Regulation - LGIC

Additional Temporary Solvency Funding Relief for Employer Sponsors of Public Sector Single Employer Pension Plans (SEPPs)

Regulation Number(s):
Not Applicable
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Ontario Regulation 307/13, which was approved by the Lieutenant Governor in Council amends certain provisions of Ontario Regulation 178/11 under the Pension Benefits Act. The amendments relate to Stage Two solvency funding relief for certain Ontario public sector pension plans.
Further Information:
Proposal Number:
Posting Date:
October 23, 2013
Summary of Proposal:
The government announced in its 2013 Budget that it "will consider regulatory amendments that provide additional relief of solvency funding obligations for public-sector SEPPs that have taken steps to put their plans on a sustainable track,...".

In accordance with the Budget announcement, the government is proposing the following measure:

Amend Regulation 178/11 under the Pension Benefits Act (PBA) to provide the employer sponsor of a pension plan that has a Stage Two valuation date on or before December 31, 2014, as listed in Schedule 2 of the regulation 178/11, the choice between:

i) Amortizing the solvency deficit identified in the Stage Two valuation report (the solvency deficit) over a period of 10 years (the current provision); and

ii) Making interest-only payments for the first three years of the 10-year period under Stage Two solvency funding relief and amortizing the balance of the solvency deficit over the remaining seven years in equal monthly installments.
Contact Address:
BPS Pensions Branch
Ontario Ministry of Finance
Frost Building South, 1st Floor
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Effective Date:
November 29, 2013