Defined Benefit Plans - Funding

The process by which The Pension Benefits Act, 1992 (the Act) ensures the orderly funding of pension plans (Plan) that contain defined benefit provisions is described in various sections of the legislation, but can be summarized as follows:

1. the plan's actuary must review the plan's financial position and prepare an actuarial valuation describing the funding needs of the plan;
2. the employer is then responsible for remitting contributions on the basis of the valuation and in a manner required by legislation; and 
3. the filing of an annual information return describing the funding that has occurred allows the Superintendent of Pensions (Superintendent) to ensure that contributions are being made in accordance with the valuation.  

A "defined benefit provision" means a provision of a plan pursuant to which benefits are determined in any way other than solely by reference to what is provided by contributions made by or for the credit of a member together with interest. A "defined benefit plan" means a plan that contains a defined benefit provision.

Filing Actuarial Information with FCAA

Pursuant to the Act, the Adminstrator a pension plan administrator (Administrator) of a plan registered under the Act must file an actuarial valuation report and/or cost certificate, along with supporting information (for the purposes of RLS, this is referred to as an “AIS”) with the Superintendent. 

The AIS must be completed and filed with the Superintendent:

• In the case of a new plan, no later than 120 days from the date of plan establishment;
• In the case of a review date occurring after the effective date of a plan, no later than nine months after the review date;
• In the case of a review due to a plan amendment, no later than 120 days from the date the amendment is made; or
• In the case where the latest review is revised due to a plan amendment, no later than 120 days from the date the amendment is made.

The actuarial valuation report and/or cost certificate is uploaded in the AIS process. in RLS

An AIS must be filed electronically via RLS. Please go to the RLS webpage (link below).  You will find instruction guides and data lists to assist you in filing the Application via RLS.