Welcome to FSCO’s webinar on the management and retention of pension plan records. Please note we’ll be starting this webinar in one minute in order to give everyone a 

Welcome to FSCO’s webinar on the management and retention of pension plan records. Please note we’ll be starting this webinar in one minute in order to give everyone a 

Welcome to FSCO’s webinar on the management and retention of pension plan records.
Please note we’ll be starting this webinar in one minute in order to give everyone a chance to join us.
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Good morning. My name is Dave Gordon and I am the Deputy Superintendent of Pensions here at the Financial Services Commission of Ontario. I’m really pleased to welcome you to FSCO’s first pension webinar and hope that this is the first of many that we will host for our pension stakeholders.
Here at the Commission, we recognize the importance of good governance practices in maintaining compliance and delivery of benefits. Over the last couple of years, we’ve redoubled our efforts to engage our stakeholders in dialogue and in finding new ways to share information.
This webinar is an additional tool to communicate interactively. I encourage you to share your impressions of its effectiveness by completing the survey at the end of the session. Our two speakers will now deliver a presentation on the management and retention of pension plan records. I hope you find the session both informative and valuable. Thank you for your time. 2
Good morning, my name is Joseph Shiner and my co‐presenter is Chantal Laurin. We will be hosting today’s webinar on the management and retention of pension plan records by plan administrators.
This webinar has been designed to help you understand your roles and responsibilities as the plan administrator, and to provide you some guidance on how to develop a records management and retention policy.
Although this webinar has been designed for plan administrators, it’ll also be relevant to you if you are an agent of the plan administrator.
Before we get started there are a few things you need to note:
• Your minimum screen resolution should be 1024 x 768.
• During this webinar, you can ask questions by sending us an email at [email protected].
• This webinar will be comprised of a presentation that is divided into four sections. After each section, we’ll ask the audience a self‐assessment question and give it a few seconds to choose an answer from a list, and then we’ll provide the correct answer.
• After the presentation has concluded, we’ll have a question and answer segment where we’ll answer the questions that were sent in by the audience. •After the webinar has concluded, a short survey will appear on your screen. Since this is our first pension webinar, and we hope to host more in the future, we’d appreciate your feedback. 3
We will now go over the information that we will cover during our webinar:
• For the first section of the webinar, we will go over your roles and responsibilities under the Pension Benefits Act and regulations, and briefly review other legislation that may apply to the retention of plan records. As you know, the Pension Benefits Act and regulations govern registered pension plans in Ontario. Please note that during this presentation, when we say “the Act” we’re referring to the Pension Benefits Act. In addition, when we say “you” we’re referring to the pension plan administrator.
• For the second section, we will discuss what are plan records, the different categories and retention periods for plan records, and how to treat electronic records. We will also go over what you can do if you find out that you’re missing some of your plan records. • Next, we will go over the information that we recommended you include in your formal records management and retention policy.
• And then, we will briefly go over the delegation of record keeping responsibilities to other parties. • At the end of our presentation, we will answer questions that we’ve received during this webinar, as well as some that we’ve prepared in advance. We will post answers to any questions that we’re not able to answer during this webinar, on FSCO’s website within a few weeks. 4
We will now cover the first section of the presentation, which is the plan administrator’s responsibilities and legislative requirements.
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As the plan administrator, you’re ultimately accountable to all participants of the pension plan. This includes:
• plan beneficiaries such as currently employed plan members, retired members, terminated members who have an entitlement under the plan, their current or former spouses ― and in the event of death, their beneficiaries, dependents and estates;
• it also includes the plan sponsor, who may be the employer, union etc;
• regulatory authorities such as the Financial Services Commission of Ontario (otherwise known as FSCO), other provincial regulators, and the Canada Revenue Agency; • as well as any other parties, such as agents of plan beneficiaries, agents of plan sponsors or contributing employers, or others that may have an interest in the pension plan and pension fund.
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Sections 19 and 22 of the Act require you to exercise prudence in the management of your plan records. This means you must administer the pension plan and pension fund in accordance with the Act, regulations and any documents that have been filed with FSCO, as required by section 19 of the Act. In addition, you must meet the standard of care when you administer the pension plan, and when you administer and invest the pension fund, as required by section 22 of the Act. If you don’t have complete and accurate plan records, you won’t be able to comply with sections 19 and 22 of the Act. It’s essential for you to have proper records management and retention practices in order to meet your obligations to plan beneficiaries, as well as to protect the integrity and accuracy of the information that you’ll need to administer the pension plan and pension fund. For example, it’s important for you to keep records that prove you’ve made payments to plan beneficiaries, and to ensure that beneficiaries who are entitled to receive payments actually receive them when they’re due. Remember, plan beneficiaries depend on you for the timely and accurate payment of their pension benefits.
