• About
  • Offices
  • Careers
  • Students
  • Alumni
Background Image
Logo Bennett Jones
  • People
  • Expertise
  • Resources
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All

FEATURED AREAS

Energy
Funds & Finance
Mining
Capital Projects
All Industries
Crisis & Risk Management
Environmental, Social & Governance
Governmental Affairs & Public Policy
All Practices
Insights
Media
Events
Subscribe
COVID-19 Resource Centre
Business Law Talks Podcast
Kickstart
New Energy Economy Series
People
Featured Areas
All Practices
All Industries
About
Offices
Careers
Insights
Events
Search
Search
 
Blog

Solvency Funding Relief for Federally Regulated Pension Plans Amidst the COVID-19 Pandemic

April 16, 2020

Written by Susan Seller, Jordan Fremont and Jaspreet Kaur

On April 15, 2020, the Finance Minister, Bill Morneau announced that the government will provide immediate, temporary relief to sponsors of federally regulated defined benefit (DB) pension plans. This relief will be in the form of a moratorium, through the remainder of 2020, on solvency payment requirements for federally regulated DB plans. 

This relief measure is intended to address the COVID-19 pandemic's effects on the economy. Some pension plan sponsors are facing significant financial constraints, causing short-term liquidity issues and, in some cases, threatening the long-term viability of their businesses. A moratorium on remaining 2020 solvency payment requirements for federally regulated DB pension plans could assist sponsoring employers with managing financial resources that are needed to maintain their operations and to ultimately protect the retirement security of their workers and retirees.

The federal government's announcement further provides that the impacts of the global pandemic on DB pension plan assets and liabilities could also significantly affect solvency funding obligations in 2021. The government intends to consult with stakeholders of federally regulated DB pension plans over the coming months on options to provide relief from 2021 funding obligations.

For a summary of COVID-19 related announcements and measures introduced by OSFI, please see OSFI Provides Further Guidance to Administrators of Federally Regulated Pension Plans Amidst the COVID-19 Pandemic.

For a summary of COVID-19 related announcements and measures introduced by pension regulators in:

  • Ontario, New Brunswick and Québec;
  • British Columbia; and
  • Alberta, Saskatchewan and Nova Scotia.

We will continue to monitor and update you on related developments of interest to pension plan sponsors and administrators. If your business or organization has questions respecting the respect COVID-19 implications to your pension plan, please contact a member of the Bennett Jones Employment Services group. In addition, please visit our COVID-19 Resource Centre for other COVID-19-related materials.

Authors

  • Susan G. Seller Susan G. Seller, Partner
  • Jordan N. Fremont Jordan N. Fremont, Partner
  • Jaspreet  Kaur Jaspreet Kaur, Associate

Read the Fall 2020 Economic Outlook

Related Links

  • Insights
  • Media
  • Subscribe

Recent Posts

Blog

Advancing Alberta's New Liability Management Framework

January 11, 2021
       

Blog

Supreme Court of Canada: Silence Can Breach the Contractual [...]

January 05, 2021
       

Blog

Canadian Government Releases Draft Clean Fuel Regulations

December 22, 2020
       

Blog

Fairstone Financial v Duo Bank – Ontario Court Interprets MAC Clause

December 22, 2020
       

Blog

The Power of Now in Canada's Energy Industry

December 22, 2020
       

The firm that businesses trust with their most complex legal matters.

  • Privacy Policy
  • Disclaimer
  • Terms of Use

© Bennett Jones LLP 2021 All rights reserved. Bennett Jones refers collectively to the Canadian legal practice of Bennett Jones LLP and the international legal practices and consulting activities of various entities which are associated with Bennett Jones LLP

Logo Bennett Jones