Employers that sponsor defined benefit (“DB”) pension plans know that contribution requirements can be volatile and onerous, especially given current low interest rates.
The Ontario Government has taken note. In its recent consultation paper, Review of Ontario’s Solvency Funding Framework for Defined Benefit Pension Plans (“Consultation Paper”), the Government proposes several approaches to change the current DB funding rules, including the complete elimination of solvency funding (as Québec did earlier this year).
Comments on the Consultation Paper are due by September 30, 2016. The Ontario Government then intends to hold a second public consultation on any proposed funding reforms … Continue Reading