Note: The filing for valuation reports with valuation dates on or after September 30, 2011 and before May 31, 2012 was extended to February 28, 2013. As a result, the preparation of the 2012 Report on the Funding of Defined Benefit Pension Plans in Ontario is now underway. We anticipate this report to be available by August 2013.
Overview and Selected Findings 2008-2011
Since July 2000, funding valuation reports of defined benefit (DB) pension plans that are filed with FSCO must be accompanied by an Actuarial Information Summary (AIS). Starting in 2006, an Investment Information Summary (IIS) must also be filed for all DB pension plans registered with FSCO, except designated plans, in addition to the financial statements required under section 76 of the regulations under the Pension Benefits Act (the Act).
The AIS and the IIS enable FSCO to:
- Collect key actuarial, financial and investment information contained in the funding valuation reports and financial statements filed under the Act;
- Use this data to analyze the funded status, contribution levels, actuarial assumptions and investment management practices of DB pension plans;
- Identify pension and investment market trends; and
- Conduct additional analysis in its monitoring of pension plan risks.
The 2011 Report* Size: ## kb is FSCO’s eighth annual report on DB pension plan funding and investment. The report includes information on the funding relief measures implemented in 2007 and 2009 by the Ontario Government. The 2007 measures provide temporary funding relief for Specified Ontario Multi-Employer Pension Plans (SOMEPPs) by exempting them from funding on a solvency basis. The 2009 measures provide certain DB pension plans with the following types of funding relief based on the filing of a solvency relief report:
- Deferral of special payments for any new going concern unfunded liability or solvency deficiency for up to twelve months;
- Consolidation of previously determined solvency special payments to be amortized over five years commencing on the valuation date of the solvency relief report; and
- Amortization of a new solvency deficiency over a period of up to ten years, instead of the current five years (with member consent).
This report has been prepared based on filed funding valuation reports with valuation dates between July 1, 2008 and June 30, 2011 and the latest IIS for plan years ending in the period from July 1, 2010 to June 30, 2011.
For more information on this report, please contact:
* Please note that Chart 4.2 was revised on May 1, 2012.
Previous Reports on the Funding of Defined Benefit Pension Plans in Ontario
May 2000 Paper on Risk-Based Supervision of Pension Plan Funding Size: ## kb