The Financial Services Regulatory Authority of Ontario (FSRA) is seeking feedback on proposed guidance on its approach to overseeing single-employer, defined benefit (DB) pension plans that may be at risk.
The guidance outlines the tools and methods the FSRA will use to “improve outcomes for pension plan beneficiaries” when plans are facing enhanced supervision due to concerns about the security of the benefits.
The proposed approach to supervision will be risk-based and transparent, and will focus on plans where the risk of insolvency “would have a significant impact not only on beneficiaries but also on the larger community, as well as having potential consequences to the sustainability of the [provincial contingency fund],” the FSRA said.
The FSRA indicated that the guidance was developed with the supervisory best practices currently used by both Canadian and international regulators in mind. It also said that “the interests of plan sponsors will be an important consideration” in deploying its supervisory approach.
The proposed guidance is out for comment until Feb. 27, 2020.