Amendments to the Assessment of Pension Plans Regulations (November 2018)

OSFI is proposing amendments to the Assessment of Pension Plans Regulations (the Regulations) made under the OSFI Act that would streamline the assessment process and eliminate assessments for certain terminated pension plans:

OSFI to calculate and invoice assessments: Currently, plan administrators must calculate their annual assessment and submit it to OSFI with the Pension Plan Assessment Remittance Form - PBSA within six months after the end of each plan year for plans subject to the Pension Benefits Standards Act, 1985 and three months after the end of the calendar year for pooled registered pension plans. A proposed amendment would allow OSFI to calculate the assessment due and invoice the plan after the filing due date of the Annual Information Return (AIR) based on the membership data reported in that AIR.

Eliminate assessments five years after plan termination and on termination for certain underfunded plans: Currently, all pension plans, including terminated plans, are subject to annual assessments until the plan is wound-up (i.e. all assets are distributed). A proposed amendment would eliminate annual assessments in the sixth year following a plan termination. The proposed amendment would also eliminate annual assessments on plan termination where the plan is underfunded and either the plan is a negotiated contribution plan or the employer is bankrupt.

Minor amendment to the definition of beneficiary: Currently, the definition of beneficiary in the Regulations inadvertently includes, for plans that have terminated, those who have transferred their pension benefit credit out of the plan as part of the wind-up process. A proposed amendment would correct this.

OSFI emailed plan administrators on July 30 outlining the proposed amendments and requesting feedback by September 21, 2018. We also posted a description of the proposed amendments on our website. No concerns were relayed and we are moving forward with the proposed amendments.

OSFI will keep plan administrators informed of any process-related changes.