Proposed Amendment to Ontario Regulation 909 under the Pension Benefits Act - Extending the Temporary Exemption for Certain JSPPs from the Annual Valuation Filing Requirement
Bill or Act:
Pension Benefits Act
Summary of Proposal:
Most pension plans are required to fund on both a going concern and solvency funding basis. The Pension Benefits Act (PBA) requires sponsors of those plans to file a valuation annually if their solvency funded position drops below 85%.
This is known as the solvency concerns test.
Certain Jointly Sponsored Pension Plans (JSPPs) are not required to fund on a solvency basis. Since JSPPs are required to fund on only a going concern basis, it may be appropriate for these plans to be subject to an alternate test. These plans have been temporarily exempted from the solvency concerns filing requirement until December 31, 2017 to allow for the development of a new test.
Given that final decisions on the general funding reforms are in development, it is proposed that the current exemption for these plans be extended for an additional two years. Once the new funding rules are implemented, a new funding test will be developed and posted on the Registry for consultation.
September 22, 2017
Comments Due Date:
November 9, 2017
Broader Public Sector Pensions Branch
Ministry of Finance
1st Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7