Canadian OSFI Proposes Revision of Instruction Guide on Authorization of Defined Benefit Pension Benefit Reductions; Open for Public Comment Until February 15, 2012

The Canadian Office of the Superintendent of Financial Institutions (OSFI) has issued the Draft Instruction Guide - Authorization of Amendments Reducing Benefits in Defined Benefit Pension Plans. The guide informs the pension industry of the factors, as well as the specific requirements OSFI generally considers with respect to an application seeking the Superintendent’s authorization under paragraph 10.1(2)(a) of the Pension Benefits Standards Act, 1985. OSFI has developed an Authorization Request Form that should accompany an application submitted to OSFI.

This draft Instruction Guide may be used while in draft form and replaces the Instruction Guide for the Authorization of Amendment Reducing Benefits in Defined Benefit Pension Plan issued in April 2006. Public comments on the draft Instruction Guide must be submitted by February 15, 2012.