FSRA/OSFI collaboration on defined contribution plans – Update

Since December 2020, OSFI has collaborated with the Financial Services Regulatory Authority of Ontario (FSRA) in a joint consultation with stakeholders to improve outcomes for members through an enhanced supervisory approach for defined contribution plans. The Technical Advisory Committee (the Committee), established to review the supervisory approaches of both regulators, has completed its work. The Committee met six times and the discussions focused on the following main topics:

• Administrator/employer responsibilities
• Improving regulatory guidance for defined contribution plans
• Promoting member engagement
• Exploring regulatory efficiency and effectiveness
• Decumulation

OSFI and FSRA have published a summary of outcomes of the discussions on the various topics listed above on their respective websites. In light of the wide acceptance of the Canadian Association of Pension Supervisory Authorities (CAPSA) Capital Accumulation Plan Guidelines, the Committee recommended putting forward a series of recommendations to CAPSA. Finally, the Committee recommended that plain-language guidance for pension plan members be produced. This guide − that administrators are encouraged to share with their members − is intended to communicate basic information and prompt action for key member decisions. The guide was endorsed by CAPSA and is available on CAPSA’s website.

OSFI and FSRA hosted a webinar on these topics on November 9, 2021. The recording and the transcript will be available shortly on OSFI’s website.

Information about the Committee, as well as summaries of the meetings, outcomes, recommendations and the member guide, are available on OSFI’s website.