Ontario releases proposed criteria for exempting JSPPs from funding requirements

The Ontario government has released a consultation paper on the proposed criteria for exempting from solvency funding requirements a newly established multi-employer jointly sponsored pension plans (JSPP) or a JSPP created out of the amalgamation of existing single employer pension plans.

The proposed criteria include:

  • a minimum of five participating employers;
  • not more than 50% of the combined membership be employed by a single employer;
  • a baseline asset level of $5 billion; and
  • an examination of a plan’s overall governance practices, with particular attention paid to board composition and risk management tools, such as asset-liability management studies, provisions for adverse deviations and funding policies.

Comments must be sent to the Ministry of Finance by June 1, 2015.

The paper is available on the government’s website.

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