What is a Commuted Value? The commuted value is the lump-sum equivalent of the future pension income you’ve accrued to date in your defined benefit pension plan (“DB plan”). Simply put, it is the amount your future pension is “worth” at the moment you end your employment, reflecting current economic conditions. It represents the amount […]
Source: www.cra-arc.gc.ca and www.canada.ca If you have any questions about these government benefits and limits, please contact June Smyth at 416-863-9159 ext 233. […]
The Financial Services Regulatory Authority of Ontario (FSRA) has released their final guideline on how to avoid a plan’s deregistration under the Income Tax Act (ITA). In the past, plan sponsors could face possible deregistration of their pension plan if over-contributions or excess benefit errors were made. The guidance identifies the documents, timeframes and information […]
Auto features have long been used in DC pension plans across the United States, the United Kingdom, and Australia, as a method to encourage employees to join the plan initially and continually increase their contribution as they accrue more service in the plan. Research and evidence has shown the benefits of automated features to potentially […]
Effective February 11, 2022, the Financial Services Regulatory Authority of Ontario (FSRA) has confirmed amendments to the Pension Benefits Act removing the requirement for plan administrators of member-directed Defined Contribution Pension Plans (DCPP) to prepare a Statement of Investment Policies and Procedures (SIPP). FSRA also confirmed the requirement for plan administrators of DCPPs to file […]
Auto features have long been used in DC pension plans across the United States, the United Kingdom, and Australia, as a method to encourage employees to join the plan initially and continually increase their contribution as they accrue more service in the plan. Research and evidence has shown the benefits of automated features to potentially […]
By June Smyth I had the privilege of attending the DC Seminar in early September, hosted by the Canadian Institute of Actuaries. As part of the committee organizing the seminar, I was privy in advance to some of the topics but was thrilled to hear the seasoned speakers covering some excellent new content. At a […]
As of July 28, 2021 the Financial Services Regulatory Authority of Ontario (“FSRA”) released a final guide outlining the roles and responsibilities of pension plan administrators. The guide aims to consolidate and update four existing guides and outlines regulatory principles in pension plan risk management, respective responsibilities for employers and plan sponsors, statutory obligations, and […]