Home PBGF

Keyword: PBGF

16 results found
Ontario temporarily slashes penalties for PBGF non-payment

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 […]

  • By: Staff
  • May 7, 2020 November 30, 2020
  • 08:50
Quebec won’t create emergency fund for corporate pensions

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 […]

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

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 […]

  • By: Staff
  • January 30, 2020 November 30, 2020
  • 09:00
Nortel pensioners lose $200M refund battle with Ontario’s PBGF

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 […]

FSRA creates new advisory committees on pension sector matters

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 […]

  • By: Staff
  • July 23, 2019 November 30, 2020
  • 09:15
What do pension benefits guarantee fund changes mean for plan sponsors?

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. […]

  • March 26, 2019 September 13, 2019
  • 08:30
FSCO publishes chart with five scenarios under new DB pension funding regime

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 […]

  • By: Staff
  • August 30, 2018 September 13, 2019
  • 09:20
Sears DB members facing bleak payout prospects as company reduced to ‘shell of itself’

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, […]

A look at Sears’ U.S. pension prospects as Canadian windup ordered

Whatever the fate of Sears Holdings Corp.’s operations in the United States, the company’s American pensioners are likely to emerge better off than their Canadian counterparts. Much of that is due to the broad powers available to the Pension Benefit Guaranty Corp., which regulates pensions in the United States. “The PBGC can act pre-emptively, and it […]

Disclosable event regime, Sears measures among pension changes in Ontario budget

As part of its 2018 budget, the Ontario government unveiled a proposal to make its changes to the pension benefits guarantee fund apply retroactively to plans with a windup date on or after May 19, 2017. “This amendment is intended to apply to pension benefits provided to former Sears Canada employees,” the government noted in its budget on […]