New FSCO Guidance on Biennial Member Statements
Amendments to the PBA and supporting regulations in O. Reg. 235/14 require biennial statements for former members and retired members, with initial statements for such members of existing plans to be provided no later than July 1, 2017.
Subsequently, FSCO created a webpage covering these developments and, on July 3, 2018, added 11 new Frequently Asked Questions, addressing:
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When biennial statements must be sent to former and retired Ontario members of plans registered outside Ontario, or to former and retired non-Ontario members of plans registered in Ontario (new Q&As 6 and 7)
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When and how administrators can apply for a waiver of the requirement to provide biennial statements to former and retired members who cannot be located, under Pension Policy A300-900 Searching for Plan Beneficiaries, and Pension Policy A300-901 Waiver of Biennial Statements for Missing Former and Retired Members (new Q&As 8 – 16)
New FSCO Guidance on Converting SEPPs to JSPPs
On November 1, 2015, PBA amendments under Bill 14, the 2014 Budget Bill, and supporting regulations in O. Reg. 311/15, took effect. These amendments introduced new sections 80.4 and 80.0.1 to the Act, allowing single employer pension plans (SEPPs) in the broader public sector to convert to jointly sponsored pension plans (JSPPs) either by converting into or merging with an existing JSPP.
Subsequently, FSCO created a webpage covering these developments and, on July 3, 2018, added six new Frequently Asked Questions, addressing:
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Obligations of the SEPP and JSPP administrators to prepare and review member notices that are compliant with the legislation, complete and understandable (new Q&As 14 and 302)
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Role of a union that represents SEPP members in the consent process (new Q&A 15)
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Amendments to the JSPP (new Q&As 101 and 102)
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Other steps and preparations that the SEPP and JSPP administrators can take before applying for a transfer under section 80.4 of the PBA, and to assist FSCO in its review of the application (new Q&As 300 and 301)
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The timing of the SEPP administrator’s notice of application to members (new Q&A 303)
PRPP Member Guides
The federal Office of the Superintendent of Pensions (OSFI) has released a PRPP Guide for Ontario Members. It is one of five new member guides released by OSFI for members in various jurisdictions that are party to the Multilateral Agreement Respecting Pooled Registered Pension Plans. Under the Multilateral Agreement, OSFI is responsible for supervising federally registered PRPPs, including those that have members subject to Ontario’s jurisdiction. Key items of interest for PRPP members are outlined, including:
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Membership and employment status
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When and how information is provided
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Contributions and investment options
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Creditor protection
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Locking-in rules
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Opting-out and termination of PRPP membership
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Options on termination of employment
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Death of a member
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Family law matters
Draft CAPSA Guideline on Searching for Un-locatable Members
On June 21, 2018, CAPSA released draft Guideline #9 - Searching for Un-locatable Members of a Pension Plan, which notes that administrators have a responsibility to retain accurate records on members and beneficiaries for at least as long as they have a benefit entitlement. Administrators should develop a records management and retention policy—including a component on how to maintain contact with former and retired members. CAPSA suggests several methods to search for un-locatable members. If an administrator is unsuccessful in its search, the Guideline notes other possible steps that can be taken:
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Use CRA’s letter forwarding service to locate missing individuals
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Consider, where available, applying for permission to transfer the assets of un-locatable members to a provincial unclaimed property office
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Where feasible and subject to applicable privacy laws, establish a database or registry of missing members on its website or that of the sponsoring employer
Other CAPSA Developments
Other developments outlined in the June 5, 2018 CAPSA Communique include the following:
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Revisions to CAPSA Guideline No. 8 – Defined Contribution Pension Plans will be released for stakeholder consultation later this summer, to address retirement tools and projections, and best practices for sponsors providing variable benefits
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Establishing a future Agreement Respecting Multi-jurisdictional Pension Plans that will be entered into by all jurisdictions with pension legislation in Canada remains a priority, although no details were provided
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CAPSA, as a participant in the Joint Forum of Financial Market Regulators, is also making progress on a prototype fee statement for segregated funds, and the regulation of investment fund fees