Regulation - LGIC
Proposed Amendments to Ontario Regulation 909 of the Pension Benefits Act: Removing Certain Requirements for Administrators of Defined Contribution Pension Plans
Regulation Number(s):
Regulation 909
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
Certain requirements for administrators of Defined Contribution (DC) pension plans under Regulation 909 of the Pension Benefits Act do not appear to contribute to the regulatory oversight of DC plans.
The proposed regulatory amendments would:
1. Remove the requirement for administrators of member-directed DC plans to establish a Statement of Investment Policies and Procedures (SIPP); and
2. Remove the requirement for administrators of DC plans to file an audited annual financial statement and provide the Chief Executive Officer (CEO) of FSRA with the authority to require an administrator of a DC plan to prepare and file an audited annual financial statement if the CEO is of the opinion that there are reasonable and probable grounds to believe that there is a substantial risk to the security of plan benefits or that there has been a significant change in the circumstances of the plan. DC pension plan administrators would continue to file unaudited annual financial statements.
The Ministry of Finance is bringing forward this proposal as part of the government's continued efforts to reduce red tape.
The proposed regulatory amendments would:
1. Remove the requirement for administrators of member-directed DC plans to establish a Statement of Investment Policies and Procedures (SIPP); and
2. Remove the requirement for administrators of DC plans to file an audited annual financial statement and provide the Chief Executive Officer (CEO) of FSRA with the authority to require an administrator of a DC plan to prepare and file an audited annual financial statement if the CEO is of the opinion that there are reasonable and probable grounds to believe that there is a substantial risk to the security of plan benefits or that there has been a significant change in the circumstances of the plan. DC pension plan administrators would continue to file unaudited annual financial statements.
The Ministry of Finance is bringing forward this proposal as part of the government's continued efforts to reduce red tape.
Analysis of Regulatory Impact:
The proposed regulatory amendments are expected to reduce costs for administrators of DC plans.
MOF estimates suggest that the two proposed changes could decrease costs in the sector by roughly $8 million per year.
MOF estimates suggest that the two proposed changes could decrease costs in the sector by roughly $8 million per year.
Further Information:
PBA Regulation (General) Consultation Draft
Regulation 909
Proposal Number:
21-MOF015
Posting Date:
October 7, 2021
Comments Due Date:
November 23, 2021
Contact Address:
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.Feedback@ontario.ca
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.Feedback@ontario.ca