Nova Scotia – Solvency Funding Relief for DB Plans
The Nova Scotia Government introduced a new round of temporary solvency relief for defined benefit pension plans, through amendments to the Pension Benefits Regulations effective August 8, 2017. Similar to the last round of solvency relief in February, 2013, the amendments give plan sponsors a one-time option to amortize a solvency deficiency over a 15-year period. Eligible solvency deficiencies are those determined in valuation reports with valuation dates from December 30, 2016 to January 2, 2019 as well as existing solvency deficiencies being funded over a five-year period. Plans seeking relief must notify their members and cannot take advantage if there is written objection from at least one-third of the membership.
The amending regulations can be found here.
Prince Edward Island – Updates to Death Benefit and Reciprocal Transfer Provisions for Teachers and Civil Servants’ Pensions
The Civil Service Superannuation Act and Teachers’ Superannuation Act were amended effective January 1, 2017. The amendments to the plans were similar. They updated the death benefit provisions to provide 60 per cent of the pensioner’s benefit amount at the time of death to the surviving spouse plus 10 per cent to each dependent child, for up to four dependent children. Provisions respecting the transfer of funds and service under reciprocal transfer agreements were updated. Among other minor changes, the amendments also provided the Commission the express authority to collect overpayments from the fund.
Bill 44, An Act to Amend the Teachers’ Superannuation Act, can be found here.
Bill 45, An Act to Amend the Civil Service Superannuation Act, is here.
Newfoundland and Labrador – Solvency Funding Relief for MEPPs and some Municipal Plans
Amendments to the Pension Benefits Act Regulations filed on April 4, 2017 include changes to funding requirements for certain types of plans. Multi-employer pension plans may elect to be exempt from solvency funding requirements and instead fund a going concern unfunded liability over 12 (rather than 15) years. The option applies to plans with report review dates between December 31, 2015 and December 31, 2020. Certain municipal pension plans were also given exemptions from solvency payments over the same period.
The amending regulations are included here.
Dante Manna is an associate with Stewart McKelvey