Flexible pension plans

Following the release of the Flexible Pension Plans Newsletter 96-3 , interest in allowing employer funded optional ancillary benefits became apparent. In response, the Directorate undertook to evaluate how these changes might be achieved within the current defined benefit rules. While much analysis and discussion occurred, our effort was halted in 2005 until such time as a solution is proposed that can be accommodated by all jurisdictions. To date, there has been little progress on this issue.

Consequently, the Directorate confirms that the terms of Newsletter 96-3 remain valid and in force. Newsletter 96-3 will continue to be applied to flexible plans providing Optional Ancillary Benefits to a member.

Where on a case-by-case review, instances of non-compliance are found, plan amendments, employer certifications, and / or withdrawal of contributions to avoid revocation of the plan will be necessary.

The Directorate continues to work with pension regulators as issues arise. We will continue accepting suggestions by all stakeholders and encourage interested groups to actively seek assurance from provincial regulators that employer funded flexible benefits will be accommodated under their legislation. We remain open to addressing the topic of Flexible Pension Plans.