ComplianceManual-OngoingAdm - INTEGRISppp.ia.ca/pdf/PPP_OngoingManual_20170510.pdf · 2017. 5. 10. · 6. INTEGRIS Quarterly Invoices INTEGRIS invoices are mailed quarterly following

COMPLIANCE MANUAL

ONGOING ADMINISTRATION

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iA Financial Group is a business name and trademark of Industrial Alliance Insurance and Financial Services Inc. ia.ca

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1. Pension Adjustment (PA) – End of December

2. iA’s Annual Invoice – Early January

3. Annual Financial Report – Early January

4. Semi-Annual Member’s Statement – Early January and July

5. Annual Compliance Review – End of February

6. INTEGRIS Quarterly Invoices – March, June, September, December

7. Filing of the Financial Statement (FS) with FSCO – By June 30th

8. FSCO’s Annual Pension Assessment Fees – March

9. Annual Statement of Benefits – June

10. Filing of the Annual Information Return (AIR) – By September 30th

11. Contribution Statement – November

12. Triennial Actuarial Valuation – Every three years

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1. Pension Adjustment (PA) Every member of a PPP must report a Pension Adjustment on their

T4 slip. To help with this task, iA Financial Group will mail a step-by-

step procedure to calculate the PA that should be reported on the

T4 slip along with the Registration Number of the PPP. This

document could be completed by the member or remitted to the

accountant. If you encounter difficulties please email

[email protected] to seek assistance.

Please note that the PA will reduce the annual RRSP contribution

room.

This document will be mailed to the client around mid-December.

2. iA’s Annual Invoice In early January, the client will receive iA’s Annual Invoice for the

actuarial and administrative services rendered in the previous year

(fees are charged in arrears except for the fees in the first year).

The fees should be paid by cheque within 30 days, otherwise they

will be deducted from the PPP pension fund account.

All fees paid for the PPP are tax-deductible for the company. While

HST is charged by iA for these fees, the client should consult his

accountant regarding claiming input tax credits to recoup the HST

levied.

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3. Annual Financial Report Also in early January, the client will receive a Financial Report as at

December 31st. This report contains the following information:

-A summary of transactions during the year

-The new deposits

-The realized and unrealized investment gains

-The disbursements

-The asset allocation

While no action is required at this point in time, this information is

simply for information and could be used by the advisor to schedule

a review of the PPP’s investment strategy.

4. Semi-Annual Member’s Statement

In early January, the client will also receive a Member’s

Statement as at December 31st. This statement contains the

following information:

-A summary of transactions during the year

-The plan assets performance

-The new deposits

-The disbursements

-The asset allocation

A similar is also mailed in July for the period of January 1st

to June 30th.

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5. Annual Compliance Review

The Annual Compliance Review is mailed around the end of

February and is a document that overlooks everything there is to

know about the annual administration of the PPP. It covers the

following elements:

-Contribution Statement and Pre-Authorized Payments Form

-Investment Management Fees (IMF) Reimbursement

-Information Request

-Certification of Financial Statement

-Procedure to delegate access to PSP and Frequently Asked

Questions about the PSP

-Summary of Contributions (FSCO Form 7)

-Review of the Statement of Investment Policies and Procedures

-Next Steps to expect for the year

Since this document forms the core of annual administration,

greater details on these elements are described in Appendix A.

6. INTEGRIS Quarterly Invoices

INTEGRIS invoices are mailed quarterly following February 28th,

May 31st, August 31st and November 30th.

These invoices are informative only because iA Financial Group

will process payment of INTEGRIS fees from the client PPP

account. No action is required.

The company will have the opportunity to reimburse those fees to

the PPP account yearly with the Investment Management Fees

Reimbursement included in the Annual Review. It allows the

company to add more assets to the PPP and get a tax-deduction.

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7. Filing of the Financial Statement (FS) with FSCO

iA Financial Group takes care of the annual required filings on the

client behalf provided that we have been delegated as an

authorized agent on FSCO’s electronic Portal.

One of the required filing is the plan financial statement that must

be filed no later than 180 days following the year end of the PPP

(no later than June 30th). Along with a copy of the financial

statement, we will upload a certification of the plan assets signed

by the plan administrator. This certification letter is included in the

Annual Compliance Review.

Once the client has returned a scanned copy of the certification

letter back to [email protected], iA will submit the financial statement

on his behalf using the FSCO PSP system.

8. FSCO’s Annual Pension Assessment Fees

Because the PPP is registered with FSCO, the client will receive an

annual pension assessment invoice in the month of March. It has to

be paid by the corporation to the Minister of Finance of Ontario by

cheque. It generally consists of a flat fee of $250 to which they add

the expected additional costs for the upcoming year plus the

adjustment required for the previous year.

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9. Annual Statement of Benefits

The Annual Statement of Benefits gives the member of a PPP

information about the pension accrued so far in the plan, a summary

of the plan provisions, the evolution of the assets over the last year,

projections of pensions the member could receive at different

retirement ages and various other information about the plan and

the member. This document is required by Pension legislation and is

for information purposes only. No further action is required. A soft

copy of the Annual Statement of Benefits is emailed to the advisor

and kept by INTEGRIS and iA Financial Group.

This document is required to be provided to the members no later

than June 30th. iA Financial Group aims at providing the client and

the advisor with this statement around the month of May.

The PPP member should review it to ensure that basic personal

information is stated correctly: e.g. Spouse Name/Beneficiary

Name, Addess, etc. Any discrepancies that require correction

should the flagged to iA Financial Group at: [email protected].

