The impact of recent Ontario Pension Benefit Act changes
The impact of recent Ontario Pension Benefit Act changes
The impact of recent Ontario Pension Benefit Act changes
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November 21, 2012<br />
Solvency relief for defined benefit pension plans<br />
Temporary measures<br />
• Consolidation <strong>of</strong> existing solvency payment schedules into a new<br />
longer five-year payment schedule<br />
• Extend the solvency payment schedule up to 10 years (from the<br />
current maximum <strong>of</strong> five years) for new solvency deficiency subject<br />
to plan beneficiary consent<br />
Permanent measures<br />
• Permit solvency and going concern special payments to be<br />
amortized beginning one year after a plan valuation date<br />
• Permit the use <strong>of</strong> irrevocable letters <strong>of</strong> credit issued by financial<br />
institutions to cover up to 15% <strong>of</strong> a plan’s solvency liabilities<br />
20<br />
2012 <strong>Ontario</strong> <strong>Pension</strong> Changes
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