The Financial Services Regulatory Authority of Ontario has finalised its Supervisory Approach Guidance for implementing Ontario’s target benefit legislative and regulatory framework for multi-employer pension plans, and the guidance is now active. It sets out how FSRA will oversee the framework, which took effect on January 1, 2025, while supporting plan administrators in meeting their obligations. The guidance describes FSRA’s approach to reviewing and approving applications to convert defined benefits to target benefits, assessing whether a plan’s Provision for Adverse Deviation (PfAD) is aligned with its funding and benefits policy, and supervising plans that provide target benefits through regular reviews, risk assessments and ongoing engagement with plan administrators. A summary of consultation feedback was published alongside the final guidance.
Financial Services Regulatory Authority of Ontario 2026-02-02
Financial Services Regulatory Authority of Ontario issues final supervisory approach guidance for Ontario’s target benefit MEPP framework
The Financial Services Regulatory Authority of Ontario has finalized its Supervisory Approach Guidance for Ontario’s target benefit framework for multi-employer pension plans, effective January 1, 2025. The guidance outlines FSRA's oversight, including application reviews for benefit conversions, alignment of Provision for Adverse Deviation with funding policies, and supervision through regular reviews and risk assessments.