New FSRA/OSFI collaboration on defined contribution plans

In December 2018, OSFI initiated a targeted review of all federally regulated pension plans with defined contribution (DC) provisions. The intention of this DC pension plan study was to enhance OSFI's risk-based approach to supervision by analyzing specific information on plan fees, default investment options and the number and type of investment options offered to members. In 2019-2020, OSFI analyzed the valuable information collected from federal plan administrators and outlined preliminary observations in InfoPensions - Issue 22 (November 2019).

Recently, the Financial Services Regulatory Authority of Ontario (FSRA) and OSFI decided to establish a special purpose committee (the committee) to review the approaches of both regulators to supervising DC plans and, where possible, find opportunities for regulatory harmonization. OSFI will leverage the information that we received from the DC pension plan study in 2018, to support our analysis and the recommendations produced by the committee.

Through this collaboration, FSRA and OSFI will work towards improving outcomes for plan members. The committee will also focus on enhancing regulatory efficiency and effectiveness for DC plans.

The committee expects to begin its work in December 2020. For more information, visit the committee's Terms of Reference.