The Financial Services Regulatory Authority of Ontario (FSRA) completed a targeted review of the contribution reporting and monitoring requirements that apply to pension plans registered in Ontario. The targeted review was completed in November 2017.
You can review the results of the targeted review below. You will also find:
- Important reminders for plan administrators and pension fund trustees
- FSRA’s response to the results
Learn about FSRA’s targeted reviews for pension plans.
Why focus on contribution reporting and monitoring (Form 7)?
Employers are required to make timely contributions to the pension plan to ensure the benefit security of the plan members and other plan beneficiaries. At the beginning of each plan year, plan administrators are required to complete a Form 7 (Summary of Contributions/ Revised Summary of Contributions) and submit it to the pension fund trustee. The pension fund trustee must notify FRSA if contributions haven’t been made when they are due.
A properly completed Form 7 is an important tool for FRSA to become aware if an employer has failed to make contributions to the plan. Or, if there is a discrepancy in the amount being contributed.
How many pension plans were selected for the targeted review?
There were 243 pension plans, including 168 defined benefit (DB) plans and 75 defined contribution (DC) plans, randomly selected for the targeted review.
FSRA reviewed the pension plans to determine if:
- Plan administrators were completing Form 7 correctly; and
- Pension fund trustees were reporting if contributions were not paid or if there were discrepancies in the amount.
Key highlights from the targeted review
While more than 99% of the plan administrators were aware they need to complete Form 7, FRSA uncovered a number of problems:
| Employers did not make the required contributions to the pension plan |
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| Pension fund trustees did not report to FSRA when contributions were not made or there were discrepancies in the amount |
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| Plan administrators did not complete Form 7 properly |
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| Plan administrators did not use the updated Form 7 |
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Regulatory action
Missing contributions are serious violations that reduce the benefit security for pension plan members and other plan beneficiaries. FSRA has reported the compliance issues to the plan administrators, which will undergo increased regulatory scrutiny and action.
Important reminders for plan administrators
- Use FSRA's Form 7 and review the user guide to ensure you understand the process, timelines and responsibilities.
- To download, right-click on the link and choose Save link as to download the PDF to your computer or drive.
- Resolve any issues brought to your attention by the pension fund trustee quickly and effectively.
- File all up-to-date plan documentation with FSRA including plan amendments, collective agreements and contact information. See Filing information for plan administrators for details.
- Respond to FSRA’s inquiries and requests by the due date provided.
- You do not need to report discrepancies that are above the expected contribution amount (over-contributions).
Important reminders for pension fund trustees
- Review all Forms 7s carefully to identify issues such as missing or incorrect information and report those errors to the plan administrator promptly.
- Report all missing or late contributions to FSRA as required by the instructions on Form 7 and the user guide, even if the contributions are made at a later date.
- Use the FSRA tools, such as the user guide and reporting summaries, to help make the process smoother and improve the quality of data you provide.
- To download, right-click on the link and choose Save link as to download the PDF to your computer or drive.