Pension Regulator Adopts Four of Five Auditor General Recommendations

Nova Scotians can have confidence in pension regulation said Minister of Labour and Workforce Development Mark Parent, who announced government will act on four of five recommendations in the auditor general's semi-annual report released today, Nov. 19.

"Nova Scotia has a very good pension regulation system, in fact as good as any in the country," said Mr. Parent. "But we are always open to good ideas to make things better, so we welcome the recommendations of the auditor general and will act on four of the five he has made."

The four recommendations adopted are:

• imposing penalties for actuarial valuation reports filed late
• requiring more timely reporting to the Minister responsible for Pension Regulation
• developing performance measures for the supervision of defined contribution pension plans
• requiring periodic valuation of annual returns consistent with the regulatory principles for a model pension law developed by Canadian Association of Pension Supervisory Authorities.

Mr. Parent said the province would not act on a recommendation to ensure that pension plans are "prudently invested," because that would be outside the role of the government as regulator.

"It's very important that we do not blur the lines between the responsibilities of the pension-plan administrator and our role as regulator, a role which is consistent with every other province across Canada," said Mr. Parent.

"I certainly understand how concerned Nova Scotians are for the security of their pension plans, but I want to assure them that very good processes in place in our pension regulation system."

Every pension plan covered by regulations, including private, municipal and not-for-profit sector plans, is reviewed by an actuary, who determines whether or not the fund is performing well enough to meet its obligations, every three years. If a plan is underfunded, employers are required to top them up.

Pension administrators are required to file an annual information return, which details the contributions actually made to the plan, the beginning and ending market values of the fund, as well as transfers into the fund and payments made out of the fund, with the Superintendent of Pensions. The Administrator must also certify whether or not the statement of investment policies and procedures has been reviewed.