OSFI Updates Instructions for Form 1 – Attestation Regarding Withdrawal Based on Financial Hardship
Published January 04, 2023
The Office of the Superintendent of Financial Institutions (OSFI) updated the instructions for
Form 1 – Attestation Regarding Withdrawal Based on Financial Hardship
to reflect the 2023 Year’s Maximum Pensionable Earnings (YMPE), which is
the maximum amount of earnings on which contributions to the Canada
Pension Plan (CPP) are based. It is updated annually by the federal
government based on the average industrial wage in Canada. The YMPE
for 2023 is $66,600. OSFI updated FAQ 2 (about the unlocking amount) to reflect the 2023 YMPE.
The
financial hardship unlocking provisions of the Pension Benefit
Standards Regulations, 1985 (PBSR) allow for funds to be withdrawn based
on one of the following or a combination of both:
- Low income
- High medical or disability-related costs
A
number of the unlocking provisions refer to the YMPE in determining
whether funds can be unlocked and/or the amounts that can be
unlocked. The figures found in Form 1 reflect the amounts for 2023 and
are valid for withdrawals up to December 31, 2023.