The information provided on the pension assessment invoice sets out the items that are included in the calculation of the pension assessment and provides specific amounts for the portion of each of these items in respect to the pension plan. The invoice breaks the assessment into four parts that are combined to determine the pension assessment.
The preliminary calculation is based on pension plan membership – which includes both active members and others – as provided in the most recent Annual Information Return (AIR) on file as of December 31.
On the invoice:
- Assessments - Active Members sets out the assessment for this portion of the preliminary calculation. Pension plans are charged $6.15 for each active pension plan member.
- Assessments - Other Members sets out the assessment for this portion of the preliminary calculation. Pension plans are charged $4.25 for each other member.
The total assessments for active and other members (as noted above), is subject to a minimum charge of $250 and a maximum charge of $75,000 per pension plan.
Assessments - Estimated Portion reflects the total expected pension sector costs for the fiscal year, less:
- the aggregate of all actual and projected payments (new plan registration fees, photocopy charges etc.)
- the amount that will be collected from all pension plans under the preliminary calculation.
This estimated portion is allocated among all pension plans on a pro-rated basis. It is based on each pension plan’s preliminary calculation and the total amount for all pension plans, as determined under the preliminary calculation.
Assessments - PY (Prior Year) Adjustment reflects the credit or debit for the prior fiscal year. Since FSCO is required to recover its costs prior to the end of each fiscal year, each pension plan receives a preliminary assessment invoice on an annual basis, based on a combination of FSCO’s actual and forecasted expenses. The pension assessment is then recalculated the following fiscal year, based on FSCO’s final expenses, and results in either a credit or debit for the prior fiscal year.
While minimum and maximum limits apply to the preliminary calculation, the total pension assessment may be less than the minimum, or more than the maximum limits of the preliminary calculation, once any prior year adjustment is applied.
The pension assessment for the year will be the sum of the preliminary calculation, the estimated portion and the prior year adjustment for each pension plan.