![]() ![]() ![]()
|
||||||||||||||||||||||||||||||||||||||||
|
![]() |
Ottawa, November 7, 2006 Canada’s New Government Provides Funding Relief for Defined Benefit Pension PlansRelated document: The Honourable Jim Flaherty, Minister of Finance, today released final regulations to provide temporary funding relief for federally regulated defined benefit pension plans. The measures cover defined benefit pension plans established for employees working in areas that fall under federal jurisdiction—about 10 per cent of all plans in Canada. In recent years, declining long-term interest rates, as well as changes to actuarial standards, have contributed to solvency deficits—the amount by which a plan’s liabilities exceed its assets. The regulations, announced in Budget 2006 and pre-published on June 10, 2006, in Part I of the Canada Gazette, set out a range of options to help fund these deficits. Plan sponsors could choose one of the following options:
"The measures will help re-establish full funding of plans in an orderly manner, while also protecting pension benefits," said Minister Flaherty. The Office of the Superintendent of Financial Institutions (OSFI) will provide further clarification shortly on the expected procedures for plan sponsors that wish to consider the new funding options. The temporary funding relief will only be available to plan sponsors whose funding payments are up-to-date. To ensure transparency and accountability, all plans with solvency deficits file annual reports on their financial position, which are available to plan members. Further, OSFI releases information on plan solvency at regular intervals, including in its annual report to Parliament. Further information is available on the Department of Finance website. ___________________________________
If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance website at www.fin.gc.ca/scripts/register_e.asp |
||||||||||||||||||||||||||||||||||||||
|