OSFI consultation paper: Pension Investment Risk Management

On March 17, 2022, OSFI published a consultation paper on Pension Investment Risk Management. The paper introduces principles for the management of investment risk that OSFI believes are relevant for federally regulated pension plans. The principles-based expectations cover four areas: independent risk oversight, risk appetite and risk limits, portfolio and risk reporting and valuation policies and processes.

On April 7, 2022, OSFI held an information session for plan administrators and pension industry stakeholders to comment and ask questions on the proposed regulatory expectations set out in the paper.

In response to the consultation, which closed on May 13, 2022, OSFI received several submissions. OSFI is currently reviewing these submissions. Feedback received will help to ensure that guidance on pension investment risk management reflects and accommodates the circumstances of all pension plans, including plans of various sizes, degrees of investment sophistication and risk profiles.

Thank you to everyone who provided input.