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ARTICLE · 04 FEBRUARY 2011

OSFI Releases Intervention Guide for Federally-Regulated Pension Plans

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The Office of the Superintendent of Financial Institutions (OSFI) issued a Guide to Intervention for Federally Regulated Private Pension Plans on January 21, 2011.

CanadaEmployment and HR

The Office of the Superintendent of Financial Institutions (OSFI) issued a Guide to Intervention for Federally Regulated Private Pension Plans on January 21, 2011.

The objective of the Intervention Guide is to promote awareness and enhance the transparency of the intervention process used by OSFI for federally regulated private pension plans. It outlines when and how OSFI will intervene, depending on the particular pension plan's Composite Risk Rating (CRR), which reflects OSFI's overall risk assessment of the plan.

"Stage Ratings" identify the applicable interventions that may be initiated by OSFI and there are three stages that are of main concern: Stage 1 (Early Warning), Stage 2 (Risk to Solvency), and Stage 3 (Future Solvency in Serious Doubt). Key examples of the triggers for each stage and the regulatory actions that OSFI may pursue, are outlined below.

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