Jordan Fremont is featured in Benefits Canada for his insights on the proposed borrowing flexibility rule for defined benefit pensions included in the federal budget.
The proposal would replace the historical 90-day term limit on short-term borrowing with restrictions based on plan assets, meaning additional borrowed money can’t exceed the lesser of 20 percent of the plan’s assets and the amount by which 125 percent of the plan’s actuarial liabilities exceed the plan’s assets net of unpaid previous borrowings.
Jordan says, "I think the changes are coming from larger plans that see the 90-day limit as restrictive and as making things more complicated.”
The full article can be found on the Benefits Canada website.