Multi-Jurisdictional Canadian Pension Plans Have New Rules

Multi-Jurisdictional Canadian Pension PlansThe 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.

Key Points

  • 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.


Cowan Insurance Group, Asinta’s Canadian Parter, provided this article. If you have further questions about this new ruling please contact Asinta and we will put you in touch with Cowan