The Segal Group summarizes and analyzes important compliance news affecting pension plans in a publication called Briefing.

Ontario’s Ministry of Finance has filed regulations that formalize a new funding framework for defined benefit pension plans. The framework, which came into force on May 1, 2018, introduces:
  • New solvency funding requirements and required solvency deficiency payments
  • Changes to the going concern funding rules;
  • A requirement to fund a reserve called the Provision for Adverse Deviations (PfAD);
  • New funding criteria that must be met before benefit improvements are allowed; and
  • Transitional rules.

In general, the regulations are in line with what was proposed in December 2017. However, there are notable changes to the rules regarding benefit improvements.

Our latest Briefing presents an overview of the changes, which apply to all pension plans except target benefit multi-employer pension plans (TB MEPPs). The proposed funding framework that will apply to TB MEPPs is currently in consultation.

See previous issues of Briefing.

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