Name Changes Affecting Letters of Credit (LOC)

Employers and plan administrators are reminded that they are expected to be vigilant and knowledgeable about the contractual risk associated with their LOC and should ensure that their LOC are compliant with the PBSA and the Pension Benefits Standards Regulations, 1985 (PBSR).

For example, if a trustee or an issuer of LOC changes its name, as was recently the case when RBC Dexia Investor Services Trust changed its name to RBC Investor Services Trust in July of 2012, employers and plan administrators are expected to review their LOC and any supporting documents to ensure that they are still valid. Any amendments that are required should be made and any other remedial action that is required should be taken.