The Financial Services Commission of Ontario has issued a new policy directing pension plans how to handle the distribution of surplus to an employer on the plan’s wind up.

This policy sets out the procedure for filing an application to distribute surplus to an employer with the Superintendent of Financial Services on a full plan wind up.

FSCO says that while compliance with this policy is intended to facilitate the application process, the Superintendent has the ultimate authority to decide whether to consent to or reject an application, and is not bound by this policy.

The onus is on the applicant to satisfy the Superintendent that the surplus application meets the requirements of the legislation and regulations.