OSFI announces updated COVID-19 measures
The Office of the Superintendent of Financial Institutions (OSFI) announced Aug. 31 that it is lifting the temporary freeze on portability transfers for private pension plans.
In addition, OSFI is gradually phasing out the special capital treatment of loan and insurance premium payment deferrals that was provided to banks and insurers at the start of the Covid-19 pandemic.
In March, when market volatility was high, OSFI says it recognized the potential negative impact that these conditions could have had on pension plan solvency levels and responded by freezing portability transfers and annuity purchases. The regulator says markets have now steadied and the overall solvency of pension plans is sufficiently stable, so it is removing these restrictions.
"The changes announced today result from our ongoing effort to ensure that our regulatory measures continue to be appropriate for this unprecedented situation while remaining risk-focused and forward-looking," said Jeremy Rudin, Superintendent.
For more information on updates concerning insurers, consult the letter issued to Federally Regulated Life and Property & Casualty Insurers.