Defined Benefit Plans - Funding

Defined Benefit Plans - Funding

Funding Rules

The Pension Benefits Act, 1992 (the Act) contains the rules for funding defined benefit pension plans. In general, the funding rules include:

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.  

For more information about funding Defined Benefit Plans read the Funding Defined Benefit Plans Guide.

Pursuant to the Act, 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 the Registration and Licensing System (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.

Read the Actuarial Assumptions bulletin to understand the expectations regarding margins in the assumptions used in actuarial valuations.

The AIS is required to be filed electronically via the FCAA’s Registration and Licensing System (RLS). In the pension plan RLS section, you will find instruction guides and data lists to assist you in filing the AIS.