Regulatory Updates

The Department of Finance Canada announced that effective January 1, 2026, the general prescribed rate used to determine the taxable benefit for employees relating to the personal portion of automobile expenses paid by their employers will remain at 34 cents per kilometre.The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by one cent to 73 cents per kilometre for the first 5,000 kilometres driven, and 67 cents for each additional kilometre.

The Office of the Superintendent of Financial Institutions (OSFI) updated the instructions for Form 1 – Attestation Regarding Withdrawal Based on Financial Hardship to reflect the 2026 Year’s Maximum Pensionable Earnings (YMPE), which is the maximum amount of earnings on which contributions to the Canada Pension Plan (CPP) are based. It is updated annually by the federal government based on the average industrial wage in Canada. The YMPE for 2026 is $74,600. OSFI updated FAQ 2 (about the unlocking amount) to reflect the 2026 YMPE.The financial hardship unlocking provisions of the Pension Benefit Standards Regulations, 1985 (PBSR) allow for funds to be withdrawn based on one of the following or a combination of both:Low incomeHigh medical or disability-related costsA number of the unlocking provisions refer to the YMPE in determining whether funds can be unlocked and/or the amounts that can be unlocked. The figures found in Form 1 reflect the amounts for 2026 and are valid for withdrawals up to December 31, 2026.

The Office of the Superintendent of Financial Institutions (OSFI) announced updated life income fund (LIF) and variable benefit payable from a defined contribution plan maximum annual payment amounts for 2026.Are there minimum or maximum amounts that can be withdrawn from a LIF, restricted life income fund (RLIF) and variable benefit account?LIFs and RLIFs are personal retirement income funds that provide periodic retirement income to the holder. A variable benefit account is similar to a LIF but provides retirement income directly from a pension plan with defined contribution provisions.The periodic income from a LIF, RLIF or variable benefit account is subject to minimum and maximum annual withdrawal limits. The minimum annual withdrawal amount is determined under the Income Tax Regulations and the maximum annual withdrawal amount is determined under the Pension Benefits Standards Regulations, 1985. The maximum annual withdrawal limit is intended to maintain a retirement income for the fund or account holder or their survivor, as the case may be, until at least the age of 90.How much money can be withdrawn from a life income fund (LIF), restricted life income fund (RLIF) or variable benefit account?A table shows "Age on December 31, 2025" and "Percentage of LIF, RLIF or Variable Benefit Account Balance as at January 1, 2026." (see Q&A 2)Does the amount of income permitted to be withdrawn from an existing life income fund (LIF), restricted life income fund (RLIF) or variable benefit account increase in a given calendar year if money is transferred from a locked-in registered retirement savings plan or pension plan during the year?No. Sections 20.1, 20.3 and 21.1 of the Pension Benefits Standards Regulations, 1985, provide that the maximum annual amount of income that may be paid in a given calendar year will be calculated based on the balance of the fund at the beginning of the year.

The Registered Plans Directorate announced updated 2026 limits for the annual money purchase (MP), defined benefit (DB), deferred profit sharing plan (DPSP), the year's maximum pensionable earnings (YMPE), the year's additional maximum pensionable earnings (YAMPE), as well as the 2027 registered retirement savings plan (RRSP) limit.For 2026, the:MP limit will be $35,390,DB limit will be $3,932.22,DPSP limit will be $17,695,YMPE will be $74,600, andYAMPE will be $85,000.For 2027, the RRSP limit will be $35,390.

The Office of the Superintendent of Financial Institutions (OSFI) published two plan assessment rate schedules for pension plans. One plan assessment rate schedule applies to plans registered or filed for registration under the Pooled Registered Pension Plans Act (PRPPA). The second pension plan assessment rate schedule applies to plans registered or filed for registration under the Pension Benefits Standards Act, 1985 (PBSA). For both rate schedules, OSFI will determine the assessment due and send an invoice approximately 45 days after the plan’s Annual Information Return was due to be filed (or upon receipt of an application for registration).

The Canada Revenue Agency (CRA) has updated its Pension Adjustment Reversal Guide providing information and examples on how to calculate a pension adjustment reversal (PAR) and a pension adjustment correction (PAC). This version reflects recent changes to legislation related to the pension adjustment correction and permitted corrective contributions. It also incorporates feedback from industry representatives to improve clarity and usability.This guide is designed to help administrators of registered pension plans (RPPs) and trustees or employers of deferred profit sharing plans (DPSPs) calculate a PAR for plan members who quit their membership. It also helps administrators of money purchase RPPs calculate a PAC when over-contributions are removed from the plan.

