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Ottawa, July 24, 1996
1996-048

Government Releases Proposals on the Supervision of Federally-Regulated Private Pension Plans

Related document:

• Enhancing the Supervision of Pension Plans Under the Pension Benefits Standards Act, 1985

Secretary of State (Finance) Doug Peters today announced a set of proposals to enhance the supervisory/prudential system for federally-regulated private pension plans under the Pension Benefits Standards Act, 1985 (PBSA). The proposals are designed to keep the supervision of Canada's federally-regulated pension plans responsive to the evolving environment in which they operate.

Under the PBSA, the federal government -- through the Office of the Superintendent of Financial Institutions (OSFI) -- supervises private pension plans covering federally-regulated areas of employment. This includes banks, airlines, interprovincial and international transportation, and telecommunications.

Although the framework for federally-regulated private pension plans is fundamentally sound, the supervisory/prudential system has not been revised since the Act was proclaimed almost a decade ago. The proposals outlined in the paper will make the supervisory regime more effective and up to date.

The proposals, as set out in the paper, Enhancing the Supervision of Pension Plans Under the Pension Benefits Standards Act, 1985, make recommendations with respect to supervisory and prudential matters.

The proposals focus on six key aspects of the supervisory system:

• enhanced plan governance measures;
• additional powers for the Superintendent;
• increased disclosure of plan information to plan members;
• introduction of a simplified pension plan;
• enhanced investment policies; and
• alternatives for enhancing funding regulations.

The paper also proposes to introduce various technical changes to the legislation.

The proposals are subject to further consultations with interested parties and will be reflected in legislation to be tabled in the near future. Written submissions are invited and should be sent to the Director, Policy Initiatives Division, Office of the Superintendent of Financial Institutions Canada, 255 Albert Street, Ottawa, K1A 0H2, by September 27, 1996.

Copies of the paper may be obtained from the Distribution Centre, Office of the Superintendent of Financial Institutions Canada, 255 Albert Street, Ottawa, K1A 0H2, telephone: (613) 990-7655, fax: (613) 952-8219. Copies will automatically be distributed to all parties currently receiving the OSFI publication: pbsa update.

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