OSFI Updates Instructions for Form 1 – Attestation Regarding Withdrawal Based on Financial Hardship

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financial hardship unlocking provisions of the Pension Benefit Standards Regulations, 1985 (PBSR) allow for funds to be withdrawn based on one of the following or a combination of both: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.