Effective November 28, 2022, FSRA proposed an increase to their pension-sector fees to a minimum of $1,000. The prior fee change in 2019 saw an increase from $250 to $750. The fee is dependent on the number of beneficiaries in the plan, with plans of 91 beneficiaries or fewer subject to a fee of $1,000. For plans with 92 or more beneficiaries, the fee is based on a tiered formula that reflects the larger effort required to regulate more complex plans.
The intent is to increase fairness in fees required to regulate plans of varying complexity, yet FSRA continues to charge the same fees among all types of pension plans. Defined Benefit plans which require more supervision than Define Contributions plans are both subject to the same fees, which can influence employers when setting up a plan.
The regulators have held a 90-day window to review feedback from the proposed changes and are open for consultation until February 27, 2023.