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The Ontario Teachers’ Pension Plan Board (Teachers’) has acquired another 1.6 million common shares of NuVista Energy Ltd, comprising 2% of the Calgary-based oil and gas company.

The new shares bring Teachers’ stake in NuVista to 12.8 million shares, or 19.3%, and owns warrants exercisable into 3 million common shares.

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OFSI Issues Guidance Note

The Office of the Superintendent of Financial Institutions (OSFI) has issued a guidance note outlining expectations for the enhanced disclosure of information from the board of trustees of negotiated contribution defined benefit (NCDB) plans to plan members, former members and other beneficiaries.

While an administrator is required to administer its plan in accordance with the Pension Benefits Standards Act (PBSA) regulations, an NCDB plan may be challenged to respond to funding demands in circumstances where contributions to the plan cannot be increased and are not sufficient to meet prescribed funding requirements, according to the note. A reduction of benefits is one option that an NCDB plan board of trustees may consider in these situations.

A NCDB plan board of trustees may amend the plan to reduce accrued pension benefits if such reductions are permitted by the plan text and authorized by the superintendent.

In May 1998, OSFI issued the Guideline for Governance of Federally Regulated Pension Plans which describes the best practices for the governance of federally regulated pension plans, and the responsibilities of plan administrators.

With regard to governance, the note cautions that Boards of trustees should be fully aware of any amendment powers and options they have, or do not have, for balancing a NCDB plan’s funding, contribution and benefit aspects. This ensures that boards of trustees have adequate information to perform their duty to monitor the risks facing the plan and are able to implement strategies

To view OFSI’s guidance note, click here

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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