The Superintendent of Pensions issued Employment Pension Plans Act Update 25-01 advising that the annual per member filing fee rate in Alberta effective October 1, 2025 remains the same as 2024, or $2.50 per member.The annual filing fee payable is $2.50 multiplied by the total plan membership. The minimum fee is $250 and the maximum fee is $75,000. This rate applies to all annual information returns with fiscal year-ends ranging from October 1, 2025 to September 30, 2026.

The Canada Employment Insurance Commission (CEIC) has announced that the Employment Insurance (EI) Maximum Insurable Earnings (MIE) for 2026 will increase to $68,900 from $65,700 in 2025. The MIE is indexed on an annual basis and represents the ceiling up to which EI premiums are collected and the maximum amount considered in applications for EI benefits.The EI premium rate for 2026 is $1.63 per $100 of insurable earnings for employees and $2.28 for employers who pay 1.4 times the employee rate. This represents a one-cent decrease from the 2025 EI premium rate of $1.64 for employees.CEIC also announced that for residents of Quebec covered under the Quebec Parental Insurance Plan (QPIP), the premium rate of $1.30 per $100 of insurable earnings ($1.82 for employers).The Premium Reduction Program will provide roughly $1.46 billion in premium relief in 2026 to registered employers and their employees in recognition of savings generated to the EI program by employer registered short-term wage-loss plans.Office of the Superintendent of Financial Institutions (OSFI) has released:2026 Actuarial Report on Employment Insurance Premium Rate

The Government of Canada made two announcements under the Canadian Apprenticeship Strategy (CAS) regarding the investments in training equipment funding and the sustainable jobs streams. The CAS aims to support a trades workforce that is skilled, inclusive, certified and productive.Investments in Training Equipment FundingThe CAS Investments in Training Equipment funding stream helps eligible organizations improve the quality of training through the purchase of equipment and materials that meet the latest industry standards or through investments in new technology needed to train workers in the Red Seal trades.Eligible organizations include:Unions representing Red Seal trades workers, Organizations managing their own training funds, and Training providers that deliver technical training to apprentices as part of a recognized curriculum for a Red Seal trade.The Investments in the Training Equipment stream will open for proposals on March 19, for Canadian organizations to submit applications. There is no application end date to this call for proposals.Sustainable Jobs StreamThe Sustainable Jobs Stream aims to support projects that will provide more than $67 million across 10 projects to help develop and deliver green training for journeypersons and apprentices in Red Seal trades that are key to reducing Canada’s emissions. The funding will run from 2025 to 2030.Eligible organizations include:Organizations that are located and operate in Canada (except in Quebec),Unions representing workers in the Red Seal trades, andOrganizations managing training trust funds for unions representing workers in the Red Seal trades.Additional organizations are also eligible, if they have a partnership with a union representing workers in the Red Seal trade.Backgrounder: Sustainable Jobs StreamBackgrounder: Investments in Training Equipment

Office of the Superintendent of Financial Institutions (OSFI) has issued three revised instruction guides and accompanying forms for administrators of pension plans registered, or having filed an application for registration, under the Pension Benefits Standards Act, 1985. Actuarial Information Summary (AIS) guide and AIS formAnnual Information Returns (AIR) guide and forms: OSFI 49 (AIR), OSFI 49A (Schedule A - Canada Revenue Agency Information Requirements), and the Pension Plan Annual Corporate Certification (PPACC)Certified Financial Statements guide and formOSFI also revised the forms to be filed when a pension plan is amended:OSFI 593: Defined Contribution Pension Plan Text Amendment Information Form OSFI 594: Defined Benefit/Combination Pension Plan Amendment Information FormAll forms must be filed directly in Regulatory Reporting System (RRS) by entering the information into the appropriate on-line web form. These revised instruction guides replace those previously published.

The Office of the Superintendent of Financial Institutions (OSFI) has issued a revised instruction guide to assist administrators of pension plans with defined benefit provisions registered or having filed an application for registration under the Pension Benefits Standards Act, 1985 in completing the Solvency Information Return (SIR).The SIR should be completed and submitted to OSFI annually, before February 15 or within 45 days after the plan year end to which it relates, if later.The administrator must file the SIR using the Regulatory Reporting System (RRS). The information must be entered directly into the on-line web form in RRS.