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In addition to the requirements under the Act, the pension plan will also be subject to other legislation such as the Income Tax Act, the Employment Standards Act, and the Freedom of Information and Protection of Privacy Act of Ontario and other provinces. And, there’s many others that aren’t listed here. There will be situations where another law may conflict with the Act regarding how long certain records should be kept. It’s important for you to understand that unless the other law explicitly states that its records retention requirements supersede those of the Act, you’re required to keep certain records for a long period of time, in order to comply with the requirements of the Act. Please note that we’re not instructing you to keep all your plan records indefinitely. We will go over how long you should keep certain records later on in this presentation.
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Since we’ve concluded the first section of this webinar, we’d like to ask you to answer the question that is now on your screen. Why do you need to retain pension plan records?
We’ll pause for about 15 seconds to give everyone a chance to reply. 9
It looks like the majority of you selected “D” as the answer. The correct answer for this question is “D – all of the above”. You need to retain pension plan records to comply with sections 19 and 22 of the Act, to prove you’ve made payments to plan beneficiaries, and to calculate plan members’ pension entitlements.
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We’ll now move on to the second section of the presentation: plan records.
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What are plan records?
Plan records are any documents related to the pension plan and pension fund that you’ve created or received from agents, plan beneficiaries or regulatory bodies, during the life of the plan. These records include:
• documents that create and support the pension plan and pension fund (for example, plan texts, plan amendments and trust agreements); • these records also consist of documents that relate to the operation of the pension plan and pension fund (such as governance manuals); • they also include documents that relate to the investment of the pension fund (for example, statements of investment policies and procedures, reports from your investment managers); • as well as documents that relate to individual plan beneficiaries (such as annual pension statements, salary information, enrolment and election forms).
For your information, one of the proposed changes to the Act under Bill 236 (which is called the “Pension Benefits Amendment Act, 2010”), replaces the term “documents” with the term “records”. The purpose of this change is to modernize the terminology that is used in the Act. The term “records” has a broader meaning than “documents”. For example, “records” include documents, plus other items, such as those that are created by multimedia. Because of this proposed change to the Act under Bill 236, FSCO has started to the use the term “records” in its communications to pension stakeholders. 12
Because pension plans by their very nature, have long‐term time horizons, we expect them to generate volumes of records during their life mes ― o en in excess of 50 years! As a result, you’ll probably have to increase your storage space, or find other ways of storing your plan’s records, if you haven’t done so already.
FSCO understands that it may not be practical, or even possible, to keep all of your plan records in paper format due to storage limitations and costs. With new technology you have the option of storing your records electronically. You may have already converted some of your documents to an electronic medium. As you may know, FSCO is moving towards electronic filing. We’ve started this process by allowing you to file your annual information returns electronically through the Pension Services Portal.
Under Bill 236, there are proposals for accommodating the electronic transmission of plan records between FSCO, plan administrators and plan beneficiaries. We anticipate that in the not so distant future, FSCO and most pension plans will file and store the majority of their records electronically. If you’ve currently got volumes of paper records, you may wish to convert them into electronic records so that they can be stored electronically. If you choose this option, keep in mind that certain standards for electronic records must be met. For example, plan records need to have sufficient integrity to be legally admissible in court. You may wish to consult with your legal counsel or records management professionals before you start the conversion process, as there are various standards and laws that apply to electronic records. If you’d like more information on this topic, refer to pension policy A300‐200, which is available on FSCO’s website. Remember, electronic records are just as important as paper records! As a result, you’ll need to take appropriate measures to ensure the security of your electronic records. This includes protecting them from computer viruses and hackers, and having adequate back up systems in place, to protect them from human errors, such as accidentally deleting records . You also need to keep pace with changes in technology, and ensure that your electronic records will always be accessible using current technology.
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Now that you understand what we mean by “plan records”, we can go over the three categories of plan records.
The first category of plan records relates to legislative requirements, the second relates to individual plan beneficiaries and payment of pension entitlements, and the third relates to the day‐to‐day operation of the pension plan and pension fund. We’ve combined plan records under these three categories for the purpose of establishing a records retention schedule.
