The following content has been archived.
It is provided for historical reference.
Pension Benefits Guarantee Fund Assessment Certificate - Archived on September 1, 2016
Q: My pension plan has a fiscal year end of March 31, 2011. Do the changes to the PBGF assessments coming into effect on January 1, 2012 affect my PBGF assessment?
A: No. For a plan fiscal year ending March 31, 2011, the PBGF assessment date is December 31, 2011. The changes to PBGF assessments will apply to your plan’s PBGF assessment dates after January 1, 2012. -12/11
Q: My pension plan has a fiscal year end of June 30, 2011. We have already completed and submitted our PBGF assessment certificate and paid our assessment. Due to the changes to the PBGF assessment, will we be required to pay an additional amount based on the new assessment formula?
A: Yes. Plans with a PBGF assessment date on or after January 1, 2012 are required to pay assessments based on the new formula. Since your pension plan’s assessment date is after January 1, 2012 (nine months after its fiscal year end of June 30, 2011), you will be required to pay an additional amount based on the new assessment formula. FSCO will advise you of the additional amount that must be paid on or before September 30, 2012. -12/11
Q: My pension plan has already received a PBGF assessment certificate form but has not filed the completed certificate or paid the amount of the assessment. How should we proceed?
A: You must file the completed PBGF assessment certificate and pay the amount of the PBGF assessment based on the pre-January 1, 2012 assessment formula, on or before the PBGF assessment date. FSCO will advise you of the additional assessment which must be paid on or before September 30, 2012.
If you would prefer to pay the entire amount at the same time, you can do so provided you file the PBGF assessment certificate and pay both the PBGF assessment based on the pre-January 1, 2012 formula and the additional assessment based on the new assessment formula by your plan’s PBGF assessment date (assuming that your plan’s PBGF assessment date is on or before September 30, 2012). -12/11
Q: Will we be charged interest or required to pay a penalty if the additional assessment is not paid by the assessment date?
A: If your assessment date falls on or after January 1, 2012 and before September 30, 2012, the employer will not be required to pay a late payment penalty or interest if:
- the PBGF assessment certificate was filed and the initial assessment is paid before the PBGF assessment date; and
- the additional assessment is paid on or before September 30, 2012. -12/11
Q: My pension plan has a fiscal year end of December 31, 2011 and has not yet received its PBGF assessment certificate form. Will we receive a revised form based on the new assessment formula?
A: Yes. For those pension plans with a December 31, 2011 fiscal year end, FSCO will be issuing revised PBGF assessment certificate forms which will incorporate the new assessment requirements. -12/11
Q: My pension plan is registered in Manitoba and has Ontario members. How will the new PBGF rules affect us?
A: If your pension plan has Ontario beneficiaries whose defined benefits are covered by the PBGF, the new PBGF rules will apply. -12/11
Form 5.3 - Archived on May 1, 2012
The following frequently asked questions relate to Form 5.3 – Application to a Financial Institution for a one-time Withdrawal or Transfer of up to 50 % of the Money in a Schedule 1 LIF or LRIF - January 1, 2011 to April 30, 2012. They discuss several new rules that come into effect on January 1, 2011 for Ontario locked-in accounts that are governed by the requirements of Schedules 1 and 2 to Regulation 909. These rules affect old life income funds under Schedule 1 (Old LIFs) and locked-in retirement income funds under Schedule 2 (LRIFs).
Q: What is a “PBGF assessment certificate” and when must it be filed?
A: The PBGF assessment certificate is a form approved and issued by FSCO to be completed by a plan administrator and actuary. The form sets out the calculation of the PBGF assessment. It is normally sent by FSCO to the plan administrator three months after the plan’s fiscal year end and must be completed and filed by the plan administrator along with the PBGF assessment payment. The completed PBGF assessment certificate, along with the accompanying payment, must be filed by the PBGF assessment date. -12/11
Q: Between January 1, 2011 and April 30, 2012, owners of Old LIFs and LRIFs may apply to a financial institution for a one-time withdrawal or transfer of up to 50 per cent of the total market value of the assets in the fund. How is this amount determined?
A: The total market value of the assets in the fund is based on the amount that is stated in the owner’s most recent statement issued by the financial institution at the time of the application. The statement must be dated within one year of the date the application is made.
Note that it is up to the financial institution to determine what statements could have been issued to the owner of the fund and when that occurred. - 12/10
Q: My financial institution does not issue paper-based statements, but provides the information online. How do I determine the total market value of the assets that I should use in my application?
A: In this case you should print the report available to you on the day that you sign the application, or the report available to you on the previous day, and provide the printed copy to your financial institution when you make the application. - 12/10
Q: Can I withdraw 25 per cent of the total market value of the money in my Old LIF in 2011 and another 25 per cent before April 30, 2012?
A: No, you can only make one application to withdraw or transfer money from your Old LIF or LRIF using Form 5.3. If you withdraw or transfer less than 50 per cent of the funds from your Old LIF or LRIF, you will not be able to make another withdrawal or transfer in the future. - 12/10
Q: Can I use Form 5.3 to withdraw or transfer money from my New LIF?
A: No, Form 5.3 can only be used to withdraw or transfer money from an Old LIF (under Schedule 1) or an LRIF (under Schedule 2). After December 31, 2010 you may only withdraw or transfer up to 50 per cent of the money that is transferred into your New LIF using Form 5.2. However, you can only withdraw or transfer the funds if they are transferred into your New LIF from a LIRA or a registered pension plan. You cannot withdraw or transfer the funds if they are transferred from an Old LIF, LRIF or another new LIF, unless the transfer is made in accordance with the terms of an order under the Family Law Act or a domestic contract (as defined in Part IV of that Act). - 12/10
Q: Can we pay the additional PBGF assessment from the pension fund?
A: A PBGF assessment may not be paid from the pension fund unless an actuarial report discloses an actuarial gain under the plan and no special payments are required to be made for the plan. In such circumstances, any actuarial gain not applied to reduce any going concern unfunded liability or to reduce contributions for normal costs required to be paid may be applied to pay the PBGF assessment, including the additional PBGF assessment. -12/11