When winding up an Ontario-registered pension plan, an employer may need to make contributions to fund a deficit. If excess contributions and assets remain after the wind up is completed, the employer can request reimbursement from the plan.

This applies to both full and partial wind ups and is outlined in more detail in the Pension Benefits Act (PBA), section 62.1.

How to request a reimbursement?

Employers will need to submit an application to the Financial Services Regulatory Authority of Ontario (FSRA) to be reimbursed from the pension plan.

The application will need to include:

1) The contribution amount used to fund the deficit

  • Provide extracts from the custodian’s fund statements showing the contributions that were made to the plan.

2) The excess contributions and assets in the plan resulting from the overpayment

  • Provide a detailed reconciliation of the plan’s assets and liabilities settled from the date of the wind up report to the date the application for reimbursement is filed.

3) The amount being requested for reimbursement

Application format and delivery

You can use the format of Schedules I and II in the Application for reimbursement of employer overpayment from a continuing pension plan [PDF] to create the application. You will need to change the wording to indicate that the application is for a pension plan wind up.

Options for submitting the application:

1) Use FSRA's Pension Services Portal

2) By email: pensioninquiries@fsrao.ca

3) By mail:
Financial Services Regulatory Authority of Ontario
25 Sheppard Avenue West, Suite 100
Toronto, ON
M2N 6S6

Reimbursement amount

If FSRA approves the application, employers will be reimbursed for an amount that is equal to the lesser of:

  • The assets remaining in the pension plan (full wind up) or the assets remaining in the wound up portion of the pension plan (partial wind up) after the benefits are settled; or
  • The contributions made to fund the deficit plus any investment earnings made on the contributions.

Important deadlines

The application must be filed before the later of:

  • 24 months after the employer makes the contributions to fund the deficit; or
  • Six months after the plan administrator, acting reasonably, becomes aware of the excess employer contributions

Timing: benefit settlement before reimbursement application

You should wait until all the wind up benefits are settled before filing an application for reimbursement. It’s only when the settlement process is completed that you will know whether there are excess contributions and assets in the pension plan. However, remember the deadlines for filing the application.

If you send the application before the benefits are settled, FSRA will suspend the application until the settlement process is completed and you provide proof that there are excess contributions and assets in the pension plan. In this situation, the reason for the delay in uncovering the overpayment should be clearly explained in the application.