Remittance of contributions

Employer and employee contributions must be remitted to a pension fund in accordance with the time frames set out in subsection 9(14) of the Pension Benefits Standards Regulations, 1985 (PBSR). It has come to OSFI’s attention on a number of occasions that the late remittance of employer or employee contributions continues to be a problem in some pension plans.

Administrators and custodians both have a role in ensuring that contributions are remitted to the pension fund in accordance with the timeframes set out in the PBSR. Plan administrators and custodians are reminded that subsection 9.1(1) of the PBSA requires plan administrators to notify, in writing, the holder or custodian of the pension fund of all amounts that are to be remitted to the pension fund and the expected date of remittance. Paragraph 9.1(2)(b) of the PBSA also requires that the custodian or plan administrator notify the Superintendent immediately, in writing, if the payment to a pension fund is not remitted within 30 days after the expected date of remittance.

If required payments are not remitted to the fund, Section 10 of the PBSR provides that the administrator is liable for the outstanding payment and interest thereon.