Human Resources Legislative Update
FSCO Launches Targeted Compliance Review of Member Option Statements
Date: February 27, 2018
In March, 2018, the Financial Services Commission of Ontario (FSCO) will commence a targeted review of pension plan member option statements to verify compliance with key requirements under the Pension Benefits Act (Act) and FSCO policies. In particular, FSCO will focus its targeted review on whether plan administrators are:
- meeting requirements for statement content and prescribed timelines under the Act, and
- calculating commuted values in accordance with pension plan provisions.
FSCO has advised that requests will only be made in respect of Ontario members who were active members up to their date of termination or retirement.
On what basis is FSCO selecting pension plans for review?
FSCO has not described the basis upon which pension plans are being selected for this targeted review. Selected plan administrators will receive a letter from FSCO seeking information related to member option statements.
What will be requested by FSCO?
FSCO has indicated that it will be seeking copies of member option statements (specifically, termination and/or retirement statements), as well as related correspondence provided to and received from the member, including:
- letters or emails sent by the member or the administrator related to the member’s termination or retirement
- completed forms (e.g. T2151) used to transfer the member’s commuted value or account balance out of the pension plan
- other completed forms, checklists or waivers used by the plan administrator.
With respect to defined benefit plans, FSCO might also request copies of the most recent member annual statements.
Are we required or permitted to provide personal information?
A member’s name, social insurance number, banking information and any other personal identifiers should be removed or redacted from documentation provided to FSCO.
What is the timeline for responding to a FSCO request?
Selected plan administrators will have 30 days from the date of the letter to respond to the request.
If you have questions or concerns relating to FSCO’s targeted review of member option statements please consult the FSCO Member Option Statements FAQ for more details or contact your Hicks Morley lawyer.