In its 2024-25 annual plan, the Financial Services Regulatory Authority of Ontario is focusing on assessing and mitigating systemic and high-priority risks in the province’s defined benefit pension plan sector.
The regulatory body will review and enhance its supervisory framework to strengthen supervision of large public sector pension plans, ensuring its plan amendments and surplus applications are principles-based and outcomes-focused. It will also review the long-term viability and financial sustainability of the pension benefits guarantee fund, including the impact of the federal government’s super-priority legislation, also known as Bill C-228.
As part of its effort to support the government in its development and implementation of a new target benefit framework for eligible multi-employer pension plans, the FSRA will publish a draft prudential supervisory guidance for target-benefit plans.
It will also develop and implement a supervisory framework that includes tools and resources to effectively supervise target-benefit plans and publish a benchmarking report of DB multi-employer plans measured against the regulator’s published leading practices. The new framework looks to update governance within MEPPs by adding new required disclosures and creating new funding rules, said the FSRA.
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