It’s important to note that the first two categories of plan records are critical for the proper administration of the pension plan and pension fund. These records are needed to determine pension entitlements and to provide support for regulatory requirements. Records that fall under the third category capture all other records that don’t fall under the first two categories. Please note, the name that is assigned to a specific record will vary from plan to plan. We’ll go over the details in the next three slides.
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The first category of plan records relates to legislative requirements. These are records that create and support the pension plan and pension fund. Some of these records are listed under section 45 of the regulations and include the following:
• Plan texts and amendments for both current and past pension plans. • There’s also trust agreements, insurance contracts and collective bargaining agreements.
• Next we have filings, reports and statements, such as annual information returns, pension fund financial statements, investment information summaries and actuarial valuation reports for defined benefit pension plans.
• This category also includes member booklets or any other information about the pension plan that was given to plan members.
• Next, we have copies of correspondence between the plan administrator and FSCO. This includes up to five years of correspondence, that starts on the date of the plan beneficiary’s request to see the records.
• There’s also the statement of investment policies and procedures. • As well as the parts of a purchase and sale agreement that relate to the plan.
Keep in mind that there are also many other records that are not shown on this slide. As mentioned earlier, the name that’s assigned to a specific record will vary from administrator to administrator. In addition, some plans will have more records than others, depending on their complexity. 15
We’ll now go over the second category of plan records that relates to individual plan beneficiaries and the payment of their pension entitlements. When we say “plan beneficiaries”, we’re referring to ac ve members ― that is individuals who are currently employed or who haven’t terminated their membership in their pension plan, retired or former members, their current or former spouses, dependents, estates and any other person who has an entitlement under the pension plan.
You’ll need to keep all records that relate to individual plan beneficiaries as long as they have an entitlement under the pension plan. This includes:
• Forms for plan enrolment, beneficiary designation and spousal declaration.
• There’s also pension statements that are provided on yearly basis, when employment is terminated, or when someone dies or retires.
• Next, we have election or option statements, which show plan members’ decisions.
• This category also includes waiver forms for pre‐retirement death and joint and survivor pensions.
• Next, we have correspondence related to inquiries or complaints from plan beneficiaries.
• There’s also court documents related to spousal relationship breakdown, such as court orders, domestic contracts and family arbitration awards.
• And finally, we have payment or transfer information, such as information about the amount that was paid, where the money was transferred, and the date when it was made.
Note that this category also includes all other documents that are applicable for your plan. For example, it may include calculation worksheets, pension buy‐back information and salary information that’s required to determine the final and career average salaries under a defined benefit pension plan. Keep in mind that the records you need to keep will depend on the type of pension plan you have.
You don’t need to keep these plan records indefinitely. After you make the final payment to the plan beneficiary, such as when the person dies or when the money is transferred to a locked‐in retirement account, you’re allowed to keep a summary of the plan beneficiary’s records. However, it’s essential for the summary to have enough information to clearly identify: who received the payment, the exact amount that was paid to the individual, the payment date, and the type of settlement that was made. You should keep whatever records you think you may need to rely on to provide support for your actions, in the event there is a dispute about the payment amount, or whether the beneficiary ever received a payment. 16
We’ll now cover the third category of plan records that relates to the day‐to‐day operation of the pension plan and pension fund. These are records that are not required to be filed with FSCO, and that the Act doesn’t require you provide to plan beneficiaries. These records are generally plan‐specific and may include the following:
• monthly pension fund financial statements;
• governance manuals; • internal training documents related to plan administration; • minutes of board meetings; • supporting materials for investment decisions; and
• any other plan‐specific documents, such as legal or professional advice that you received, which supports your decisions or actions concerning the pension plan and pension fund.
When you’re determining the retention period for these records, you should think about whether these records may be needed in the future for benefit calculation purposes, for providing support for an application that you may be submitting to FSCO, to support decisions that you’ve made about the pension plan and pension fund, to support your investment decisions, etc. 17
Since we’ve covered the three categories of plan records, we’ll now talk about the retention period for plan records.
