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OSFI releases solvency results
- By ILS corp
- Published 11/1/2009
- ILSTV Stories
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The Office of the Superintendent of Financial Institutions has released the results of its latest solvency testing of federally regulated defined benefit private pension plans.
As part of its regular monitoring activities, every six months OSFI estimates the ratio of plan assets to plan liabilities for the 400 defined benefit plans it regulates. OSFI follows up with individual pension plans where the results raise potential concerns.
The private pension plans subject to OSFI regulation currently represent seven per cent of all private pension plans in Canada, accounting for approximately 12 per cent of private pension assets.
As part of its regular monitoring activities, every six months OSFI estimates the ratio of plan assets to plan liabilities for the 400 defined benefit plans it regulates. OSFI follows up with individual pension plans where the results raise potential concerns.
The latest results show that the average estimated solvency ratio of federally regulated defined benefit private pension plans at June 30, 2009 was 0.88, meaning the total value of assets of all federal plans was 12 per cent lower than liabilities, calculated on a solvency basis. This compares to an estimated solvency ratio of 0.85 in December 2008.
Judy Cameron, Managing Director of OSFI's Private Pension Plan division said that these results show a very modest improvement overall from the December 2008 results.
The private pension plans subject to OSFI regulation currently represent seven per cent of all private pension plans in Canada, accounting for approximately 12 per cent of private pension assets.