds.

Assets

Include all the assets belonging to or owed to the pension fund. Any deposit to or investment made from the pension plan’s assets must be made on behalf of the plan or credited to its account. Any deposit or investment in non-Canadian funds must be reported in Canadian dollars using the rate of exchange at plan year end. 

Debt securities

Debt securities are financial assets that entitle their owners to a stream of interest payments. Debt securities include short term notes, securities and other term deposits; bonds and other debt securities guaranteed by a Government; corporate bonds and other corporate debt securities; investment funds – bonds, cash equivalents, and mortgages; mortgage loans and, amounts deposited in the general fund of an insurer

Define benefit plan

A pension plan that defines the pension benefit to be provided based on factors such as years of plan membership and average earnings calculated in accordance with the terms of the plan.

Define contribution plan

A pension plan that defines the amount of employer and employee contributions (if any) to the pension fund, determined on an individual account basis. The benefit the member will receive on retirement is determined at the date of retirement and is based on accrued contributions and investment income.

Derivative instruments

Refers to an investment whose value is derived from that of an underlying asset, index, or any other variable (e.g., interest rates, currency, volatility, credit, etc.) including forwards, futures, swaps, options, among others including exotics.

Equities (also known as ‘ordinary shares’, or ‘shares’)

Issued by a public limited company, and are traded on recognized stock markets. Equities include shares in investment, real estate or resource corporations, as defined in Schedule III of the PBSR; common and preferred shares publicly traded on Canadian and non-Canadian markets and, stock investment funds.

Fair value

In respect of an asset, is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. You may wish to consult the CPA Canada Handbook – Accounting regarding measuring fair value.

Hedge funds

Generally pooled investment funds, structured as private partnerships that charge performance related fees.

Insured plan

Is a pension plan for which all benefits are paid by means of an annuity or insurance contract issued by an organization authorized to carry on a life insurance business in Canada and under which the organization is obligated to pay all the benefits set out in the plan.

Immunization strategy

Is the process in which a plan administrator manages the investment of assets to ensure that cash is available for meeting the plan’s obligations as they fall due.

Infrastructure

Generally made through direct or indirect investments or through limited partnerships, and include bridges, toll roads, airports, pipelines, utility towers, and educational and healthcare facilities.

Investment fund

Is a fund, established by a corporation, limited partnership or trust, the purpose of which is to invest the moneys of two or more investors and the shares or units of which are allocated to each investor in proportion to the interest of the investor in the assets of the fund. Investment funds are comprised of various securities such as shares, bonds, mortgages or real estate. 

Master trust

Comprises the grouping of two or more pension funds, often for plans of one employer, for investment purposes. Each plan holds an undivided portion of the trust assets that corresponds to a percentage of participation or to units of participation.

Mortgage borrowing

A mortgage borrowing is a debt instrument by which the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of a loan.

Pension benefit

The periodic amount that a member or former member is or may become entitled to under the terms of the pension plan.

Pension fund

In relation to a pension plan, means a fund maintained to provide benefits under or related to the pension plan.

Plan administrator

The primary contact person regarding the overall administration of the pension plan, including the pension fund.

Proportionate consolidation method

Consists of reporting the assets, income and expenses in the Statement of changes in net assets and the Statement of net assets on the basis of a pro rata share for each investment held by the pension fund.

Real estate investments

Generally made through real estate vehicles such as joint ventures and co-tenancies or through real estate investment funds which are made up of real estate or of shares of real estate corporations.

Segregated fund

In relation to a pension plan, means a fund established by a corporation that is duly authorized to operate a fund in which contributions to a pension plan are deposited and the assets of which are held exclusively for the purposes of that plan alone or that plan and one or more other pension plans.

Short term notes, securities and other term deposits

These debt securities include loans made by means of financial instruments that are easily liquidated.  Items in this category are also known as money market securities and short-term capital securities and include treasury bonds, municipal bonds, corporate promissory notes (also known as short-term notes), commercial paper, bearer securities, treasury bills (T-bills), bankers’ acceptances (also known as bank paper), certificates of deposit, term deposits, savings certificates and guaranteed investment certificates issued by a financial institution.

Special payment

Is a payment or one of a series of payments established by an actuary through an actuarial report for the purpose of liquidating an unfunded liability or solvency deficiency. These payments may include amounts required to fund amendments made during the plan year.