Regulation - LGIC
Interim Regulatory Amendments to Support the AbitibiBowater Pension Restructuring Plan
Regulation Number(s):
ONTARIO REGULATION 19/11
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
Ontario Regulation 19/11 was filed on January 28, 2011.
Further Information:
Ontario Regulation 19/11
Proposal Number:
11-MOF011
Posting Date:
March 3, 2011
Summary of Proposal:
To protect pensioners, jobs and communities in Ontario and across Canada, the governments of Ontario and Quebec have agreed to provide assistance to enable AbitibiBowater to restructure.
Pension restructuring is critical to the company's broader restructuring. The commitments to provide pension funding relief in Ontario and Quebec for certain AbitibiBowater pension plans, allowed the company to emerge from bankruptcy protection under the Companies Creditors Arrangement Act in December 2010.
The posted amendment to Regulation 909 under the Pension Benefits Act is a necessary first step in implementing the pension funding relief provisions, which must be effective from the date the company emerged from bankruptcy protection. The amendment extends the time period, from 60 to 120 days, for making arrears pension payments, as identified in the September 30, 2010 valuation reports filed on December 8, 2010, for the five AbitibiBowater pension plans in Ontario.
Subsequent amendments to fully implement the 10-year funding relief provisions will be required before expiry of the 120-day period in early April 2011.
Pension restructuring is critical to the company's broader restructuring. The commitments to provide pension funding relief in Ontario and Quebec for certain AbitibiBowater pension plans, allowed the company to emerge from bankruptcy protection under the Companies Creditors Arrangement Act in December 2010.
The posted amendment to Regulation 909 under the Pension Benefits Act is a necessary first step in implementing the pension funding relief provisions, which must be effective from the date the company emerged from bankruptcy protection. The amendment extends the time period, from 60 to 120 days, for making arrears pension payments, as identified in the September 30, 2010 valuation reports filed on December 8, 2010, for the five AbitibiBowater pension plans in Ontario.
Subsequent amendments to fully implement the 10-year funding relief provisions will be required before expiry of the 120-day period in early April 2011.
Contact Address:
Pension Policy Branch
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen’s Park Crescent
Toronto ON M7A 1Y7
Ministry of Finance
5th Floor, Frost Bldg S.
7 Queen’s Park Crescent
Toronto ON M7A 1Y7
Effective Date:
January 28, 2011
Decision:
Approved