On June 5, 2024, the Financial Services Regulatory Authority of Ontario (FSRA) updated its guidance on the roles and responsibilities of pension plan administrators, introducing three new areas to strengthen protection and stability for pension plan beneficiaries.  The revisions include new guidance on managing and retaining records, responding to complaints and inquiries, and communicating information to plan members in an accurate and timely manner.

The guidance emphasizes that administrators are responsible for all aspects of pension plan and fund management.  However, it notes that certain responsibilities may vary depending on the specific nature of the pension plan.

As part of their governance duties, administrators are also tasked with implementing processes to identify and manage plan risks—such as investment, funding, operational, and legal risks. This is particularly important for defined benefit pension plans, where risks could affect the security of promised benefits, such as financial risks related to the plan’s investments.

The guidance also clarifies that administrators’ responsibilities are defined by the pension plan documents, the Pension Benefits Act (PBA), and other applicable laws, including common law. To support administrators in fulfilling their obligations, FSRA has published regulatory guidance, which emphasizes that administrators should be able to demonstrate they have considered these practices in their administration and investment activities.

According to FSRA, voluntary employment-based pension plans are a key component of retirement income security in Ontario, and effective pension plan administration boosts confidence among stakeholders in the plans’ ability to meet their goals.

To read FSRA’s full guidance, click here.