FSRA permits delegated administrators to make and revoke delegations on Pension Services Portal
The Financial Services Regulatory Authority of Ontario (FSRA) has created a new role of “Delegated Administrator” under the Pension Services Portal (PSP). This will allow Delegated Administrators who work for service providers such as Morneau Shepell to make and revoke delegations for the employees within their organizations. It also permits more than one employee of the pension plan administrator (usually the employer) to manage delegations both within and outside of the organizations.
Under the previous system, the “Primary Administrator” (usually an individual who works for the employer) would be required to provide or revoke access to all agents. No other individual inside or outside of the organization would be permitted to manage delegation rights.
FSRA says the change is intended to reduce the burden on Primary Administrators that outsource the administration and investment functions of their pension plans to third parties.
There are now four categories of delegates to whom a Primary Administrator may delegate PSP access: Delegated Administrator, Secondary Administrator, Agent and Actuary.
The announcement was accompanied by instructions on the new PSP delegation/revocation process.
The new delegation process will relieve Primary Administrators of some of the obligations associated with managing PSP access. A third party Delegated Administrator will be able to manage its own team’s access to the PSP without needing to ask the Primary Administrator to make changes every time an agent needs to be added or revoked. Furthermore, an internal Delegated Administrator of a pension plan administrator will be able to share most of the responsibilities of the Primary Administrator.