PBGF – Benefits Canada.com

FSRA opens consultation on proposed pension benefits guarantee fund guidance

Jennifer Paterson — Thu, 17 Feb 2022 14:00:40 +0000

The Financial Services Regulatory Authority of Ontario is consulting on proposed pension benefits guarantee fund assessment deadlines and calculations guidance, which is designed to assist plan administrators in maintaining compliance with the Pension Benefits Act. The proposed guidance includes: that the deadline for paying the assessment is nine months after the fiscal year end, whether the pension plan […]

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Head to head: Should Canadian governments eliminate pension solvency funding rules?

Jennifer Paterson — Fri, 19 Nov 2021 13:59:37 +0000

With defined benefit pension solvency reforms gradually coming in across the country, two experts debate whether there’s a better way to ensure DB plan sustainability and security. Todd Saulnier, vice-president, the Association of Canadian Pension Management’s board of directors The answer is mostly yes. A floor of 85 per cent of solvency liability might be […]

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Ontario temporarily slashes penalties for PBGF non-payment

mschmit — Thu, 07 May 2020 04:50:49 +0000

The Ontario government has significantly cut financial penalties for plan sponsors making a late payment of a pension benefits guarantee fund assessment. The change, made through an amendment to the provincial Pension Benefits Act, will apply to plan sponsors that fail to pay their PBGF assessments that are due between April 30 and Dec. 31. Read: An overview […]

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Quebec won’t create emergency fund for corporate pensions

mschmit — Fri, 14 Feb 2020 05:15:01 +0000

Quebec’s closed the door on the idea of forming a pension benefits guarantee fund to protect members in retirement plans sponsored by employers that have declared bankruptcy. Finance Minister Éric Girard said Tuesday that no such measure would be included in the provincial budget set to be released March 10, reported Radio-Canada. In explanation, Girard […]

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CARP sets out wish list for DB pension protections in 2020 budget submission

mschmit — Thu, 30 Jan 2020 05:00:19 +0000

CARP is highlighting the need for further protections for defined benefit pensions in its 2020 Ontario budget priorities. The submission noted CARP, formerly the Canadian Association of Retired Persons, supports the steps taken by the Financial Services Regulatory Authority of Ontario and the provincial government to bolster innovation in DB plan design, as well as reducing red […]

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Nortel pensioners lose $200M refund battle with Ontario’s PBGF

mschmit — Thu, 09 Jan 2020 05:00:12 +0000

Ontario’s pension benefits guarantee fund has successfully reclaimed some $200 million from monies allocated to pensioners in Nortel Networks Corp. bankruptcy proceedings. The silver lining for pensioners is that the decision by the Financial Services Tribunal finally puts an end to the uncertainty they’ve experienced since their benefits were cut off in 2010. “It would have […]

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FSRA creates new advisory committees on pension sector matters

mschmit — Tue, 23 Jul 2019 05:15:21 +0000

The Financial Services Regulatory Authority is creating three new technical advisory committees, which will provide advice and feedback to the regulator on pension sector related matters and will form part of its stakeholder engagement process going forward. The aim is to improve processes and approaches to regulation and reduce regulatory burden, noted a press release. In its first year of […]

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What do pension benefits guarantee fund changes mean for plan sponsors?

mschmit — Tue, 26 Mar 2019 04:30:34 +0000

Alongside recent reforms to funding rules for Ontario-registered defined benefit pension plans, the Ontario government also made changes to the pension benefits guarantee fund, including improvements to benefits payable by the PBGF and changes to its annual assessment paid by employers. Employers should budget for the change in their assessments, effectively beginning with assessments due in 2019. […]

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FSCO publishes chart with five scenarios under new DB pension funding regime

mschmit — Thu, 30 Aug 2018 05:20:43 +0000

In response to its new defined benefit pension funding regime, the Financial Services Commission of Ontario has developed a chart illustrating the rules applicable in five scenarios, based on valuation and filing dates. The new regime, which took effect on May 1, 2018, includes: shortening the amortization period to 10 years from 15 years for funding a […]

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Sears DB members facing bleak payout prospects as company reduced to ‘shell of itself’

mschmit — Mon, 14 May 2018 05:03:59 +0000

Sears Canada Inc. pension plan members are facing bleak prospects for getting their full pension payouts, according to a Toronto bankruptcy lawyer. “They won’t be made whole, regardless of how we look at this,” says Lou Brzezinski, a partner at Blaney McMurty LLP. The comments follow the filing of a recent affidavit by Philip Mohtadi, […]

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