10. Filing of the Annual Information Return (AIR)

with FSCO

Every year, all PPPs must file an Annual Information Return (AIR) no

later than September 30th covering the previous calendar year that

ended. This is a joint filing to CRA and FSCO.

Provided that iA Financial Group has been delegated as an

authorized agent on FSCO’s electronic Portal, iA Financial Group will

take care of filing the document on FSCO’s Portal.

FSCO usually sends the plan administrator email reminders about

two months prior to the filing deadline. To avoid receiving such

emails, we aim at filing the AIR during the month of June. No

actions are required for this filing.

Once we’ve filed the AIR, we’ll send a copy to the client. You may

review it and if revisions are required, notify [email protected].

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11. Contribution Statement

The Contribution Statement was included in the Annual Compliance

Review mailed to the client in February and showed the amounts

that could be contributed to the PPP in the current year or helped

him calculate it if we were missing information.

We’ll be providing the client again with the Contribution Statement

near the end of November as either a reminder of the amounts that

can be contributed or to provide a summary of contributions

received actually during the year up to the date of mailing.

12. Triennial Actuarial Valuation

Although actuarial valuations are prepared only every three years,

we’ve included it in the ongoing administration documents you may

expect.

Valuations are performed within 6 weeks following receipt of all

required information (usually requires only T4 slips for the past

three years).

Since iA Financial Group requires that T4 slips be provided annually

as part of the general administration of the Plan (see Step 5 further

discussed in Appendix “A” point c.) there may be no need for clients

to supply T4 slips in a valuation year unless if amended T4s were

issued.

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APPENDIX A - Annual Compliance Review

a. Contribution Statement and Pre-Authorized

Payments Form

The purpose of the Contribution Statement is to provide the client with

an estimate of the amounts of contributions that should be remitted to

the plan in the current year. The amounts shown are based on the data

we have on record but we encourage the client to refer to the Excel

spreadsheet that was provided with the last actuarial valuation report

for more accurate figures.

If he can't find the Excel spreadsheet or have difficulty completing it,

please contact our PPP team at [email protected].

b. Investment Management Fees (IMF) Reimbursement

Fees withdrawn from the pension fund in the previous year are recorded

on this statement. If the corporate sponsor of the PPP reimburses the

fees by providing a cheque to iA Financial Services, it can claim these as

a tax deduction on its corporate tax return.

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c. Information Request

In order to update the financial information regarding the plan and to

prepare the documents required under the pension legislation, we

require the client to complete the information request and provide us

with copies of the T4 slips of the previous year and any other missing

year.

d. Certification of Financial Statement

According to provincial pension legislation, all pension plan registered

with FSCO must file a financial statement before June 30 following the

financial year end of the plan. We will file the financial statement on the

client behalf on FSCO's electronic Portal.

The submitted financial statement must be approved and signed by the

plan administrator. As such, the client simply has to sign the enclosed

letter to FSCO and return it to our IPP team at

[email protected].

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e. Procedure to delegate access to Pension Services

Portal (“PSP”) and Frequently Asked Questions about

the PSP

In the normal course, the act of appointing iA Financial Group staff

members as ‘delegates’ on the FSCO portal would have been covered by

the “Onboarding Compliance Manual” procedure. However, should we

have not yet been appointed at the time of mailing the Annual

Compliance Review, we remind the client that he needs to delegate us as

an authorized agent on the PSP to allow us to do the annual filings on his

behalf.

The client should have received a letter from FSCO (or will receive it

following the registration of the plan) providing information on the PSP,

where all filings related to the plan must be done electronically. On this

letter, the client will find a User Name and temporary password for the

PSP. The client should follow the steps but may request assistance from

INTEGRIS by sending an email to [email protected] . A staff

member will be happy to assist in guiding the client through this process.

f. Summary of Contributions (FSCO Form 7)

This regulatory Form is required by FSCO. It requires the plan

administrator to complete the Summary of Contributions annually and

to remit a copy to the trustee of the pension fund (iA Financial Group) by

March 1st.

Given that iA Financial Group has the information in our files, we

complete it on the client behalf and keep a copy in our files. The copy

mailed to the client in the Annual Compliance Review is for information

only and no further steps are required from the client.

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APPENDIX A - Annual Compliance Review g. Review of the Statement of Investment Policies and

Procedures (SIP&P)

It is the plan administrator's duties to review the SIP&P annually. While

the client and the advisor are not required to make changes every year,

they should assess whether it is still appropriate in relation to the goals

and objectives of the plan.

Should the client want to make changes to it, please forward us a copy of

the new SIP&P at [email protected].

Should the client have misplaced the SIP&P, please contact us at

[email protected] and we will send a copy of the latest SIP&P we have on

record for the plan.

h. Next Steps to expect for the year

This summarizes what the client can expect for the remainder of the year

with regards to the administration of the plan:

- The client will receive a copy of the Statement of Benefits.

- We will file the Annual Information Return on his behalf by the end of

June and send him a copy of the filed document (provided that we

have been delegated as an authorized agent on the PSP).

- The client will receive a Contribution Statement around mid-

November to provide an update of contribution status.

- The client will receive the Pension Adjustment (PA) around mid-

December to help calculate the PA that should be reported on the T4

slip

Documents

ComplianceManual-OngoingAdm - INTEGRISppp.ia.ca/pdf/PPP_OngoingManual_20170510.pdf · 2017. 5. 10. · 6. INTEGRIS Quarterly Invoices INTEGRIS invoices are mailed quarterly following