FSRA affirms that automatic features in defined contribution pension plans are not prohibited by law
The Financial Services Regulatory Authority of Ontario (FSRA) is committed to promoting the good administration of pension plans and protecting and safeguarding the pension benefits and rights of pension plan beneficiaries.
FSRA is releasing interpretation Guidance on automatic features in defined contribution pension plans. The new Guidance comes into effect on November 8, 2021.
The Guidance affirms that the Pension Benefits Act and its Regulations do not prohibit the use of automatic features. Features including auto-enrollment, auto-escalation and default funds may enhance retirement outcomes for plan members.
FSRA encourages plan administrators to evaluate the use of automatic features within the context of their plan.
The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.
For media inquiries:
Senior Advisor, Corporate Communications
Financial Services Regulatory Authority of Ontario
Email: [email protected]