Pensions

1. The minimum fee increased to $750. Why did it increase? What additional value is the FSRA providing to individual pension plans for this increased fee?

The method for calculation of the FSRA assessment has changed based on the Assessments and Fees consultations held late 2018 to early 2019. These changes are necessary for FSRA to achieve its objectives and priorities.

Effective June 8, 2019 under Rule 2019-001 for Assessments and Fees assessments are calculated based on the final budget posted by FSRA.

2. Can the minimum fee of $750 be prorated?

No, the minimum fee is the minimum that cannot be prorated.

3. Is there a fee for regular filings required on an annual basis?

There is no additional filing fee for prescribed annual filing, however Pension Benefit Guaranteed Fund eligible pension plans, will also receive a PBGF Assessment.

4. Where does the information on a pension plan’s membership come from?

Pension plan membership data is based on the most recent Annual Information Return (AIR) that the Financial Services Regulatory Authority of Ontario had on file at December 31, 2019. In the absence of an AIR, the plan’s membership data is based on the pension plan administrator’s application for registration of the pension plan.

5. My pension plan has wound up. Will I receive a pension assessment invoice?

If you filed a wind up AIR (under section 29.1 of the Regulations made under the Pension Benefits Act) on or before December 31, 2019, then you should not receive a 2020-2021 assessment invoice.

If you filed your wind up AIR between January 1, 2020 and March 31, 2020 (end of FSRA’s fiscal year), you are still included in the assessment cycle and must pay an assessment for the period of April 1, 2020 to March 31, 2021. Please note that assessment invoices cannot be pro-rated.

6. Do AIR’s still need to be filed?

Yes, each pension plan is required to file an AIR. Defined Contribution (DC) plans must file the AIR within 6 months of the plan’s fiscal year end and plans with a Defined Benefit component (including plans that have a DB and DC provision), must file the AIR within 9 months of the plan’s fiscal year end. If the plan has wound up, the wind up AIR is due 6 months after the effective date of the wind up.

7. What happens when there is an acquisition of business and the plan assets are merging with another plan? Will I be charged a pension assessment?

If you have provided the required documentation (cost certificate) to FSRA to certify that the assets have transferred prior to December 31, 2019, you should not be assessed. Please file a revised Annual Information Return when the required documents has been sent to FSRA, to update your plan’s membership.

8. How is the pension assessment calculated?

FSRA assessment calculations are based on the calculations shown in Rule 2019-001 for Assessments and Fees. To see the calculation for your specific industry, please refer to the following subsections: Pension Sector: Subsection 7.1

The marginal fee per pension beneficiary is:

Plan Membership Increments Marginal Fee*
First 1-1,000 $ 11.08
Next 1,001 – 6,000 $ 9.78
Next 6,001 – 12,000 $ 7.41
Next 12,001 – 60,000 $ 3.48
Next 60,001 – 150,000 $ 2.06
150,001+ plan members $ 0.07

*The marginal fee per pension beneficiary has been rounded to 2 decimal places.

Pension plans with less than 79 beneficiaries will be subject to the minimum assessment fee of $750.

9. Can I submit one bulk payment for several pension plans that I administer?

Yes. If you administer more than one pension plan, you may submit one bulk payment. To ensure the payment is applied correctly, include the “Remittance Advice” portion of each invoice for all plans covered by the bulk payment.

If any remittance slips are missing, the payment may not be applied correctly (e.g., one pension plan may have an overpayment while another may be charged interest for having no payment).

10. If the pension plan is required to pay a Pension Benefits Guarantee Fund (PBGF) fee, can it be included with the pension assessment?

No. The PBGF filing must be completed on the Pension Services Portal (PSP) and the fee must be sent in with the remittance slip and paid separately from the plan’s pension assessment. The PBGF assets are held separate and apart from FSRA’s accounts. As a result, there are different payees for PBGF fees and for the pension assessments.

All PBGF assessments must be payable to the Pension Benefits Guarantee Fund. Any payments issued to FSCO, FSRAO, or Ministry of Finance will be returned to the plan sponsor to be reissued.

11. How do I update my contact information?

You will be required to make changes to your pension plans’ contact information only through the Pension Services Portal. Information on how to edit contact information is available at: Instructions for using 'Contacts' menu on the Pension Services Portal (PSP).

12. Can my invoice be updated to state my name in the address line?

No. Your pension assessment invoice cannot be updated or revised. The invoice is addressed to “Accounts Payable”, along with your pension plan’s registration number. Please contact your “Accounts Payable” area should you not be able to locate your invoice. If your “Account Payable” area cannot locate your invoice, please email FSRA Finance at [email protected].

13. How do I read my FSRA assessment invoice?