• The first thing you should know is that neither the Act, nor the regulations, specify the required retention period for plan records. Therefore, we can’t provide you with specific instructions on how long you need to keep them. However, what the Act does say is that you need to make certain identified records available to those individuals who are eligible to view them. • The second thing to note is that retention periods may vary, depending on which category your plan records belong to. Make sure you retain plan records that relate to legislative requirements or individual plan beneficiaries, as you need them for determining pension entitlements and for providing support for your regulatory submissions. • The third thing to remember is that you don’t need to keep all of your records forever. For example, you can keep a records summary for those individuals who are no longer entitled to receive payments from your plan, and you can destroy records that you believe have no more relevance to the administration of the pension plan and pension fund. However, keep in mind that even if your plan is fully wound up, you wouldn’t automatically be relieved of your responsibilities under the Act, and may have to provide support for your past actions.
• Finally, when you’re developing your own records retention schedule, note that you can refer to FSCO’s Sample Retention Schedule for Pension Plan Records.
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A screen shot of FSCO’s Sample Retention Schedule for Pension Plan Records is shown on this slide. FSCO has developed this chart to assist you in developing your own records retention schedule. It provides a sample list of plan records that may fall under each of the three categories we mentioned earlier, and includes the type of information that you should consider when you’re developing your retention schedule. 19
We’ll now explain why it’s important for you to retain current and historic plan records.
• The first reason is to ensure that the pension plan and pension fund are properly administered.
• Second, it’s needed for complying with legislative requirements.
• Third, it’s required for ensuring that accurate payments are made to those who are entitled to them (and to be able to verify payment amounts in the event there’s a dispute about the calculated amount).
• Another reason is for providing proof of payment (so, you’ll need to keep records that clearly identify the payment recipient, the exact amount that was paid, when the payment was made to the individual, and how the payment was made).
• It’s also needed for supporting regulatory submissions, such as applications to the Superintendent. • And lastly, it’s required for reducing or avoiding litigation risks, such as dealing with claims for non‐payment of pension benefits, or surplus ownership issues. Remember, without complete and accurate records, the integrity of your plan records and your actions related to them may be challenged in court.
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Based on our experience in dealing with issues that relate to missing records, we’ve found that poor records management and retention practices often lead to incomplete, inaccurate and therefore, unreliable plan records. This typically results in additional costs for the plan sponsor, due to all of the extra time that is spent on trying to find missing records, and delays in getting an application approved by the Superintendent, or resolving an individual’s request for payment of his or her entitlement. In some cases, it may not be possible for you to recreate records from other sources ― and this may have costly implications. For example, you may end up making duplicate payments to a former plan member, or you may have an application rejected by the Superintendent.
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If you’re wondering what you should do if you’re missing plan records, keep in mind the following:
• It may be possible for you to get copies of records that were previously filed with FSCO, by requesting a plan viewing at FSCO’s offices. Note that FSCO doesn’t maintain copies of records related to individual plan members. • If annuities were purchased for a plan beneficiary, you can contact the OmbudService for Life & Health Insurance for assistance, or you can ask the plan beneficiary to contact them directly. • If an individual claims that he was a former plan member and didn’t receive his pension entitlement, and if neither of you have proof of plan membership, tell him to contact the Canada Revenue Agency to get copies of his past T4 or T4A statements. The statements would have the pension plan’s registration number included in a box in the footnote section. They would also provide evidence of any lump sum payments that were made to this person when his employment or plan membership was terminated. However, keep in mind that these statements won’t show transfers to locked‐in accounts.
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Now that we’ve finished the second section of the webinar, we’d like to ask you to answer a question. Which of the following documents are examples of plan records that relate to legislative requirements?
We’ll pause for approximately 15 seconds to give everyone a chance to reply. 23
It looks like the majority of you selected “C” as the answer. The correct answer for this question is “C – plan texts and amendments”. “A” is incorrect. Although pension statements are required by law to be provided for records retention purposes, they belong in the category called “plan records that relate to individual plan beneficiaries and payment of pension entitlements”. The same applies to waiver forms or any other Superintendent approved forms. Therefore “D” is also incorrect. “B” is also wrong because monthly pension fund financial statements belong in the category called “plan records that relate to the day‐to‐day operation of the pension plan and pension fund”. 24
We will now move on to the third section of this presentation, which covers the development and content of your records management and retention policy.
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In order to manage your plan records, FSCO recommends that you develop a formal records management and retention policy. If you’re wondering how a formal records management and retention policy may help you manage your record keeping practices, you should note the following reasons:
• First, it minimizes or prevents the loss of important records.
• Second, it promotes the efficient management and control of plan records.
