Second Window for Applications for Temporary Solvency Funding Relief Opens for Public Sector Pension Plans

November 7, 2011

Changes made to the regulation under the Pension Benefits Act in May 2011 provide some pension plans in the public sector and broader public sector with the opportunity to take advantage of temporary solvency funding relief.

In exchange for the relief, plan sponsors are expected to adopt plan changes that would make their plans more sustainable in the long term.  The process could include negotiations with collective bargaining agents.

The first window for applications closed in March 2011.  This second window for applications is open from the date of this announcement to December 30, 2011.  This means that completed applications must be submitted to the Ministry of Finance no later than December 30, 2011.

The filing deadline for a pension plan with a valuation date on or after August 2, 2010 and on or before May 30, 2011 has been extended by regulation to February 29, 2012.

Plan sponsors will be notified whether or not they have been accepted into Stage 1 of the solvency relief regime by mid-February, 2012.

A detailed description of the framework and the savings targets, as well as information on how to apply, is posted on the Regulatory Registry and can be accessed here.

Ontario Regulation 178/11, which provides the temporary solvency funding relief, can be found here.

Ontario Regulation 177/11, which includes the provisions that extend the filing deadlines for certain plans, can be found here.

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