Alberta has updated documents reflecting the 2025 Year’s Maximum Pensionable Earnings (YMPE) and Financial Hardship Unlocking program updates that are effective January 1, 2025. The Office of the Superintendent of Financial Institutions (OSFI) recently updated the 2025's YMPE to $71,300.The updated documents are:Interest Rate TablesAccessing Pension FundsGeneral program and processReasons to unlock FAQForm 23 - Application to Unlock Alberta Funds Due to Financial Hardship (Form 23)

The Office of the Superintendent of Financial Institutions (OSFI) updated the instructions for Form 1 – Attestation Regarding Withdrawal Based on Financial Hardship to reflect the 2025 Year’s Maximum Pensionable Earnings (YMPE), which is the maximum amount of earnings on which contributions to the Canada Pension Plan (CPP) are based. It is updated annually by the federal government based on the average industrial wage in Canada. The YMPE for 2025 is $71,300. OSFI updated FAQ 2 (about the unlocking amount) to reflect the 2025 YMPE.The financial hardship unlocking provisions of the Pension Benefit Standards Regulations, 1985 (PBSR) allow for funds to be withdrawn based on one of the following or a combination of both:Low incomeHigh medical or disability-related costsA number of the unlocking provisions refer to the YMPE in determining whether funds can be unlocked and/or the amounts that can be unlocked. The figures found in Form 1 reflect the amounts for 2025 and are valid for withdrawals up to December 31, 2025.

The Department of Finance Canada announced that effective January 1, 2025, the general prescribed rate used to determine the taxable benefit of employees relating to the personal portion of automobile expenses paid by their employers will increase by one cent to 34 cents per kilometre. The limit on the deduction of tax-exempt allowances paid by employers to employees who use their personal vehicle for business purposes in the provinces will increase by two cents to 72 cents per kilometre for the first 5,000 kilometres driven, and 66 cents for each additional kilometre.

Department of Finance Canada announced new incentives for private sector and pension fund investment to boost growth and create good jobs. A news release for the 2024 Fall Economic Statement includes a set of proposals that create an investment environment for pension funds to invest in Canadian businesses by unlocking investment opportunities and removing investment barriers. The government is proposing to:Remove the 30 per cent rule that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity;Crowd in private venture capital by launching a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding and more enticing terms for pension funds and other institutional investors;Bolster access to capital for mid-cap companies by providing up to an aggregate of $1 billion in concessional financing. These investments will be equal to 25 per cent of net new private investments;Secure Canada’s AI advantage by developing a program that would provide up to $45 billion in aggregate loan and equity investments for AI data centre projects in which Canadian pension funds are significant investors; and,Attract investment for better airports by working with airports and pension funds to incentivize development on airport lands, including by exploring potential changes to airport authority ground leases.More details will be announced in the release of the 2024 Fall Economic Statement on December 16, 2024.

The Office of the Superintendent of Financial Institutions (OSFI) announced updated life income fund (LIF) and variable benefit payable from a defined contribution plan maximum annual payment amounts for 2025.Are there minimum or maximum amounts that can be withdrawn from a LIF, restricted life income fund (RLIF) and variable benefit account?LIFs and RLIFs are personal retirement income funds that provide periodic retirement income to the holder. A variable benefit account is similar to a LIF but provides retirement income directly from a pension plan with defined contribution provisions.The periodic income from a LIF, RLIF or variable benefit account is subject to minimum and maximum annual withdrawal limits. The minimum annual withdrawal amount is determined under the Income Tax Regulations and the maximum annual withdrawal amount is determined under the Pension Benefits Standards Regulations, 1985. The maximum annual withdrawal limit is intended to maintain a retirement income for the fund or account holder or their survivor, as the case may be, until at least the age of 90.How much money can be withdrawn from a LIF, RLIF or variable benefit account?A table shows "Age on December 31, 2024" and "Percentage of LIF, RLIF or Variable Benefit Account Balance as at January 1, 2025." (see Q&A 2)Does the amount of income permitted to be withdrawn from an existing LIF, RLIF or variable benefit account increase in a given calendar year if money is transferred from a locked-in registered retirement savings plan or pension plan during the year?No. Sections 20.1, 20.3 and 21.1 of the Pension Benefits Standards Regulations, 1985, provide that the maximum annual amount of income that may be paid in a given calendar year will be calculated based on the balance of the fund at the beginning of the year.