• Third, it promotes accountability because individuals who are responsible for records will have a clear understanding of their role in the record keeping process. Also, if they deviate from the policy, they’ll need to support their actions.
• Finally, it encourages the plan to have consistent standards because those who are responsible for records will have written instructions that they’ll need to follow.
You should note that the Canadian Association of Pension Supervisory Authorities (CAPSA), also recommends that you develop a formal policy under Guidelines Number 3 and 4. If you want copies of these Guidelines, they’re available on CAPSA’s website. 26
• If you want to know what you should include in your formal records management and retention policy, you should be aware that FSCO doesn’t have a standard template or format that you should use when you’re developing your policy. However, FSCO has issued a policy on the management and retention of plan records, which provides some guidance.
• You should also know that the information that needs to be included in the policy will vary from plan to plan, depending on the complexity of the plan.
• Also understand that since you’re the plan administrator, you have the best understanding of what will work best for your pension plan.
• Finally, you should note that if your service provider has already developed its own policy, you may want to rely on it, if you’re satisfied that it meets legislative and plan‐
specific requirements. 27
We’ll now cover what type of information you need to include in your policy.
As a minimum, you should consider and address the following items when you’re developing your records management and retention policy:
• The first item is document types and retention periods. (As mentioned earlier, the retention period for documents may vary depending on which category each of the plan records belongs to).
• Second, you should consider and address how and where documents will be stored. (For example, will the documents be stored in paper or electronic format, and will these records be stored in‐house or off‐site?)
• The third item is how documents can be accessed and by whom. (The policy should list the individuals who have a right to access plan records and the type of plan records they’re allowed to access. For example, can these individuals access personal or confidential information about individual plan members, or just general plan information? )
• Fourth, you should consider and address how private and confidential documents should be treated. (For example, how will individual plan members’ medical records or other personal information be treated?) • The fifth item is the details of any delegations that set out specific roles and responsibilities for those individuals who are assigned tasks and their reporting relationships.
• Finally, you should consider and address training requirements that need to be fulfilled by records management staff or service providers. 28
In addition to what we’ve just discussed, you should ensure that your policy also considers and addresses the following:
• Who are the individuals or positions that have a role in managing the plan’s records and what are the responsibilities of each person? (By including this information, you will ensure that accountability for managing the records is assigned.)
• It should also consider and address any contractual arrangements with external third party service providers. (Note that you should provide a copy of your policy to your service provider. Since you’re the plan administrator, you must ensure that the contract or agreement addresses the items in your policy, as well as how records need to be treated, both while the services are being provided and when the contract ends.)
• Your policy should also consider and address how often record keeping processes will be audited, in order to monitor the existing policy and identify potential weaknesses for future changes.
• Finally, your policy should consider whether you need or have processes for:
o Maintaining a backup of records (such as how often you need to back up electronic records).
o It should also consider whether you need or have processes for monitoring documents, to help you keep track of any records that may be missing or damaged.
o It should also consider whether you need or have processes for communicating with plan beneficiaries. (For example, the policy should outline the process for reminding plan beneficiaries to contact you or your service provider whenever there is a change in their spousal relationship, beneficiary designation, or mailing address. Note that these types of reminders can be built into the members’ annual pension statements or in their termination statements.)
o Finally, your policy should consider if you need to have a process for disposing of records at the end of their retention period. (You should make sure that this process addresses the proper method for disposing of personal and confidential records.)
Note that these are just some of the items that should be addressed in your policy. You may need to include additional items in your policy that will specifically address the needs of your pensionƉůĂŶ͘ 29
Since we’ve concluded the third section of this webinar, we’d like to ask you to answer the question that is now on your screen. What are the benefits of having a formal records management and retention policy?
We’ll pause for about 15 seconds to give everyone a chance to reply. 30
The majority of you selected “D” as the answer. The correct answer for this question is “D – all of the above”. 31
We will now cover the fourth section of the presentation, the delegation of record keeping responsibilities to other people or parties.
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You may have already delegated the management and retention of plan records to your employees, or you may want to do so in the future. Or you can hire an external third party service provider, such as a consulting firm, to handle this job for you. If you choose to delegate these tasks, you’re not off the hook! You must continue to supervise the activities of those who are performing the delegated tasks on your behalf. As the plan administrator, you’re ultimately responsible for your plan records. This means that if any plan‐related issues arise regarding your plan records, you may be accountable for resolving them.
