The Newfoundland and Labrador government is introducing two new annual pension fees in 2017, one to be paid by pension plan administrators and another to be paid by record keepers.
The new fee for plan administrators, which was announced in the province’s budget in April 2016, is payable when they file their annual information return (Form 2 – Registered Pension Plan Annual Information Return) with the province’s superintendent of pensions. It will be effective for all annual information returns filed with a year-end date on or after December 31, 2016.
The new fee is $10 per member and $5 per former member, but shall not be less than $200 or more than $12,500, according to the provincial government. An updated annual information return along with instructions will be available on the government’s website and will be sent to plan administrators shortly after their pension plan’s year-end date.
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The new fee will also be payable when applying to register a new pension plan (by filing Form 1 – Application for Registration of Pension Plan), where the effective date of the new plan is on or after Dec. 31, 2016.
The other new annual fee, which is payable by all savings institutions and insurance companies that offer retirement savings arrangements in the province, will take effect on Jan. 1, 2017.
The fee, which was also announced in the budget, is $500 for each savings institution and insurance company with at least one retirement savings arrangement on the superintendent’s lists on Jan. 1 of a calendar year.
The fee will be invoiced to the savings institutions and insurance companies in early 2017.
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