Office of the Superintendent of Financial Institutions
Today, the Department of Finance Canada
announced the coming into force of the new
Solvency Special Payments Relief Regulations, 2020. The regulations came into force on May 27, 2020 and are expected to be published in the Canada Gazette, Part II on June 10, 2020.
The regulations provide funding relief to plan sponsors whose pension plans have a solvency deficiency, and who are normally required to make monthly payments to fund the deficiency and/or address their obligations through the use of letters of credit. The Minister of Finance previously announced the government’s intention to provide this temporary relief on
April 15, 2020.
Under the regulations, from the coming-into-force date (May 27, 2020) until December 30, 2020, federally regulated defined benefit pension plan sponsors are not required to make solvency special payments. The regulations also provide accommodations for solvency special payments made since April 1, 2020.
OSFI has added a new funding relief section to its
COVID-19 FAQ series with additional details for defined benefit plan administrators on the new regulations.
For more details on these regulations, please refer to the Department of Finance's