The Pension Benefits Act, 1992 (the Act) contains the rules for funding defined benefit pension plans. In general, the funding rules include:
Pursuant to the Act, a pension plan administrator (Administrator) of a plan registered under the Act must file an actuarial valuation report and/or cost certificate, along with supporting information (for the purposes of RLS, this is referred to as an “AIS”) with the Superintendent.
The AIS must be completed and filed with the Superintendent:
Read the Actuarial Assumptions bulletin to understand the expectations regarding margins in the assumptions used in actuarial valuations.
The AIS is required to be filed electronically via the FCAA’s Registration and Licensing System (RLS). In the pension plan RLS section, you will find instruction guides and data lists to assist you in filing the AIS.
2015 Solvency relief
In 2015, The Pension Benefits Regulations, 1993 were amended to allow certain negotiated cost defined benefit pension plan (NCPP) administrators to apply for a four-year grace period, where funding solvency deficiencies would not be required. The exemption applies to solvency deficiencies established in actuarial valuations with review dates between, and including, December 31, 2012 and December 31, 2014.
For more information on the 2015 temporary solvency deficiency payment relief for certain negotiated cost pension plans (NCPPs) read the PBAR 2015 Explanation bulletin.