The Office of the Superintendent of Financial Institutions (OSFI) published a Guide on the Administration of Negotiated Contribution Plans. A negotiated contribution plan (NCP) is a multiemployer, defined benefit pension plan with employer contributions that are limited to amounts determined in accordance with an agreement, statute, or regulation and that do not vary as a function of the applicable minimum funding requirements.The Guide replaces the 2016 Guidance Note on the topic and reflects recent amendments to the Pension Benefits Standards Act (PBSA), 1985, and the Pension Benefits Standards Regulations (PBSR), 1985. The purpose of the Guide is to:Set out OSFI’s expectations for managing the funding limitations of NCPs,Highlight differences in requirements with respect to funding and determination of pension benefit credits for NCPs as compared to other defined benefit pension plans, andDescribe the enhanced disclosure that administrators of NCPs must provide to members and former members and their spouses or common-law partners and to survivors entitled to benefits under the plan.If there is a discrepancy between the Guide and the PBSA or PBSR, the legislation prevails.

The Office of the Superintendent of Financial Institutions (OSFI) has issued a revised Instruction Guide for the Preparation of Actuarial Reports for Defined Benefit Pension Plans. The guide updates the previous one published in November 2023 to reflect:updated requirements regarding the maximum going concern discount rate; andupdated funding requirements with regards to negotiated contribution plans.The Guide applies to actuarial reports with a valuation date on and after December 31, 2024. Early adoption is permitted.

​​The Canada Revenue Agency (CRA) announced that as of January 1, 2025, maximum pensionable earnings under the Canada Pension Plan (CPP) will increase to $71,300 — up from $68,500 in 2024. In addition, in 2025, a higher, second earnings ceiling of $81,200 will be used to determine additional CPP contributions (CPP2). As a result, pensionable earnings between $71,300 and $81,200 are subject to CPP2 contributions.The updated amount were calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.Additional 2025 CPP details:For the CPP contribution rates for 2025, the employee and employer contribution rates are unchanged from 2024 at 5.95%. The self-employed contribution rate also remains unchanged at 11.90%.The maximum employer and employee contribution to the plan for 2025 will be $4,034.10 each, up from $3,867.50 in 2024 and the maximum self-employed contribution will be $8,068.20, up from $7,735.00 in 2024.For the CPP2 contribution rates for 2025, employee and employer rates remain unchanged at 4.00%, and the maximum contribution will be $396.00 each, up from $188.00 in 2024. The self-employed CPP2 contribution rate remains unchanged at 8.00%, and the maximum self-employed contribution will be $792.00, up from $376.00 in 2024.Contributors who earn more than $81,200 in 2025 are not required or permitted to make additional contributions to the CPP.

The Superintendent of Pensions issued Employment Pension Plans Act Update 24-02 advising that the annual per member filing fee rate in Alberta effective October 1, 2024 increases to $2.50 from $2.25 from the prior year.The annual filing fee payable is $2.50 multiplied by the total plan membership. The minimum fee is $250 and the maximum fee is $75,000. This rate applies to all annual information returns with fiscal year-ends ranging from October 1, 2024 to September 30, 2025.

The Canada Employment Insurance Commission (CEIC) has announced that the Employment Insurance (EI) Maximum Insurable Earnings (MIE) for 2025 will increase to $65,700 from $63,200 in 2024. The MIE is indexed on an annual basis and represents the ceiling up to which EI premiums are collected and the maximum amount considered in applications for EI benefits.The EI premium rate for 2025 is $1.64 per $100 of insurable earnings for employees and $2.30 for employers who pay 1.4 times the employee rate. This represents a two-cent decrease from the 2024 EI premium rate of $1.66 for employees and $2.23 for employers.CEIC also announced that for residents of Quebec covered under the Quebec Parental Insurance Plan (QPIP), the premium rate of $1.31 per $100 of insurable earnings ($1.83 for employers).The Premium Reduction Program will provide roughly $1.37 billion in premium relief in 2025 to registered employers and their employees in recognition of savings generated to the EI program by employer registered short-term wage-loss plans.Office of the Superintendent of Financial Institutions (OSFI) has released:2025 Actuarial Report on Employment Insurance Premium Rate