The Financial Services Regulatory Authority of Ontario’s supervisory guidance on the province’s target-benefit pension plan framework is now finalized.
The guidance, which will be reviewed no later than Feb. 2, 2031, outlines how the FSRA will oversee and apply Ontario’s target-benefit framework while supporting plan administrators in meeting their obligations, according to a press release.
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The document explains the FSRA’s approach to reviewing and approving applications to convert defined benefits pension plans to target-benefit plans, as well as assessing whether a plan’s provision for adverse deviation is aligned with its funding and benefits policy. The guidance also outlines how the regulator supervises plans that provide target benefits through regular reviews, risk assessments and ongoing engagement with plan administrators.
This guidance applies to entities regulated by the FSRA and related stakeholders, including target-benefit multi-employer pension plans (whether benefits were converted or were originally established as target benefits) and administrators of target-benefit MEPPs and other persons involved in the administration of these plans.
MEPPs that meet the eligibility requirements under the Pension Benefits Act may apply to the FSRA to convert all of the defined benefits provided under the MEPP into target benefits. Newly-created MEPPs providing target benefits from inception can also be established under the framework, provided they meet the eligibility requirements under the PBA, said the FSRA.
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