Government of Saskatchewan
Thursday, December 05, 2019
Financial and Consumer Affairs Authority

When transferring the commuted value of a benefit from a defined benefit plan, the plan administrator must hold back the amount of the transfer deficiency from the transfer amount, unless the employer remits sufficient money to eliminate the transfer deficiency, or the transfer deficiency is a small amount. 

The transfer deficiency that has been held back must be transferred within 5 years of the date of the initial transfer, or when the plan becomes solvent, whichever comes first.  The plan sponsor may also remit to the plan the amount required to eliminate the transfer deficiency and pay the transfer deficiency immediately. 

A transfer deficiency is the amount by which the commuted value of a benefit exceeds the product of the commuted value and the plan’s solvency ratio. 

A plan's solvency ratio is the fraction obtained by dividing the market value  of the assets currently held in the plan by the liabilities of the plan on a plan termination basis. 

See the related documents below for more information on the administration of transfer deficiencies.

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