FSCO Legislative Changes
January 1, 2018 saw changes to the Pension Benefits Act, which was amended in 2016 to allow the Superintendent the authority to impose administrative monetary penalties in certain situations.
Highlights from the changes include authorization of penalties for failure to:
- Apply for registration of a plan or amendment to a plan within the required timeframe
- Administer the plan in accordance with its registered plan terms
- Disclose information to employees and/or members within the required timeframe
- Invest plan assets in accordance with the Act
The Superintendent will determine the amount of the general administrative penalty, subject to maximum defined penalties ($25,000 for a person other than an individual, and $10,000 for an individual). Notice must be given of an intended penalty, and the recipient may appeal the intended penalty with the Financial Services Tribunal.
Summary administrative penalties are fewer in number and include non-compliance with regulatory filing deadlines such as:
- Annual information returns (due six months after the year end of the plan)
- Audited financial statements (due six months after the year end of the plan)
- Statement of investment policies and procedures (initial SIP&P due within 60 days after the pension plan is registered and amendments to the SIP&P due within 60 days after the date the amendment is made)
Daily penalties for summary administrative penalties range from $100 to $200 per day, subject to the same maximums as identified under general administrative penalties. The recipient of the intended penalty will be given an opportunity to make a written submission to the Superintendent and may appeal such penalties. Payment of both types of penalties cannot be paid from the pension fund.
If you have any questions about the changes, please reach out to your consultant.