At this point, we have yet to hear from the federal pension regulator (OSFI) about the sharing of the pension surplus nor do we know when we will hear. Even when OSFI does give the payout the green light, there is still a further 40-day waiting period. The regulator’s role is fairly straight forward – confirm the financial position of the plan and ensure consultation has taken place with plan contributors and that they agree with the disbursal of funds from the plan. The devil is in the many details and there is no set timeline for OSFI to conduct its review.
While the waiting can be frustrating, we encourage patience. We remain confident that the payments to contributors will be made.
In the meantime, work is continuing on the various calculations necessary to make the payments. It is somewhat complicated given that it is two separate surpluses and there are a number of factors to be examined. Once payout is approved, individual statements will be issued and will be available through the Pension plan website. Those with email will receive notice through email and those without will be mailed a notice through Canada Post. The “Surplus Statement” will include:
- The amount that will be received
- The total of your contributions used to calculate the payout
- The percentage of those contributions used in the calculations
- An FAQ
There is the possibility that in order to expedite payment, interest amounts may not be immediately reflected in the statement but they will be added to the final payment. Payments to retirees will be made in the same manner in which you receive your monthly pension payment (direct deposit, cheque or money transfer).
Once we have more specific details, we will send out further information.