The Ontario government has published proposed regulations relating to the funding framework for certain multi-employer pension plans seeking to convert defined benefits to target benefits. Under the proposed regulations, which were first announced in June 2017, eligible multi-employer pension plans wouldn’t be required to fund on a solvency basis. However, they would still be required to provide […]
Ontario will replace the temporary solvency funding exemption in place for specified multi-employer pension plans with a new target-benefit framework, the government announced Thursday. The interim exemption will extend to August 2018 as the government looks to introduce legislation in the fall and regulations next year. While Ontario’s new framework will permanently exempt collectively bargained […]
While Ontario’s proposed solvency changes for defined benefit pension plans may help plan sponsors with funding obligations, they may put plan members in a more precarious position, says Michael Mazzuca, a partner in the pension and employee benefits group at Koskie Minsky LLP in Toronto. “There’s obviously a suggestion that, in addition to the emphasis on going […]
The deficit racked up by the U.S. federal agency that insures pensions for about 40 million Americans has increased 23% to $76.4 billion over the past year. The agency’s program for so-called multi-employer pension plans continues to account for a large share of the deficit, $52.3 billion. Multi-employer plans are pension agreements between labour unions […]
The Financial Services Commission of Ontario (FSCO) has announced changes to the new Pension Benefits Act grow-in rules, providing an opt-out provision for jointly sponsored pension plans (JSPPs) and multi-employer pension plans (MEPPs).
The U.S. Financial Accounting Standards Board (FASB) has issued Accounting Standards Update No. 2011-09, Compensation—Retirement Benefits—Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer’s Participation in a Multiemployer Plan. The update is intended to guide employers in providing more information about their financial obligations to multiemployer pension plans (MEPPs). MEPPs are commonly used by an employer […]