Federal Announcement on Pensions

More news on the pension regulation front, this time from the Canadian Federal government. Although OSFI (the Federal pension regulator) regulates only a small minority of pension plans in Canada (most plans are regulated by provincial bodies), the Feds do control the Income Tax Act, which has implications for all pension plans.

One of the proposals would see a lifting of the 10% cap on surplus for DB plans. While this would be a welcome change, the reality is it is coming about 10 years to late for most DB plans, as very few find themselves with a surplus these days.

Other changes could see stricter and more frequent reporting from Plan Sponsors to OSFI on the state of their pension plan.

The Canadian Press has a good summary of this and other aspects of the proposed changes.