Canada's Office of the Superintendent of Financial Institutions is lifting the temporary freeze it placed on portability transfers for private defined benefit plans.
OSFI placed the freeze in March when markets became volatile to prevent plans from being potentially insolvent and help private plan sponsors focus on the challenges brought about by the COVID-19 pandemic.
OSFI is removing these restrictions now that markets have stabilized and private pension plans remain sufficiently solvent, spokesman Michael Toope said in an email.
The office announced that it has adjusted its directives to include conditions on portability transfers and buyout annuity purchases like those in place before enacting the portability freeze. It has determined that these conditions are enough to protect the rights and interests of plan participants.
OSFI announced that it will continue to monitor the effects the coronavirus pandemic has on pension plans and is prepared to reintroduce another freeze or adjust its directives further if necessary.
