OSFI seeks comments on draft 2013 MCT guideline, reflecting adjustments based on defined benefit pension plans
June 25, 2012 by Canadian Underwriter
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The Office of the Superintendent of Financial Institutions (OSFI) has released a draft of its 2013 Minimum Capital Test (MCT) Guideline for industry consultation.
The draft guideline includes new amounts to be deducted from or adjusted within total capital available, including net defined benefit pension plan assets.
The change was made in response to amendments to IAS 19–Employee benefits, which come into effect Jan. 1, 2013.
“P&C insurers may elect to phase in the initial impact of the IAS 19 Employee Benefits changes, effective for fiscal years beginning on or after Jan. 1, 2013,” OSFI notes in a statement. “If a P&C insurer elects a phase-in, it will be reflected via adjustments to the accumulated unrealized gains (losses) on remeasurements of defined benefit pension plans reported in the MCT. The election to phase in is irrevocable.”
OSFI is looking to receive comments on the proposed changes outlined in the draft 2013 MCT Guideline prior to Aug. 10, 2012.
OSFI is working towards finalizing the 2013 MCT Guideline in the fall of 2012.
The draft guidelines can be found at:
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