Pension plan examinations conducted by OSFI (November 2016)

As part of our supervisory process, OSFI regularly conducts examinations of a select number of pension plans. Reasons for conducting examinations include, but are not limited to, problems with the administration of the pension plan, follow-up on a previous examination, a targeted review of a significant activity in the operation of a pension plan (e.g. plan administration, asset management, communication to members), or that there is reason to believe that the employer may be in financial difficulty.

Depending on the scope of the examination or the issues affecting the pension plan, OSFI may decide to conduct a desk review instead of conducting the examination on site. Typically, a desk review involves reviewing documents already filed with OSFI as well as additional documents requested from the plan administrator. If warranted, OSFI may continue the examination on site at the location of the plan administrator in order to have better access to documents related to the administration of the pension plan and to interview individuals involved in plan administration.

Examinations involve a review of the plan administrator’s risk management function, which includes controls and oversight, in order to better understand how effectively the plan administrator manages the risks facing the pension plan. Examinations are not audits or compliance reviews. They are not intended to be exhaustive and should not be understood as approving a plan’s existing administrative practices or confirming statutory compliance. Plan administrators remain responsible for the administration of their pension plans.