You should note that section 45 of Regulation 909, made under the Act, requires you to provide information about any delegations related to the pension plan or pension fund, if this information is requested in writing by eligible plan beneficiaries.
If you choose to hire a third party service provider, you need to ensure that your ownership of plan records is clearly documented in your service agreement with the third party service provider.
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Now that we’ve finished the fourth section of the webinar, we’d like to ask you to answer the question that is now on your screen. To whom can the plan administrator delegate responsibilities?
We’ll pause for 15 seconds to give everyone a chance to reply. 34
The majority of you selected “D” as the answer. The correct answer for this question was “D – only B and C”. “A” is incorrect because delegation is allowed. 35
Since we’ve reached the end of this presentation, we’d like to summarize what we discussed earlier.
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We strongly encourage you to formalize your records management and retention practices by developing a written policy on how records should be managed and retained by those who are entrusted with this important task. Consider it your opportunity to take control of your records. •
It may be difficult to get the process started, but once you have a process in place, the benefits will outweigh any costs of implementing the policy.
•
By properly managing and retaining your records, you may be able to reduce the volume of records, while still ensuring that you’re able to satisfy your obligations as the plan administrator. In addition, you may be able to minimize or prevent the loss of important records, and reduce or avoid certain risks such as:
o The risk of not complying with the Act and regulations.
o The risk of making duplicate and/or incorrect payments to plan beneficiaries. o And finally, you may also be able to avoid or minimize litigation risks that may occur in certain situations. (For example, issues dealing with claims for non‐payment of pension benefits, or any other circumstances that require you to provide evidence to support your actions.)
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To learn more about records management and retention practices, we encourage you to visit FSCO’s website where you can access:
• FSCO Pension Policy A300‐200; and • The Sample Retention Schedule for Pension Plan Records. You can also visit the website of the Canadian Association of Supervisory Authorities to obtain copies of Guidelines Number 3 and 4.
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We will now answer questions that were sent in by the audience, as well as some that we’ve prepared in advance.
Here we go with the first one... 38
Questions and Answers from the Webinar on the Management and Retention of Pension Plan Records Q: How long do I have to keep individual annual benefit statements in staff files?
A: It’s up to the plan administrator to determine how long records should be kept. As the
administrator, you should consider whether plan records that relate to individual plan members,
such as annual benefit statements, are necessary to support and determine plan members’
entitlements. If the information is stored electronically, it’s not necessary to maintain it in paper
format. Once a plan member has terminated his/her employment or plan membership, and has
transferred his/her entitlement out of the pension plan, you don’t necessarily need to keep all
plan records that relate to this individual. However, it’s important for you to retain at least a
summary of the terminated member’s individual plan records, as they provide confirmation that
the member’s entitlement under the plan has been settled.
Q: How long do I have to keep minutes of meetings of the pension plan?
A: Minutes of meetings are records that fall under the third category of plan records, which
relate to the day-to-day operation of the pension plan and pension fund. These records do not
have to be filed with FSCO. As the plan administrator, you will need to decide how long these
records should be retained. When deciding on the retention period, you should consider, as part
of your decision making process, whether these records will be required for supporting the
payment of pension entitlements to plan beneficiaries, whether they support decisions that
you’ve made about the administration of the pension plan, or the administration or investment of
the pension fund which are not documented elsewhere. You should also consider whether they
may provide support for future regulatory submissions, or may be necessary to defend the
administrator against any allegations in any future litigation.
Q: How long do I have to keep files on retired plan members that are now deceased?
A: When a retired plan member dies, his/her individual plan records should be kept as long as
any surviving spouse or designated beneficiary continues to receive payments from the pension
plan, or until any remaining death benefit is provided to the named beneficiary. When the final
payment is made to the plan beneficiary, the administrator should keep at least a summary of
the information, to prove that the payment was provided, in case a subsequent claim is ever
made.
Q: Why do I have to develop a policy on records management and retention? Is it
required by legislation or is it just FSCO’s recommendation?
A: Under the Pension Benefits Act, plan administrators are not required to develop a records
management and retention policy. However, the Act imposes a standard of care on plan
administrators that requires them to exercise prudence in the administration of the pension plan
and pension fund. Without complete and accurate plan records, plan administrators can’t
administer the pension plan and pension fund in accordance with the requirements of the Act.
This includes the ability to pay the correct amounts to individuals who are entitled to receive
pension payments. Therefore, FSCO strongly recommends that all plan administrators develop
a records management and retention policy. This will minimize or prevent the loss of important
plan records, and avoid any unnecessary risks that are related to not having those types of
records.
