What's New in Pensions and Benefits - January 2019

  • February 14, 2019
  • Evan Shapiro and Michelle Rival

The following PBGF changes that were part of the 2018 funding reform set out under O. Reg. 250/18 are effective for assessment dates on and after January 1, 2019:

  • Elimination of the $5 per member basic assessment and minimum $250 assessment
  • Doubling of the maximum per member assessment to $600
  • Increasing by 50% the three tiers of the Risk-Based Assessment structure, whereby assessments are based on a plan's solvency deficit in respect of Ontario members
  • Adding a new layer to the annual assessment equal to 0.015% times a plan’s PBGF liabilities

FSCO has provided transitional rules and updated its FAQ document in relation to these changes. The PBGF filing form has also been updated.

Member Disclosure Changes Effective January 1, 2019

The following new disclosure requirements, also set out under O. Reg. 250/18, are effective for active and inactive member statements due after January 1, 2019, replacing the previous requirement to disclose the transfer ratio as set out in the last two filed valuation reports:

  • Transfer ratio as of most recently filed valuation report under section 13 or 14 of Regulation 909
  • Estimated transfer ratio as of end of statement period, calculated in accordance with s. 7.1(3)7 of Regulation 909