A third round of temporary solvency relief measures for private sector employees who sponsor Ontario registered defined benefit plans is effective July 1, 2016.

Solvency funding relief applies to the first actuarial valuation report dated on or after December 31, 2015 and prior to December 31, 2018.

Two options are available, similar to past solvency funding relief options

Option 6 : existing solvency deficiency payments can be consolidated into a new 5-year payment schedule

Option 7 : solvency payment schedule can be extended up to 10 years for any new solvency deficiency.  

There are a few exceptions to consider when adopting solvency relief.

Option 6 cannot be elected for special payments that were extended to a maximum of 10 years under Option 3 (2009 measures) or Option 5 (2012 measures)

Option 7 requires the consent of plan beneficiaries.

Solvency relief cannot be adopted in a plan wind-up situation

Mondelis will work with plan sponsors to determine the impact of the solvency funding relief options for your plans.

The link below provides more information.

http://www.fsco.gov.on.ca/en/pensions/actuarial/Pages/2012-solvency-funding-relief.aspx

 

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