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Pension plans registered in British Columbia have a new Guideline for developing and documenting the provision for adverse deviation (“PfAD”).
BC Financial Services Authority (“BCFSA”) released the Guideline following amendments to the Pension Benefits Standards Regulation made by the B.C. government on October 3, 2022, by Order in Council No. 505. The development of the amendments and the Guideline included input from industry representatives.
BCFSA expects pension plan administrators to consider the development of the PfAD in the context of the plan’s risk management framework. Funding policies and actuarial valuation reports filed for plans with target benefit provisions with a review date on or after December 31, 2022 must reflect the new PfAD definition.