Q: What is the deadline for developing a records management and retention policy?
A: There is no specific deadline for developing a records management and retention policy.
However, FSCO recommends that all plan administrators review their records management and
retention practices, and if necessary, formalize their processes in a written policy as soon as
possible. By having such a policy, plan administrators will be able to prevent or minimize the loss
of important plan records. In addition, it’s a good business practice that will benefit both plan
administrators and plan beneficiaries.
Q: I understand that Bill 236 added a new section to the Pension Benefits Act that relates
to the retention period for plan records. Is this new section now in effect?
A: No, the new section of the Act― section 24.1 ― is not yet in effect. Section 24.1 will come
into effect when it is proclaimed. At this time, we don’t know when this will happen. If and when
this section and the regulations come into effect, FSCO will review Policy A300-200 and make
any necessary changes. In the meantime, plan administrators should develop their records
management and retention policy based on the current legislation.
Q: Why can’t FSCO provide specific retention periods for plan records?
A: The Act and regulations are silent on the retention period for plan records. This means the
current legislation doesn’t set a limit on how long plan records need to be kept by plan
administrators. There are certain records (that is records that are listed under section 45 of the
regulations, such as plan texts and amendments, etc.) that are required to always be available
to plan beneficiaries who are entitled to inspect the records, if they make a written request.
When retention periods are being determined, plan administrators should take into consideration
whether a particular record will be needed to comply with the Act and regulations at all times ―
that means the past, present and the future. For example, plan records must be kept if they are
needed for determining pension entitlements, for making regulatory submissions, etc.
Q: If the legislation is being changed by Bill 236, what’s the point of developing a records
management and retention policy at this time?
A: Under section 22 of the Act, plan administrators are required to exercise prudence in the
administration of the pension plan and pension fund. Since Bill 236 doesn’t affect this section of
the Act, FSCO still recommends that all plan administrators develop a records management and
retention policy. If and when the Act is affected due to Bill 236 coming into force, FSCO will
review Policy A300-200 and make any necessary changes.
Q: Does FSCO have a template for the records management and retention policy that I
need to create?
A: No, FSCO doesn’t have a template for creating the policy. Each policy will be different
depending on the complexity of the pension plan, and its unique processes and needs.
However, FSCO has developed a Sample Retention Schedule for Pension Plan Records to
assist plan administrators in identifying and categorizing their plan records for the purpose of
assigning retention periods. To get a copy of the sample schedule, download Policy A300-200
from FSCO’s website.
Q: Why do I need to keep copies of plan records, if FSCO already has copies of them?
A: FSCO doesn’t have all plan records that relate to a specific pension plan. For example, if a
pension plan was in effect prior to 1965 (that is before the effective date of Ontario’s pension
legislation), FSCO may not have plan texts, trust agreements and other important documents
that applied before 1965. FSCO only keeps those plan records that were required to be filed
with it (for example, plan texts and amendments, actuarial valuation reports, annual information
returns, etc.).
Keep in mind that although some plan records are not required to be filed with FSCO, they
should still be retained by plan administrators, to show that benefits have been paid (for
example, annual trust fund statements). In addition, FSCO doesn’t maintain records about
individual plan members and their entitlements.
Q: During the webinar, you mentioned that plan administrators are responsible for record
keeping. Shouldn’t plan members also be responsible for maintaining copies of their
own records?
A: Yes, plan members are also responsible for keeping copies of their own records. FSCO
Policy A300-200 mentions some of the plan members’ responsibilities.
In cases where the plan administrator is unable to locate the records for an individual who claims
that he didn’t receive his pension entitlement, the individual has to provide the administrator
evidence of his employment or plan membership. The type of evidence that the individual needs
to provide may vary, depending on whether the plan has mandatory or optional membership.
For example, if the plan has mandatory membership, the individual may only be required to
provide proof that he was a former employee of the company. If the plan has optional
membership, the individual may need to provide proof of plan membership. Once the
individual’s employment and/or plan membership has been established, the plan administrator
will have to verify the individual’s payment status and provide evidence to support that status.
Thank you for participating in today’s webinar. Since we didn’t get a chance to answer all of the questions that were sent in by the audience, we’ll develop answers to the remaining questions we received and post them on FSCO’s website in the future. Please remember to complete the survey that will appear on your screen momentarily. 39