Unlocking I am presently experiencing financial difficulties. I would like to have access to my pension funds but I have been told that the funds are locked in. How can I access my funds? Are there any conditions under which unlocking of pension funds is allowed? When does my pension plan money become locked in? Can I use my locked-in registered retirement savings plan (RRSP) as collateral for a loan Can I remove the growth/interest from my defined contribution (money purchase) pension plan when returns on my mutual fund investment account are high? Can a creditor force me to use my federal locked-in RRSP to pay off my debts? Can social services/welfare force me to convert my federal locked-in RRSP to a LIF and use my annual payment to reduce my social assistance payments? Can I unlock small amounts when I leave my pension plan? Can I unlock small amounts from my RRSP? I am no longer a resident of Canada. Can the funds in my RRSP or my LIF be unlocked? Life Income Fund What is the maximum amount of money I am allowed to take out of my Life Income Fund (LIF) under the Pension Benefit Standards Regulations? Life Income Fund Table I am no longer a resident of Canada. Can the funds in my RRSP or my LIF be unlocked? Is the yearly maximum amount of income payable out of a pre-existing LIF increased if money is transferred from a locked-in RRSP or pension plan to that LIF during a year? Plan Termination When would the Superintendent terminate a pension plan? What happens to the pension plan assets when a plan terminates? Surplus In light of the Supreme Court of Canada’s decision in the “Monsanto” pension case, what requirements currently apply regarding the treatment of plan surplus at the time of a partial plan termination? Will OSFI require the plans to distribute surplus on a partial termination? Will past partial plan terminations that have been approved by OSFI be re-opened in light of the “Monsanto” decision? What if the plan is ongoing but it provides that surplus belongs to plan members when the plan terminates? Members Who is required to provide information to me on my pension plan? Do I have to make an access to information to the OSFI for this information? What information about my pension plan am I entitled to receive as member or former member (pensioner or retiree)? Plans in Deficit Are pension plans allowed to operate in a deficit position? Why are pension plans allowed to operate in a deficit position? Why isn't there a pension guarantee fund at the federal level? Solvency Funding Relief Can the holder of the letter of credit be a different trust company from the trustee or custodian of the pension fund? If an actuarial report valuing the plan at a date later than December 30, 2005 has already been filed with OSFI, can a revised actuarial report be filed to take advantage of the Solvency Funding Relief Regulation? How can the going concern special payments established in prior valuations be adjusted in the report establishing the initial solvency deficiency (ISD)? Do the Regulations apply only to pure defined benefit plans or does it also apply to combination or hybrid plans that include both defined benefit and defined contribution provisions? Can funding relief be applied to plans established after December 31, 2005? Are there any other conditions that a plan must meet to qualify under any of the funding relief options? Will it be possible to apply future actuarial gains to reduce special payments established under the Funding Relief Regulation? Under the 10-year funding under Part 2, what happens to the difference between the five-year schedule and the 10-year schedule (deemed trust provision)? Is it necessary for a valuation report of a plan funding under Part 2 to also show the payments required under a five-year schedule? If some plan members are represented by a union or court-appointed representative does the union or representative speak on behalf of those members in expressing any objection to funding under Part 2 of the Regulations? Under any of the funding relief options, must the special payments be equal dollar amounts during the payment schedule or can they be structured as a level percentage of members’ pay? Does the deemed trust provision for the difference between the five-year schedule and the 10-year schedule apply to multi-employer pension plans? What type of disclosure is to be included under paragraph 8(1)(c) to satisfy the description of the extent to which benefits would be reduced if the plan were terminated? If members are represented by a union or court-appointed representative must the plan administrator provide the information required under Section 8 to both the representative and individual members? In what form should the administrator file notification to the Superintendent that the plan will be funded under Parts 1, 2 or 3? Section 8 of the Regulation provides that beneficiaries must be informed that amendments increasing benefits will be restricted for the first five years, but where is the restriction defined in the Regulation? Where a plan is funding under Part 3, do amounts secured under letters of credit count as plan assets in actuarial valuations or financial statements of the plan? Can the trust agreement required for letters of credit be an amendment to an existing trust agreement or must it be a separate agreement? If a plan opts to use solvency funding relief, what, if any, additional information should be given to members in annual statements? Is there a deadline for filing a revised actuarial report to take advantage of the Solvency Funding Relief Regulation? Is the fee payable to the financial institution for securing a letter of credit an acceptable administration expense to be charged to the pension fund? If a plan administrator elects funding relief under Part 3, and files a revised actuarial report for funding relief purposes, what period must be covered by the initial letter of credit? Where a plan is funding under Part 3, what special payments should be included in the calculation to determine the face amount of the letter of credit in accordance with section 19 of the Funding Relief Regulation, if the plan has both a going concern unfunded liability and an initial solvency deficiency? When must a letter of credit be renewed and when are changes to the face amount reflected? Electronic Filing Why is electronic filing required? When is electronic filing required? How do I file my returns electronically? What does it cost? Why CDs or diskettes – why can’t the returns be e-mailed to OSFI? Why only the AIR and CFS – what about the other returns that must be filed with OSFI? Who do I call if I have a question? Are there any exceptions? Why do we have to pay for the software? Why is it not free? Pension Fees Why have the pension fees increased so much in the last two years? More Info If I declare personal bankruptcy, can my pension be seized by my creditors? Can a creditor force me to use my federal locked-in RRSP to pay off my debts? Can a pension plan file an actuarial report with an effective date other than at the plan's year-end? What is OSFI’s objective in regulating pension plans? What does a “closed plan” mean?
OSFI no longer administers portions of the Civil Service Insurance Act. For information about the Act, please contact Human Resources Development Canada and toll-free at 1-800-958-7833.
OSFI no longer administers Part 1 of the Excise Tax Act. For information about the Act, please contact Canada Customs and Revenue Agency, and toll-free at 1-800-959-5525.