FSCO opens consultation on updated pension surplus policies

The Financial Services Commission of Ontario is in the process of updating its surplus policies.

Once released, the updated policies will be posted for consultation, with the public invited to submit comments by Nov. 12, 2018. The policies outline the FSCO’s expectations regarding applications for the payment of a surplus to employers, plan members, former members, retired members and other entitled beneficiaries under the Pension Benefits Act.

Read: FSCO publishes chart with five scenarios under new DB pension funding regime

Two aspects of the policies are up for discussion. The first is the regulations around applications by employers for the payment of a surplus on the windup of a pension plan. For now, the policy applies to applications for a surplus upon the full windup of a plan. The potential changes would apply to partial windups with an effective date of July 1, 2012.

The second consultation is on the role of legal counsel in representing members and others entitled to payments from a pension fund, when an employer is applying to pay itself a surplus.

Read: Governance lessons from B.C.’s public sector pension plans