An in-depth look at this and other subjects are covered in the current issue of the
- CAPSA revises multi-jurisdictional pension plans agreement –
The Canadian Association of Pension Supervisory Authorities (CAPSA) has revised its Agreement Respecting Multi-Jurisdictional Pension Plans. The revised agreement includes new funding rules, asset allocation requirements and annuity purchase rules.Alberta ,British Columbia ,New Brunswick ,Nova Scotia ,Ontario ,Quebec ,Saskatchewan and the federal government have signed the new multi-jurisdictional agreement, which comes into effect onJuly 1, 2020 . - FSRA sets rules for commuted value transfers –
The Financial Services Regulatory Authority of Ontario (FSRA) has issued new guidance on commuted value transfers and annuity purchases forOntario -registered defined benefit pension plans. FSRA sets out two processes for approval of commuted value payouts, specifically an expedited review process for qualifying plans and an in-depth review process. FSRA also indicates its expectations where a plan administrator chooses not to apply for permission to make commuted value transfers, and sets out criteria for when a pension plan may resume making commuted value transfers. - Federal government introduces moratorium on special payments – The federal government has adopted a regulation to provide temporary, short-term solvency funding relief for federally regulated defined benefit pension plans. Under the new regulation, no solvency special payment instalments are required from
May 27, 2020 untilDecember 30, 2020 . Relief is also available for employers who made special payments fromApril 1, 2020 toMay 27, 2020 . - OSFI eases requirements for commuted value transfers – The Office of the Superintendent
of Financial Institutions (OSFI) has revised its Directives of the Superintendent to ease the restrictions on portability transfers for members who are retirement eligible. OSFI will provide automatic consent to portability transfers to locked-in retirement savings vehicles for members who are eligible to retire, subject to certain conditions. - Tracking the funded status of pension plans as at
May 31, 2020 –Morneau Shepell describes the funded status of pension plans sinceDecember 31, 2019 based on three typical investment portfolios. A graph shows the changes in the financial position of a typical defined benefit plan since the end of 2019. A table shows the impact of past returns on plan assets and the effect of interest rate changes on solvency liabilities of a medium duration pension plan. - The impact of pension expense under international accounting as at
May 31, 2020 –Morneau Shepell has shown the evolution of the pension expense for a typical defined benefit pension plan. Since the beginning of the year, the pension expense has remained quite stable, despite the financial markets turmoil.
About
SOURCE
© Canada Newswire, source