The Canadian Association of Pension Supervisory Authorities (CAPSA) changed the rules for funding, and requirements for asset allocation and purchasing annuities. Multi-jurisdictional, defined benefit pension plans are especially impacted by these new rules which go into effect on July 1, 2020.
- Pension plans with members in more than one province may be affected by CAPSA’s agreement respecting multi-Jurisdictional plans.
- The agreement is an extension of one established in 2016 that now provides clear legal framework for running a multi-jurisdictional plan.
- The rules for determining the ‘major authority’ meaning the jurisdiction in which the plan would be registered are clear.
- A ‘final location’ approach will be used to determine which jurisdiction rules apply for members who moved from one province/jurisdiction to another.
- Many of the changes impact defined benefit plans where funding rules have been a major source of complexity.
More information is available from the Office of the Superintendent of Financial Institutions.