FSRA Announces New Measures to Support Pension Plans during Current Period of Disruption
TORONTO, May 22, 2020 – 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 during this time of rapid change and disruption.
We have issued new guidance on transferring commuted values and purchasing annuities when a pension plan’s transfer ratio has declined since the most recently filed valuation report by 10% and is now below 0.9.
This new guidance outlines the application and review process and protects the stability of pension plans by minimizing unnecessary disruption of commuted value transfers and annuity purchases. The guidance seeks to protect the entitlements of all pension plan beneficiaries.
We have also updated the information on plausible adverse scenarios in actuarial valuation reports. Understanding the risks to a plan enables plan fiduciaries to properly manage those risks and make prudent decisions to deliver on pension promises made to plan beneficiaries. This is key to prudential supervision and improving outcomes for beneficiaries.
As a result of the Government of Ontario’s new amendment to Regulation 909 we have updated our information regarding temporary relief to employers who are unable to pay their PBGF assessment on time. This is further to FSRA’s prior communication about deferring PBGF assessment certificates.
Plan administrators, sponsors, agents, advisors and plan members can email their FSRA Pension Officer for additional information. You can locate your Pension Plan Officer at: FSRA Pension Plan Information Access.
For more information about how FSRA is supporting the sectors that it regulates during COVID-19, please visit: FSRA Announces Changes to Regulatory Requirements due to COVID-19.
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Senior Communications Officer, Corporate Communications
Financial Services Regulatory Authority of Ontario