Regulation - LGIC
Red Tape Reduction - Revocation of Spent Regulations Regarding Temporary Solvency Funding Relief
Regulation Number(s):
Regulation 909
O. Reg 321/09
O. Reg 178/11
O. Reg 156/13
O. Reg. 311/15
O. Reg. 365/17
O. Reg 321/09
O. Reg 178/11
O. Reg 156/13
O. Reg. 311/15
O. Reg. 365/17
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
The proposed regulatory amendments to Regulation 909 would revoke spent provisions that provided temporary funding relief, primarily relief from solvency funding requirements, for certain defined benefit (DB) pension plans. The time period during which administrators of DB plans could elect to use this relief has expired.
Requirements for progress reports related to the solvency funding relief would also be revoked. The information provided by these progress reports is no longer relevant as a result of the changes in funding rules for DB pension plans in effect as of May 1, 2018.
Any existing funding requirements will be maintained, so these amendments would have no effect on required funding for any DB pension plans.
In addition to relieving administrators from the requirement to prepare outdated progress reports, the revocation of out-of-date regulations would improve efficiency for pension industry stakeholders by clarifying the regulations to modestly reduce regulatory compliance costs.
The proposed regulatory amendments would also revoke another spent provision that allowed certain public sector single employer pension plans additional time to file valuation reports with effective dates between September 30, 2011 and May 31, 2012, inclusive.
Amendments to five other regulations under the Pension Benefits Act would remove references to provisions in Regulation 909 that would be revoked. No substantive change would be made to these regulations.
Requirements for progress reports related to the solvency funding relief would also be revoked. The information provided by these progress reports is no longer relevant as a result of the changes in funding rules for DB pension plans in effect as of May 1, 2018.
Any existing funding requirements will be maintained, so these amendments would have no effect on required funding for any DB pension plans.
In addition to relieving administrators from the requirement to prepare outdated progress reports, the revocation of out-of-date regulations would improve efficiency for pension industry stakeholders by clarifying the regulations to modestly reduce regulatory compliance costs.
The proposed regulatory amendments would also revoke another spent provision that allowed certain public sector single employer pension plans additional time to file valuation reports with effective dates between September 30, 2011 and May 31, 2012, inclusive.
Amendments to five other regulations under the Pension Benefits Act would remove references to provisions in Regulation 909 that would be revoked. No substantive change would be made to these regulations.
Analysis of Regulatory Impact:
The proposed regulatory amendments would reduce costs for businesses. Plans that previously elected solvency relief and must send progress reports to members would realize reduced communication costs.
Further Information:
Draft regulations - Revocation of Spent Regulations Regarding Temporary Solvency Funding Relief
(Download Adobe Reader)
Regulation 909
Pension Benefits Act
Proposal Number:
21-MOF008
Posting Date:
April 15, 2021
Comments Due Date:
May 31, 2021
Contact Address:
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.feedback@ontario.ca
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen's Park Crescent
Toronto, ON M7A 1Y7
OR
Pension.feedback@ontario.ca