Regulation - LGIC
Proposed Amendment to Ontario Regulation 909 under the Pension Benefits Act - Extend for One Year the Temporary Exemption from the Solvency Concerns Test for Certain Jointly Sponsored Pension Plans for Filing Annual Valuation Reports
Regulation Number(s):
Regulation 909
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Ontario Regulation 320/23 was filed on October 3, 2023.
Analysis of Regulatory Impact:
The proposed amendment would have no impact on the current state for stakeholders, as the temporary exemption is in effect and would be extended for one year.
Further Information:
Ontario Regulation 320/23
Proposal Number:
23-MOF010
Posting Date:
July 21, 2023
Summary of Proposal:
Defined benefit pension plans are required to file their valuation reports with the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (FSRA) at least once every three years. Under the solvency concerns test, plans are required to file on a yearly basis if they fall below a solvency funding threshold.
The General Regulation under the Pension Benefits Act provides certain listed public sector jointly sponsored pension plans (JSPPs) a temporary exemption from the solvency funding concerns test. With the exemption, these plans are only required to file their valuations once every three years, regardless of their solvency funded status.
This exemption will expire on January 1, 2024. The Ministry of Finance is proposing a regulatory amendment to extend this temporary exemption to January 1, 2025 to provide additional time to bring forward a proposal for a new permanent funding concerns test.
The General Regulation under the Pension Benefits Act provides certain listed public sector jointly sponsored pension plans (JSPPs) a temporary exemption from the solvency funding concerns test. With the exemption, these plans are only required to file their valuations once every three years, regardless of their solvency funded status.
This exemption will expire on January 1, 2024. The Ministry of Finance is proposing a regulatory amendment to extend this temporary exemption to January 1, 2025 to provide additional time to bring forward a proposal for a new permanent funding concerns test.
Contact Address:
Broader Public Sector Pensions Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON M7A 1Y7
or
pension.feedback@ontario.ca
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON M7A 1Y7
or
pension.feedback@ontario.ca
Effective Date:
October 3, 2023
Decision:
Approved