New! Federal Contribution Planner process from Sun Life Financial

May 26, 2015

Effective immediately, Sun Life Financial (Sun Life) has implemented a process to monitor contributions for all pension plans registered federally to ensure we meet the expectations set out by the Office of the Superintendent of Financial Institutions (OSFI).

Why is Sun Life implementing a new process?
The expectations around the governance of pension plans has always been high but never more so than today. This is particularly the case around the making and receiving of contributions. We have recently implemented this process as experience has shown it better reflects the expectations of OSFI.  

Federal Contribution Planner Regulation
Section 9.1 of the Pension Benefits Standards Act, 1985 under Funding and Surplus, outlines requirements for plan administrators around the planning and remitting of pension plan contributions as follows:

9.1

(1) The administrator of a pension plan must notify in writing the trustee or custodian of the pension fund of all amounts that are to be remitted to the pension fund and the expected date of the remittance.
  (2) If a payment to a pension fund is not remitted within 30 days after the date referred to in subsection (1),
 

(a) the administrator of the pension plan must immediately notify the Superintendent; and

 

(b) a trustee or custodian of the pension fund must, if the administrator is the employer, immediately notify the Superintendent.

(3)

The Superintendent may direct the form and content of any notice referred to in subsection (2) as well as the manner of providing that notice.
How does this impact Plan Sponsors?
Sun Life has created a new Contribution Planner form (pdf)  for pension plan administrators to complete and submit within 30 days of their anniversary year-end. If your plan is subject to PBSA, Sun Life will contact you shortly and ask that you submit the contribution planner.

A revised planner may be necessary when the contributions that are remitted to the pension fund are less than 90% of the expected contributions provided in the planner, or there are changes to the plan or events which reduce the contribution levels by more than 10% of the estimated amount.


How does this impact plan members?
There is no impact or action required of plan members.

Questions?
Please contact your Sun Life Group Retirement Services representative.