OSFI gets high marks

The poll of 247 pension plan administrators (representing 166 defined contribution plans, 60 defined benefit plans, 21 combination plans and 30 professionals) finds that overall satisfaction with OSFI as a regulator and supervisor of private pension plans is at 64% among plan administrators and 62% among professionals.

A strong majority of plan administrators (75%) think OSFI is doing a good job in terms of its contribution to ensuring plans are better administered.

“OSFI is well regarded by most plan administrators and professionals in terms of: its contribution to making plans better administered; striking an appropriate balance between the interests of sponsors and members; developing clear and easy to understand regulations and guidance; and consulting with the industry,” notes the regulator in its final report.

A majority of respondents (71%) also felt that OSFI is effective in identifying actual and potential problems in pension plans in general, and also in terms of its monitoring and supervision of the respondent’s individual plan (75%).

Roughly 50% of respondents are satisfied with OSFI’s processing of their plans’ requests for approvals (including the timeliness), but room for improvement exists, particularly in relation to the latter among defined benefit plan administrators. Part of the reason for the frustration in this area, explains the regulator, is likely tied to the fact that only about half of respondents stated they understood how OSFI makes decisions about requests for approval on plans.

Awareness of the PBSA Update 30 regarding funding relief was relatively low, and few respondents visit the pensions area of the OSFI website regularly.

When asked to identify what one step OSFI could take that would have the biggest impact on improving two-way communications and interaction, the following suggestions were provided:

• OSFI should play more of a supervisory and enforcement role;
• OSFI should establish a system to ensure that they provide written confirmation — either email or physical — of receipt of important submissions such as compliance forms and payments;
• Relationship managers should not be rotated often as continuity of service is important; and
• OSFI should be willing to offer a written opinion on questions without the stakeholder having to divulge confidential information — including caveats and disclaimers with the written opinion are acceptable.

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