Relief for federally regulated pension plan sponsors
On April 15th, 2020, the Department of Finance Canada announced that the government will provide immediate, temporary relief to sponsors of federally regulated, defined benefit pension plans. This relief will be in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for defined benefit plans.
This relief will help ensure that employers have the financial resources they need to maintain their operations and their pension plans, and to protect the retirement security of their workers and retirees.
The government also recognizes that the impacts of the global pandemic on pension plan assets and liabilities could also significantly affect solvency funding obligations in 2021. The government will consult with stakeholders over the coming months on options to provide relief from 2021 funding obligations, as necessary.